Infratil Limited · NZX:IFT
Infratil — H1 FY2020 Earnings Presentation
28 slides from Infratil's earnings presentation, Nov 13, 2019
Slide 1: Results Announcement
Results Announcement For the 6 months ended 30 September 2019 13 November 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
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: Significant capital invested in high performing renewable energy, data and connectivity platforms
Significant capital invested in high performing renewable energy, data and connectivity platforms • Divestments and tightening of the portfolio substantially complete • Acquisition of 49.9% of Vodafone New Zealand completed on 31 July 2019 for $1.03 billion • Capex of $326 million invested during th
Slide 5: Financial Highlights
Financial Highlights Major cash 6 months to 30 September ($Millions) 2019 2018 Variance % Change generating Net Parent Surplus (continuing activities) 56.4 58.5 (2.1) (3.6%) businesses Underlying EBITDAF1 (continuing activities) 289.4 284.6 4.8 1.7% supporting Net Operating Cash Flow 68.0 142.7 (74.
Slide 6: Results Summary
Results Summary Steady 30 September ($Millions) 2019 2018 • Operating revenue includes a full period production contribution from Tilt’s Salt Creek operating result Operating revenue 802.4 736.2 and the impact of higher average spot prices in New Zealand for Trustpower as capital is Operating expens
Slide 7: Underlying EBITDAF
Underlying EBITDAF1 Capital 30 September ($Millions) 2019 2018 • Lower contribution from Trustpower, with higher average spot prices and lower generation volumes investment Trustpower 107.1 129.6 • Tilt Renewables includes a full contribution from drives Tilt Renewables 75.4 72.5 Salt Creek and over
Slide 8: Capital Expenditure & Investment
Capital Expenditure & Investment 30 September ($Millions) 2019 2018 • Tilt Renewables’ ongoing construction of the Dundonnell Wind Farm (336MW) and Building a Trustpower Tilt Renewables 16.4 117.3 11.4 50.6 commencement of construction of the Waipipi Wind Farm (133MW) balanced Wellington Airport 32.
Slide 9: Distributions
Distributions FY2020 interim Interim Ordinary Dividend dividend Ordinary dividend per share profile • An interim ordinary dividend of maintained at 6.25 cps payable on 13 December 2019, partially FY2019 interim 20 imputed with 1.5 cps of imputation credits attached level on a cents 18 • On par with
Slide 10: Debt Capacity & Facilities
Debt Capacity & Facilities Duration Maturities to 31 March ($Millions) Infratil and wholly-owned subsidiaries1 Total FY20 FY21 FY22 FY23 FY24- FY30 >FY30 extended through new Bonds 1,404.7 149.0 - 93.9 193.7 736.2 231.9 retail bond Wholly-owned drawn bank debt 337.0 issues and bank Wholly-owned draw
Slide 11: Debt Capacity & Facilities
Debt Capacity & Facilities Moderate 30 September ($Millions) 2019 2018 • The market value of equity has increased by $1,248.3 million since 30 September 2019. This Gearing and Net bank debt (cash on hand) 306.4 (85.2) included: Funds Available Infratil Infrastructure bonds Infratil Perpetual bonds 1
Slide 12: Share Price Performance
Share Price Infratil Share Price Performance 5.50 Outstanding returns delivered 4.50 over the short, medium and 3.50 long-term 2.50 Total Shareholder Return 1 1.50 Period TSR YTD 25.4% 0.50 1 Year 50.8% 5 Year 20.7% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (0.50) 10 Year 19.6% 1Total s
Slide 13: Operating Businesses
Operating Businesses Infratil
Slide 14: Trustpower
Financial Trustpower • EBITDAF1 of $107.1 million was $22.5 million (17.3%) Diverse below the comparative period of $129.6 million generation • Current period impacted by lower generation volumes resulting from plant outages and materially lower portfolio North Island inflows compared to the prior p
Slide 15: Tilt Renewables
Financial Tilt • EBITDAF1 of A$71.4 million was A$4.5 million (6.3%) above Renewables the comparative period of A$66.9 million • Australian asset production up 22GWh (or 3%) on the Balanced focus comparative period largely as a result of less curtailment on delivery of from Snowtown 1 and 2 assets •
