Dalrymple Bay Infrastructure Ltd. · ASX:DBI
Dalrymple Bay Infrastructure — FY2022 Earnings Presentation
35 slides from Dalrymple Bay Infrastructure's earnings presentation, Feb 27, 2023
Slide 1: 2022 Full Year Financial Results – Investor Presentation
ASX Announcement 27 February 2023 2022 Full Year Financial Results – Investor Presentation Dalrymple Bay Infrastructure Limited (ASX:DBI) (“DBI” or “the Company”) releases today the attached investor presentation of its 2022 Full Year Financial Results for the period ended 31 December 2022. -ENDS- A
Slide 2: Investor Presentation 2022 Financial Results
Investor Presentation 2022 Financial Results
Slide 3: 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 4: Today's presenters and agenda
Today’s presenters and agenda 01 FY22 Highlights 02 Pricing Agreement with Users 03 Financial Performance 04 Growth opportunities Anthony Timbrell Stephanie Commons Managing Director & CEO Chief Financial Officer Dalrymple Bay Infrastructure Dalrymple Bay Infrastructure 05 Transition Planning 06 Out
Slide 5: FY22 Highlights
FY22 Highlights 4
Slide 6: FY22 Financial Highlights
FY22 Financial Highlights TIC Rate EBITDA(2) FFO Net Debt Distribution $3.18 $264.2m $177.0m $1,759.8m 19.185 cps +5.3% vs +41% vs FY21 +56% vs FY21 Down vs FY21 level +6.6% vs FY21(4) TY21/22(1) of $1,795.9m(3) (1) TIC Year (TY) runs from 1 July to 30 June. So TY21/22 runs from 1 July 2021 to 30 Ju
Slide 7: FY22 highlights
FY22 highlights Delivered stable consistent financial results supported by fully contracted take or pay volumes Strong FY22 Financials Operational Performance Distribution in line with Guidance • Total Revenue $623.8m, up 24% on PCP • 53.3Mt of coal exported (54.3Mt PCP) • FY-22 distribution of 19.1
Slide 8: Key ESG highlights
Key ESG highlights 98.5% 33% 100% Transition Strategy of water utilised was captured on site DBI female Executive Leadership renewable benefits secured by DBT in Developed and released with 2022 and recycled Electricity Sale Agreement(1) Sustainability report 68% 34% Zero of waste was recycled or re
Slide 9: Pricing Agreement with Users
Pricing Agreement with Users
Slide 10: 10 year pricing agreed with customers to 2031
10 year pricing agreed with customers to 2031 In 2022 DBI agreed commercial terms with all of its customers under the light-handed regulatory framework Higher Terminal Infrastructure Charge Annual Price Adjustments 10 Year Term • TY-22/23(1) Terminal Infrastructure Charge • Base TIC - indexed annual
Slide 11: Stable and predictable revenue profile
Stable and predictable revenue profile TIC revenue is not impacted by: Resulting in: • Throughput – due to take-or-pay contracts • Predictability of cashflows • Force Majeure events(1) • FFO growth driven by inflation and organic investment through • Customer Defaults – due to socialisation mechanis
Slide 12: Financial Performance
Financial Performance 11
Slide 13: Profit and Loss
Profit and Loss For FY22 DBI reported TIC revenue of $281.7m and a net operating profit after tax of $69.0m Profit & Loss, A$ million Note FY2022 FY2021 TIC Revenue 1 The negotiation of access charges applicable from the 1 July 2021 under the light-handed regulatory framework were completed on 10 Oc
Slide 14: Cashflow statement
Cashflow statement DBI’s FFO and cashflow for FY22 has increased compared to comparative prior year period Cashflow, A$ million Note FY2022 FY2021 1 TIC Revenue TIC Revenue 1 281.7 202.9 TIC revenue for 2022 includes a true up of $22.9m attributable to the period 1 July G&A Expenses (excluding IPO C
Slide 15: Balance Sheet
Balance Sheet DBI maintained an investment grade balance sheet Cash Balance Sheet A$ million Note 31-Dec-22 31-Dec-21 The balance at 31 December 2022 includes $56m of funds raised in the 2021 USPP issue 1 (which funded in March 2022) which were in excess of funds required to repay debt. The funds Ca
Slide 16: Investment Grade balance sheet
Investment Grade balance sheet Investment grade credit profile with diversified funding sources (1,2) Funding Source(1,2) (by Facility Limit, %) • ~$2.47 billion of total facility limits of which ~$1.93 billion was drawn at 31 December 2022 • Weighted average tenor of 6.39 years(3) • $280m of bank d
Slide 17: Credit rating overview
Credit rating overview DBI maintains two investment grade ratings with Stable Outlooks Key Credit Rating Factors Last rating 16-Mar-22 14-Feb-23 • The most competitive coal terminal serving the central Bowen Basin in terms update of location and port fees Competitive • Critical and strategic part of
