Infratil Limited · NZX:IFT
Infratil — Investor Day (April 2014)
49 slides from Infratil's investor day presentation, Apr 4, 2014
Slide 1: The engine room of the region
Slide 2: Wellington Airport today
Wellington Airport today
Slide 3: Key deliverables FY14
Key deliverables FY14 > Forecast EBITDA 4% increase on last year f VY Spruce Goose café Strategic decision to re-price a Gold award winners in Safety and finalists in Green A Country Road Witchery $75m retail bonds and $50m wholesale bonds Noise mitigation programme to be , a rolled out Runway exten
Slide 4: New growth platforms
New growth platforms —>— 5.4m passengers 2-4% passenger growth Capacity constraints in terminal and carpark Undeveloped land - Tirangi Relationship with main customer New pricing 2014 -Today’s Platform Extend trans-Tasman network Terminal extensions Retail opportunities Multi-level carpark Hotel Pro
Slide 5: Aeronautical pricing
Slide 6: Information disclosure regulation
Information disclosure regulation ss The Commission's high level findings: However: Not been effective in limiting WIAU's ability to extract v Transparent excessive profits v Innovating appropriately Jv Providing quality services SJ _ Improved and efficient price structure - Too early to tell if inv
Slide 7: Land value - alternative to existing
Land value - alternative to existing 15.2% IRR BARNZ MVAU to WIAL MVEU (includes terminal value of assets) $381M Alternative use Existing use Year 1 Year 2 Year 3 Year 4 Year 5 * Targeted 8.9% using Commission's methodology
Slide 8: Returns include CPI revaluations
Returns include CPI revaluations
Slide 9: Why reprice?
Why reprice?
Slide 10: Proposed pricing inputs - all IM consistent
Proposed pricing inputs - all IM consistent Inputs Approach Value Land Valuation MVAU $99 million Specialised Assets Valuation ODRC 2009 roll forward $260 million New Investment Cost $110 million WACC 75th IM 8.41% Revaluation Forecast Forecast CPI CPI Operating Costs Forecast $ 18 million pa Passen
Slide 11: Pricing inputs - all IM consistent
Pricing inputs - all IMM consistent Land Valuation MVAU $99 million WACC 75th IM 8.41% Revaluation Forecast Forecast CPI CPI
Slide 12: NPV = $0 for each pricing period
NPV = $0 for each pricing period including forecast revaluations
Slide 13: Next steps - new prices from June 2014
Next steps - new prices from 1 June 2014 ss March April June 12 11 1 IPP sent to airline Feedback on Initial New pricing customers Pricing Proposal subject to ongoing consultation
Slide 14: ~$250m Capital investment
=~ $250m Capital investment ah = iw
Slide 15: $250m Capital investment
$250m Capital investment ss Multi level car park ~ $70m_. Terminal Hotel ~ $26m Extension & ae Optimisation co $62m North Pier $19m a i | Fire Station $5m Airfield Engineering + Apron $30m
Slide 16: Multi level car parking
Multi level car parking = At ground Limited ground space available Open air parking Distance from terminal Lower investment than multi-level DPDD DPDD Multi-level Best utilisation of limited land resource High build cost ~$40,000 per car park Got to go down to go up, extensive disruption Gives a cov
Slide 17: Hotel
Hotel ss, Pa, | -
Slide 18: Terminal expansion - 35m to south
Terminal expansion - 35m to south
Slide 19: Retail growth
Retail growth
Slide 20: Income per passenger
Income per passenger lus, 43% increase in income per passenger by 2021
Slide 21: Aeronautical growth opportunities
Aeronautical growth opportunities is a =e
Slide 22: Asia growth story
Asia growth story UU fietint 2010 9.5% CAGR 2030
Slide 23: Asia growth story
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Slide 24: Asia growth story
Asia growth story ws eUSMUVOUE DE Svat ete esate, ov even gar Pt) SUEDE GE Coes anbiae mS UNATALS Vtabd at Soseetane Vata vsayenage VOCs oe asesgage.
