Slide 1: Full Year Results, Year ended 31 March 2015
INFRATIL FULL YEAR RESULTS Year ended 31 March 2015 19 May 2015
Slide 2: Full Year Overview
Full Year Overview Asset sales and new investments generate record results in FY15 • Record net surplus following asset realisations - $337.7m gain on sale of the IEA/Lumo Group • EBITDAF from continuing operations +3.7% (+10.3% adjusted) • Successful execution of portfolio renewal and capital expen
Slide 3: Financial Highlights
Financial Highlights Gain on sale of Lumo dominates reported net surplus Full Year Ended 31 March ($Millions) 2015 2014 Variance % Change EBITDAF (continuing activities) 453.4 437.4 16.0 3.7% Operating Earnings (continuing activities) 125.5 131.1 (5.6) (4.3%) Net Surplus after Tax, MI and Disc Ops 3
Slide 4: Result Summary
Result Summary Adjusted EBITDAF +10.3% on prior year • $45.1m increase in adjusted EBITDAF(1) to $484.0m (+10.3%) • Increased contribution from Trustpower partially offset by aeronautical price reset in WIAL • Full year contribution from Metlifecare • Decreased contribution from Z Energy as a result
Slide 5: Result Summary
Result Summary Special dividend of 6.4 cps will augment final dividend of 8.0 cps OPERATING CASH FLOW FINAL ORDINARY DIVIDEND • $235.6m for the period (-42% versus PY of AND SPECIAL DIVIDEND (1) $407.2m) • Prior period included $100.9m of distributions from Final ordinary dividend of 8.0 cps and Z E
Slide 6: Adjusted EBITDAF Breakdown
Adjusted EBITDAF Breakdown Completion of Snowtown II drives EBITDAF growth • Trustpower – EBITDAF increase of 19% following FY 31 March ($Millions) 2015 2014 completion of the Snowtown II wind farm Trustpower 330.7 277.4 • Wellington Airport – Reset aeronautical charges Wellington Airport depressed
Slide 7: Debt Position
Debt Position Strong capital base with facility head room and duration • Cash position of $309m and wholly owned subsidiaries bank facilities drawn of $80m • Senior debt facilities have maturities up to 4 years and 6 years (for bus finance export credit facility) • Reduction of $340m in unused facil
Slide 8: Net Asset Values
Net Asset Values Book values at 31 March • Trustpower – listed market value ($7.95) Investment ($Millions) 2015 2014 reflects re-rating of NZ electricity generators/ Trustpower 1,270.0 1,036.7 retailers post the NZ election Z Energy 410.4 312.0 • Z Energy – significant growth in listed market share
Slide 9: Sale of IEA/Lumo September 2014
Sale of IEA/Lumo 30 September 2014 Significant gain on sale following 14 years of development • On 30 September 2014, Infratil completed the sale of 100% of the IEA Group to Snowy Hydro Limited for a net sales price of $671.4m • Net gain on sale of $337.7m recognised within discontinued operations R
Slide 10: Acquisition of RetireAustralia on December 2014
Acquisition of RetireAustralia on 31 December 2014 High quality access point into an attractive sector with strong trends • Infratil and NZ Superannuation Fund acquired a 50:50 interest in RetireAustralia (RA) for an equity value of $406.0m and enterprise value of A$616.7m – Infratil 50% share of Re
Slide 11: Australasian Energy - Trustpower
Australasian Energy - Trustpower Growth Agenda delivering despite tough conditions • EBITDAF increased 19% over prior period – Commissioning of Snowtown Stage 2 (October 2014) – Increased retail margin from multi-product growth strategy – Continued low NZ generation and softer wholesale prices – Con
Slide 12: Australasian Energy - Trustpower
Australasian Energy - Trustpower Growing in a competitive retail market • Trustpower churn rates significantly lower than industry – 14% vs total market 19% • Significant increase in expenditure on capability to differentiate future offering – True multi-product offering (Electricity, Gas, LPG, Broa
Slide 13: Snowtown II – construction update and economic impact
Australasian Energy - Trustpower Snowtown II – construction update and economic impact Commissioned October 2014: • Construction completed two months ahead of schedule • A$16m under budget • A$65m of EBITDAF contribution in FY15 will increase in FY16 with full year of production to around A$77m Key
Slide 14: Significant generation development options
Australasian Energy - Trustpower Significant generation development options Generation Development Pipeline - New Zealand 1,400 140 NZ Hydro, Wind and Irrigation 529 1,200 1,000 • Near term oversupply headwind to investment MW 800 625 • Maintain options as long as possible 600 400 200 Australian Win
Slide 15: NZ Fuel Distribution – Z Energy
NZ Fuel Distribution – Z Energy 10% growth in replacement cost operating EBITDAF • 10% growth in Replacement Cost EBITDAF to $251.2m • 2nd half refining margin recovery underpins strong result • Strong performance by marketing business through margin and volume expansion • Strategy projects support