Slide 16: Wellington Airport
Financial Wellington • EBITDAF1 of $50.4 million was $0.8 million (1.6%) above Airport the comparative period of $49.6 million • Passenger growth was flat over the six months as airlines Consistent paired capacity and increased loadings earnings growth • Main terminal upgrade completed and completio
Slide 17: CDC Data Centres
Financial CDC Data • Current period reported EBITDAF1 A$51.7 million (100%), Centres up A$17.8 million (+52.5%) from the comparative period • Strong performance comes from continued revenue Rapid growth growth from new data centres and additional utilisation of continues with a existing data centres
Slide 18: Vodafone NZ
Financial Vodafone NZ • The current period includes an initial 2-month EBITDAF1 Committed to contribution from Vodafone NZ of $39.1 million transformation • FY2020 forecast EBITDAF1 of $460-$490 million excluding transaction costs and non-cash IFRS 15/16 adjustments and market Transformation program
Slide 19: Longroad Energy
Financial Longroad • HY2020 Associate earnings of NZ$17.8 million, compared Energy to NZ$51.2 million in the comparative period • To date Infratil has invested NZ$154.1 million, and received Expanded distributions and capital returns of NZ$161.6 million development of • During the period Longroad an
Slide 20: Longroad Energy
Longroad Project Capacity Status Energy Project Rio Bravo 238MW • LEH developed and financed - US$300 million Construction on Texas Wind • 100% of the project sold in December 2018 • Development gain recognised on completion of 622MW of construction in June 2019 generation El Campo Texas Wind 243MW
Slide 21: RetireAustralia
Financial RetireAustralia • Underlying Profit1 of A$5.5 million, a decrease from Patience remains A$9.1 million in HY2019 to realise long- • 130 resale settlements vs 128 in HY2019. Total collect A$16.6 million vs A$17.1 million with the mix of units term market sold driving the lower average collec
Slide 22: Strategic Review Update
Strategic ANU PBSA Review • In May 2019 Infratil disposed of its 50% interest in the Australian National University’s Student Update Accommodation concession to AMP Capital for cash proceeds of A$162.1 million, as well as distributions at completion of A$4.8 million Portfolio Snapper divestments • T
Slide 23: FY2020 Outlook Guidance
FY2020 FY2020 earnings guidance and dividends Outlook • FY2020 Underlying EBITDAF1 guidance from Guidance ($Millions) 2020 Guidance continuing operations maintained at $655-$695 million Underlying EBITDAF Net Interest 655-695 165-175 maintained • Key assumptions include: ▪ Trustpower EBITDAF guidanc
Slide 24: Realising value across the portfolio
Realising value across the portfolio Balanced portfolio offering growth and resilience • Major cash generating businesses delivering targeted returns and supporting capital requirements of growth platforms • Portfolio favourably aligned with high- conviction trends • Diversified cashflows generating
Slide 25: Proprietary growth options will drive continued investment and valuation upside
Proprietary growth options will drive continued investment and valuation upside Multiple growth platforms delivering opportunities to deploy significant capital • Significant in-flight project delivery in U.S. and Australasian renewables and Australasian data and telecommunications • Ongoing strengt
Slide 26: For further information: www.infratil.com
For further information: www.infratil.com 26
Slide 27: Appendix I: Reconciliation of NPAT to Underlying EBITDAF
Appendix I Reconciliation of NPAT to 30 September ($Millions) 2019 2018 Underlying Net profit after tax 88.1 106.1 EBITDAF Less: share of RetireAustralia associate earnings (6.5) 10.3 Less: share of CDC Data Centres associate earnings (79.5) (30.2) Underlying EBITDAF is an unaudited non-GAAP (‘Gener
Slide 28: 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