Infratil Limited · NZX:IFT
Infratil — H1 FY2016 Earnings Presentation
23 slides from Infratil's earnings presentation, Nov 11, 2015
Slide 1: Infratil Half Year Results
INFRATIL HALF YEAR RESULTS Six months ended 30 September 2015 11 November 2015
Slide 2: Half Year Overview
Half Year Overview Z Energy sale drives record net surplus • Record net surplus following asset realisations • EBITDAF from continuing operations +14.0% • Ongoing portfolio renewal increases investment capacity: - Sale of 20% Z Energy stake for $6.00 per share - $480m - Trustpower $65m-$125m takeove
Slide 3: Financial Highlights
Financial Highlights EBITDAF growth and Z realisation boost result Six months ended 30 September ($M) 2015 2014 Variance % Change EBITDAF (continuing activities) 271.4 238.1 33.3 14.0% Operating Earnings (continuing activities) 94.5 73.6 20.9 28.4% Net Surplus after Tax, MI and Disc Ops 435.4 398.8
Slide 4: Result Summary
Result Summary EBITDAF from continuing activities +14.0% on prior period • $20.9m increase in Operating Earnings to $94.5m (+28.4%) • TPW growth reflecting full six month contribution from Snowtown II wind farm • Increased contributions from Metlifecare and RetireAustralia following investment prope
Slide 5: EBITDAF Breakdown
EBITDAF Breakdown Renewables and retirement contributions deliver EBITDAF growth Six months ended 30 Sep ($M) 2015 2014 • Trustpower – EBITDAF increase of 6% Trustpower 184.2 173.3 following a full contribution from Snowtown II Wellington Airport 41.8 40.4 • Wellington Airport – strong passenger gro
Slide 6: Distributions
Distributions Capital expenditure and earnings growth have driven DPS profile Dividend Per Share Profile FY 2012-2016(1) INTERIM ORDINARY 35 DIVIDEND 30 Interim ordinary dividend of 5.25 cps, 25 fully imputed, payable on 20 15 December 2015 to shareholders 15 recorded as owners by the registry as at
Slide 7: Debt Position
Debt Position Strong capital position maintained to support future growth • Senior debt facilities have maturities up to 4 years and 6 years (for bus finance export credit facility) • A new $100m (with up to $50m oversubscriptions) 8 year bond issue at 5.25% closes on 13 November 2015 • Infratil con
Slide 8: Funds Available for Investment
Funds Available for Investment Significant capacity provides financial flexibility Period ended 30 September 2011 2012 2013 2014 2015 Wholly-owned group ($M) Net bank debt (cash on hand) 352 397 42 (640) (682) Infratil bonds (incl. PiiBs) 799 858 921 989 989 Market value of equity 1,073 1,268 1,454
Slide 9: Net Asset Values
Net Asset Values Book values at 30 September Investment ($M)(1)(2) 2015 2014 • Trustpower – listed market value ($7.42) Trustpower 1,185.3 1,167.7 • WIAL – investment value represents 66% of Z Energy - 316.8 book value of net assets Wellington Airport 325.2 329.6 • NZ Bus – movement reflects asset d
Slide 10: Sale of Z Energy 30 September 2015
Sale of Z Energy 30 September 2015 IFT success story in creating a strong NZ business • On 30 September 2015, Infratil completed the sale of its 20% stake in Z Energy for a net sales price of $479.8m, recognising a gain on sale of $392.3m on the 20% stake • Infratil acquired the business in April 20
Slide 11: Australasian Energy - Trustpower
Australasian Energy - Trustpower Delivering on growth agenda in NZ • EBITDAF increased by 6% over prior period to $184.2m • Strong customer growth compared to prior period; – Electricity connections up 8% to 252,000 – Gas connections up 33% to 28,000 – Telco connections up 46% to 51,000 – Mass marke
Slide 12: Australasian Energy - Trustpower
Australasian Energy - Trustpower Good options for growth in Australia • Australian wind - LRET renewable energy now has bipartisan political support - Target will largely be met by wind - PPAs mitigate risk but may be hard to achieve - Progressing Development Approvals in SA, VIC and NSW with view t
Slide 13: NZ Airports – Wellington Airport
NZ Airports – Wellington Airport EBITDAF increase reflects growth in passenger numbers • $28.0m of capex invested during the period, primarily relating to the terminal extension, airfield engineering and the airport retail park • Multi-storey car park is in final stages of design and cost approval,
Slide 14: NZ Public Transport – NZ Bus
NZ Public Transport – NZ Bus EBITDA Growth and focus on the future • Public Transport Operating Model (“PTOM”) Tenders – NZ Bus submitted tenders for the 8 South Auckland units in early October, with results expected early 2016 and the services to commence in September 2016 – The West Auckland and W
Slide 15: Australia Retirement Living - RetireAustralia
Australia Retirement Living - RetireAustralia RetireAustralia transition phase into the IFT portfolio • A$14.4m equity-accounted contribution to Infratil – Underlying EBIT of A$39.9m1 – Revaluation gains A$13.0m and realised gains of A$18.4m – Operating cashflow of A$36.6m2 – Development pipeline of
Slide 16: NZ Retirement Living - Metlifecare
NZ Retirement Living - Metlifecare Metlifecare showing strong profit growth and development • $16.5m equity accounted contribution to Infratil - Underlying profit up 14% to $52.4m (FY2015) - Revaluation gains $121.2m and realised gains of $39.8m - Operating cashflow growth of 40% to $83.3m (FY2015)
Slide 17: Portfolio Management
Portfolio Management Origination focused on renewables, retirement and development • Current strategy to tilt the portfolio towards risk assets and development opportunities • Infratil is likely to build on the core existing platforms established for renewables and the retirement sector - Good value
Slide 18: Capital Management
Capital Management Capital structure appropriate for growing pipeline of developments • Capital structure designed to support growing development pipeline of internal opportunities in renewables and retirement • Important to have committed capital in large private market processes and at times of ma
Slide 19: Group Capital Expenditure and Investment
Group Capital Expenditure and Investment 2015/16 focused on deployment of internal capex pipeline 30 September FY16 • Trustpower – no major FY16 capex planned Capex ($M) 2015 Outlook – forecast excludes the proposed $65m-$125m acquisition of King Country Energy Limited Trustpower (1) 15.4 40-50 • We
Slide 20: 2015/16 Outlook
2015/16 Outlook Significant growth forecast from continuing operations 30 September 2015 FY 2016 $Millions Actual Outlook(1) EBITDAF(2) – continuing operations 271.4 500–530 Net interest 91.6 160–170 Operating cash flow 121.6 250–280 Depreciation and amortisation 85.3 170–180 2015/16 EBITDAF range $
Slide 21: Infratil Group – Summary
Infratil Group – Summary Quality pipeline and uncertain markets support the case for retention • Further portfolio recycling has established a very strong capital base • Ongoing review of capital management options confirms that retention is optimal given high levels of confidence around internal re
Slide 22: www.infratil.com
For more information: www.infratil.com INFRATIL 22 2015
Slide 23: Appendix I: Consolidated Profit & Loss
Appendix I Consolidated Profit & Loss Group Financial Performance ($M) HY September 2015 HY September 2014 Total income 909.5 847.8 Operating expenditure (638.1) (609.7) EBITDAF (continuing activities) 271.4 238.1 Net interest (91.6) (92.4) Depreciation & amortisation (85.3) (72.1) Operating earning