Infratil Limited · NZX:IFT
Infratil — FY2020 Earnings Presentation
30 slides from Infratil's earnings presentation, May 29, 2020
Slide 1: Results Announcement
Results Announcement For the year ended 31 March 2020 29 May 2020
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
Disclaimer Future Performance 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 information is inherentl
Slide 4: Full Year Overview
Full Year Overview Full Year Overview Increasing • Net surplus for the year from continuing operations exposure to our of $508.8 million, compared to $64.4 million in the prior year preferred sectors • 13.5% growth in underlying EBITDAF reflected of data changes in the portfolio and a growing contri
Slide 5: Financial Highlights
Financial Highlights Significant 31 March ($Millions) 2020 2019 Variance % Change capital Net Surplus from Continuing Operations 508.8 64.4 444.4 690.1% expenditure and Net Parent Surplus 241.2 (19.5) 260.7 1,336.9% investment will Underlying EBITDAF1 (before Incentive fee) 605.9 533.8 72.1 13.5% dr
Slide 6: Results Summary
Results Summary Solid operating 31 March ($Millions) 2020 2019 • Operating revenue reflects a reduced period of contribution from Tilt’s Snowtown 2 wind farm, result as capital Operating revenue 1,368.7 1,442.2 and the impact of lower wholesale electricity prices and lower generation volumes for was
Slide 7: Underlying EBITDAF
Underlying EBITDAF CDC Data Centres 31 March ($Millions) 2020 2019 • Lower contribution from Trustpower, with lower wholesale electricity prices and lower generation and Vodafone are Trustpower 186.5 222.2 volumes driving Tilt Renewables 123.7 144.4 • Reduction in Tilt Renewables’ contribution large
Slide 8: Capital Expenditure & Investment
Capital Expenditure & Investment 31 March ($Millions) 2020 2019 • Tilt Renewables’ ongoing construction of the Dundonnell Wind Farm (336MW) and Building a Trustpower Tilt Renewables 34.3 506.4 27.7 127.1 commencement of construction of the Waipipi Wind Farm (133MW) balanced Wellington Airport 80.6 7
Slide 9: Asset Values
Asset Values The value of 31 March ($Millions) Infratil’s CDC Data Centres 1,355 - 1,711 subsidiaries and Trustpower 1,118 associates is Vodafone 1,029 Tilt Renewables 908 – 1,030 recorded in Wellington Airport 621 – 689 Infratil’s financial RetireAustralia 271 – 352 statements in Longroad Energy 16
Slide 10: International Portfolio Annual Incentive fee
International Portfolio Annual 31 March ($Millions) Acquisition Valuation Distributions1 Prior Year2 Annual Fee IRR3 Incentive fee CDC Data Centres Longroad Energy 15/09/2016 26/10/2016 1,515.6 162.4 16.7 34.2 (1,004.8) (166.2) 105.5 6.1 38.8% 54.7% Fee reflects the RetireAustralia 31/12/2014 308.2
Slide 11: Access to Liquidity and Credit
Access to Liquidity and Credit Maturities to 31 March ($Millions) Total FY21 FY22 FY23 FY24 FY25-31 >FY31 Duration Bonds Wholly-owned bank facilities1 1,303.8 748.0 85.0 - 93.9 115.0 193.7 350.0 122.1 148.0 662.2 50.0 231.9 - extended over last 6 months Access to liquidity and credit through new • T
Slide 12: Debt Capacity & Facilities
Debt Capacity & Facilities Balanced pool of 31 March ($Millions) 2020 2019 • The market value of equity increased by $247.1 million since 31 March 2019, funding sources Net bank debt1 470.9 44.3 reflecting: supports long- Infratil Infrastructure bonds 1,071.9 904.5 ‐ $400 million placement and right
Slide 13: Portfolio Target Returns
Portfolio Target Returns Ten-year 11-15% total shareholder Infratil Expected Leverage Management Return to return target Portfolio Returns1 Assumption Costs Shareholders maintained Core 8–10% Lower Risk Per annum Portfolio composition and Core Plus / 10–15% Average net debt/ total capital 30% 1% of
Slide 14: Share Price Performance
Share Price Infratil Share Price Performance 6.00 Outstanding returns delivered 5.00 $4.82 over the medium $4.10 and long-term 4.00 $3.91 3.00 Total Shareholder Return1 Period TSR 2.00 1 Year to 31 March (2.1%) 12 months to 28 May 16.6% 1.00 5 Year 9.6% 10 Year 14.2% - Inception – 26 years 16.6% 201
Slide 15: Distributions
Distributions FY2020 final dividend Ordinary Dividend per Share Profile Final Ordinary Dividend maintained at • A final dividend of 11.00 cps payable on FY2019 level 20 15 June 2020, partially imputed with 2.5 cps of imputation credits attached 18 16 • The FY2020 final dividend is on par with the FY
Slide 16: Portfolio Resilience and Composition
