Slide 1: December Half 2009
(KEYBRIDGE CAPITA! IMITED December Half 2009
Slide 2: Summary
Summary Loss for half year of $39m NTA 50 cents per share Bank debt repayments ahead of schedule Operating environment remains uncertain 2
Slide 3: Profitability
Profitability Dec Half Dec Half 2009 2008 $m $m Income 14.5 34.7 Borrowing Costs (8.0) (8.7) Operating Costs (2.7) (2.3) Pre Tax Operating Profit 3.8 23.7 Foreign Exchange (11.5) 3.3 Impairments (17.9) (25.2) Income Tax (13.6) (0.5) NPAT (39.2) 1.3 3
Slide 4: Balance Sheet
Balance Sheet Dec 2009 June 2009 $m $m Investments 268 324 Cash 7 10 Deferred Tax Asset - 15 Liabilities (189) (227) SHF 86 122 4
Slide 5: Corporate Debt
Corporate Debt $227m $2m IRS $9m IRS $20m Repayments $16m FX $189m $7m IRS $218m $182m* Borrowings Borrowings June ‘09 Dec ‘09 * $17m of further repayments post December 5
Slide 6: Corporate Debt: Required Repayments
Corporate Debt Required Repayments $m 80 $70.5m 70 $60.5m $10m 60 9 50 $25m 40 9 $30.5m $35.5m 30 9 $20.0m 20 9 $7.0m 10 0 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 9 Expected to be met by end Feb ‘10 6
Slide 7: Investments
Investments $324m $24m Repayments $268m(2) $18m $10m(1) Impairments Increments $24m FX June ‘09 Dec ‘09 (1) Income accruals plus top-ups of existing investments (2 ) $16m of further repayments received post December 7
Slide 8: Investments
Investments 31 Dec ’09 $268m Property 11% Lending 15% Aviation 52% Infrastructure 8% Shipping 14% 8
Slide 9: Investments: Property
Investments Property Total book value $29 million Mainly mezzanine loans secured by developments in Australia & US 7 remaining investments Affected by slowdown in sales activity & falls in market prices Repayments of approx. $1m in half year 9
Slide 10: Investments: Aviation
Investments Aviation Total book value $140 million Preferred equity & mezzanine loans secured by passenger jet aircraft 5 remaining investments, with one repaid in Jan ‘10 Affected by falls in secondary market prices, reduced airline profitability & constrained bank lending One investment
Slide 11: Investments: Shipping
Investments Shipping Total book value $36 million Ordinary & preferred equity investments in cargo- carrying vessels 4 remaining investments Affected by falls in both charter rates & secondary market prices; LVRs have been breached No realisations in half year 11
Slide 12: Investments: Infrastructure
Investments Infrastructure Total book value $22 million Equity investments in wind & solar facilities in Europe 2 remaining investments Affected by falls in secondary market prices $19m of realisations in half year 12
Slide 13: Investments: Lending
Investments Lending Total book value $41 million Senior & subordinated loans across variety of industries 6 remaining investments Half the investments regularly pay cash interest $5m of repayments in half year, plus $6m in Feb ‘10 13
Slide 14: Management
Management Important to retain & motivate management team of six executives In formulating incentive arrangements, Board’s objective was to reduce cash component ⇒ Approx. 50% of incentive payments to be in shares Over 2010 & 2011, up to 10.2m shares would be issued if key performance criteria
Slide 15: Outlook
Outlook Not making new investments Priority is to repay debt Objectives ¾ Keep opex as low as practicable ¾ Bring forward realisations where possible ¾ Where this is not practicable, preserve as much value as possible 15
Slide 16: Contacts
Contacts Mark Phillips: Managing Director (02) 9321 9000 mphillips@keybridge.com.au Karen Penrose: Chief Financial Officer (02) 9321 9006 kpenrose@keybridge.com.au 16