Infratil Limited · NZX:IFT
Infratil — Shareholder Meeting (July 2001)
14 slides from Infratil's shareholder meeting presentation, Jul 16, 2001
Slide 1: Annual Meeting Morrison & Co Presentation
Annual Meeting Morrison & Co Presentation 16 July 2001
Slide 2: Track Record / Returns
Track Record / Returns 450 • Seven year return to NTA per Share Index 400 shareholders 19.4% pa Infratil Share Price Index 350 NZSE40 Capital Index 300 • NTA growth 18.8% pa Value Index 250 (exclusive of dividends) 200 Ø Based off market values 150 and WIAL/GPIA at book 100 Ø Share price currently a
Slide 3: Portfolio Development
Portfolio Development • March 1998 $203m • March 2001 $493m Airports Electricity Generation Electricity Generation Ports Airports Electricity Electricity Distribution Retail Transport 16 July 2001/Page 3
Slide 4: Investment Goals / Approach
Investment Goals / Approach • Utility investments where Infratil can satisfy is objective of above average rates of return Ø Cheap entry Ø Control + Expertise = capacity to add value Ø Long term returns • Management expertise Ø Electricity Ø Airports Ø Ports Ø Technology 16 July 2001/Page 4
Slide 5: Challenges
Challenges • TrustPower Ø Cementing control and enhancing operational income • Wellington International Airport Ø Encouraging growth in services and aeronautical income • Glasgow Prestwick International Airport Ø Profiting from growth in freight and passengers • Port Of Tauranga Ø New container serv
Slide 6: TrustPower
TrustPower 80 800 • Infratil and Alliant close to control 70 700 Ø Managerial and strategic 60 600 implications 50 500 Market Cap $M Income $M 40 400 30 300 • Hydro/Wind Generation 20 200 Ø 85-90% of TrustPower’s value 10 100 Ø Higher prices higher value 0 0 1995 1996 1997 1998 1999 2000 2001 EBITDA
Slide 7: Wellington International Airport
Wellington International Airport Pax growth $M Earnings • Stable despite airline duopoly 40 Passenger demand Ü high fares Revenue EBITDA Costs 30 • Air travel demand price elastic • Virgin Blue and Freedom 20 10 Rising PSR Total Capital Value $236m • Concessions and ground service income 0 1995 1996
Slide 8: Glasgow Prestwick International Airport
Glasgow Prestwick International Airport • Infratil’s first offshore • Income contribution investment Ø Freight 47% Ø General aviation 27% • Compatible with Ø Passenger services 19% investment goals Ø Property 7% • High projected IRR • 5 year growth record • Since purchase Ø 20%pa. passengers Ø 26%pa
Slide 9: Glasgow Prestwick International Airport
Glasgow Prestwick International Airport • Carparking charges illustrative of opportunities Prestwick East Mid Glasgow Cardiff Ø 4 free hours 10 mins Free Free £1.00 Ø £1.65 per departing pax 30 mins £1.20 Ø £4.30 is the regional airport 1 hour Free £1.50 £2.00 £1.70 average 2 hours £2.50 £3.20 £2.50
Slide 10: Glasgow Prestwick International Airport
Glasgow Prestwick International Airport Return Sensitivity Pax Traffic: Low to High Freight Traffic: Low to High Loss of Ryanair Pax Charges: +0% to +50% real in 2009 & 2014 Freight Charges: +0% to +30% real in 2005 Bonded Warehouse: +0% to +30% real in 2005 Retail: 50% of Uplift to High New Propert
Slide 11: Airport Valuation
M 16 July 2001/Page 11 el bo ur B ne ris (0 0 5 10 15 20 25 ba 5/ ne 97 ) (0 Pe 5/ C rt 97 oo h ) la (0 ng 5/ at 97 To ta ) w (0 ns 3/ vi 98 lle ) A (0 de 3/ la W id 98 ) el e (0 Airport Valuation lin 6/ gt 98 So on ) ut h ( 1 A 2/ 98 fr M ic ) ex a ic (2 an 0% SE ) (1 R 5% N o m ) or th e (5 er 1%
Slide 12: Port of Tauranga
Port of Tauranga • Containers Financial Performance Ø 300,000 pa. (<100,000 until 2 8.00 Share Price 80 years ago ) 6.00 EBITDA 60 Share Price Ø Growth generated by NPAT $M 4.00 40 management initiatives not appreciated by the market 2.00 20 • Bulk Trade 0.00 0 1996 1997 1998 1999 2000 2001 Ø Volume
Slide 13: Future
Future • Strategy Ø New high returning utility investments Ø Funding from monetising existing investments Ø Enhancing the return of existing investments • New investment focus Ø Airports internationally Ø Utility-technology Ø New Zealand/Australia • Capital efficiency including buybacks and Infrastr
Slide 14: For further information, please refer to our website
For further information, please refer to our website: http://www.infratil.com