Dalrymple Bay Infrastructure Ltd. · ASX:DBI
Dalrymple Bay Infrastructure — Investor Presentation (September 2024)
30 slides from Dalrymple Bay Infrastructure's investor presentation, Sep 20, 2024
Slide 1: ASX Announcement: Investor Presentation
ASX Announcement 20 September 2024 Investor Presentation Dalrymple Bay Infrastructure Limited (ASX:DBI) (“DBI” or “the Company”) releases today the attached Investor Presentation which the Company will utilise for a series of Investor Conferences and presentations in September and October 2024. ‐END
Slide 2: Investor Presentation September & October 2024
Investor Presentation September & October 2024
Slide 3: Presenters and agenda
Presenters 01 Business Overview Format photo 02 Growth Opportunities Michael Riches Chief Executive Officer Stephanie Commons Chief Financial Officer 03 Strategic Priorities 04 Appendices 2 Investor Presentation | September & October 2024
Slide 4: Business Overview
Business Overview 3
Slide 5: Dalrymple Bay Infrastructure (DBI)
Dalrymple Bay Infrastructure (DBI) DBI through its foundation asset, the Dalrymple Bay Terminal (DBT), aims to provide safe and efficient port infrastructure and services for producers and consumers of high quality Australian metallurgical coal exports. Through further organic investment in DBT and
Slide 6: Our location and customers
Our location and customers DBI, via the Dalrymple Coal Terminal, services predominantly metallurgical coal mines in the Bowen Basin. DBI Asset Location DBI Customer base1 Relationship Users Commencement2 Anglo American 1983 Bowen Coking Coal 2023 Fitzroy Resources 2006 Glencore 1983 Middlemount Coal
Slide 7: DBI is a regulated business with a growing revenue profile
DBI is a regulated business with a growing revenue profile Regulation Terminal Inflation linked Take or Pay Pass through Infrastructure revenue costs charge (TIC) Light-handed approach A charge of $3.59 Under a 10 year contract Regardless of the tonnes All the terminal’s where DBI can agree a charge
Slide 8: H1-24 financial overview
H1-24 financial overview EBITDA FFO TIC Rate Growth Distributions $136.5m $73.9m $3.59/t ~$395m 10.75cps +8.6% vs HY1-23 +4.2% vs HY1-23 +4.2% in TY-24/25 vs Of non-expansionary2 +7% vs HY1-23 TY-23/241 capital projects underway3 1. TIC Year (TY) runs from 1 July to 30 June. i.e., TY-24/25 is 1 July
Slide 9: H1-24 operational highlights
H1-24 operational highlights Zero Serious Safety Incidents1 29.9mt of coal exports (29.8mt in H1-23) 71% of exports were to Japan, South Korea, India, China and Taiwan (68% in H1-23) +30% uplift in coal exports to India vs H1-23 81% of revenue from predominantly met coal mines (82% in H1-23)2 1. Ser
Slide 10: Stable and growing revenue profile
Stable and growing revenue profile TIC revenue is not impacted by: Resulting in: • Throughput or coal price – 100% take-or-pay contracts • Predictability of cashflows • Force Majeure – no payment relief for customers for a FM event1 • EBITDA growth expected to outpace inflation with inflation-linked
Slide 11: Growth in revenue leads to growth in distributions
Growth in revenue leads to growth in distributions Distribution Policy DBI Quarterly Distributions – by Period Earned1 (cps) • Target FFO payout ratio of between 60-80% • Target DPS growth of 3-7% p.a. for the foreseeable future, subject to business developments and market conditions TY-24/25 Distri
Slide 12: Investment grade balance sheet
Investment grade balance sheet Investment grade credit profile with a weighted average tenor of 7.2 years1 Funding Source • ~A$2.67 billion2 of total limits of which ~$2.16 billion2 was drawn at 30 June (By Facility Limit, %) 2024 • All USD debt swapped back to AUD – 100% foreign exchange hedge • In
Slide 13: Growth Opportunities
Growth Opportunities 12
Slide 14: Growth through DBI's core competitive advantages
Growth through DBI’s core competitive advantages Our competitive advantages, along with the long-term resilience of DBT, provide the opportunity to develop a portfolio of assets via organic and external growth opportunities 1 2 3 4 5 Regulatory Capital deployment Operational Funding Key expertise ca
Slide 15: Organic growth - Non-Expansionary Capital Expenditure (NECAP)
Organic growth − Non-Expansionary Capital Expenditure (NECAP) NECAP spend in the decade to 2031 forecast to be over $500m • ~ $395m1 of NECAP projects currently NECAP Summary Status Report underway which will be funded by existing debt facilities and internal cash flow Approved NECAP Progress Comple
Slide 16: Organic growth opportunity - 8X Project
