Infratil Limited · NZX:IFT
Infratil — FY2010 Earnings Presentation
23 slides from Infratil's earnings presentation, May 18, 2010
Slide 1: Infratil Results Year Ended 31 March 2010
Infratil Results Year Ended 31 March 2010 18 May 2010 1
Slide 2: Year Ended 31 March 2010: Summary
Year Ended 31 March 2010 : Summary • Satisfactory year for shareholders - 22.5% return - Share price rise from $1.46 to $1.72 and 6.25 cps imputed dividend - IFTWB exercise or extension • Improved earnings - Strong returns from core businesses; TrustPower and Wellington Airport. Satisfactory results
Slide 3: Year Ended 31 March 2010
Year Ended 31 March 2010 Year Ended 31 March 2010 ($Millions) 2010 2009 Operating Revenue $1,835.9 $1,733.8 EBITDAF $363.3 $356.7 Net Interest ($159.3) ($176.9) Depreciation & Amortisation ($114.0) ($102.2) Operating Earnings $90.0 $77.6 Net (loss)/gain on revaluation of financial derivatives ($67.5
Slide 4: Year Ended 31 March 2010
Year Ended 31 March 2010 • EBITDAF - $6.6 million increase notwithstanding $392 million of asset sales - A more material uplift is probable in FY2011 as Infratil benefits from its investment programme and sector trends • Operating Earnings - 16% increase. Interest costs down $18 million. Depreciatio
Slide 5: Business Unit EBITDAF
Business Unit EBITDAF YE 31 March • Strong results from core established ($Millions) 2010 2009 business units - TrustPower and TrustPower $273.9 $260.0 Wellington Airport - TrustPower achieved record operating Infratil Energy Australia $11.0 $19.9 performance notwithstanding low generation volumes W
Slide 6: Capital & Risk Management
Capital & Risk Management • $382 million reduction of Infratil parent bank debt to a net $82 million at year-end - $632 million of available bank facilities (Infratil and wholly owned subsidiaries) - Total parent company debt including perpetual bonds decreased from $1,212 million to $830 million -
Slide 7: Borrowing Facilities & Bond Programme
Borrowing Facilities & Bond Programme • Total Infratil parent company and wholly owned subsidiaries bank facilities of $632 million (net drawings $82 million 31 March 2010) - Bank facilities were reduced $112 million during the year - Comfortable facilities roll-over profile going forward YE 31 Marc
Slide 8: Assets & Liabilities
Assets & Liabilities Assets: YE 31 March • Market (NZX) or book value of assets ($Millions) 2010 2009 - $264 million of assets listed as “other” in 2009 TrustPower $1,153 $1,122 were sold over the year for $392 million Infratil Energy Australia $256 $221 - IAE written down in value Sept 09 (£88m to
Slide 9: 2011 Outlook: Earnings
2011 Outlook : Earnings YE 31 March 2011 • EBITDAF range $390 million to ($Millions) 2010 Guidance $430 million - Inclusive of approximately $30 million EBITDAF $363 $390-$430 contribution from 50% of Shell (based on performance consistent with the 2009 Current Net Interest ($159) ($170-$180) Cost E
Slide 10: 2011 Outlook: Capital Investment
2011 Outlook : Capital Investment YE 31 March • Capital investment (including the Shell ($Millions) 2010 2011 acquisition) maintained TrustPower $29 $80-$120 - This will form the basis of future earnings and value growth Australian Energy $116 $50-$70 • TrustPower approved the $75 million Wellington
Slide 11: 2012 & Beyond
2012 & Beyond • Favourable sector trends and capital investment will drive EBITDAF to in excess of $500 million - New Zealand electricity prices for 2012 delivery ~ $90/MWh are incentivising build - Continuing deregulation, restructuring, consolidation of the Australian energy market - Restructure o
Slide 12: Energy
Energy 12
Slide 13: Shell Downstream Assets
Shell Downstream Assets • Aotea Energy is the holding company which owns the operations acquired from Shell • FY2011 will be a year of maintaining momentum, implementing transition programmes and developing plans for future growth - Transition costs ~ $10 million • EBITDAF on track to repeat 2009 on
Slide 14: TrustPower
TrustPower Infratil Cash EBITDAF ($m) Income ($m) • Solid earnings outcome despite low NZ 300 80 70 generation volumes 250 60 - NZ generation ~300GWh below long-run average 200 50 - Stable customer base 150 40 100 30 • Snowtown’s first full year of generation 20 50 10 - 373 GWh (254 GWh prior) 0 0 -
Slide 15: Infratil Energy Australia
Infratil Energy Australia IEA Group Earnings Breakdown FY2010 • Positive retail earnings performance - Retail earnings of A$29 million A$ Million 30 - Net margins comparable with industry 25 leaders 20 15 • Group earnings reduced by 10 one-offs Generation Abnormal Hedge Low-price 5 development bad d
Slide 16: Infratil Energy Australia
Infratil Energy Australia • IEA is on track to become a major national Australian energy company - Target retail base of ~1 million accounts - Each State has its own unique market features • Generation projects - Port Stanvac (65MW) in SA - Kwinana (120MW) in WA March March March March March - Furth
Slide 17: Airports
Airports 17
Slide 18: Wellington
Wellington • Good earnings outcome in a trying aviation market - Domestic passengers down, international passengers up - EBITDAF up $2.8m - Passenger services income up $2.1m • Good airline loadings - Jetstar commenced domestic services - Regional services had material capacity cuts • Finalisation o
Slide 19: European Airports
European Airports Freight (tonnes) Passengers (Millions) • Continuation of exceptionally 70,000 Passengers Freight (tonnes) EBITDAF 4 difficult aviation market 60,000 - Passengers down 26% (excluding the 3 impact of Lübeck’s sale) 50,000 - Freight up 14% as Kent continued to 40,000 attract scheduled
Slide 20: Public Transport
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Slide 21: NZ Bus
NZ Bus • Earnings impacted by slightly lower revenues - The Auckland strike resulted in approximately 1 million less trips in that region - Flat Wellington traffic improved towards the end of FY2010 - Positive passenger trend by the end of the year maintained into FY11 • Good cost control - Labour c
Slide 22: Snapper
Snapper • 120,000 cards on issue - 1/3 of the Wellington and Hutt populations have a Snapper card • GO Wellington, Valley Flyer, North Bus, East by West Ferries - 200 merchants • FY2011 - Complete range of fare products loaded on Snapper for the Wellington public transport users. Available on all We
Slide 23: www.infratil.com
www.infratil.com