Infratil Limited · NZX:IFT

Infratil — Investor Day (March 2017)

19 slides from Infratil's investor day presentation, Mar 29, 2017

  1. Slide 1: Infratil Investor Day | 29 March 2017

    Infratil Investor Day | 29 March 2017

  2. Slide 2: Positive record of identifying and executing strategic opportunities

    Positive record of identifying and executing strategic opportunities From 1994 - 2013 2013 to today Looking to the future • Listed in 1994 serving • Rebrand • 4th largest in energy and 40,000 customers growing multi product • Focused growth in telco • High growth through acquisition, including UFB •

  3. Slide 3: Trustpower is well positioned to capitalise on emerging market opportunities

    Trustpower is well positioned to capitalise Our world view on emerging market opportunities • Global trend towards industry convergence is increasing • Easily restructured portfolio of generation assets • Single industry players face high competition from both • Ability to grow in electricity, telco

  4. Slide 4: The dynamics and potential of our markets

    The dynamics and potential of our markets Actual and forecast fibre connections (000’s) NZ annual electricity consumption (000’s)* Fibre opportunity growing fast Electricity demand largely flat • Driven by data hungry customers • Driven by beyond the grid efficiency and generation • Creates new oppo

  5. Slide 5: Generation portfolio – provides efficient, flexible risk management

    Generation portfolio – provides efficient, flexible risk management 38 20% 38 hydro power shareholding in Rangitata stations across Diversion Race Management Limited (New Zealand’s largest 21 irrigation scheme) schemes 75% - 80% 65% of Trustpower’s EBITDAF is provided by the NZ shareholding in gener

  6. Slide 6: Generation portfolio – provides efficient, flexible risk management

    Generation portfolio – provides efficient, flexible risk management 3 6 96MW Australian generating of AU generating schemes units capacity 244GWh typical annual production – approximately 13% of TWP total 6. Infratil Investor Day

  7. Slide 7: Transmission pricing & ACOT

    Transmission pricing & ACOT Assessment of ongoing ACOT Current Trustpower estimate of future ACOT revenue (Avoided Cost of Transmission) payments 30 • Annualised $ (Millions) Reduction in ACOT payments from April 2018 Ongoing TPM uncertainty: 25 • We remain highly engaged in the Electricity 20 Autho

  8. Slide 8: You'll never get anywhere if your customers are loyal

    YOU'LL NEVER GET ANYWHERE, IF -QUR CUSTOMERS ARE LOYAL

  9. Slide 9: Multi-product loyalty benefits continue

    Multi-product loyalty benefits continue Electricity only vs multi-product customer churn 20% Electricity Only Dual Fuel 15% Triple Play For example in Auckland the 10% Electricity and Telco NPV of a bundled acquisition Linear (Electricity Only) campaign with a median customer tenure of 4.7 years 5%

  10. Slide 10: We are focusing on growing our share of the higher-value fibre market

    We are focusing on growing our share of the higher-value fibre market 2017 2020 Trustpower is taking a growing share of a growing market as customers of legacy copper services with incumbent providers 1.4M households will accelerate their migration to higher value, higher margin have access to fibre

  11. Slide 11: Customer acquisition is targeted at higher value bundled customers

    Customer acquisition is targeted at higher value bundled customers Customer growth Current customers Jan-2017 Jan-2016 275,000 electricity Jan-2015 0 50,000 100,000 150,000 200,000 250,000 32,000 gas Electricity Only Dual Fuel Electricity Telco Electricity+Gas & Telco Mixed 76,000 telco Targeted gro

  12. Slide 12: Reshaping the customer experience

    Reshaping the customer experience Keeping pace with changing customer Net promoter score expectations and creating long-term, mutual customer value 120 100 Net promoter score increases due to: 90 100 80 • Propensity models and proactive intervention 80 70 • Platform stability 60 • Process redesign 6

  13. Slide 13: Improving cost efficiency without compromising quality of service

    Improving cost efficiency without compromising quality of service through the leverage of digital and emerging technology Interactions by channel Q1 2016 • We have focused on driving interactions to lower cost channels where customer preference allows us to do so • Increased focus on digital channel

  14. Slide 14: Key focus areas

    Investing in technology platforms that are fit for purpose, secure, modern and customer centered Past Current Future Multi-product & Customer Centric Key focus areas Stable & Resilient Speed & Scale Modern Workplace Foundational Keep it Simple, Scalable, Rock Solid IT Cloud Digital & Build & Princip

  15. Slide 15: People capability – Trustpower senior leadership team

    People capability – Trustpower senior leadership team Vince Kevin Peter Stephen Hawksworth Palmer Calderwood Fraser Melanie Simon Fiona Craig Dyer Clarke Smith Neustroski 15. Infratil Investor Day

  16. Slide 16: People capability to execute on future opportunities

    People capability to execute on future opportunities Key focus areas Future organisational Adaptability and Changing nature of Keeping our workforce capability flexibility the workforce safe and secure • Strengthen resiliency, • Activity based working • Reward and recognition • Focus on risk-based l

  17. Slide 17: Key performance areas

    Key performance areas A clear focus for ensuring a more valuable business in the future Key focus areas Optimising performance of Enhancing the multi-service offer Improving long-term industry the generation portfolio and customer experience structure • Asset management that is • Continue to lead th

  18. Slide 18: Trustpower is well positioned in a world that is decentralising and converging

    Trustpower is well positioned in a world that is decentralising and converging at the customer premise A proven ability to execute in our target markets • We are not relying on our strong relative position in the traditional electricity industry to build our future business • Trustpower has made a s

  19. Slide 19: Infratil Investor Day | 29 March 2017

    Infratil Investor Day | 29 March 2017

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