Slide 1: Infratil Annual Results Announcement 2024
Infratil Annual Results Announcement 2024 For the year ended 31 March 2024 1994
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Infratil Limited (NZ company number 597366, NZX:IFT; ASX:IFT) (the ‘Company’) To the maximum extent permitted by law, the Company, its affiliates and each of their respective affiliates, related bodies corporate, directors, officers, partners, employ
Slide 3: Full year results announcement programme
Full year results announcement PROGRAMME Presenters 01 PORTFOLIO OVERVIEW & FULL YEAR HIGHLIGHTS 02 GROUP FINANCIAL PERFORMANCE 03 PORTFOLIO COMPANY UPDATES Jason Boyes - Infratil CEO Andrew Carroll - Infratil CFO 04 GUIDANCE & LIQUIDITY 05 CLOSING REMARKS 06 QUESTIONS 2
Slide 4: Portfolio overview and full year highlights
Section 1 Portfolio overview and full year highlights
Slide 5: Infratil overview – who we are
Infratil overview – who we are We are an infrastructure investment company that actively invests in ideas that matter Our key platforms invest behind major global thematics Infrastructure investment company, focused on investments across digital, renewables, healthcare and airports Renewables Digita
Slide 6: Portfolio composition
Portfolio composition Focus on four high-conviction platforms, across a geographically diverse portfolio of companies FY24 Proportionate EBITDAF by segment1 (NZ$m) Digital Renewables Healthcare Airports 8% Stake: Stake: Stake: Stake: 12% 48.2% 51.1% 57.6% 66% 7% NZ$864m 99.9% 37.3% 50.3% 74% 20.0% 9
Slide 7: FY24 investment highlights
FY24 investment highlights Strong FY24 result despite global and local economic uncertainty, strong thematic tailwinds continue to drive investment across the portfolio Acquired Brookfield's 49.9% shareholding in One NZ to take full ownership in NZ$1.8 billion deal, including Total shareholder retur
Slide 8: Sustainability in practice
Sustainability in practice We are committed to integrating ESG principles across our portfolio to drive sustainable growth and long-term value Catalyse a rapid and efficient transition to a low-carbon, resilient Support our people and communities to thrive future, while protecting and restoring natu
Slide 9: Group financial performance
Section 2 Group financial performance
Slide 10: Summary of key financial performance
Summary of key financial performance Delivered a strong FY24 performance, slightly above EBITDAF guidance, while continuing to invest for future growth Proportionate EBITDAF (NZ$m) Strong FY24 result delivering proportionate EBITDAF of NZ$864 million Full year result came in above the top end of
Slide 11: Dividend for FY24
Dividend for FY24 Partially-imputed final dividend of 13 cps bring the total FY24 dividend to 20 cps, up 3.9% from FY23 Final FY24 dividend of 13 cents per share Ordinary dividends (CPS) Final dividend of 13 cps cents per share is partially imputed at 1.75 cps Record date of 6 June 2024 (ex-divi
Slide 12: CDC (48.2%)
Section 3 - Portfolio company updates CDC (48.2%)
Slide 13: CDC highlights (48.2%)
CDC highlights (48.2%) CDC continues to deliver on its development commitments, making significant progress in its construction activities over the last 12 months across both Australia and New Zealand Year in review Existing capacity and future growth (MW) 1,220 EBITDAF for the year reached A$271
Slide 14: CDC financial and operating performance
CDC financial and operating performance Profitable growth to continue as customers are onboarded into facilities and increased capacity under construction is delivered to meet increasing customer demand Revenue (A$m) Rack utilisation2 WALE – evolution over time (yrs)3 356 31.6 83% 75% 280 66% 24.0 2
Slide 15: One NZ (99.9%)
Section 3 - Portfolio company updates One NZ (99.9%)
Slide 16: One NZ highlights (99.9%)
One NZ highlights (99.9%) In its first year as One NZ, the company underwent significant transformation, simplifying products and services, enhancing network infrastructure across the country and successfully establishing its new brand in the market Year in review EBITDAF (NZ$m) and margin % Acqui
Slide 17: One NZ - financial and operating performance
One NZ - financial and operating performance Focused execution delivered a pleasing result despite challenging economic environment Revenue (NZ$m) Mobile ARPU (NZ$) Consumer & SME - Fixed ARPU (NZ$) 31.3 32.4 72.8 70.5 74.0 1,984 1,997 29.0 1,954 1,968 451 425 468 500 209 212 183 199 258 249 FY22A F