Slide 18: Growth Opportunities
Growth Opportunities
Slide 19: Organic growth − Non-Expansion Capital Expenditure (NECAP)
Organic growth − Non-Expansion Capital Expenditure1 (NECAP) Over $500m2 required to be spent in the next decade - will drive growth via an annual uplift in TIC charges Historical NECAP Spend (A$m) Current NECAP Projects Future NECAP Spend 31 December Year End NECAP Q • NECAP spend required over the
Slide 20: Organic growth opportunity – 8X Project
Organic growth opportunity – 8X Project Proposed 8X Project – optimisation and efficiency improvements at existing terminal resulting in capacity release Headline Features Optimisation Characteristics Status • Wholly within existing terminal footprint • Secured all primary environmental approvals •
Slide 21: Hydrogen strategy planning
Hydrogen strategy planning Dalrymple Bay is ideally positioned from an infrastructure perspective for the export of hydrogen 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 defi
Slide 22: Growth options − beyond DBT
Growth options − beyond DBT The DBI Transition Plan highlights the long-term resilience of DBT enabling DBI to build resilience through strategic diversification Competitive advantages Organic and external growth focus 01 Ability to navigate complex regulatory situations Organic growth opportunities
Slide 23: Transition Planning
Transition Planning
Slide 24: Transition strategy
Transition strategy DBI remains comfortable that there will be strong demand for DBT’s services through the period to 2050 and beyond 01 02 03 04 05 Forecast long term The transition to a low DBT retains attractive DBI will monitor the To remain resilient in the demand for Australian carbon economy
Slide 25: Pathway to net zero – global demand for metallurgical coal
Pathway to net zero – global demand for metallurgical coal The International Energy Agency (IEA) has modelled a range of potential climate, technological and economic scenarios outlining the expected timelines for achieving global Net Zero emissions. While the IEA has detailed forecasts for steel an
Slide 26: Pathway to net zero – global supply of metallurgical coal
Pathway to net zero – global supply of metallurgical coal DBI expects that significant metallurgical coal volumes will continue to be exported through DBT under all scenarios. Even under the Net Zero by 2050 (AET 1.5) scenario, Australia is expected to retain a significant share of the remaining sea
Slide 27: Outlook and Strategic Priorities
Outlook and Strategic Priorities
Slide 28: 2023 strategic priorities
2023 strategic priorities 01 Commence approved NECAP Projects 02 Commence negotiations with access seekers with regard to access pricing terms for 8X 03 Identify opportunities for diversification that align with DBI's transition strategy 04 Progressive alignment of DBI’s climate-related risk assessm
Slide 29: Glossary
Glossary $ Australian Dollar unless otherwise stated FFO Funds From Operations /t Per metric tonne Group DBI and its wholly owned or controlled entities 8X Project Expansion program to bring terminal capacity to 99.1Mtpa m Million AU Access Undertaking. Sets out the terms of terminal access, the pro
Slide 30: Appendices
Appendices
Slide 31: DBI's Executive Team
DBI’s Executive Team 30 Investor Presentation | February 2023
Slide 32: Longstanding relationships with high quality users
Longstanding relationships with high quality users Diversified User portfolio comprising some of Contracted Capacity – User Composition Majority of users are investment grade (by contracted volume) the world’s largest mining companies (2023)(1) Investment Grade Relationship Take-or-pay contracts wit
Slide 33: FFO Growth in line with Revenue
FFO Growth in line with Revenue Strong cash flow stability driven by inflation and capex returns Revenue Under the new pricing agreements, TIC revenue is driven by: – Inflation: The Base TIC is indexed annually for inflation(1) – Return on capex: total NECAP commissioned since 1 July 2021 earns In
Slide 34: Reconciliation of statutory borrowings to drawn debt
Reconciliation of statutory borrowings to drawn debt Borrowings A$ million Note 31-Dec-22 31-Dec-21 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 439.3 9.0 recognised. Th
Slide 35: 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). Summary Information This presentation contains summary information about the Company and its related entities and their activities, current as as at 27 F
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