Slide 1: Results Announcement
Results Announcement For the year ended 31 March 2019 17 May 2019
Slide 2: Disclaimer
Disclaimer Disclaimer This presentation has been prepared by Infratil Limited (NZ company number 597366, NZX:IFT; ASX:IFT) (Company). To the maximum extent permitted by law, the Company, its affiliates and each of their respective affiliates, related bodies corporate, directors, officers, partners,
Slide 3: Disclaimer: Future Performance
Future Performance Disclaimer This presentation may contain certain “forward-looking statements” about the Company and the environment in which the Company operates, such as indications of, and guidance on, future earnings, financial position and performance. Forward-looking statements often include
Slide 4: Full Year Overview
Full Year Overview Full Year Overview Strong • Strong Underlying EBITDAF from core operating underlying businesses performance • Significant progress in divestments and enabled tightening of the portfolio significant • $679 million invested during the period, capital to be including over $320 millio
Slide 5: Financial Highlights
Financial Highlights 21% growth Full Year ended 31 March ($Millions) 2019 2018 Variance % Change in underlying Underlying EBITDAF1 539.5 546.4 (6.9) (1.3%) EBITDA before Underlying EBITDAF (before Incentive fee) 581.1 482.0 99.1 20.6% International International Portfolio Initial Incentive fee 102.6
Slide 6: Results Summary
Results Summary Strong uplift in 31 March ($Millions) 2019 2018 • Operating revenue increased with continued strength in the core businesses Group operating Operating revenue 1,442.2 1,233.9 and realised development gain from earnings Operating expenses (891.6) (774.7) Longroad Energy • Internationa
Slide 7: International Portfolio Initial Incentive Fee
International Portfolio 31 March ($Millions) Acquisition Valuation Distributions1 Cost2 Initial Fee IRR3 29.9% Initial ANU PBSA 31/08/2016 174.8 20.0 (127.0) 13.6 Canberra Data Centres 15/09/2016 889.2 32.5 (595.1) 65.3 30.7% Incentive fee Longroad Energy 26/10/2016 122.7 55.8 (72.7) 21.2 63.7% Fee
Slide 8: Underlying EBITDAF
Underlying EBITDAF Capital 31 March ($Millions) 2019 2018 • Trustpower above expectation, however short of last year’s ‘once in a decade’ hydrology combining investment Trustpower 222.2 243.1 high generation volumes and prices drives Tilt Renewables 144.4 112.3 • Tilt Renewables includes the first c
Slide 9: Capital Expenditure & Investment
Capital Expenditure & Investment 31 March ($Millions) 2019 2018 • Tilt Renewables completed the Salt Creek wind farm (54MW) in July 2018 and is well underway Building a Trustpower 27.7 27.9 with construction of the Dundonnell wind farm (336MW) balanced Tilt Renewables 127.1 90.5 Wellington Airport 7
Slide 10: Distributions
Distributions FY20 dividend expected to be maintained at the Ordinary dividend per share profile Final Ordinary Dividend current level on a 20 • A final ordinary dividend of 11.00 cps payable on 27 June 2019 cents per share 18 • The record date will be 21 June 2019 basis 16 14 • Partially imputed wi
Slide 11: Debt Capacity & Facilities
Debt Capacity & Facilities Duration Maturities to 31 March ($Millions) Infratil and wholly-owned subsidiaries Total 2020 2021 2022 2023 >4 yrs >10yrs extended and Bonds 1,136.4 149.0 - 93.9 193.7 467.9 231.9 capacity Infratil bank facilities1 473.0 33.0 210.0 115.0 100.0 15.0 - preserved to 100% sub
Slide 12: Portfolio Target Returns
Portfolio Target Returns Ten-year 11-15% total shareholder Infratil Expected Leverage Management Return to return target Portfolio Returns 1 Assumption Costs Shareholders maintained. Core 8–10% Portfolio Lower Risk Per annum composition and Average Debt active Core Plus / Growth + + 10–15% Per annum
Slide 13: Asset Values
Asset Values ($Millions) Asset Value • Trustpower based on market price as at 16 May 2019 The value of Trustpower 1,110 • Vodafone NZ based on NZ$1,029 million acquisition price Infratil’s Canberra Data Centres 841 – 942 • Canberra Data Centres, Tilt Renewables and Longroad Energy based on Independe
Slide 14: Infratil Share Price Performance
Infratil Share Infratil Share Price Price 5.00 Performance 4.50 Infratil has 4.00 delivered outstanding 3.50 returns over the 3.00 short, medium 2.50 and long-term 2.00 Total Shareholder Return1 1.50 Period TSR 1.00 1 Year 45.5% 5 Year 20.1% 0.50 10 Year 15.7% - Inception – 25 years 17.5% 2009 2010