Slide 18: Longroad Energy (37.3%)
Section 3 - Portfolio company updates Longroad Energy (37.3%)
Slide 19: Longroad Energy highlights (37.3%)
Longroad Energy highlights (37.3%) Longroad continues to make good progress towards its ambition of developing and owning a 9.5GW portfolio of operating assets and achieving run-rate operating company EBITDAF of over US$600 million by the end of calendar year 2027 1.5GW avg. yearly target Backed by
Slide 20: Longroad Energy - financial and operating performance
Longroad Energy - financial and operating performance A year of significant investment for Longroad, with the largest construction programme in its history, positioning the company for future earnings growth as projects come online OpCo EBITDAF1 (US$m) PPAs average remaining life (years) 3 Developme
Slide 21: Wellington Airport (66.0%)
Section 3 - Portfolio company updates Wellington Airport (66.0%)
Slide 22: Wellington Airport highlights (66.0%)
Wellington Airport highlights (66.0%) Wellington Airport experienced a year of robust growth and sustained recovery, with passenger numbers recovering well and earnings surpassing pre-Covid levels Year in review Passenger numbers (000s) EBITDAF reached $107.1 million, up 19.5% from the previous ye
Slide 23: Wellington Airport - financial and operating performance
Wellington Airport - financial and operating performance A strong lift in earnings to above pre-covid levels reflecting the ongoing recovery in post-pandemic travel and continued cost discipline Revenue (NZ$m) Capital expenditure (NZ$m) Aircraft movements 150 84,152 83,597 70 131 64 90 64 54 65 36 3
Slide 24: Other portfolio companies
Section 3 Other portfolio companies
Slide 25: Diagnostic Imaging highlights
Diagnostic Imaging highlights A solid financial and operational performance achieved through focused execution of strategic initiatives, aided by ongoing recovery and growth in the radiology market Year in review EBITDAF (NZ$m) and margin % EBITDAF for the year was NZ$189 million, an increase of $
Slide 26: RetireAustralia highlights (50.0%)
RetireAustralia highlights (50.0%) Record profitability driven by high demand for new and existing villages, with ongoing development across multiple sites to fuel future growth Year in review Underlying profit (A$m) Underlying profit1 reached A$79 million, reflecting a significant increase of A$4
Slide 27: Kao Data (52.8%) and Fortysouth (20%)
Kao Data (52.8%) and Fortysouth (20%) Kao Data continues to execute on its growth ambitions while Fortysouth successfully transitioned from being part of One NZ to a becoming a fully independent digital infrastructure provider Advanced data centre portfolio now exceeds 95MW of capacity across oper
Slide 28: Manawa Energy highlights (51.1%)
Manawa Energy highlights (51.1%) Manawa’s financial results for FY2024 reflect a year of solid performance Year in review EBITDAF (NZ$m) EBITDAF1 for the period is $145 million, up $8.3 million (6.1%) on the prior period driven by solid energy margins and operational efficiencies offset by the los
Slide 29: Renewable development platforms
Renewable development platforms Significant progress and momentum continues at both Galileo and Mint, as each company expands its team and capabilities in line with the growth of their respective substantial development pipelines Galileo expanded its core platform team to 62 (up from 46) and incre
Slide 30: Gurīn Energy highlights (95%)
Gurīn Energy highlights (95%) Gurīn has experienced rapid growth in both size and capability, concluding the year with a robust development pipeline of 6.7GW and a dedicated team of over 60 members Year in review Development pipeline across 6 markets FY23 FY24 Successfully expanded the development
Slide 31: Guidance and liquidity
Section 4 Guidance and liquidity
Slide 32: FY25 Guidance – operational EBITDAF
FY25 Guidance – operational EBITDAF FY25 Proportionate operational EBITDAF guidance up 11% at the midpoint on a strong FY24 result Guidance overview Proportionate Operational EBITDAF (NZ$m) FY25 Proportionate Operational EBITDAF guidance range set at NZ$980 – $1,030 million Key guidance assumpti
Slide 33: FY25 Guidance – capital expenditure