Portfolio Resilience and Composition • Infratil is well positioned in scalable high growth sectors with good jurisdictional diversification Investment over • Investment over the last 24 months has been focused on Infratil’s Renewable Energy and Data & Connectivity platforms: the last 24 Tilt Renewab
Slide 17: Operating Businesses
Operating Businesses Infratil
Slide 18: CDC Data Centres
Financial CDC • Current period reported EBITDAF A$117.5 million, up Data Centres A$45.4 million (+63.0%) from the comparative period • Current run-rate EBITDAF of A$135 million Significant • Strong performance with revenue growth from new data centres development and additional utilisation in existi
Slide 19: Vodafone New Zealand
Financial Vodafone • Annual EBITDA of $480.6 million at the operating company level New Zealand • Total revenue of $2,046.7 million was up 4.3% on the prior year • Cost management has been excellent, but trading momentum First 8 months of and customer experience still require improvement ownership •
Slide 20: Longroad Energy
Financial Longroad • Associate earnings of NZ$4.7 million compared to NZ$46.5 million Energy in the comparative period, primarily driven by partial realisations in the current period which precluded certain development gains Financial close from being recognised in the statement of profit and loss •
Slide 21: Longroad Energy
Longroad FY2020 Development Summary Energy Project Capacity Status Development Project Rio Bravo Texas Wind 238MW • 100% of the equity sold December 2018 • Development gain recognised on completion of gains and project US$300 million construction in June 2019 outcomes have El Campo Texas Wind 243MW
Slide 22: Trustpower
Financial Trustpower • EBITDAF of $186.5 million was $35.7 million (16.1%) below the Geographically comparative period of $222.2 million • Current period impacted by lower generation volumes resulting diverse portfolio from plant outages and materially lower North Island inflows compared to the prio
Slide 23: Tilt Renewables
Financial Tilt • Tilt Renewables EBITDAF of A$117.5 million was A$17.3 million Renewables (12.8%) behind FY2019 primarily driven by the sale of Snowtown 2 in December 2019, and the reduced contribution for a 3-month Balanced focus period post sale • Production for FY2020 was in line with the previou
Slide 24: Wellington Airport
Financial Wellington • EBITDAF of $103.2 million was $1.8 million above the Airport comparative period of $101.4 million • COVID-19 travel restrictions came into effect in March Essential resulting in a 40% reduction in passengers for the month, and a 99% reduction in the final week as national bord
Slide 25: RetireAustralia
Financial RetireAustralia • Underlying Profit1 of A$17.0 million was flat year on year Flow through • 292 resale settlements vs 244 in FY2019. Total collect A$40.1 million vs A$32.6 million economic impact • Net fair value loss of A$102.3 million from the revaluation of of COVID-19 investment proper
Slide 26: FY2021 Outlook
FY2021 Outlook FY2021 Outlook Continued • Given ongoing uncertainty over the duration and impact of the COVID-19 pandemic uncertainty over Infratil will not be providing FY2021 Group earnings or dividend guidance at this stage. the duration and impact of • The following component guidance is availab
Slide 27: Summary
Summary A resilient and • Infratil is well positioned in scalable high growth sectors, with diversified cashflows generating reliable non- balanced correlated returns across several jurisdictions ‐ The overweight position in renewable energy generation and data infrastructure should drive relative p
Slide 28: www.infratil.com
For further information: www.infratil.com
Slide 29: Appendix I: Reconciliation of NPAT to Underlying EBITDAF
Appendix I 31 March ($Millions) 2020 2019 Reconciliation of Net profit after tax (‘NPAT’) 484.2 52.4 NPAT to Less: share of RetireAustralia associate earnings 53.7 23.9 Underlying Less: share of CDC Data Centres associate earnings (161.0) (83.9) EBITDAF Less: share of Vodafone associate earnings Plu
Slide 30: Appendix I: Reconciliation of NPAT to Underlying EBITDAF
Appendix I Reconciliation of NPAT to • Underlying EBITDAF is presented on a continuing operations basis and excludes any contributions Underlying from discontinued operations. EBITDAF • Underlying EBITDAF comprises: • 100% of the EBITDAF of the entities which are fully consolidated for Infratil’s Gr