Infratil Limited · NZX:IFT
Infratil — H1 FY2019 Earnings Presentation
26 slides from Infratil's earnings presentation, Nov 13, 2018
Slide 1: Interim Results announcement
Infratil Interim Results announcement 13 November 2018
Slide 2: Half Year Overview
Half Year Overview Material progress from new platforms and sustained performance at the core • Underlying EBITDAF of $338.8 million, up $54.5 million (+19.2%) from the comparative half year of $284.3 million • Operating cash flow of $142.7 million, up $11.9 million (+9.1%) from the comparative half
Slide 3: Financial Highlights
Financial Highlights Underlying EBITDAF growth continues its momentum Half Year ended 30 September ($Millions) 2018 2017 Variance % Change Underlying EBITDAF (continuing operations)1 338.8 284.3 54.5 19.2% Net Parent Surplus 58.5 39.7 18.8 47.4% Net Operating Cash Flow 142.7 130.8 11.9 9.1% Capital
Slide 4: Results Summary
Results Summary Strong operating result with positive contributions from core and growth businesses Half Year ended 30 September 2018 2017 ($Millions) Operating revenue 982.0 926.3 • Operating revenue increased with continued strength in the core businesses and strong development gains from Operatin
Slide 5: Underlying EBITDAF
Underlying EBITDAF Growth businesses have delivered strong gains in the half year Half Year ended 30 September • Trustpower result is above expectation; however short of last year’s 2018 2017 ($Millions) exceptional combination of high generation volumes and wholesale Trustpower 129.7 152.1 prices T
Slide 6: Group Capital Expenditure and Investment
Group Capital Expenditure and Investment Substantial investment across the portfolio forecast to continue Half Year ended 30 September 2018 2017 ($Millions) Trustpower 11.4 15.9 • Tilt Renewables completion of Salt Creek windfarm alongside progression of Dundonnell windfarm (‘DDWF’) to financial clo
Slide 7: Tilt Renewables
Tilt Renewables Infratil and Mercury full takeover offer • On 2 September 2018, Infratil and Mercury jointly made a full takeover offer for Tilt Renewables. At that date Infratil and Mercury already held or controlled 51.04% and 19.99% of the Tilt shares respectively • As at 9 November the Infratil/
Slide 8: Debt Capacity & Facilities
Debt Capacity & Facilities Duration consistent with long-term ownership of assets • Cash position of $120.9 million and wholly owned subsidiaries’ bank facilities drawn of $35.7 million as at 30 September 2018 • Senior debt facilities extended with maturities up to 4 years • Infratil’s IFT180 maturi
Slide 9: Moderate Gearing and Funds Available for Investment
Moderate Gearing and Funds Available for Investment Careful deployment of capital has maintained a significant balance for investment 30 September ($Millions) 2018 2017 Net bank debt (cash on hand) (85) (425) • Net bank debt as at 30 September 2018 was $85.2 million Infratil Infrastructure bonds 770
Slide 10: Distributions
Distributions Maintaining a sensible DPS and distribution strategy through investment cycles Ordinary dividend per share profile FY 2012-2019 INTERIM DIVIDEND 20 • Interim dividend of 6.25 cps, with 1.5 cps of imputation credits, payable on 14 December 18 2018 to shareholders recorded as owners by 1
Slide 11: Infratil Share Price and Shareholder Returns
Infratil Share Price and Shareholder Returns Recognition of underlying investment performance reflected in the share price Infratil Share Price “IFT.NZX” $4.00 • Total shareholder return for the year to date (9 November) is 17.0% $3.50 • Range of near to mid-term catalysts are evident within the por
Slide 12: Infratil’s Absolute Return Target
Infratil’s Absolute Return Target A targeted nominal shareholder return of 11-15% per annum for the period to March 2028 • The return target reflects observed market returns for risk categories consistent with Infratil’s mandated sectors, weighted to reflect Infratil’s portfolio balance • The return
Slide 13: Asset Values
Asset Values Comparable valuation metrics highlight underlying value of the portfolio Book Value Comparable Trustpower 816 1,091 Market ($6.21) + 10% control premium Tilt Renewables 296 420 $2.30: Tilt Takeover Offer Price Wellington Airport 385 758 NZ Bus 170 170 16x Multiple of forecast FY19 EBITD
