Infratil Limited · NZX:IFT
Infratil — Shareholder Meeting (August 2009)
15 slides from Infratil's shareholder meeting presentation, Aug 17, 2009
Slide 1: Position and Prospects
Position and Prospects 17 August 2009 Report to Shareholders 1
Slide 2: Infratil – well placed for the next 15 years
Infratil – well placed for the next 15 years • Our approach to investment has come through a significant test in 2008/09 • Deleveraging and capital constraints have created significant disruption and opportunity • Infratil remains as one of the few long-term investors with genuine operating experien
Slide 3: Infratil's approach to investment
Infratil’s approach to investment • Target 20% total returns to shareholders • Invest in sectors with strong favourable trends • Growth infrastructure businesses with significant re-investment potential • Active investors with a preference for influential stakes • Risk management measures focus on f
Slide 4: 2008/09 – a real test of the business model
2008/09 – a real test of the business model • Global conditions deteriorated significantly • Tight credit markets made it difficult to finance long-term growth investments • Not all infrastructure sectors have responded similarly to the recession • More aggressive regulation in public transport and
Slide 5: A proactive plan tailored for the new environment
A proactive plan tailored for the new environment • Continue to grow operating earnings in consolidated group • Tighten up capital expenditure programs and hurdle rates • Sell non-strategic or low-potential assets • Replace bank debt with longer- term bonds, roll-over facilities • Raised $100m equit
Slide 6: Financial performance to March 31, 2009
Financial performance to March 31, 2009 • Strong growth in operating earnings (EBITDAF) • Significant write-downs in AIA and ENE offset by $329m positive revaluations in TPW and WIAL • Completion of significant capital expenditure program • $45m total gain from S&P contract hedge Strong operating in
Slide 7: A track record of delivering shareholder returns
A track record of delivering shareholder returns Annual Return Accumulation Index 80% 2000 60% 1500 40% 1000 20% 500 0% 0 -20% -500 -40% -1000 Mar-94 Mar-95 Mar-96 Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Annual Dividend Return Annual Return Infratil
Slide 8: 2009/10 investment program and outlook
2009/10 investment program and outlook • Good start in core TrustPower, WIAL, and NZ Bus businesses • Extremely low energy prices in Australia and recessionary impact in Europe will impact group EBITDAF • Full year EBITDAF growth likely to be towards the bottom end of the +5% to +12% forecast range
Slide 9: Capital allocation priorities for the medium term
Capital allocation priorities for the medium term • Reduce leverage and create further financial flexibility Infratil Asset Mix March 31, 2009 • Focus investment on internal Energy Developments capital expenditure and energy TrustPower and transport sectors Infratil Energy • Continue to rebalance po
Slide 10: Future energy will become less carbon intensive
Future energy will become less carbon intensive 10
Slide 11: Air travel will continue to grow
Air travel will continue to grow 11
Slide 12: Buses – good for the environment and ratepayers
Buses – good for the environment and ratepayers 12
Slide 13: Infrastructure - a critical economic growth driver
Infrastructure - a critical economic growth driver • Demand and rationale for better infrastructure • Government generally not the optimal provider • Regulation should focus on market efficiency and outcomes • Private providers who know their customers will produce the best outcome for users, the co
Slide 14: www.infratil.com
www.infratil.com
Slide 15: Financial performance to March 31, 2009
Financial performance to March 31, 2009 Consolidated Results YE 31 March $Millions 2009 2008 • Strong growth in operating earnings (EBITDAF) Earnings (EBITDAF) 356.3 315.9 Net interest (176.9) (148.8) • Significant write-downs in Depreciation & (102.2) (79.3) AIA and ENE offset by Amortisation $329m