Slide 1: Welcome
Welcome. My name is Nicholas Bolton, Keybridge’s Executive Director, and I am pleased to present to you the Company’s financial results for year ended 30 June 2013. This presentation addresses the present status of the Company’s financial position, its portfolio of assets, and the outlook for the bu
Slide 2: Pre tax operating profit of $2 million for the year to 30 June 2013
Keybridge Capital achieved a pre tax operating profit of $2 million for the year to 30 June 2013. However, as a consequence of the Board’s decision to provide for some further asset impairments, the net operating result after tax was a loss of $3.8 million. The impairment in asset values for the ful
Slide 3: Revenue decreased from 2012; income, borrowing costs and tax refund
Overall revenue decreased from 2012 as a result of the realisation of aircraft investments and income from the lending portfolio not being recognised as the loan is now impaired. Income included an unrealised gain of $1.4 million on the investment of shares held in PTB, which included $0.3 million o
Slide 4: Profitability trend through the year
Looking at the trend of profitability through the year, we can see that there was a small net operating profit in the second half. This was delivered through managing operating costs, improved income across the portfolio and material reductions in interest expenses. The major negative contribution i
Slide 5: Keybridge's financial results over the past four years
This graph demonstrates Keybridge’s financial results over the past four years. Operating profit for the twelve months to 30 June 2013 is lower than 30 June 2012, as the results for the full year to 30 June 2012 included the recognition of a significant uplift in the asset value of the Company’s inv
Slide 6: Management of cash continues to be a key focus
Management of cash continues to be a key focus. Overall cash income decreased from 2012 as a result of the realisation of aircraft investments and income from the lending portfolio not being received as PRFG senior lender restricted the payments of interest to KBC. 6
Slide 7: Shareholders' funds of $42.04 million and NTA of 24 cents per share
The Group’s shareholders’ funds were $42.04 million as at 30 June 2013, with net tangible assets (NTA) of 24 cents per share. This represents an NTA reduction of 2 cents per share at 30 June 2012 arising from the property and aviation impairments. It is noted that at the time of this report, the una
Slide 8: Value of the investment portfolio reduced from $82 million to $30 million
Over the course of the last twelve months, the value of Keybridge’s investments portfolio has reduced from $82 million to $30 million. This was as a result of: − Investment repayments of $44 million; − Accrued income and reinvestment of $3 million; − Net foreign exchange positive movements of $1 mil
Slide 9: Total book value of assets was $42.48 million
At 30 June 2013, the total book value of the Company’s assets was $42.48 million. The largest asset class is cash, representing 30% of total assets. Lending represents 27%, Infrastructure 19%, Private Equity 11%, Property 6%, Aviation 7% (2012:46%) of the portfolio and all shipping assets are carrie
Slide 10: Lending: Total book value $11.7 million
Lending: Total book value $11.7 million. Keybridge has one remaining investment in the Lending asset segment. Keybridge holds a mezzanine loan to PRFG and on 16 August 2013, Keybridge acquired 100% of the shares in PRFG (via a Scheme of Arrangement). Selected background information on Keybridge’s in
Slide 11: Infrastructure: Total book value $8.1 million
Infrastructure: Total book value $8.1 million. The Group has one remaining infrastructure investment, being a loan to, and an equity accounted investment in, a 1 MW solar electricity facility in Spain. The Company has advised previously that there have been some production issues at this plant as a
Slide 12: Private Equity
Private Equity: As part of the arrangements to exit the Company’s aviation investments, Keybridge restructured its participation in a closed-end private equity fund based in the United States, which was managed by the same party as the aviation investment. As a result of the restructure, Keybridge n
Slide 13: Property
Property: Keybridge’s two remaining property backed investments have experienced valuation pressures over the last six months. In particular, one of the investment’s value has deteriorated quickly as a result of changed circumstances in recent months. Accordingly, we have taken a prudent decision to
Slide 14: Aviation
Aviation: During the year to 30 June 2013, Keybridge realised its largest of its remaining aviation investments, which involved the sale of four A330-300 aircraft and resulted in a material repayment to the Group. Keybridge’s only other remaining aviation investment is an 18.5% holding in ASX-listed
Slide 15: Shipping
Shipping: Shipping continues to be a volatile and challenged asset class. Keybridge assigns no value to the remaining four vessels in which it holds junior loans (managed by our partner and co-investor, Tufton Oceanic Limited of London, UK). This is due to the independent market value of the ships b
Slide 16: Keybridge's parent company staff and board
Keybridge’s parent company now only has a full time staff of three (including the Executive Director), and a Board of four directors (the ED and three non-executive directors). Transaction management is handled by the Executive Director, with the other two staff assisting in day-to-day financial man
Slide 17: Outlook for Keybridge
Now turning to the outlook for Keybridge. Having now achieved the significant milestone in the full repayment of our corporate debt facility, Keybridge is now in a position where at its own discretion it may consider the future. Management’s attention is presently focused on the successful completio
Slide 18: Thank you for your time today
Thank you for your time today. If you have any follow-up questions, please contact me directly. 18