Slide 1: December 2010 Half Year Results
December 2010 Half Year Results Welcome. My name is Mark Phillips. I am the Managing Director of Keybridge Capital. In this presentation, we will look at Keybridge’s results for the six months to 31 December 2010, the status of the Company’s balance sheet and the outlook for the business. 1
Slide 2: Summary
Summary Overall loss $20.6m: Majority of loss attributable to foreign exchange movements NTA 35.5 cents per share Conditions remain challenging in shipping; aviation looking more positive Interim bank debt repayments completed ahead of schedule Discussions to extend bank debt under way 2 T
Slide 3: Profitability
Profitability 6 Mths To 6 Mths To Dec ‘10 Dec ‘09 $m $m Income 4.0 14.5 Borrowing Costs (6.7) (8.0) Operating Costs (2.3) (2.7) Pre Tax Operating Profit (5.0) 3.8 Foreign Exchange (13.0) (11.5) Net Impairments (3.8) (17.9) Income Tax 1.2 (13.6) NPAT (20.6) (39.2) 3 We will now look in more detail at
Slide 4: Balance Sheet
Balance Sheet Dec ‘10 Jun ’10 $m $m Investments 166 226 Cash & Other Assets 12 7 Liabilities (117) (154) SHF 61 79 December 2010 NTA : $0.355 per share 4 The Company’s shareholders’ funds were $61m as at 31 December 2010. This represented net tangible assets of 35.5 cents per share. The fall in shar
Slide 5: Investments
Investments $226m $27m Repayments $29m FX $4m Net Impairments $166m June 2010 December 2010 5 Over the course of the last six months, the value of Keybridge’s investments portfolio fell from $226m to $166m. This was due to: − Investment repayments of $27m; − Foreign exchange movements of $29m; and −
Slide 6: Corporate Debt
Corporate Debt $145m $17m Repayments $18m FX $110m June 2010 December 2010 6 Between June and December 2010, Keybridge’s outstanding borrowings fell from $145m to $110m. This decrease was due to $17m of repayments and $18m of foreign currency movements associated with the Company’s US Dollar borrowi
Slide 7: Corporate Debt
Corporate Debt Cumulative Repayments $m 100 90 80 83 70 70.5 60 64 60.5 50 40 30 30.5 20 20 10 7 0 Jun-09 Dec-09 Jun-10 Dec-10 Mar-11 Required Actual 7 Our corporate debt facility matures in June 2011. Ahead of that date, the Company has been obliged to make interim repayments of at least $70.5m by
Slide 8: Operating Cashflow
Operating Cashflow Half Year To December 2010 $m Operating Costs 2.6 Interest Payments 6.1 Total Cashflow Commitments 8.7 Interest Income 3.4 Income Component of Realisations 2.7 Total Cash Income 6.1 Average Cash Holdings 6.6 8 Liquidity management is a high priority for Keybridge. As we have menti
Slide 9: Investments
Investments 31 December 2010 Total of $166m Property Infrastructure 2% Shipping 4% 10% Lending 21% Aviation 62% 9 At 31 December 2010, the total book value of our investments was $166m. The largest asset class was aviation, representing 62% of investments. Lending transactions represented 21% of the
Slide 10: Investments: Aviation
Investments Aviation Total book value $103m Preferred equity & mezzanine loans secured by passenger jet aircraft Affected by falls in secondary market prices & constrained bank lending but more positive signs emerging $9m of repayments in December half 10 Our dominant asset class is aviation
Slide 11: Investments: Lending
Investments Lending Total book value $35m Senior & subordinated loans 3 significant investments remaining $6m of repayments in December half 11 The book value of our remaining lending transactions is $35m. These are senior and subordinated loans across different industries. There are three s
Slide 12: Investments: Shipping
Investments Shipping Total book value $17m Equity investments in cargo-carrying vessels 3 remaining investments Affected by falls in both charter rates & secondary market prices; LVR covenants an issue Just under $1m realised in December half 12 Our remaining shipping transactions now tota
Slide 13: Investments: Infrastructure
Investments Infrastructure Total book value $7m Equity investment in solar facility in Spain Affected by retrospective change in legislation 13 Keybridge has one remaining infrastructure investment, being an equity investment in a solar electricity facility in Spain. This particular investment
Slide 14: Investments: Property
Investments Property Total book value $4m Mezzanine loans invested in real estate developments in Australia Repayments of $11m in December half 14 The book value of our property investments is now only $4m. Our investments in this sector have consisted of mezzanine loans used to finance reside
Slide 15: Management & Board
Management & Board Five executives in management team Board consists of two non-executives & two executives Cost containment a key focus 15 Keybridge now has a five person executive team. This has been reduced from ten people over the past 2 years. Our board consists of two non-executive direc
Slide 16: Outlook
Outlook Not making new investments Priority is to repay debt Investment repayments slowed down ¾ Improvement seen in aviation ¾ Markets, however, remain relatively illiquid ¾ Challenging to realise assets at acceptable prices in shorter term Looking to extend term of corporate debt Objecti
Slide 17: Contact
Contact Mark Phillips Managing Director (02) 9321 9000 mphillips@keybridge.com.au 17 Thank you for your time today. If you have any follow-up questions, please contact me directly. 17