Mahube Infrastructure Ltd. · JSE:MHB
Mahube Infrastructure — GAIA Infrastructure Capital — FY2017 Earnings Presentation
30 slides from Mahube Infrastructure's earnings presentation, May 2017
Slide 1: Results for the year ended 28 February 2017
GAIA Infrastructure Capital Limited Results for the year ended 28 February 2017 May 2017
Slide 2: Contents
Contents 1. Introduction to GAIA 2. Viable asset transaction: Dorper Wind Farm 3. Financials review 4. Investment pipeline 5. Conclusion 6. Contact details
Slide 3: Highlights and key metrics
Highlights and key metrics Earnings per Maiden dividend Tangible net Acquired see- share up 205% per share of 63.5 asset value per through economic to 65.59 cents cents declared share increased interest of 25.2% 6.7% to R10.63 in Dorper Wind Farm (Dec. 2016) An investment Opportunity for investors T
Slide 4: Introduction to GAIA
Introduction to GAIA
Slide 5: A compelling investment case
5 | Introduction to GAIA A compelling investment case GAIA is an investment holding company that aims to provide direct exposure to high quality investments in the Southern Africa infrastructure sector Provides investors with direct exposure to large infrastructure assets Developing a diversified po
Slide 6: Investment mandate
6 | Introduction to GAIA Investment mandate Opportunity Solar / Wind / Hydro power Roads / Railways / Ports Piped water networks / water plants infrastructure utility infrastructure Investment • Investments in operational / • Investments in Private-Public-Partnerships (PPP) on economic characteristi
Slide 7: Investment criteria
7 | Introduction to GAIA Investment criteria 1 Operational criteria • Infrastructure assets that are operational or have less than 6 months to becoming operational 2 Investment return • CPI + 6.0% return (before costs) over the duration of the contract target • Long-term inflation-linked income prof
Slide 8: GAIA group structure
8 | Introduction to GAIA GAIA group structure GAIA Infrastructure Capital Limited • Listed on the JSE • Ticker: GAI • Market cap: R441m 100% Investment manager GAIA Infrastructure Financial GAIA Infrastructure Partners Services Proprietary Limited Proprietary Limited Wholly owned Investment manageme
Slide 9: ManCo team
9 | Introduction to GAIA ManCo team Comprehensive range of in-house skills • Engineers with real market development experience • Additional project and corporate finance, technical and legal due diligence expertise Leon De Wit BCom, FIA (Actuary), OPM (Harvard) Botha Schabort Pr Eng Hons B Eng MBA C
Slide 10: ManCo overview
10 | Introduction to GAIA ManCo overview Benefits of external ManCo • Cost effective access to specialist skills Built-in mechanisms to avoid conflicts of interests • Independent ListCo board makes ultimate investment decision • No investment recommendations made by common ManCo / ListCo Directors A
Slide 11: Stages of deal evaluation
11 | Introduction to GAIA Stages of deal evaluation
Slide 12: Asset review: Dorper Wind Farm
Asset review: Dorper Wind Farm
Slide 13: Transaction overview
13 | Asset Review: Dorper Wind Farm Transaction overview Acquisition of TriAlpha’s 30% stake in Dorper Wind Farm for R501 million GAIA TriAlpha Financial Investments 25.2% effective see-through economic interest Services • 34.9% equity R265 million 35% 65% R265m • 49.3% convertible loan R236 million
Slide 14: Project overview
14 | Asset Review: Dorper Wind Farm Project overview Dorper Wind Sumitomo TriAlpha / BEE Round 1 REIPPPP Project Development Corp Gaia Group (Pty) Ltd (30%) (30%) (25%) Wind energy (15%) • 40 Nordex 2.5MW Wind Turbines • Contracted Capacity of 97.53MW Dorper Wind Farm (Pty) Ltd • 2014 Tariff of R1.4
Slide 15: Nominal vs real cash flows at flat inflation
Cash Flows 01-Jan-15 01-Jul-15 01-Jan-16 01-Jul-16 01-Jan-17 01-Jul-17 01-Jan-18 01-Jul-18 Valuation Nominal CF's 01-Jan-19 01-Jul-19 01-Jan-20 01-Jul-20 15 | Asset Review: Dorper Wind Farm 01-Jan-21 01-Jul-21 01-Jan-22 01-Jul-22 Real CF's 01-Jan-23 01-Jul-23 01-Jan-24 01-Jul-24 01-Jan-25 01-Jul-25
