Dalrymple Bay Infrastructure Ltd. · ASX:DBI
Dalrymple Bay Infrastructure — H1 2023 Earnings Presentation
26 slides from Dalrymple Bay Infrastructure's earnings presentation, Aug 28, 2023
Slide 1: Investor Presentation 2023 Half Year Financial Results
Investor Presentation 2023 Half Year Financial Results
Slide 2: DBI – essential infrastructure for a world in transition
DBI − essential infrastructure for a world in transition Dalrymple Bay Infrastructure (DBI) through its foundation asset, the Dalrymple Bay Terminal (DBT), aims to provide safe and efficient port infrastructure and services for producers and consumers of high quality Australian metallurgical coal ex
Slide 3: Today's presenters and agenda
Today’s presenters and agenda 01 H1-23 Financial Highlights 02 Revenue Uplift Distribution 03 Financial Performance Anthony Timbrell Managing Director & CEO Stephanie Commons Chief Financial Officer 04 Growth Opportunities Dalrymple Bay Infrastructure Dalrymple Bay Infrastructure 05 Strategic Priori
Slide 4: H1-23 financial highlights
H1-23 financial highlights EBITDA1 FFO Distribution Growth TIC Rate $125.7m $70.9m 10.05 cps $280m $3.44/t +34% vs H1-22 +27% vs H1-22 +10% vs H1-222 of capital projects 8.4% uplift in TY- commenced in H1-23 23/24 vs TY-22/233 1. H1-22 EBITDA has been normalised by reversing the $3.6m IPO Transactio
Slide 5: Revenue Uplift and Distribution
Revenue Uplift and Distribution 5
Slide 6: Inflation linked revenue uplift
Inflation linked revenue uplift A Terminal Infrastructure Charge (TIC) applies to each tonne of contracted capacity at DBT, with the terminal fully contracted, on a 100% take-or-pay basis, at 84.2Mtpa to 30 June 2028 with evergreen renewal options for customers Base TIC TIC Component1 TY-22/23 TY-23
Slide 7: Stable and growing revenue profile
Stable and growing revenue profile TIC revenue is not impacted by: Resulting in: • Coal throughput or prices – due to take-or-pay contracts • Predictability of cashflows • Force Majeure events1 • EBITDA growth expected to outpace inflation with inflation-linked Base TIC and organic • Customer Defaul
Slide 8: Certainty of revenue leads to growing distribution
Certainty of revenue leads to growing distribution Q2-23 Distribution Distribution Policy • Q2-23 Distribution of 5.025 cps, in line with • Distribute between 60-80% of FFO previous guidance • Target DPS growth of 3-7% p.a. for the foreseeable future, subject to business • Franked at 38.5% developme
Slide 9: Financial Performance
Financial Performance 9
Slide 10: Profit and loss
Profit and loss For H1-23 DBI reported TIC revenue of $133.8m and a net operating profit after tax of $34.0m 1 TIC Revenue Prof it & Loss, A$ million N ote 30-Jun-23 30-Ju n -22 The negotiation of access charges applicable from 1 July 2021 under the light-handed regulatory framework were completed i
Slide 11: Cashflow statement
Cashflow statement FFO for H1-23 has increased 27% compared to comparative prior period 1 Current Tax Expense Cashfl o w, A $ mi l l i o n No t e 30-Jun-23 30-Jun-22 Current tax expense is attributable to higher TIC revenue and taxable gains arising on repayment of USPP debt assumed in FY-20 as part
Slide 12: Balance sheet
Balance sheet Investment grade balance sheet Balanc e Sheet A$ million Note 30-Jun-23 31-Dec -22 Cash 1 72.2 192.5 Financial assets 2 - 140.7 1 Cash Other current assets 47.9 60.0 31 December 2022 balance includes funds raised in the 2021 USPP issue Tot al c u rren t as s et s 120. 0 393. 2 (funded
Slide 13: Investment grade balance sheet
Investment grade balance sheet Investment grade credit profile with a weighted average tenor of 6.7 years and diversified funding sources1,2 Funding Source1,2 • ~$2.17 billion of total facility limits of which ~$1.79 billion was drawn at 30 June 2023 (By Facility Limit, %) • Weighted average tenor o
Slide 14: Credit rating overview
Credit rating overview DBI1 maintains two investment grade ratings with Stable Outlooks Key Credit Rating Factors3 Competitive position Last rating update 26-Feb-23 14-Feb-23 • The most competitive coal terminal serving the central Bowen Basin in terms of Rating 1 BBB / Stable BBB- / Stable location
Slide 15: Growth Opportunities
Growth Opportunities
Slide 16: Growth opportunities
Growth opportunities The long-term resilience of DBT provides the opportunity to build on existing competencies to develop a portfolio of assets across multiple market sectors DBI core competencies Organic and external growth focus 01 Ability to navigate complex regulatory situations Organic growth
Slide 17: Organic growth – Non-Expansion Capital Expenditure (NECAP)
Organic growth − Non-Expansion Capital Expenditure (NECAP)1 Over $500m in NECAP in the decade to 2031 will drive growth via an annual uplift in TIC charges Historic NECAP Spend ($m) Future NECAP Spend • NECAP spend required over the decade to 2031 expected to be over $500m • Proposed NECAP spend inc
Slide 18: Organic growth opportunity – 8X Project
Organic growth opportunity – 8X Project Headline Features Optimisation Characteristics Status • 8X is an incremental optimisation project of • Increases storage volume by 20% without • Secured all primary environmental approvals the existing terminal increasing stockpile footprint or height • QCA ru
Slide 19: Hydrogen strategy
Hydrogen strategy Dalrymple Bay is ideally positioned from an infrastructure perspective for the export of new energy products given the port of Hay Point’s deep-water nature, abundant nearby land to support further development, proximity to Asian consumers and location within one of Queensland’s de
Slide 20: Strategic Priorities
Strategic Priorities
Slide 21: Strategic priorities
Strategic priorities 1 Delivering organic revenue growth through the implementation of approved NECAP Projects Progressing opportunities to capture long-term Bowen Basin metallurgical coal production 2 via growth options such as the 8X Project 3 Identifying opportunities for diversification that ali
Slide 22: Appendices
Appendices
Slide 23: Environmental, Social and Governance initiatives
Environmental, Social and Governance initiatives Environmental Social Governance • DBI has established its scope 1,2, • Psychological safety introduced into • DBI Board is ultimately responsible and 3 emissions boundaries in accordance WH&S Policy for the management of ESG risk with the GHG Protocol
Slide 24: Glossary
Glossary $ Australian Dollar unless otherwise stated FEL Front-End Loading /t Per metric tonne FFO Funds From Operations calculated as EBITDA less net interest expense and less any cash tax 8X Project Expansion program to bring terminal capacity to 99.1Mtpa Group DBI and its wholly owned or controll
Slide 25: Reconciliation of statutory borrowings to drawn debt
Reconciliation of statutory borrowings to drawn debt Borrowings A$ million Note 3 0 -Jun-2 3 3 1 -D ec-2 2 1 Fair value adjustments booked on acquisition of DBT Group entities BALANCE SHEET On acquisition of the DBT Entities, a fair value adjustment of $48.4m was Current borrowings 16.0 439.3 recogn
Slide 26: Disclaimer and important notices
Disclaimer and important notices This presentation has been prepared by Dalrymple Bay Infrastructure Limited ACN 643 302 032 (DBI or the Company). Financial data Summary Information All figures in the presentation are Australian dollars ($ or A$) unless stated otherwise. This presentation contains s
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