Challenger Limited · ASX:CGF
Challenger — Challenger Infrastructure Fund — UBS Australian Infrastructure and Utilities Conference 2008
19 slides from Challenger's conference presentation, Jun 12, 2008
Slide 1: Challenger Infrastructure Fund
Challenger Infrastructure Fund UBS Australian Infrastructure and Utilities Conference 2008 Steve Bickerton Chief Executive 12 June 2008
Slide 2: Important Notice
Important Notice Information contained in this publication is current as at 12 June 2008 unless otherwise specified and is provided by Challenger Listed Investments Limited (ABN 94 055 293 644) (AFSL 236887) (“Challenger”), as Responsible Entity of CIF Investment Trust 1 (ARSN 114 139 703) and CIF I
Slide 3: Agenda
Agenda 1. Credit Markets 2. CIF’s Assets Appendices 3
Slide 4: 1. Credit Markets
1. Credit Markets
Slide 5: Credit Markets
Credit Markets • Subprime contagion caused banks to lose a significant amount of capital • Banks’ own funding has been a challenge with a substantial increase in funding cost and relative shortage of long term liquidity • Banks are now in a de-leveraging cycle which affects the volume, price and ter
Slide 6: Credit Markets and Infrastructure
Credit Markets and Infrastructure • Long term cash flows of infrastructure assets means that refinance impacts in the short term can be mitigated by refinance in the longer term • Shift in influence from equity financiers towards debt financiers • Banks minimising underwriting risks by moving to 'cl
Slide 7: Snapshot of CIF’s credit
Snapshot of CIF’s credit – No near term refinance – Undrawn acquisition facility – Proportional consolidated gearing of 63%1 – Fund level gearing2 reduced from 23.4% in December 2007 to nil in September 2008 (based on assets under management) – Removed debt funding of distribution for FY2009 freeing
Slide 8: Debt Maturity Profile (proportional consolidation)
Debt Maturity Profile1 (proportional consolidation) • Proportional weighted average maturity of approximately 15-16 years • Next major refinance point – August 2010 Inexus Refinance 1,600 1,400 1,200 1,000 $AM 800 600 400 200 - FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 and beyo
Slide 9: Gearing at the Asset Level
Gearing at the Asset Level Pro-forma Dec 2007 June 2007 March 20081 $m $m $m Asset level proportional net total debt 2,679.1 3,271.5 1,680.8 Fund level net senior debt2 - 488.9 218.0 Total proportional net debt 2,679.1 3,760.4 1,898.8 CIF Assets under Management3 1,580.8 2,087.1 1,351.0 Total propor
Slide 10: Distributions
Distributions Distributions Distribution Profile – 2008FY guidance of 34c per security and forecast to be approximately 25% tax deferred – 2009FY guidance of 35.7c per security, 5% 45 increase from FY2008 K5% 40 35.7 34.0 35 32.1 Cents per security – 2009FY distribution will be: 30 25 • More than 90
Slide 11: 2. CIF’s Assets
2. CIF’s Assets
Slide 12: Inexus
Inexus Description Debt Snapshot as at 31 March 2008 - Leading UK independent last mile gas and electricity connections business Senior Debt outstanding (£m) 346.8 - Inexus constructs and owns connections Junior debt outstanding (£m) 35.0 Total debt outstanding (£m) 381.8 CIF - 80.4% Undrawn facilit
Slide 13: LBC
LBC Description - Second largest independent bulk chemical Debt Snapshot as at 31 March 2008 storage terminals company globally Senior Debt outstanding (€m) 343.7 - 2.3 million m3 of capacity Junior debt outstanding (€m) 47.8 - 14 terminals in USA, Europe and Asia Total debt outstanding (€m) 391.5 C
Slide 14: Southern Water
Southern Water Description - Water and Waste Water Utility located in Debt Snapshot as at 31 March 2008 south-east of England Senior Debt outstanding (£m) 3,072 - Fastest growing UK water and wastewater company Junior debt outstanding (£m) 229 Total debt outstanding (£m) 3,301 CIF - 23.4% Undrawn fa
Slide 15: Outlook
Outlook • High quality infrastructure assets still see strong demand, but terms reflect the higher cost of funding and de-leveraging cycle • Long term cash flows of infrastructure assets means that refinance impacts in the short term can be mitigated by refinance in the longer term • No near term re
Slide 16: Questions
challenger & oi
Slide 17: Contacts
Contacts Steve Bickerton Chief Executive Tel: 61 2 9994 7327 Email: sbickerton@challenger.com.au Jenny Warat-Hughes Senior Manager, Investor Relations Tel: 61 2 9994 7663 Email: jhughes@challenger.com.au 17
Slide 18: Appendix
challenger & oi
Slide 19: CIF Strategy
CIF Strategy • A diversified global portfolio of high quality infrastructure and utility assets • Investment criteria to identify high quality assets that have long-term, predictable cash-flows with the potential for capital growth • Investment goal to deliver a combination of attractive and growing
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