Infratil Limited · NZX:IFT
Infratil — Investor Day (2014)
14 slides from Infratil's investor day presentation, 2014
Slide 1: Introduction and Context - Infratil Investor Day 2014
Infratil 2014 Introduction and Context Infratil Investor Day 2014 Infratil 2014
Slide 2: Infratil's raison d'être
Infratil’s raison d’être Absolute returns from active management of growth infrastructure Absolute • IFT’s goal: deliver long-term excess returns significantly above our cost of returns equity Long term • Sustained performance through different phases of the investment cycle and focus capital market
Slide 3: Total shareholder returns enhanced through a well balanced portfolio
Total shareholder returns enhanced through a well balanced portfolio Optimised risk and return across the portfolio Diversified • Diversified earnings and cash flow can offset short-term earnings performance shortfalls of any individual asset • Lower risk core assets provide the cash flow to support
Slide 4: A bias towards businesses with reinvestment opportunities
A bias towards businesses with reinvestment opportunities Re-investment in existing businesses and development of options • Preference for businesses with potential to be market leaders • The best assets deliver a steady stream of re-investment opportunities - We control timing and size of significa
Slide 5: Operational approach drives a private market emphasis
Operational approach drives a private market emphasis Focus on positions of strong influence or control • Active management of risks and investments is optimised when IFT wholly owns or controls an underlying asset - Private markets are better suited to heavy transition programs, governance/manageme
Slide 6: Growth infrastructure demands a focus on risk management
Growth infrastructure demands a focus on risk management Translating project risk into high total returns • Growth infrastructure implies management of greenfield exposure, demand risk or activity in markets undergoing significant change - Requires active management to manage downside risk - IFT has
Slide 7: IFT capital structure is important
IFT capital structure is important Enhancing returns through the prudent use of parent company debt • Equity returns enhanced through the use of parent company and subsidiary debt - Subsidiaries that can sustain their own bank and bond programs will hold an appropriate level of debt where possible -
Slide 8: The world we face today
The world we face today Positive outlook moderated by increasingly competitive infra market • Low interest rates and increasing focus of large scale funds on low-risk infra have been the most significant dynamic in private markets over the last 5-7 years - We are at the point of divergence – i.e. th
Slide 9: The world we face today (cont'd)
The world we face today (cont’d) Positive outlook moderated by increasingly competitive infra market • Competitiveness of the infrastructure investment market and supply of low cost of capital funds are reinforcing IFT’s focus on development platforms - Most large SWF’s and pension funds still shy a
Slide 10: IFT origination approach is being extended
IFT origination approach is being extended Strategies to target less competed, higher returning opportunities Description Examples 1 Building • Invest into seed assets with proprietary development and/or • PPP platforms investment pipeline that enable meaningful follow-on • Wind and renewables inves
Slide 11: Current valuation – market flows and supply dominate structure
Current valuation – market flows and supply dominate structure Portfolio is being re-set for the next phase of the investment cycle • IFT’s existing portfolio and development options should translate into above-average total returns over the next 5 years - Base case scenarios forecast strong EBITDAF
Slide 12: IFT guidance and near-term outlook
IFT guidance and near-term outlook Resumption of normal transmission in 2014/15 • 2013/14 EBITDAF guidance lower due to slightly weaker trading 31 March 2014 2015 performance in TPW and NZ Bus and Updated Previous New weaker $AUD earnings NZ $m Guidance* Guidance Guidance* • Improved operating cashf
Slide 13: The IFT recipe from here
The IFT recipe from here Consistency and discipline as we move through to the next phase Deliver on • Maintain our disciplined origination approach our promises • Invest in the internal development pipeline to the market • Keep a tight rein on capital management Maintain focus • Achieve targets and
Slide 14: For more information go to infratil.com
For more information go to infratil.com Infratil 2014 14