Slide 14: Trustpower
Trustpower Focus on efficiency, automation and digital solutions is delivering results Financial • EBITDAF of $129.6 million ahead of expectations, however down 15% on the exceptional prior year. • The result reflects a solid retail business and sound management of Trustpower’s 27 generation schemes
Slide 15: Tilt Renewables
Tilt Renewables Milestones achieved to convert development pipeline into material revenue flows Financial • EBITDAF of A$66.9 million, up 36% on a relatively weak comparative period • Strong financial performance was driven by wind conditions above long-term expectations across the New Zealand and A
Slide 16: Longroad Energy
Longroad Energy Significant project realisation affirms the pursuit of the U.S. renewables platform Longroad today • Total operating portfolio of 684MW, managing construction of 488MW and a current development pipeline of ~8GW • Longroad Services providing operating and maintenance services to 1,236
Slide 17: Canberra Data Centres
Canberra Data Centres Strong market tail winds and quality infrastructure have sustained high levels of demand Financial • On track for over 30% year-on-year growth in revenue and run rate EBITDAF, against 20% growth rate originally forecast • Current run rate EBITDAF of A$71 million, with contracte
Slide 18: Wellington Airport
Wellington Airport Passenger growth reflects increased demand across the network Financial • EBITDAF of $49.6 million, 4.8% growth on last year • Over 3.1 million passengers in the 6 months, +4.7% or a 140,000 increase on last year • Domestic passenger growth of 4.8% was driven by high demand across
Slide 19: NZ Bus
NZ Bus Long-term scale and stability secured for Auckland, Wellington and Tauranga Financial • HY18 EBITDA normalised for one-off reorganisation, re-contracting costs and lag of higher fuel costs was $16.3 million • Revenue down 10.9%, largely due to reduced scale in Wellington and other contract ch
Slide 20: RetireAustralia
RetireAustralia Industry wide headwinds continue to impact results, sector thesis remains in-tact Financial • Underlying profit of A$9.1 million, down from A$27.3 million in the prior year (FY18: A$33.7 million) • Lower development margin in HY19 with a lower volume of new units sold (9 vs 39), prin
Slide 21: Perth Energy
Perth Energy Playing an important part in the Western Australia energy market Financial • HY19 EBITDAF A$23.3 million, A$29.1 million improvement on HY18 • FY19 forecasting a continuing positive contribution from both Retail and Generation Retail • A$16.1 million cost savings from trueing up Perth E
Slide 22: Australia National University Student Accommodation
Australia National University Student Accommodation Evolving sector with attractive yield and development profile Performance • The portfolio of 4,184 beds is fully occupied for the 2018 academic year, with an additional 450 beds currently under construction and scheduled to open in Q1 2019 • Infrat
Slide 23: 2018/2019 Outlook
2018/2019 Outlook Underlying EBITDAF guidance range revised to to $580-$620 million • Underlying EBITDAF guidance was revised upwards in FY2018 FY2019 Outlook to 31 March ($Millions) September to $540-$580 million following confirmation of the Actual Outlook forecast contribution from Longroad Energ
Slide 24: Core assets and new platforms combine to sustain growth
Core assets and new platforms combine to sustain growth Focused on converting the development pipelines and optimising the portfolio Prior platform development now delivering sustained growth and realised development gains • We are focussed on establishing large-scale independent platforms targeting
Slide 25: For more information
For more information www.Infratil.com 25 Infratil Interim results presentation 2019
Slide 26: Appendix I – Reconciliation of NPAT to Underlying EBITDAF
Results Summary Appendix I – Reconciliation of NPAT to Underlying EBITDAF 30 September ($Millions) 2018 2017 Net profit after tax 106.1 97.9 • Underlying EBITDAF is a non-GAAP measure of financial performance, presented to show management’s view of less: share of MET & RA associate earnings (11.3) (