Slide 1: 2010 Full Year Results
2010 Full 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 2010 financial results, the status of the Company’s balance sheet and the outlook for the business. 1
Slide 2: Summary
Summary Overall loss $49.9m, with operating profit offset by unrealised writedowns NTA 46 cents per share Conditions remain challenging, although bank debt repayments ahead of schedule Full repayment of outstanding borrowings likely to take further 2 to 3 years 2 The Company incurred an afte
Slide 3: Profitability
Profitability 2010 2009 $m $m Income 27.5 59.8 Borrowing Costs (15.6) (18.4) Operating Costs (4.7) (5.4) Pre Tax Operating Profit 7.2 36.0 Foreign Exchange (11.6) (14.3) Net Impairments (33.2) (152.4) Income Tax (12.3) 1.6 NPAT (49.9) (129.1) 3 We will now look in more detail at the results for the
Slide 4: Profitability
Profitability 2010 1H 2H Total Income 14.5 13.0 27.5 Borrowing Costs (8.0) (7.6) (15.6) Operating Costs (2.7) (2.0) (4.7) Pre Tax Operating Profit 3.8 3.4 7.2 Foreign Exchange (11.5) (0.1) (11.6) Net Impairments (17.9) (15.3) (33.2) Income Tax (13.6) 1.3 (12.3) NPAT (39.2) (10.7) (49.9) 4 If we look
Slide 5: Operating Cashflow
Operating Cashflow 2010 Financial Year $m Operating Costs 4 Interest Payments 14 Total Cashflow Commitments 18 Interest Income 9 Income Component of Realisations 10 Total Cash Income 19 5 Liquidity management is a high priority for Keybridge. As we have mentioned, many of the Company’s investments a
Slide 6: Balance Sheet
Balance Sheet June ‘10 Dec ’09 June ‘09 $m $m $m Investments 226 268 324 Cash & Other Assets 7 7 10 Deferred Tax Asset - - 15 Liabilities (154) (189) (227) SHF 79 86 122 June 2010 NTA : $0.46 per share 6 The Company’s shareholders’ funds fell to $79m as at 30 June 2010. This represented net tangible
Slide 7: Corporate Debt
Corporate Debt Required Repayments (cumulative) $m 80 $70.5m 70 $60.5m 60 50 40 $35.5m $30.5m 30 $20.0m 20 10 $7.0m 0 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Satisfied by 30 June ‘10 Still to be satisfied 7 Our corporate debt facility matures in June 2011. Ahead of that, the Company is obliged to
Slide 8: Investments
Investments 30 June 2010 $226m Infrastructure Property 4% 7% Shipping 12% Aviation Lending 60% 17% 8 At 30 June 2010, the total book value of our investments was $226m. The largest asset class was aviation, representing 60% of investments. Lending transactions represent 17% of investments, shipping
Slide 9: Investments: Aviation
Investments Aviation Total book value $136m Preferred equity & mezzanine loans secured by passenger jet aircraft 4 remaining investments Affected by falls in secondary market prices, reduced airline profitability & constrained bank lending $10m of repayments in 2010 9 Our dominant asset cl
Slide 10: Investments: Lending
Investments Lending Total book value $38m Senior & subordinated loans across variety of industries 5 significant investments remaining, with 3 paying regular cash interest $15m of repayments in 2010 10 The book value of our remaining lending transactions is $38m. These are senior and subordi
Slide 11: Investments: Shipping
Investments Shipping Total book value $27m Equity investments in cargo-carrying vessels 3 remaining investments Affected by falls in both charter rates & secondary market prices; LVR covenants an issue Just over $1m realised in 2010 11 Our remaining shipping transactions now total $27m. Th
Slide 12: Investments: Property
Investments Property Total book value $15m Mezzanine loans invested in real estate developments in Australia & US 5 significant investments remaining Affected by slowdown in sales activity & falls in market prices Repayments of $14m in 2010 12 The book value of our property investments is
Slide 13: Investments: Infrastructure
Investments Infrastructure Total book value $10m Equity investment in solar facility in Spain Affected by falls in secondary market prices $27m of repayments in 2010 13 Keybridge has one remaining infrastructure investment, being an equity investment in a solar electricity facility in Spain.
Slide 14: Management & Board
Management & Board Six executives in management team Board consists of three non-executive directors plus Managing Director Must balance: – Cost containment; and – Need to have team of sufficient size & quality to pursue recoveries 14 Keybridge now has a six person executive team. This has bee
Slide 15: Outlook
Outlook Not making new investments Priority is to repay debt Shorter-term objectives ¾ Keep opex as low as practicable ¾ Bring forward realisations where possible ¾ Where this is not practicable, preserve as much value as possible Need to refinance corporate debt by June 2011 Objective is
Slide 16: Contact
Contact Mark Phillips Managing Director (02) 9321 9000 mphillips@keybridge.com.au 16 Thank you for your time today. If you have any questions, please feel that you can contact me directly. 16