Slide 1: Infratil 2018 Full Year Result
Infratil 2018 Full Year Result 17 May 2018
Slide 2: Full Year Overview
Full Year Overview New platforms gathering momentum while core businesses deliver strong results • Strong performances from Trustpower, Wellington Airport and Canberra Data Centres sees Underlying EBITDAF of $552.4 million, up $32.9 million (6.3%) on the prior year of $519.5 million • Significant ca
Slide 3: Financial Highlights
Financial Highlights 6.3% growth in Underlying EBITDAF drives a strong full year result Full Year ended 31 March ($Millions) 2018 2017 Variance % Change Underlying EBITDAF1 552.4 519.5 32.9 6.3% Underlying EBITDAF (continuing operations)1 525.8 488.0 37.8 6.5% Net Parent Surplus 60.5 66.1 (5.7) (8.5
Slide 4: Results Summary
Results Summary Higher NPAT but lower net parent surplus from slightly lower consolidated revenues 31 March ($Millions) 2018 2017 • Operating revenue decreased 3.2% largely as a result of contract losses in NZ Bus and lower wind volumes for Tilt’s New Zealand and Australian Operating revenue 1,730.1
Slide 5: Underlying EBITDAF
Underlying EBITDAF Strong Underlying EBITDAF from core portfolio as new platforms gain momentum Underlying EBITDAF ($Millions) 2018 2017 • Trustpower delivers strong result from both Generation and Retail activities Trustpower 243.1 203.0 • For Tilt Renewables Australian and particularly New Zealand
Slide 6: Group Capital Expenditure and Investment
Group Capital Expenditure and Investment Reinvestment opportunities continue to provide compelling investment returns ($Millions) 2018 2017 • Tilt Renewables construction of Salt Creek wind farm well underway, with expected commercial operation date in July Trustpower 27.9 26.7 2018 Tilt Renewables
Slide 7: Debt Capacity & Facilities
Debt Capacity & Facilities Duration & debt capacity remains consistent with long-term ownership of assets • Cash position of $263.9 million and wholly owned subsidiaries bank facilities drawn of $42.1 million as at 31 March 2018 • Senior debt facilities have maturities up to 4.5 years and 4 years (f
Slide 8: Funds Available for Investment
Funds Available for Investment Confidence remains that deployment opportunities continue to outweigh available capital 31 March ($Millions) 2013 2014 2015 2016 2017 2018 Net bank debt (cash on hand) 364 72 (228) (661) (92) (222) Infratil infrastructure bonds 667 754 754 724 773 770 Infratil perpetua
Slide 9: Distributions
Distributions Growth in dividend per share maintained and supported by operating cashflows Dividend per share profile FY 2012-2018 FINAL ORDINARY DIVIDEND 35 Final ordinary dividend of 10.75 cps, fully 30 imputed, payable on 18 June 2018 to shareholders recorded as owners by the registry 25 as at 5
Slide 10: Asset Values
Asset Values Comparable valuation metrics highlight underlying value of the portfolio Book Value Comparable Market ($5.94) + 20% control premium Trustpower 794 1,139 Tilt Renewables 309 389 Market ($2.03) + 20% control premium Wellington Airport 386 792 16x Multiple of forecast FY19 EBITDA (comparab
Slide 11: Trustpower
Trustpower Substantial lift in earnings from both retail and generation Financial • EBITDAF from continuing operations of $243.1 million was $40.1 million (19.8%) above the prior year. EBITDAF for total operations including Australia was $269.7 million • Trustpower’s diverse and flexible fleet of ge
Slide 12: Tilt Renewables
Tilt Renewables Results clouded by low wind volumes while sun shines on development pipeline Financial • EBITDAF of A$103.8 million was A$20.3 million (16.4%) below the prior year of A$124.1 million • Revenue of A$158.0 million was A$15.5 million (9%) below the prior year, primarily due to lower NZ
Slide 13: Longroad Energy
Longroad Energy Expanded development of renewables in the U.S. Longroad today • Business model and strategy focussed on development, ownership of operating assets and a scaled services business • Secured Production Tax Credit qualified wind turbines which can be deployed into ~600MW of new developme
Slide 14: Canberra Data Centres
Canberra Data Centres EBITDAF run rate growth delivered while capacity additions and development continues Financial • Delivering a contracted EBITDAF run rate of A$69 million as at 31 March • Forecasting 20% year-on-year EBITDAF run rate growth in FY19 from a pipeline of diverse opportunities with
Slide 15: Wellington Airport
Wellington Airport Strong earnings growth while significant capital projects near completion Financial • EBITDAF of $95.4 million, 5.4% growth on last year • Over 6 million passengers with +3.0% or 180,000 increase on last year • Retail and trading activities revenue +8.7% on prior year from increas
Slide 16: NZ Bus
NZ Bus Long-term scale and stability secured for Auckland, Wellington and Tauranga Financial • Revenue down 4.0%, largely due to the end of South Auckland services • Expenses up 0.6% reflecting the end of South Auckland services and a continued focus on productivity, offset by one-off reorganisation
Slide 17: RetireAustralia
RetireAustralia Industry headwinds sees lower rate of resales, long-term demographic tailwinds remain Financial • Underlying profit A$34.5 million, a decrease from A$59.1 million in FY17 with key drivers: - Resales cashflow down from A$36.4 million to A$31.1 million, consistent with lower resale vol
Slide 18: Perth Energy
Perth Energy Back on course to play an important part in the Western Australia energy market Financial • FY18 EBITDAF loss A$5.3 million, A$8.0 million improvement on FY17 • FY19 forecast includes a positive contribution from both Retail and Generation Retail • Perth Energy’s Retail business has mad
Slide 19: 2018/2019 Outlook
2018/2019 Outlook Core assets and new platforms combine to enable sustained earnings growth Normalised 2018 Underlying EBITDAF 2018 2019 Guidance 2018 2019 $M Actual Outlook $M $M 2018 Underlying EBITDAF 552 Normalised Underlying EBITDAF 488 500-540 Normalisations: Operating cashflow 295 210-250 Tru
Slide 20: Group Capital Expenditure and Investment
Group Capital Expenditure and Investment Reinvestment opportunities continue to provide compelling investment returns ($Millions) 2018 2019 Outlook 2019 Guidance reflects Trustpower 28 40-45 • Trustpower - generation capex in addition to its operational and maintenance programme Tilt Renewables 91 2
Slide 21: FY19 plan - harvesting options and tightening the portfolio
FY19 plan - harvesting options and tightening the portfolio Several catalysts for re-rating as options are exercised and pipeline converts into cash Extract the value from our platforms: • We are well progressed in the multi-year re-positioning of the Infratil portfolio following several material di
Slide 22: For more information
For more information www.Infratil.com 22 Infratil Full Year results presentation 2018
Slide 23: Appendix I – Reconciliation of NPAT to Underlying EBITDAF
Results Summary Appendix I – Reconciliation of NPAT to Underlying EBITDAF 31 March ($Millions) 2018 2017 • Underlying EBITDAF is a non-GAAP measure of financial performance, presented to show management’s view of the Net profit after tax 139.2 130.4 underlying business performance less: share of MET