25 slides from Dalrymple Bay Infrastructure's earnings presentation, February 2021
Slide 1: 2020 Financial Results
2020 Financial Results February 2021
Slide 2: Today's Presenters and Agenda
Today’s Presenters and Agenda 1 2020 Highlights 2 Financial Performance Anthony Timbrell Managing Director & CEO 3 Investment Overview Dalrymple Bay Infrastructure 4 Appendix Stephanie Commons Chief Financial Officer Dalrymple Bay Infrastructure 4 2
Slide 3: 2020 Highlights
2020 Highlights No change to prospectus forecasts Regulatory framework delivered stable, consistent financial results as per prospectus QCA draft decision supported a transition to light-handed regulation Completed pre-feasibility study for the 8X expansion Completed the design of a whole-of
Slide 4: Capital Management strategy
Capital Management strategy The stable and predictable cashflow from DBI underpins a move to a quarterly distribution. The Company, subject to board approval will also utilise share buybacks as part of a broader capital management strategy • Cash is recovered evenly over the course of a year Quarter
Slide 5: Why invest in DBI?
Why invest in DBI? 1 Critical link in the global steel supply chain 30% ~82% ~15% Queensland’s coal Met coal throughput in Global met coal exports exports in 2019 2020 in 2019 Socialisation of revenue 100% take-or-pay No relief for Users where after contract Transparent and well established commerci
Slide 6: FY2020 Financial Performance
FY2020 Financial Performance
Slide 7: Financial Overview
Financial Overview The statutory results reflect DBI's acquisition of the DBT Entities on listing on 8 December 2020. Consequently, actual results differ to the forecast provided in DBI’s prospectus which assumed listing and acquisition of the DBT Entities on 1 December 2020 Profit & Loss Note Actua
Slide 8: Cashflow Statement
Cashflow Statement DBI’s cashflow for the period was within Prospectus forecast, with 1 Net Interest Paid Net interest paid was higher than prospectus forecast due to the overlap in variances mainly due to timing refinancing, with the 2020 USPP Notes funding pre-IPO, but two tranches of AUD credit w
Slide 9: Balance Sheet
Cash Balance Sheet 1 Actual 31 December 2020 cash at bank includes $105.0 million which is earmarked to settle accrued but unpaid IPO Transaction Costs. The prospectus assumed these costs would be Balance Sheet Prospectus settled by reporting date. Underlying cash of $34.1 million is in line with pr
Slide 10: Key Credit Highlights
Key Credit Highlights (1) Investment grade credit profile with diversified funding sources Funding Source(1) (by Facility Limit, %) • $2.07 billion of total debt facilities(1) of which $1.86 billion was drawn at reporting date – headroom of $214 million • All USD debt has been swapped back to AUD –
Slide 11: Outlook and priorities for 2021
Outlook and priorities for 2021 Implement quarterly distributions with a first payment in 2Q-21 Review opportunities to implement share buy-backs Deliver total distributions for 1H21 of $45 million in line with prospectus Target 60-80% payout ratio with 1-2% p.a. DPS growth Maintain investment grade
Slide 12: Investment Overview
Investment Overview
Slide 13: Key Investment Parameters
Key Investment Parameters 1 Critical link in the global steel supply chain that has been resilient to external events 2 Whole-of-terminal commitment to ESG and sustainability 3 Transparent and well established commercial framework 4 Longstanding relationships Stable cash flows with highwith Users ma
Slide 14: Critical link in the global steel supply chain
1 Critical link in the global steel supply chain Regulated port infrastructure supporting the global steel supply chain DBT in Numbers(1) 136 Dalrymple Bay User Mines(5) New Mine Under Construction/ 85 Abbot Point Advanced Export Coal Project Terminal Mtpa Abbot Point Bowen Operating Mine Railway Mt
Slide 15: Sustainability Strategy
2 Sustainability Strategy DBI’s Sustainability Strategy, in partnership with the Operator, reflects a strong, whole-of-terminal commitment to ESG principles FOCUS AREAS FOCUS AREAS Safety Healthy Reef and Ecosystems Positive Culture and Leadership Water Management Proactive Communication and Climate
Slide 16: Well established commercial framework with potential for upside through proposed transition to lighter-handed framework
3 Well established commercial framework with potential for upside through proposed transition to lighter-handed framework All contracts on a take-or-pay basis – no volume or commodity price risk No force majeure risk(1) Socialisation in the event of User default or contract termination mitigat
Slide 17: Longstanding relationships with high quality Users and strong alignment through the value chain
4 Longstanding relationships with high quality Users and strong alignment through the value chain • Diversified User portfolio comprising some of the world’s largest mining Users maintain strong credit ratings and reliance on the port companies • Key Users maintain strong credit ratings and reliance
Slide 18: DBT is the best located, lowest cost export pathway
5 DBT is the best located, lowest cost export pathway to cater for the expected increase in Australian exports As the lowest cost export pathway in the region(5), DBT is strategically positioned to capture new metallurgical coal exports Majority of new Queensland metallurgical coal projects are DBT
Slide 19: An expansion of the terminal can accommodate growth in exports
6 An expansion of the terminal can accommodate growth in exports and is expected to drive a material increase in capital asset base Well-defined pathway to 99.1Mtpa through the 8X Expansion and potential further expansion through 9X to 136Mtpa (Mtpa) Additional Limited rail constraints ~37 ~136 land
Slide 20: Revenue & Price Setting
7 Revenue & Price Setting DBI has revenue certainty to 30 June 2021 under the existing regulatory determination and expects to negotiate access charges with Users and Access Seekers thereafter(3) Transition to lighter handed framework Current Access Undertaking Proposed 2019 DAU Negotiation Arbitrat
Slide 21: Appendix
Appendix
Slide 22: Reconciliation of Statutory Borrowings to Net Debt
Reconciliation of Statutory Borrowings to Net Debt Prospectus Prospectus Non- $ million Statutory Pro-forma Pro-forma statutory(1) Statutory Non-statutory(1) 31-Dec-20 31-Dec-20 30-Jun-20 30-Jun-20 Short Term Debt Bank Facilities 33.0 33.0 361.0 361.0 Note Facilities - - 230.0 230.0 Long Term Debt B
Slide 23: Reconciliation of Statutory Borrowings to Drawn Debt
Reconciliation of Statutory Borrowings to Drawn Debt Reconcile Reported Borrowings to AUD Equivalent Drawn Debt Note $ million Current borrowings 33.0 Non-current borrowings 2,006.5 Total borrowings per financial report 2,039.5 Back out: Purchase price fair value adjustment (non-statutory) 1 (47.1)
Slide 24: Glossary
Glossary $ Australian Dollar unless otherwise stated m Million /t Per metric tonne Mt Million tonnes 8X Expansion expansion program to bring terminal capacity to 97.5Mtpa Mtpa Million tonnes per annum 9X Expansion expansion program to bring terminal capacity to 136Mtpa NECAP Non-expansionary capital
Slide 25: Disclaimer and Important Notices
Disclaimer and Important Notices This presentation has been prepared by Dalrymple Bay Infrastructure Limited ACN 643 302 032 (DBI or the No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or Company). correctness of the information, opinions and con