Slide 15: Operating Businesses
Operating Businesses Infratil
Slide 16: Trustpower
Financial Trustpower • EBITDAF from continuing operations of $222 million was Solid operating $21 million (9%) below the prior year • Generation volume was 11% lower than the very high result following volume achieved in 2018 but still 4% above long-term outstanding average • Increased Retail EBITDA
Slide 17: Tilt Renewables
Financial Tilt • EBITDAF of A$134.8 million was A$31.0 million (30%) above Renewables the prior year of A$103.8 million • Revenue of A$193.3 million was A$35.3 million (22%) above Uplift in the prior year, primarily due to the contribution of Salt Creek production (134GWh) and a rebound of New Zeala
Slide 18: Canberra Data Centres
Financial Canberra Data • FY2019 EBITDA of A$72.3 million was A$16.5 million (30%) Centres above the prior year • FY2020 forecast EBITDA of A$110 million from a pipeline of EBITDA growth diverse opportunities with new and existing clients delivered while Growth and development capacity • Major contr
Slide 19: Longroad Energy
Financial Longroad • FY2019 Associate earnings of NZ$46.5 million, compared to a Energy loss of NZ$19.7 million in the prior year • To date Infratil has invested NZ$154.3 million, and received Expanded distributions and capital returns of NZ$151.7 million development of • Independent valuation of In
Slide 20: Wellington Airport
Financial Wellington • EBITDAF of $101.4 million, 6.2% growth on last year Airport • Over 6.4 million passengers, a 4.4% (or 269,000) increase on last year, with the highest annual domestic growth in the last Strong earnings decade growth and • Continuing to deliver a great visitor experience with e
Slide 21: NZ Bus
Financial NZ Bus • Revenue down 15.8%, largely due to reduced scale in Long-term scale Wellington • Expenses down 10.0% reflecting the reduced scale in and stability Wellington, one-off transition costs to the new operating secured for model and implementation of the new Tauranga contract • FY2019 E
Slide 22: RetireAustralia
Financial RetireAustralia • Underlying profit A$17.1 million, a decrease from Strong A$33.7 million in FY2018 • Lower accrued deferred management fees due to a 1.2% unit long-term price decrease investment • Lower development margin due to a lower volume of new units available to be sold (15 sales v
Slide 23: Perth Energy
Financial Perth Energy • EBITDAF of A$33.5 million, a A$38.8 million improvement on Strong the prior year • A$20.1 million of cost savings arising from truing up Perth turnaround in Energy’s shortfall positions for Calendar Year 2017 to the first performance quarter of 2019 with lower priced future
Slide 24: Strategic Review Update
Strategic ANU PBSA Review • Infratil has received all counterparty consents for the sale of its 50% interest in the Australian National Update University’s Purpose Built Student Accommodation concession to funds controlled by AMP Capital • Completion of the transaction is expected to occur on 20 May
Slide 25: FY2020 Outlook
FY2020 Outlook Infratil FY2020 earnings guidance1 and dividends The Vodafone NZ • FY2020 Underlying EBITDAF guidance range from continuing operations set at Guidance1 ($Millions) 20202 acquisition will $635-$675 million Underlying EBITDAF 635-675 enhance near- • Key assumptions include: ▪ Trustpower
Slide 26: Portfolio reset largely complete and set to deliver
Demonstrated Performance Portfolio reset • Standout performances from Tilt, Longroad, and Canberra Data largely Centres following commitment to platforms and delivery of significant new facilities complete and • Core cash generating operating businesses deliver forecasted earnings set to deliver • 4
Slide 27: For further information: www.infratil.com
For further information: www.infratil.com 27
Slide 28: Appendix I: Reconciliation of NPAT to Underlying EBITDAF
Appendix I Reconciliation of 31 March $Millions 2019 2018 NPAT to Net profit after tax 52.4 160.5 Underlying Less: share of RetireAustralia associate earnings 23.9 4.5 Plus: share of RetireAustralia underlying earnings 9.2 18.3 EBITDAF Net loss/(gain) on foreign exchange and derivatives (0.1) (34.8)