Infratil Limited · NZX:IFT
Infratil — H1 FY2021 Earnings Presentation
27 slides from Infratil's earnings presentation, Nov 12, 2020
Slide 1: Results Announcement
Results Announcement For the six months ended 30 September 2020 12 November 2020
Slide 2: Disclaimer
Disclaimer Disclaimer This presentation has been prepared by Infratil Limited (NZ company number 597366, NZX:IFT; ASX:IFT) (Company). To the maximum extent permitted by law, the Company, its affiliates and each of their respective affiliates, related bodies corporate, directors, officers, partners,
Slide 3: Disclaimer
Disclaimer Future Performance This presentation may contain certain “forward-looking statements” about the Company and the environment in which the Company operates, such as indications of, and guidance on, future earnings, financial position and performance. Forward-looking information is inherentl
Slide 4: Half Year Overview
Half Year Half Year Overview Overview • Net parent surplus from continuing operations Increased of $27.8 million, compared to $56.4 million in the prior year exposure to our • Proportionate EBITDAF of $229.5 million, up preferred sectors from $204.2 million in the comparative period, of digital refl
Slide 5: Financial Highlights
Financial Highlights Reported results 30 September ($Millions) 2020 2019 Variance % Change reflect significant Net Surplus from Continuing Operations 57.0 79.8 (22.8) (28.6%) changes in Net Parent Surplus 27.8 56.4 (28.6) (50.7%) portfolio Proportionate EBITDAF1 229.5 204.2 25.3 12.3% composition In
Slide 6: Results Summary
Results Summary Reported results 30 September ($Millions) 2020 2019 • Operating revenue reflects the impact of Covid-19 air travel restrictions on passenger reflect significant Operating revenue 662.0 802.4 numbers at Wellington Airport and Tilt changes in Renewables’ sale of Snowtown 2 in Operating
Slide 7: Proportionate EBITDAF
Proportionate EBITDAF Full period 30 September ($Millions) 2020 2019 • Slightly higher contribution from Trustpower, with an increase in higher margin telco contribution Trustpower 56.3 54.6 customers offset by lower generation volumes from Vodafone Tilt Renewables 22.3 49.2 • Reduction in Tilt Rene
Slide 8: Proportionate Capital Expenditure & Investment
Proportionate Capital Expenditure & 30 September ($Millions) 2020 2019 • Tilt Renewables’ construction of the Dundonnell Wind Farm (336MW) and the Investment Trustpower Tilt Renewables 7.9 200.3 8.4 Waipipi Wind Farm (133MW) 80.9 • Wellington Airport suspended most of its Continued Wellington Airpor
Slide 9: Debt Capacity & Facilities
Debt Capacity & Facilities Strong capital As at period ended ($Millions) September 2020 March 2020 • Tilt Renewables' capital return completed in July 2020 (Infratil's share ~NZ$180 million) position and Net bank debt1 85.8 470.9 • Infratil did not issue any infrastructure bonds in liquidity across
Slide 10: Strong Shareholder Returns
Strong Infratil Share Price Shareholder Level 4 Level 3 Level 2 AKL Level 3 Returns 6.00 Delivered over 5.50 6 Months $5.40 Partially imputed 5.00 interim dividend $4.99 of 6.25 cents per 4.50 share maintained Total Shareholder Return1 4.00 Period TSR 3.50 6 months 32.1% 5 Year 16.9% 10 Year 17.9% 3
Slide 11: International Portfolio Annual Incentive Fee
International 30 September ($Millions) 2020 Portfolio CDC Data Centres 43.5 Annual Tilt Renewables RetireAustralia 16.7 (2.5) Incentive fee Longroad Energy - Accrual reflects ASIP - the ongoing FY2021 annual incentive fee accrual 57.7 outperformance • CDC Data Centres' accrual is based on an indepen
Slide 12: Qscan Acquisition
Qscan Transaction Details Acquisition • On 26 October 2020, Infratil executed a conditional offer to acquire up to 60% of Qscan Group Holdings, a comprehensive High quality diagnostic imaging practice throughout Australia for equity consideration of up to A$330 million entry point to • The acquisiti
Slide 13: Portfolio Composition
Portfolio Investment Sector Composition Well balanced 5% portfolio with 5% 10% defensive 28% 10% 34% characteristics 10% and strong capital growth 14% 17% 16% 44% CDC Data Centres Trustpower Renewable Energy Vodafone New Zealand Tilt Renewables Digital Infrastructure Wellington Airport RetireAustral