Organic growth opportunity – 8X Project 8x Expansion Commercials • Incremental optimisation project within the existing • 8X is expected to involve a cost per tonne of capacity that is more than previous expansions. DBI will therefore terminal footprint likely require, subject to the structure of fi
Slide 17: New energy options
New energy options The Port of Hay Point is one of only five priority ports in Queensland A funding agreement to complete feasibility studies agreed between DBI and three other consortium partners was signed on 23 February 2022.1 Dalrymple Bay is ideally positioned for the export of new energy produ
Slide 18: DBI's external growth opportunities
DBI’s external growth opportunities DBI’s competitive advantages together with defined growth filters frame the external growth opportunities that may be assessed to drive shareholder value beyond DBT DBI’s Growth Filters High barriers Outsourced Potential for capital Focused primarily on Provide op
Slide 19: Strategic Priorities
Strategic Priorities 18
Slide 20: Strategic priorities over the next 12 months
Strategic priorities over the next 12 months DBI’s strategic priorities are focussed on delivering total shareholder returns Delivering organic revenue growth through the implementation of approved 1 NECAP Projects Progressing opportunities to capture long-term Bowen Basin metallurgical coal 2 produ
Slide 21: Appendices
Appendices 20
Slide 22: TY-24/25 Terminal Infrastructure Charge (TIC) up 4.2% YoY
TY-24/25 Terminal Infrastructure Charge (TIC) up 4.2% YoY Inflation linked nature of the TIC provides robust pricing upside DBI’s TIC has 3 components1 1. Base TIC Indexed annually in line with the Australia all groups Consumer Price Index (CPI). The CPI applied for TY-24/25 was 3.6%. 2. NECAP Charg
Slide 23: Profit and Loss
Profit and Loss For H1-24 DBI reported net profit after tax of $36.8m, up 8.2% on H1-23 1 TIC Revenue The Terminal Infrastructure Charge (TIC) applicable during H1-24 was $3.44 per tonne Prof it & Loss, A$ million N ote H 1-24 H 1-23 compared to the TIC during H1-23 of $3.18 per tonne. The TIC appli
Slide 24: Cashflow statement
Cashflow statement Funds From Operations for H1-24 is $73.9m, up 4.2% on H1-23 1 Net Finance Costs Cashfl o w, A $ mi l l i o n No t e H 1-24 H 1-23 Net Finance Costs includes interest on external borrowings and borrowing costs, net of interest income. The increase in interest on external borrowings
Slide 25: Balance sheet
Balance sheet DBI maintained an investment grade balance sheet with funding secured for substantial NECAP growth pipeline Balance Sheet A$ million Note 30-Jun-24 31-Dec-23 1 Cash Cash 1 147.3 71.1 $50m of term deposits have been reclassified from Financial assets to Cash during the half year to 30 J
Slide 26: Reconciliation of statutory borrowings to drawn debt
Reconciliation of statutory borrowings to drawn debt Borrowings A$ million Note 3 0 -Jun-2 4 3 1 -D ec-2 3 1 Fair value adjustments booked on acquisition of DBT Group entities On acquisition of the DBT Entities, a fair value adjustment of $48.4m was recognised. This adjustment is being amortised ove
Slide 27: Pathways to decarbonisation
Pathways to decarbonisation Emission scope Emissions1 Short term Medium Term Long Term Scope 1: 54 (tCO2-e/YEAR) Commence transition to hybrid, plug in Remainder of vehicles to be at Transition fleet to electric DBI site vehicles hybrid or fully electric for some site least hybrid or plug in hybrid,
Slide 28: Social and governance highlights
Social and governance highlights Safety, Health & Wellbeing Employee Diversity and Inclusion Community and Partnerships A review of the DBI Safety Culture Strategy DBI established a People and Culture Committee DBI’s Community Investment, Partnership and identified opportunities for improved safety
Slide 29: Glossary
Glossary $ Australian Dollar unless otherwise stated FFO Funds From Operations means EBITDA less net interest expense and less any cash /t Per metric tonne tax payable. 8X Project Expansion program to bring terminal capacity to 99.1Mtpa Group DBI and its wholly owned or controlled entities AU Access
Slide 30: Disclaimer and important notices
Disclaimer and important notices This presentation has been prepared by Dalrymple Bay Infrastructure Limited ACN 643 302 032 (DBI or the Company). Summary Information This presentation contains summary information about the Company and its related entities and their activities, current as at 20 Sept
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