Infratil Limited · NZX:IFT
Infratil — Shareholder Meeting (August 2003)
20 slides from Infratil's shareholder meeting presentation, Aug 11, 2003
Slide 1: Manager's Presentation Annual Meeting
Manager’s Presentation Annual Meeting 11 August 2003 Infratil Best Corporate Communicator Emerging Leader 2003
Slide 2: Year Ended 31 March 2003
Year Ended 31 March 2003 Net profit $28.1 million ($22.6 million last year) 3cps dividend (7cps) Strong performance from major investments (80% of portfolio) TrustPower, Wellington & Glasgow Prestwick airports Purchase of 12.9% of Energy Developments $55.6 million investment Divestment
Slide 3: Quarter Ended 30 June 2003
Quarter Ended 30 June 2003 Net profit $6.18 million Strong performance from major investments (80% of portfolio) TrustPower, Wellington & Glasgow Prestwick airports Energy Developments/Tranz Rail/Port of Tauranga No impact on quarterly result Shareprice rebound 16% increase in share pr
Slide 4: First Quarter Results
First Quarter Results Millions 2003 2002 TrustPower EBITD NPBT $26.3 $15.1 NPAT $17.2 $9.9 WIAL EBITD $9.46 $6.30 NPBT $4.04 $0.42 NPAT $2.75 $0.41 GPIA EBITD £1.40 £1.25 NPBT £0.68 £0.55 NPAT £0.43 £0.34 Page 4
Slide 5: Track Record / Returns
Track Record / Returns Nine year return to shareholders 20.0% pa after tax Average investment IRR of 26.8% pa Infratil's Sharemarket Performance 700 600 500 400 Index 300 200 100 0 Mar-94 Sep-94 Mar-95 Sep-95 Mar-96 Sep-96 Mar-97 Sep-97 Mar-98 Sep-98 Mar-99 Sep-99 Mar-00 Sep-00 Mar-01 Sep-01 Mar
Slide 6: Gross Indices
Page 6 Apr-03 Oct-02 Apr-02 Oct-01 Apr-01 Oct-00 Apr-00 Oct-99 Apr-99 Oct-98 Apr-98 Oct-97 Apr-97 IFT Gross Indices Oct-96 Apr-96 NZSX40 Oct-95 Apr-95 Oct-94 6100 5100 4100 3100 2100 1100 100
Slide 7: Portfolio Evolution
Portfolio Evolution Strategy & Approach Invest in areas of expertise where Infratil can exert influence and target above average risk-adjusted returns 1998 → 2003 capital allocation to airports and renewable energy from energy distribution 1998 2000 2003 Generation Energy Distribution Ports Airp
Slide 8: Looking Forward: The Issues
Looking Forward : The Issues TrustPower Electricity prices, risk management, “dry year” initiatives Wellington International Airport Airline competition and services Glasgow Prestwick International Airport UK economic recovery, new airline services, value per pax Port of Tauranga, Tran
Slide 9: TrustPower
TrustPower Corporate focus on returns Renewable generator (hydro/wind) 1,950 GWh pa average output (@ 5c/kwh = $97.5million income pa) No fuel costs, low O&M costs Hydro stations last forever Returns depends on energy prices NZ is emerging from a period of cheap power from low cost gas
Slide 10: TrustPower
TrustPower Income & value derived from electricity prices and projected future prices c/kWh Wholesale Electricity Price Future Electricity Prices 25 10 20 8 Monthly cents per kwh Moving 15 6 Half Year Average Average 10 4 5 2 0 0 1 Apr 99 1 Apr 00 1 Apr 01 1 Apr 02 1 Apr 03 1 Oct 99 1 Oct 00 1 Oct 0
Slide 11: Wellington International Airport
Wellington International Airport 2003 2002 1999 5y change EBITD $33.79M $24.62M $16.10M +20.4% pa Contribution to Infratil $10.22M $6.20M $2.76M +38.7% pa Aero income $33.64M $24.02M $22.10M +11.2% pa Non-aero pax income $12.04M $11.29M $5.96M +19.2% pa Operating cost* $11.89M $10.97M $12.90M -2.0%
Slide 12: Wellington International Airport
Wellington International Airport Index NZ Domestic/International Air Travel Costs: Real (000s) Passengers 160 150 4,000 140 Domestic International 130 3,500 120 110 3,000 100 90 2,500 80 70 2,000 Domestic International 60 1,500 Mar-90 Mar-91 Mar-92 Mar-93 Mar-94 Mar-95 Mar-96 Mar-97 Mar-98 Mar-99 Ma
Slide 13: Wellington International Airport
Wellington International Airport The Warehouse has signed up. Target Opening Christmas 2004 Page 13
Slide 14: Glasgow Prestwick International Airport
Glasgow Prestwick International Airport 2003 2002 2001 CHANGE Scheduled Passengers 1,318,000 1,156,000 896,000 47% Total Passengers 1,483,000 1,309,000 988,000 50% Freight Volume 41,100 42,630 42,164 -3% Total Aero Income £10.44M £8.76M £7.17M 46% Concession Contribution £3.88M £3.45M £2.23M 74% Pro
Slide 15: Glasgow Prestwick International Airport
Tonnes Passenger Numbers 0 200 400 600 800 1,000 1,200 1,400 1,600 0 10,000 20,000 30,000 40,000 50,000 1992 1992 1993 1993 1994 1994 1995 1995 1996 1996 1997 1997 1998 1998 1999 1999 Annual Air Freight Tonnes Annual Passenger Numbers 2000 2000 2001 2001 2002 2002 2003 2003 Year-on-Year Change - Yea
Slide 16: Future Focus
Future Focus Focus on creating above average risk-adjusted returns for shareholders Recognition that income stability and dividends important for shareholders Existing major core investments performing well and expected to do better New investment focus on Emerging Airports and Renewable Ene
Slide 17: Future Focus: Emerging Airports
Future Focus: Emerging Airports Aviation industry undergoing a step change with low cost / low fare short haul Growth in passenger numbers A different airport package Emerging Airports Suits low-fare and freight airlines Less actively contested investment sector Success depends on skil
Slide 18: Future Focus: Renewable/Waste Energy
Future Focus: Renewable/Waste Energy People / Society is willing to pay to reduce pollution and dumping of rubbish Penalties/levies on waste and emissions Subsidies on “green” services and products Suits small scale projects Small thermal stations Small scale hydro/wind stations Operat
Slide 19: Regulation
Regulation Airfield and Port decisions Ministry of Economic Development and Minister of Commerce Clear recognition of the costs of regulation and the need for investors to receive consistent signals Commerce Commission Seems to have dropped aberrant views on valuation methodologies. The fo
Slide 20: www.infratil.com
www.infratil.com Page 20