Slide 14: Operating Businesses
Operating Businesses
Slide 15: CDC Data Centres
CDC Performance Data Centres • Current period reported EBITDAF A$73.8 million, up A$22.1 million (+42.7%) from the comparative period Impressive • Continued strong performance with revenue growth from organic growth new data centres and additional stages in existing facilities • FY21 forecast report
Slide 16: Vodafone New Zealand
Vodafone Performance New Zealand • Reported EBITDAF of $224.7 million1, including the negative impact of ~$30 million relating to Covid-19 Major • Good consumer and enterprise mobile and fixed investment in performance; consumer broadband remains challenging • Fixed Wireless Access rollout is on tra
Slide 17: Longroad Energy
Longroad Performance Energy • Longroad Energy’s contribution to Infratil’s Proportionate EBITDAF was $9.4 million, compared to $15.9 million in the Significant US prior period renewable • Cash distributions to Infratil in the period were $19.1 million • Longroad is currently constructing 910MW of re
Slide 18: Trustpower
Trustpower Performance Demonstrating • EBITDAF of $110.4 million was $3.3 million (3.1%) above the comparative period of $107.1 million ongoing • Stronger wholesale prices drove generation earnings, despite resilience and lower volumes capability in • Acquisition costs lower than the comparative per
Slide 19: Tilt Renewables
Tilt Performance Renewables • EBITDAF of A$31.8 million was A$2.9 million below the comparative period of A$34.71 million Strengthened • Operating revenue was 6% down on the comparative period2 position as the despite the uplift from Dundonnell (‘DDWF’) commencing production, reflecting the long-ant
Slide 20: Wellington Airport
Wellington Performance Airport • EBITDAF of $10.9 million was down from $50.4 million for the same period last year Unprecedented • Net cashflow from operations down $34.2 million, impact of reflecting a $45.3 million reduction in revenue, partially offset by strong cost control measures Covid-19, •
Slide 21: RetireAustralia
Retire Performance Australia • Underlying profit of A$13.3 million was A$7.8 million above the comparative period of A$5.5 million Strong • 138 resale settlements up from 130 in the comparative period performance for and a total collect of A$19.5 million vs A$16.6 million, representing a strong perf
Slide 22: FY2021 Outlook
FY2021 Performance Outlook • Infratil is currently forecasting FY21 Proportionate EBITDAF from continuing operations of $430-$470 million1 Diversified • Proportionate EBITDAF includes the proportion of the portfolio EBITDAF of each portfolio company based on Infratil’s level of beneficial ownership
Slide 23: Summary
Summary A balanced • Infratil’s businesses have done an exceptional job managing the prolonged impacts of the Covid-19 crisis; servicing our people and customers safely, while safeguarding the capital of portfolio with our shareholders exposure to • Infratil’s diversified portfolio with overweight p
Slide 24: For further information: www.infratil.com
For further information: www.infratil.com
Slide 25: Appendix I: Reconciliation of NPAT to Proportionate EBITDAF
Appendix I 30 September ($Millions) 2020 2019 Reconciliation of Net profit after tax (‘NPAT’) 57.0 88.1 NPAT to Less: Associates1 equity accounted earnings (83.8) (100.6) Proportionate Plus: Associates1 proportionate EBITDAF 162.9 83.8 EBITDAF Less: minority share of Subsidiary2 EBITDAF Net loss/(ga
Slide 26: Appendix II: Comparison of 31 March 2020 Underlying EBITDAF to Proportionate EBITDAF
Appendix II 31 March 2020 ($Millions) Ownership Underlying Proportionate Comparison of Trustpower 51.0% 186.5 95.1 31 March 2020 Tilt Renewables 65.5% 123.7 81.1 1 Underlying Wellington Airport 66.0% 103.2 68.1 EBITDAF to CDC Data Centres 48.1% 59.6 59.6 Proportionate Vodafone New Zealand 49.9% 154.
Slide 27: Appendix III: Movements in Wholly Owned Group Net Bank Debt
Appendix III 30 September ($Millions) Movements in Wholly Owned Group Net Bank Debt – 31 March 2020 470.9 Wholly Owned Trustpower dividend (24.8) Group Net Bank Wellington Airport subvention payment (37.5) Debt Vodafone NZ distributions and capital return Tilt Renewables capital return (42.2) (179.6