FY25 Guidance – capital expenditure FY25 Proportionate capital expenditure guidance up approximately 70% at the midpoint on significant FY24 spend Guidance overview Proportionate capital expenditure (NZ$m) FY25 Proportionate capital expenditure guidance set at $2.7 billion – $3.1 billion Key gui
Slide 34: Debt capacity & facilities
Debt capacity & facilities Significant flexibility to support investment opportunities across the portfolio 31 March ($millions) 2023 2024 Gearing increased to 20% during the period but remains below our medium-term portfolio Net bank debt ($593.2) $791.8 leverage assumption of 30% Infrastructure
Slide 35: Concluding remarks
Concluding remarks Continued substantial investment across our portfolio companies is laying the groundwork for strong future growth All our businesses are performing well, with strong earnings momentum heading into FY25 despite the uncertain macroeconomic backdrop Looking forward, we are happy with
Slide 36: Questions
Questions Ginfratil cH
Slide 37: Supporting materials
Supporting materials
Slide 38: Net asset value
Net asset value The net asset value reflecting the independent valuations of Infratil assets has reached $11.9 billion as at March 2024 Overview Year ended 31 March ($Millions) 2023 2024 CDC $3,678.7 $4,419.7 CDC, One NZ, Kao Data, Longroad Energy, Galileo, Gurīn Energy, Qscan, RHCNZ Medical One N
Slide 39: Independent valuation summary – Digital
Independent valuation summary – Digital Independent valuation reports are prepared for Infratil’s portfolio companies for the purpose of calculating the international portfolio incentive fee (for the international for portfolios) and setting management long term incentives for some portfolio compani
Slide 40: Independent valuation summary - Renewables
Independent valuation summary - Renewables Independent valuation reports are prepared for Infratil’s portfolio companies for the purpose of calculating the international portfolio incentive fee (for the international for portfolios) and setting management long term incentives for some portfolio comp
Slide 41: Independent valuation summary – Airports & Healthcare
Independent valuation summary – Airports & Healthcare Independent valuation reports are prepared for Infratil’s portfolio companies for the purpose of calculating the international portfolio incentive fee (for the international for portfolios) and setting management long term incentives for some por
Slide 42: Incentive fees
Incentive fees Strong independent valuation uplifts for CDC and Longroad Energy and initial valuations in Gurīn Energy and Kao Data have resulted in a net incentive fee accrual of $129.8 million for FY24 Incentive fee overview 31 March ($millions) FY23 Valuation Capital FX Distributions Hurdle FY24
Slide 43: Total shareholder returns
Total shareholder returns Infratil has delivered a total shareholder return of 21.7% for FY24 and a 18.7% return over 30 years 1994-1999: 20.3% 1999-2004: 19.4% 2004-2009: 4.5% 2009-2014: 14.1% 2014-2019: 20.1% 2019-2024: 24.6% 1994-2004: 22.4% 2004-2014: 9.6% 2014-2024: 22.0% 180,000 160,000 Period
Slide 44: Proportionate capital expenditure and EBITDAF
Proportionate capital expenditure and EBITDAF Proportionate capital expenditure Proportionate EBITDAF Year ended 31 March ($Millions) 2023 2024 Year ended 31 March ($Millions) Share1 2023 2024 CDC $341.9 $291.8 CDC 48.2% $113.7 $140.8 One NZ $151.8 $261.4 One NZ 99.9% $263.6 $545.5 Fortysouth $3.3 $
Slide 45: Infratil investment
Infratil investment Infratil has undertaken significant reinvestment into portfolio companies in FY24, the most significant of which was the purchase of the remaining stake of One NZ Investment Overview Capital invested into CDC is to provide liquidity to the management long term incentive Year en
Slide 46: Earnings reconciliation
Earnings reconciliation Overview Proportionate EBITDAF is an unaudited non-GAAP (‘Generally Accepted Accounting Year ended 31 March ($Millions) 2023 2024 Principles’) measure of financial performance, presented to provide additional insight into management’s view of the underlying business perform
Slide 47: Portfolio company debt
Portfolio company debt Gearing and credit metrics are monitored across the portfolio in aggregate and at the Net Debt / % of drawn debt 31 March 2024 Gearing1 individual portfolio company level EBITDA2 hedged Kao Data and Longroad Energy have secured new debt packages in H2 FY24 CDC3 24.0% 9.4 8
Slide 48: Infratil
Infratil