Challenger Limited · ASX:CGF
Challenger — Challenger Infrastructure Fund — Macquarie Global Infrastructure Conference 2008
21 slides from Challenger's conference presentation, May 15, 2008
Slide 1: Challenger Infrastructure Fund
Challenger Infrastructure Fund Macquarie Global Infrastructure Conference Steve Bickerton Chief Executive 15 May 2008
Slide 2: Important notice
Important notice Information contained in this publication is current as at 15 May 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 In
Slide 3: Agenda
Agenda 1. Overview of Fund 2. Assets 3. Outlook Appendices 3
Slide 4: 1. Overview of Fund
1. Overview of Fund
Slide 5: Overview of Fund
Overview of Fund - Diversified infrastructure and utilities portfolio with gross assets of A$1.9bn3 Portfolio - Attractive yield plus capital growth via a portfolio of global assets - Highly cash generative assets that are either in regulated industries or have monopolistic characteristics - Assets
Slide 6: History of Fund
History of Fund 22 August 2006 CIF begins trading 16 July 2007 21 December 2007 on fully paid basis Raised A$249m via CIF successfully 1 September 2005 post payment of 1:4 Entitlement syndicates acquisition CIF acquires Inexus second and final facility A$1.75 call 4 April 2007 9 August 2007 19 Octob
Slide 7: Secure and Growing Distributions
Secure and Growing Distributions Distributions Distribution Profile – 2008FY guidance of 34c per security – Increase of 6% on FY07 45 40 Cents per security 35 5% – CAGR since listing of 9.3%1 30 34.0 25 32.1 – Medium term distribution growth guidance of 20 5% pa 15 10 14.2 – CIF’s FY2008 full year d
Slide 8: Portfolio Diversification
Portfolio Diversification Diversification by Asset1 30 June 2007 31 March 2008 LBC 19% Arqiva 22% LBC 24% Southern Water 37% Gas Distribution Networks 14% Inexus 29% Inexus 40% Arqiva 15% Diversification by Revenue Type 30 June 2007 31 December 2007 Competitive 13% Regulated 48% Contracted 29% Regul
Slide 9: 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
Slide 10: 2. Assets
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Slide 11: Inexus
Inexus Asset Snapshot Description - Leading UK independent last mile gas and electricity connections business CIF Ownership 80.4% - Inexus constructs and owns connections Date of Initial Investment Sept 2005 Cost of Acquisition (£m)1 152.0 Revenue - Availability charge paid by the gas shippers and 3
Slide 12: LBC
LBC Asset Snapshot Description - Second largest independent bulk chemical storage terminals company globally CIF Ownership 66.2% - 2.2 million m3 of capacity Date of Initial Investment June 2007 - 13 terminals in USA, Europe and Asia Cost of Acquisition (€m)2 214.7 Revenue - Rental fee for capacity
Slide 13: Southern Water
Southern Water Asset Snapshot Description - Fastest growing UK water and wastewater company CIF Ownership 23.4% - Located in the south-east of England, the region Date of Initial Investment October 2007 with the highest population growth in the UK Cost of Acquisition (£m) 1,3 312.1 Revenue - Exclusi
Slide 14: Arqiva
Arqiva Asset Snapshot Description - UK’s leading broadcast transmission and site leasing infrastructure operator CIF Ownership 6.3% - Transmits to 22 million homes from a network of Date of Initial Investment August 2005 1100 sites, of which it controls approx. half Cost of Acquisition (£m)1 113.9 R
Slide 15: 3. Outlook
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Slide 16: Outlook
Outlook – Optimising the current assets in the portfolio Focus – Maintaining a disciplined approach to build a portfolio of high quality assets – Forecast distribution yield of 10.8%1 in FY08 Distributions – Expected 5% pa distribution CAGR in the medium term – CIF’s FY2008 full year distribution is
Slide 17: Questions
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Slide 18: 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 18
Slide 19: Appendix
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Slide 20: Gearing at the Asset Level
Gearing at the Asset Level Mar 2008 Dec 2007 June 2007 $m $m $m Asset level proportional net debt 2,947.7 3,271.5 1,680.8 Fund level net senior debt 317.5 488.9 218.0 Total proportional net debt 3,265.2 3,760.4 1,898.8 CIF Assets under Management2 1,862.5 2,087.1 1,351.0 Total proportional net debt
Slide 21: Debt Maturity Profile (proportional consolidation)
Debt Maturity Profile (proportional consolidation) • Proportional weighted average maturity of approximately 13 years • Next major refinance point - March 2010 CIF Acquisition Facility 2,000 1,800 1,600 1,400 1,200 $AM 1,000 800 600 400 200 - FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 F
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