Slide 16: Financial review
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Slide 17: Financial performance: Income statement
17 | Financial review Financial performance Income statement R 2017 2016 Interest income 33 039 564 9 992 043 Dividend income 15 562 635 - Adoption of IFRS 10 Fair value adjustments 5 082 077 825 077 • Fair value adjustments through Total revenue 53 584 077 10 817 120 income statement Total operatin
Slide 18: Financial performance: Balance sheet
18 | Financial review Financial performance Balance sheet R 2017 2016 ASSETS Acquisition of Dorper Financial asset at fair value through P&L 503 680 415 - stake Financial assets - 549 042 504 6.7% improvement in Current tax receivable - 971 588 NAV per share Cash and cash equivalents 84 755 945 2 34
Slide 19: Financial performance: Cash flow statement
19 | Financial review Financial performance Cash flow statement R 2017 2016 Net cash from operating activities 32 550 766 4 167 765 Net cash from investing activities 50 444 966 (548 259 414) Net cash from financing activities (587 066) 546 438 828 Total cash movement for the period 82 408 766 2 347
Slide 20: Analysis of costs
20 | Financial review Analysis of costs R000s F2017 Actual F2016 Actual Listing costs - 8 310 Accounting fees 361 139 Overhead structure geared to Audit fees 306 - support additional acquisitions Circulars and publications 588 - Expenses : revenue ratio will Director fees 1089 406 decrease as additi
Slide 21: Valuation of assets
21 | Financial review Valuation of assets Discounted cash flow valuation for Dorper • Objective to achieve fair value measurement that reflects market value Discount rate: 12.92% Inflation assumption based on long term consensus view Fair value estimate: R503 680 415 Sensitivity analysis to discount
Slide 22: Target dividend policy
22 | Financial review Target dividend policy Dividend policy is to pay consistent, stable inflationary linked returns Requirement to retain funds for expansion or operating purposes • May impact payment of dividends Dividend policy achievable based on planned expansion of asset base Maiden dividend
Slide 23: Investment pipeline
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Slide 24: Growth strategy: Investment pipeline
24 | Investment pipeline Growth strategy: Investment pipeline Investment type Technology Size (Rm) 19% 24% Equity Road 250 Road Exclusive Equity Solar 772 Solar Preference Wind 232 Wind 16% Water Total 1 254 41% Equity Road 319 Equity Water 86 Near term Equity + Debt Water 633 Preference Wind 228 Pr
Slide 25: Conclusion
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Slide 26: A compelling investment case
26 | Conclusion A compelling investment case GAIA is an investment holding company that aims to provide direct exposure to high quality investments in the Southern Africa infrastructure sector Provides investors with direct exposure to large infrastructure assets Developing a diversified portfolio o
Slide 27: Contact details
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Slide 28: Contact details
28 | Contact details Contact details • Tel: +27 11 684 1230 Prudence Lebina • Cell: +27 82 933 3390 CEO • Email: prudence@gaia.group • Tel: +27 21 671 7210 Tamee Soudien-Witten • Cell: +27 84 580 7067 FD • Email: tamee@gaia.group • Tel: +27 21 671 7210 Mich Nieuwoudt • Cell: +27 83 253 2469 CIO • Em
Slide 29: Thank you!
Nz GAIA’ thank you! INFRASTRUCTURE CAPITAL Your Investment Partner =
Slide 30: Disclaimer
30 Disclaimer Prospective investors must not treat the contents of this presentation as advice relating to legal, financial, investment, taxation, or other matters and are advised to consult their own professional advisers concerning the acquisition, holding or disposal of any investment in GAIA Inf
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