Channel Infrastructure NZ Limited · NZX:CHI
Channel Infrastructure NZ — Debt Investor Presentation (April 2022)
24 slides from Channel Infrastructure NZ's debt investor presentation, Apr 28, 2022
Slide 1: Offer of unsecured, unsubordinated, fixed rate bonds
Offer of unsecured, unsubordinated, fixed rate bonds Investor Presentation 28 April 2022
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer This presentation has been prepared by Channel Infrastructure NZ Limited (“Channel Forward-looking statements Infrastructure”) in relation to the offer (“Offer”) of unsecured, unsubordinated, fixed rate bonds This presentation may contain certain ‘forward-looking stat
Slide 3: Important Notice and Disclaimer
Important Notice and Disclaimer Past performance Disclaimer Past performance information provided in this presentation is given for illustrative purposes To the maximum extent permitted by law each of Channel Infrastructure, the Supervisor, the only and should not be relied on as (and is not) a prom
Slide 4: Overview of the Offer
Overview of the Offer Issuer • Channel Infrastructure NZ Limited (Channel Infrastructure) Description • Unsecured, unsubordinated, fixed rate bonds Offer amount • Up to NZ$100m plus oversubscriptions of up to NZ$25m (at Channel Infrastructure’s discretion) • The net proceeds of this Offer are to be
Slide 5: Business Summary
{oA Channel Infrastructure NZ Business Summary
Slide 6: About Channel Infrastructure
About Channel Infrastructure Owns critical Listed on the NZX Main infrastructure – jetty on Receives, stores, tests Board and has the deep-water harbour, and distributes fuel Subordinated Notes storage tanks, and imported and owned by quoted on the NZX Debt the 170-kilometre its customers Market pip
Slide 7: Business overview
Business overview Critical infrastructure delivering projected stable earnings through long-term customer agreements Ownership of critical infrastructure Long-term customer contracts MARSDEN POINT TO AUCKLAND Projected stable earnings and cash flows PIPELINE Strong balance sheet Supporting
Slide 8: Fundamental change in business and financial risk profiles
Fundamental change in business and financial risk profiles Significantly lower earnings volatility • Fixed fee components, take or pay protection and lower operating expenses • Removed significant exposure to refinery margins and US$ exchange rate Lower operational risk and capital intensity • Lower
Slide 9: Ownership of critical infrastructure
Ownership of critical infrastructure Highly efficient infrastructure supplying the Auckland and Northland markets • New Zealand’s largest transport fuels storage terminal Auckland and Northland Product Demand (Million Litres) • c.180 ML of shared capacity under the Terminal Services Agreements • C.1
Slide 10: Long-term customer contracts
Long-term customer contracts Contracts underpinning revenue certainty and providing inflation protection • 10-year customer contracts with fixed and minimum fee Fixed Fee and Take-or-pay Fee (before annual price indexation adjustments) ($m) components, and third-party access to unutilised capacity a
Slide 11: Projected stable earnings and cash flows
Projected stable earnings and cash flows High cash yielding business, with significant tax losses and low maintenance capex Indicative FY23 Financial metrics • Stable earnings and significant cash flow generation from critical (in nominal terms, infrastructure assets ($m) includes contracted private
Slide 12: Strong balance sheet
Strong balance sheet Optimisation continued towards infrastructure-like balance sheet ($m) FY21 FY20 Assets Cash 16 43 • Import terminal assets revalued to ‘fair value’ based on Receivables and inventory 148 175 independent valuation Current assets 164 218 • Further asset optimisation opportunities
Slide 13: Strong balance sheet (cont'd)
Strong balance sheet (cont’d) Significant headroom and no near-term maturities • Significant headroom available to fund conversion project costs Debt maturity profile – April 2022 (pre-bond issuance) Debt Maturity Profile 150 • Committed facilities of $370m with c.$200m of liquidity headroom, no sig
Slide 14: Conversion execution tracking to plan
Conversion execution tracking to plan Successfully commenced import terminal operations on 1 April 2022 Terminal conversion project Private storage • Tracking to plan with $20m spent to 31 • Private storage tanks not requiring March 2022 conversion work already in operation • Refinery shutdown compl
Slide 15: Supporting New Zealand's decarbonisation
Supporting New Zealand’s decarbonisation Conversion delivers around a third of New Zealand’s first emission reduction budget[1] Direct emissions (ktCO2) • In the near term, conversion delivers a 98% reduction in the Company’s 2019 carbon Delivering emissions, equivalent to over 1 million tonnes CO2
Slide 16: A focused growth strategy
A focused growth strategy Well positioned to support New Zealand’s changing fuel needs • Strategic fuel storage Flexibly developing • Growth in electricity Marsden Point as an • Other imports energy hub for the • Transition to imports, production, storage north of New Zealand of future fuels – biofu
Slide 17: Bond Offer
GS Infrastructure NZ Bond Offer
Slide 18: Key Terms
Key Terms Issuer • Channel Infrastructure NZ Limited Description • Unsecured, unsubordinated, fixed rate bonds Offer amount • Up to $100m (with the ability to accept oversubscriptions of up to an additional $25m at Channel Infrastructure’s discretion) Term • 5 years maturing on 20 May 2027 • On a li
Slide 19: Key Terms
Key Terms Minimum application • Minimum application of $5,000 with multiples of $1,000 thereafter amount Brokerage • 0.50% on firm allocations plus 0.50% brokerage Quotation • Application has been made for the Bonds to be quoted on the NZX Debt Market under the ticker CHI020. Credit rating • Unrated
Slide 20: Questions
SP Channel Infrastructure NZ Questions
Slide 21: Supplementary Information
SP Channel Infrastructure NZ Supplementary Information
Slide 22: A long-term sustainable operating model with strong aspirations for growth
A long-term sustainable operating model with strong aspirations for growth 2222
Slide 23: Our transition
Our ‘customer: ‘CHANNEL INFRASTRUCTURE: custome: SCOPE 3 SCOPE1&2 SCOPE 3 SUPPLY CHAIN EMISSIONS. ‘OPERATIONS. END-USER EMISSIONS. Keeping Aotearoa moving Refining NZ _ Channel Infrastructure © © Fuel, biofuels and next-generation sustainable fuels imported by Channel Infrastructure's customers
Slide 24: Our transition roadmap
Our transition roadmap Refining NZ OUTLOOK + Refining NZ has played an essential rle in New Zeoland’s energy supply chain providing nearly all jet fual and the majority of diesel and petrol + Refining NZ faced historically low refining margins ‘exacerbated by COVID-19, and structural challenges to t
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