Slide 16: NZ Airports – Wellington Airport
NZ Airports – Wellington Airport EBITDAF reflects near-term aeronautical price reset • EBITDAF -4.6% to $82m, total PAX 5.46m New pic - Reduction due to aeronautical price reset in FY15 at lower charges - Good international PAX growth +2.9%, due to growth in Melbourne and introduction of new route t
Slide 17: NZ Public Transport – NZ Bus
NZ Public Transport – NZ Bus Strong pax growth offset by yield changes and restructuring costs • Total passengers of 60m, 4.2% growth over the prior year – Patronage growth results from focus on timetabling, fleet investment and customer service – Strong growth in Auckland pax (+6%), weaker Wellingt
Slide 18: NZ Public Transport – NZ Bus
NZ Public Transport – NZ Bus Moderate fleet investment – well advanced in new contract planning • Moderate new fleet investment: – 9 Alexander Dennis buses delivered in FY15 – Continuation of fleet repower and refurbishment modernisation projects which have scheduled completion dates early FY16 – In
Slide 19: Australia Retirement Living - RetireAustralia
Australia Retirement Living - RetireAustralia RetireAustralia transition phase into the IFT portfolio • First quarter results on plan (3 months to 31 March 2015) – A$6.6m underlying cash EBIT – Operating cash flow of $11.2m (pre-finance and acquisition costs) – On track to meet acquisition forecast
Slide 20: NZ Retirement Living - Metlifecare
NZ Retirement Living - Metlifecare Metlifecare showing strong profit growth and development • $16m equity-accounted contribution to Infratil – Underlying profit up 70% to $26.0m (HY2014) – Revaluation gains $32.3m and realised gains of $17.5m (HY2014) – Infratil gain of $51.7m on purchase price • De
Slide 21: Property – Infratil Infrastructure Property
Property – Infratil Infrastructure Property Working in partnership with local government • Owner and manager of 7 bus depots and investment properties • Developing a new NZ Bus maintenance facility in Thorndon, Wellington • Developing designs for reconfiguration of the Kilbirnie (Wellington) and Hal
Slide 22: Capital Management
Capital Management Balancing capital returns with investment capacity • Goal is to maintain financial flexibility in any future capital structure while we remain positive on investment prospects • Infrastructure and capital markets are currently positive, although we remain cautious given current pr
Slide 23: Capital Management (cont’d)
Capital Management (cont’d) Developments in confirmed areas of interest • Infratil is likely to build on the core investment platforms established for renewables and the retirement sector - Strong top-down themes and tail-winds - Good value is available as market disruptions occur (e.g. Australian r
Slide 24: Group Capital Expenditure and Investment
Group Capital Expenditure and Investment Lower capex profile compared to recent years FY16 • Trustpower – Snowtown II and GSP acquisition Capex ($Millions) 31 March 2015 Outlook dominated FY15. No major FY16 capex planned, forecast includes head office fit out and seismic Trustpower 199.8 40-50 stre
Slide 25: 2015/16 Outlook
2015/16 Outlook Significant growth forecast from continuing operations $Millions FY 2015 Actual FY 2016 Outlook(1) EBITDAF(2) – continuing operations 453.4 520 – 550 Net interest 178.2 165 – 175 Operating cash flow 235.6 270 – 300 Depreciation and amortisation 149.7 160 – 170 2015/16 EBITDAF range $
Slide 26: Infratil Group – Summary
Infratil Group – Summary Origination focus supported by performance and access to capital • Significant capital investment and recycling is positioning the Infratil portfolio for the next stage of growth and provides options and flexibility • Growing confidence in origination and uncertainty in mark
Slide 27: For more information: www.infratil.com
For more information: www.infratil.com INFRATIL 27 2015
Slide 28: Appendix I: Consolidated Profit & Loss
Appendix I Consolidated Profit & Loss Group Financial Performance ($Millions) FY March 2015 FY March 2014 Operating revenue 1,668.9 1,553.5 Operating expenditure (1,215.5) (1,116.1) EBITDAF (continuing activities) 453.4 437.4 Net interest (178.2) (180.1) Depreciation & amortisation (149.7) (126.2) O
Slide 29: Appendix II: Adjusted Earnings Reconciliation
Appendix II Adjusted Earnings Reconciliation Year Ended 31 March ($Millions) March 2015 March 2014 Variance % Change Net Profit after Tax – reported 466.3 274.6 191.7 69.8% Net (gain)/loss on foreign exchange and derivatives (1) 36.3 (70.7) Net investments revals, realisations and impairments (29.5)