Channel Infrastructure Nz Limited · NZX:CHI
Channel Infrastructure Nz — Rapid Insights Conference (June 2024)
10 slides from Channel Infrastructure Nz's conference presentation, Jun 26, 2024
Slide 1: Rapid Insights Conference
Rapid Insights Conference 26 June 2024
Slide 2: Important Information
Important Information • This presentation contains forward looking statements concerning the financial • In light of these risks, results could differ materially from those stated, implied or condition, results and operations of Channel Infrastructure NZ Limited (hereafter inferred from the forward-
Slide 3: Our Investment proposition
Our Investment proposition Ownership of critical infrastructure Long-term customer contracts Stable inflation linked earnings and cash flows with strong balance sheet 11% Free Cash Flow yield, 8% Dividend yield Infrastructure resilient through New Zealand’s transition to liquid renewable fuels Focus
Slide 4: Providing resilient infrastructure needed to support the energy transition
Providing resilient infrastructure needed to support the energy transition 4
Slide 5: Long-term business underpinned by jet fuel demand, inflation linked revenues
Long-term business underpinned by jet fuel demand, inflation linked revenues Marsden Point Throughput (Million Litres) Contracted revenue outlook using Envisory fuel demand outlook - 4,000 (2023 terms [1] excluding PPI Indexation) 40ML 140.0 3,500 Tank capacity available for conversion 120.0 3,000 A
Slide 6: Stable and predictable infrastructure returns
Stable and predictable infrastructure returns Capital allocation framework Stable and predictable earnings Strong cashflow and balance sheet to deliver to shareholders 91% Stay-in-business EBITDA to FCF Leverage [3] Total FY23 Dividend policy capital expenditure Conversion Dividend 3.6x 30-40% Reven
Slide 7: Helping fuel NZ's future to 2050 and beyond
Helping fuel NZ's future to 2050 and beyond OUR VISION World-class energy infrastructure company OUR PURPOSE Delivering resilient infrastructure solutions to meet changing fuel and energy needs OUR STRATEGIC PRIORITIES World-Class High Performance Grow from Support Energy Disciplined Capital Good Ne
Slide 8: Key supply route for jet fuel to Auckland International Airport
Key supply route for jet fuel to Auckland International Airport • NZ is geographically isolated and reliant on long-haul air travel to connect people and markets • Tourism is New Zealand’s largest export industry and directly employs 8.4% of New Zealand's workforce[1] and air freight carries 16% of
Slide 9: Sustainable Aviation Fuel only plausible pathway to aviation decarbonisation
Sustainable Aviation Fuel only plausible pathway to aviation decarbonisation Liquid sustainable aviation fuel is a ‘drop in’ fuel that can utilise the existing supply chain and airport infrastructure and existing aircraft fleets 2020 2030 2040 2050 Regional • 30-90 minute flights • 3-4% of AIA fligh
Slide 10: Growth opportunities
Growth opportunities Focused on opportunities with above WACC returns and customer contracts that provide revenue certainty Near term growth at Marsden Point Repurposing of surplus land Growth Outside Marsden Point SUPPORTING FUEL RESILIENCE FUTURE FUELS ACQUISITION OF OTHER INFRASTRUCTURE Continue
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