Infratil Limited · NZX:IFT
Infratil — FY2004 Earnings Presentation
16 slides from Infratil's earnings presentation, May 17, 2004
Slide 1: Year to 31 March 2004 Media/Broker Presentation
Year to 31 March 2004 Media/Broker Presentation 17 May 2004
Slide 2: 2004 Result
2004 Result $ 2004 2003 EBITDA $62.53m $54.01m Net Profit Before $20.22m $8.13m Realisations Net Attributable $22.47m $28.14m Profit Final Dividend 7cps 4cps Growth in returns from TrustPower and Wellington International Airport underpinned increased income and dividends 17 May 2004 / Page 2
Slide 3: Warrant Issue
Warrant Issue • 1 Warrant for every 5 shares ¾ Date of record in July (once prospectus registered) • 5 year term • $3.50 exercise price • Expected to enhance liquidity in Infratil’s shares • Infratil undertook a similar issue in March 1999 ¾ Most of these warrants were taken up in March 2004 17 May
Slide 4: Income Breakdown
Income Breakdown 2004 2003 Dividends received (excluding WIAL) 27,168 16,323 TrustPower equity accounting (3,974) 1,032 Interest & other income 1,018 949 Realisations & revaluations 2,244 20,010 Wellington International Airport Earnings contribution before I, T, D, A 26,018 22,794 Tax (4,074) (1,993
Slide 5: Comparative Financial Performance
Comparative Financial Performance $000 2004 2003 2002 2001 2000 1999 1998 EBITDAR1 62,530 54,010 40,632 35,546 33,010 15,474 9,862 Realisations 2,244 20,010 28,039 11,573 22,200 11,383 244 NPAT 22,465 28,137 22,573 16,471 34,168 26,555 10,106 Consolidated assets 915,077 791,807 798,394 610,163 499,8
Slide 6: Track Record / Returns
Track Record / Returns Infratil's Sharemarket Performance 1200 1000 800 Index 600 400 200 0 Mar-94 Mar-95 Mar-96 Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Sep-94 Sep-95 Sep-96 Sep-97 Sep-98 Sep-99 Sep-00 Sep-01 Sep-02 Sep-03 Infratil Accumulation NZSX Gross Index MSCI World Utilities I
Slide 7: 2003/4 Highlights/Events
2003/4 Highlights/Events • Investment / Divestment ¾ Few transactions. None major. Holding of GPIA increased from 67% to 100% ¾ Investment focus and work focussed on airports and renewable energy • Funding ¾ 3.4m shares repurchased on-market. 46.7m shares issued via warrant exercise ¾ $101m of Bonds
Slide 8: 2003/4 Achievements
2003/4 Achievements • Delivery from existing investments rather than new investment • Significant management time focused on new investments. Transactions have not occurred for a number of reasons. Work is still underway • Portfolio Evolution (listed assets at market. Others at book value.) 1998 200
Slide 9: Investment Focus
Investment Focus • Investment focus Emerging Airports and Renewable Generation ¾ Both sectors where “step-change” in value is prospective • Emerging Airports ¾ Invest in “Brown-field” and build traffic in growth sectors ¾ Europe ¾ Whenuapai • Renewable Generation ¾ Long term trend for higher hydro-c
Slide 10: Wellington International Airport 2004
Wellington International Airport 2004 2004 2003 1999 5 year change Passengers 4,321,075 3,900,000 3,574,000 4%pa Aero income $38.55m $33.64m $22.10m 12%pa Non-aero pax income $13.26m $12.04m $5.96m 17%pa Operating cost1 $12.27m $11.89m $12.90m (1%pa) EBITD $38.71m $33.79m $16.10m 19%pa Contribution
Slide 11: Wellington International Airport
Wellington International Airport Index NZ Domestic/International Air Travel Costs: Real • Domestic pax growth 12% 160 ¾ +15% April 2004 v last year 150 140 • International growth 2% 130 120 ¾ +37% April 2004 v last year 110 100 90 • Origin Pacific write-off $495,779 80 70 ¾ Total aeronautical income
Slide 12: Glasgow Prestwick International Airport
Glasgow Prestwick International Airport 2004 2003 2001 Change Total Passengers 1,969,458 1,483,000 988,000 26%pa. Freight Volume 38,028 41,100 42,164 (3%pa.) Total Aero Income £10.34m £10.44m £7.17m 13%pa. Concession Contribution £4.96m £3.88m £2.23m 31%pa. Property Income £2.78m £2.76m £2.69m 1%pa.
Slide 13: Glasgow Prestwick International Airport
Glasgow Prestwick International Airport • Move to 100% Total Passengers (000s) ¾ Attractive investment and will optimise 2,500 12 month moving total Infratil control/discretion Scheduled 2,000 Non-Scheduled • Passenger aeronautical 1,500 ¾ 2003/4 strong growth (33%). 1,000 ¾ Ryanair projecting on-go
Slide 14: Whenuapai
Whenuapai • Joint proposal with Waitakere City Council to establish commercial airline services at Whenuapai ¾ A very obvious development, but enmeshed in political process • If successful the development would provide a material benefit in reduced road congestion as well as bringing 500,000 Aucklan
Slide 15: TrustPower
TrustPower • 2004: building on past c/kWh Wholesale Electricity Price successes 25 ¾ Buyback 21% of its shares and 20 enhanced shareholder returns 15 Monthly average ¾ Tararua windfarm expansion 10 Half year average ¾ SA windfarm consents 5 ¾ Further NZ wind and hydro projects progressed 0 Apr-99 Oc
Slide 16: Future
Future • Focus on creating above average risk-adjusted returns for shareholders • Existing major core investments performing well and expected to do better • New investment focus on Emerging Airports and Renewable Energy/Waste-Energy 17 May 2004 / Page 16