Slide 25: Asia growth story
Asia growth story me 4:8
Slide 26: NZ's Asia visitor spend 2012
NZ's Asia visitor spend 2012 ss Ue
Slide 27: NZ's Asia visitor spend 2012
NZ's Asia visitor spend 2012 ss Ue
Slide 28: Increase capture rate - new investment
Increase capture rate — new investment ss & i Film Museum Marine centre Conference centre Concert venue VN4gNS Za ZN GN 2) WAV K K y K] yi
Slide 29: Huge opportunity - how do we access it?
Huge opportunity — how do we access it? a4 yh? k Tree
Slide 30: Short term opportunities
Short term opportunities AAR BARBER BRRRAL BARA RRR BARRRRRRA ARARRRRAR isay BARE & Ad & AA BARBARA AN aS BRERAL
Slide 31: Asia capacity growth
Asia capacity growth ss 180 160 140 120 100 80 60 Indexed growth 2 N 40 20 2004 2014
Slide 32: Direct service stimulation
Direct service stimulation ss Direct stimulation % 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Indirect market size
Slide 33: Direct service market stimulation for NZ routes
Direct service market stimulation for NZ routes ss Direct stimulation % AKL - CAN (CZ) e 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Indirect market size
Slide 34: Opportunity grows
iv - Opportunity grows ; = S 7
Slide 35: $2m commitment by WIAL and WCC to scope the project
$2m commitment by WIAL and WCC to scope the project
Slide 36: Runway extension
Runway extension ~~. . aR vee ee — — Ct af
Slide 37: Cost and engineering
Slide 38: Wellington's long haul market
Wellington's long haul market ms, $57b in GDP * Strong demand - 1,300 people fly long haul out of WLG per day ¢ Lower costs of living * More disposable income for travel - house prices 25% cheaper than AKL * High propensity to travel with highest incomes $1,700 per week ¢ Large population with 1.1m
Slide 39: Wellington's long haul market
Wellington's long haul market ms, ¢ $57b in GDP ¢ Strong demand - 1,300 people fly long haul out of WLG per day * Lower costs of living * More disposable income for travel - house prices 25% cheaper than AKL ¢ High propensity to travel with highest incomes $1,700 per week ¢ Large population with 1.1
Slide 40: Wellington's long haul market
Wellington's long haul market ss Passengers Required 150,000 Current Demand 3 plane 470,000 iecrans
Slide 41: Wellington's long haul market
Wellington's long haul market
Slide 42: Around 300m connects Wellington to world
Around 300m connects Wellington to world ss Full Passenger Load Range from Wellington B787-9* B787-8 A350-900* FOE HEED | A330-200 WLG SYD CNS PER HNL/DPS SIN/KUL LAX PEK HKG/CAN m™ Current runway m Extended runway * estimated performance
Slide 43: Economic benefit
Economic benefit =s | International tourism - number of tourist nights and expenditure | International students - increased numbers of students and associated expenditure Business passengers - productivity savings from reduced travel times Aviation & airports = economic gains to the airport and avia
Slide 44: Direct economic benefit
Direct economic benefit Wellington region NPV $534m New Zealand NPV $1,327m Direct gross value added medium scenario
Slide 45: Slide 45
Slide 46: Next steps
Next steps 2014 2015 Engineering Lodge consent Hearing & design & cost application decision Economic benefit Full business - Prepare consent case reports - Public consultation
Slide 47: The engine room of the region
The engine room of the region 1 Regulation question has been answered. $250m invested in travel and tourism infrastructure over the next 5 years. Runway Extension is the game changer.
Slide 48: Disclaimer
Disclaimer The information set out above relates to future matters, that are subject to a number of risks and uncertainties (many of which are beyond the control of WIAL, which may cause the actual results, performance or achievements of WIAL to be materially different from the future results set ou
Slide 49: RSS
RSS WRN