Infratil Limited · NZX:IFT
Infratil — FY2021 Earnings Presentation
30 slides from Infratil's earnings presentation, May 19, 2021
Slide 1: Results Announcement
Results Announcement For the year ended 31 March 2021 19 May 2021
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: Results Presenters Programme
Infratil Results Presenters Programme Announcement • Introduction A Remarkable • Australian Super Indicative Offer Year • Tilt Renewables Strategic Review • Full Year Overview and Financial Highlights • Operating Businesses • Guidance for the year ended 31 March 2022 Jason Boyes – Infratil CEO • Sum
Slide 4: Australian Super Indicative Offer
Australian Australian Super Takeover offer Super • In October 2020 the Infratil Board received an indicative and Indicative confidential offer from AustralianSuper to acquire 100% of Infratil via a scheme of arrangement Offer • The offer was for cash consideration of $4.69 per share and an in-specie
Slide 5: Tilt Renewables Strategic Review
Strategic Tilt Renewables Strategic Review Review • Through Trustpower and then Tilt Renewables, Infratil was an early investor in wind powered generation in New Zealand Infratil to sell and Australia, resulting in $2,150 million of capital its 65.5% expenditure building 1,106MW of capacity with ann
Slide 6: Full Year Overview
Full Year Full Year Overview Overview • Proportionate EBITDAF from continuing operations Our performance $398.8 million, up from $370.2 million in the comparative period (7.7% growth) demonstrates • Infratil's share of the net loss for the year is the benefits of $49.2 million, driven by unrealised
Slide 7: Financial Highlights
Financial Highlights Reported result 31 March ($Millions) 2021 2020 Variance % Change reflects the Covid Net Surplus/(Loss) from Continuing Operations (87.6) 5.2 (92.8) (1,784.6%) impact on Net Parent Surplus/(Loss) (49.2) 241.2 (290.4) (120.4%) Wellington Proportionate EBITDAF1 398.8 370.2 28.6 7.7
Slide 8: Results Summary
Results Summary Solid overall 31 March ($Millions) 2021 2020 • Operating revenue reflects the addition of Qscan operating result Operating revenue 1,241.6 1,189.5 to the Group and a higher contribution from associates, offset by the impact of Covid on during Operating expenses (864.4) (848.0) Wellin
Slide 9: Proportionate EBITDAF
Proportionate EBITDAF Covid impact 31 March ($Millions) 2021 2020 • Strong CDC performance with continued offset by full year CDC Data Centres 75.8 59.6 revenue growth from existing data centres and new data centres becoming operational contribution Vodafone New Zealand 223.5 154.9 • Full year contr
Slide 10: Proportionate Capital Expenditure & Investment
Proportionate Capital Expenditure & 31 March ($Millions) 2021 2020 • CDC Data Centres’ completion of Eastern Creek 3 Investment in Sydney (28MW) and ongoing construction of CDC Data Centres 119.3 226.6 4 data centres totalling 70MW Vodafone New Zealand 126.4 - Continued to Trustpower 18.6 17.7 • Vod
Slide 11: International Portfolio Annual Incentive Fee
International Portfolio Annual 31 March ($Millions) Prior Year Capital Distributions Hurdle1 Valuation Annual Fee IRR2 Incentive Fee CDC Data Centres Longroad Energy 1,515.6 162.4 (8.4) (23.7) 5.8 28.2 (181.6) (18.5) 2,401.4 136.2 140.3 (8.0) 41.2% 41.5% Fee reflects the Tilt Renewables3 966.5 179.6
Slide 12: Debt Capacity & Facilities
Debt Capacity & Facilities • Infratil’s investment in Pacific Radiology will Following the 31 March ($Millions) 2021 2020 Net bank debt/(cash) 328.2 470.9 initially be funded via a $350 million 12-month bridge facility established for the Pacific Radiology Infratil Infrastructure bonds 1,155.2 231.9
Slide 13: Infratil Considers Infrastructure Bond Offer Maturing December 2027
Infratil Considers Infratil Considers Infrastructure Bond Offer Infrastructure • Infratil is considering making a new offer of unsecured, Bond Offer unsubordinated fixed rate Infrastructure Bonds (“Bonds”) maturing on 15 December 2027 Maturing • Subject to availability, New Zealand resident holders
Slide 14: Share Price Performance
Share Price Infratil Share Price Performance 9.00 Outstanding returns delivered 8.00 over the medium and long-term 7.00 6.00 Total Shareholder Return1 Period TSR 5.00 1 Year to 31 March 91.9% 5 Year 23.2% 4.00 10 Year 20.1% Inception – 27 years 18.8% 3.00 31/03 30/04 31/05 30/06 31/07 31/08 30/09 31
Slide 15: Full Year Distribution
Full Year Distribution FY2021 final Final Ordinary Dividend Ordinary Dividend per Share Profile dividend of • A final dividend of 11.5 cps payable on 22 June 2021, partially imputed with 3.5 cps of 20 11.5 cps, 18 imputation credits attached 16 increased by • The FY2021 final dividend is a 4.5% incr
Slide 16: Operating Businesses
Operating Businesses He Infratil
Slide 17: CDC Data Centres
CDC Performance Data Centres • Reported EBITDAF of A$147.3 million, an increase of A$29.8 million (+25.3%) from the prior year Digital • Strong performance from continued revenue growth from Infrastructure is existing data centres and commissioning of new data centres at the core of • CDC’s total ca
Slide 18: Vodafone New Zealand
Vodafone Performance New Zealand • Reported EBITDA1 (100%) of $447.8 million, including an estimated negative impact of $64.0 million as a result of Covid income losses Strong cost • Total revenue of $1,953.7 million was down 4.7% from the prior improvements year, impacted by a reduction in roaming,
Slide 19: Longroad Energy
Longroad Performance Energy • During the current period Infratil received cash distributions of NZ$28.2 million and capital returns of NZ$11.3 million The speed of • To date Infratil has invested NZ$220.8 million, and received execution shows distributions and capital returns of NZ$224.2 million tha
Slide 20: Tilt Renewables
Tilt Performance Renewables • EBITDAF of A$74.9 million was A$42.6 million (36.3%) below the prior year due to the sale of Snowtown 2 in December 2019 Delivery of two • 1,840GWh of emissions-free energy produced across the portfolio, key construction with Waipipi & Dundonnell contributing 40% of FY2
Slide 21: Trustpower
Trustpower Performance Current period • EBITDAF of $200.2 million was $13.8 million (7.4%) above the impacted by comparative period of $186.4 million extended dry Customers weather • Total retail utility accounts of 421,000 were up 10,000 on the comparative period, with 52% of customers now taking t
Slide 22: Wellington Airport
Wellington Performance Airport • EBITDAF of $36.0 million ($25.1 million in H2) was $67.2 million (65.1%) lower than the prior year Full year • Operating costs, excluding rates and insurance, were reduced by performance 38% reflecting discipline on discretionary spend and a 20% reduction in remunera
Slide 23: RetireAustralia
RetireAustralia Performance The most • Underlying Profit1 of A$30.2 million was $13.3 million above prior year (78% growth) important • 323 resale settlements vs. 292 in FY2020 and 20 new units vs. 16 success of in FY2020, with a total collect of A$47.7 million vs. A$40.1 million in prior year FY202
Slide 24: Qscan Group & Pacific Radiology
Qscan Group Qscan Group & Pacific • On 22 December 2020, Infratil acquired 56.25% of Australian based Qscan for A$289.6 million (NZ$309.6 million) Radiology • Qscan is a comprehensive diagnostic imaging business operating A high-quality predominantly on the eastern seaboard of Australia with over 70
Slide 25: Infratil Guidance for the year ended 31 March 2022
Infratil Infratil Guidance Guidance • FY2022 Proportionate EBITDAF guidance range from continuing operations set at $470-$520 million For the year Key guidance assumptions include: ended • CDC Data Centres EBITDAF of A$160-$170 million (Infratil: 48.1%) 31 March 2022 • Vodafone EBITDAF of $480-$510
Slide 26: Summary & Outlook
Summary & Outlook The global focus on infrastructure Wrap-up as an asset class has not diminished Infratil’s ability 26 to source and compete for high-quality assets Infratil Full year results presentation 2021
Slide 27: For further information: www.infratil.com
For further information: www.infratil.com
Slide 28: Appendix I: Reconciliation of NPAT to Proportionate EBITDAF
Appendix I Reconciliation of NPAT to 31 March ($Millions) 2021 2020 Proportionate Net profit after tax (‘NPAT’) (16.0) 484.2 EBITDAF Less: Associates1 equity accounted earnings Plus: Associates1 proportionate EBITDAF (182.6) 306.1 (86.8) 242.1 Less: minority share of Subsidiary2 EBITDAF (101.9) (126
Slide 29: Appendix II: Comparison of Underlying EBITDAF to Proportionate EBITDAF
Appendix II 31 March 2021 ($Millions) Ownership Underlying EBITDAF Proportionate EBITDAF Comparison of CDC Data Centres 48.08% 75.8 75.8 31 March 2021 Vodafone New Zealand 49.9% 223.5 223.5 Underlying Trustpower 51.0% 200.2 102.1 EBITDAF to Wellington Airport Qscan 66.0% 56.25% 36.0 19.6 23.7 11.0 1
Slide 30: Appendix III: Movements in Wholly Owned Group Net Bank Debt
Appendix III 31 March ($Millions) Movements in Wholly Owned Group Net Bank Debt – 31 March 2020 470.9 Trustpower dividends (51.9) Wholly Owned Wellington Airport subvention payment (38.1) Group Net Bank Vodafone New Zealand distributions and capital return (96.7) Debt Tilt Renewables capital return