Infratil Limited · NZX:IFT
Infratil — TrustPower — Investor Presentation (February 2008)
21 slides from Infratil's investor presentation, February 2008
Slide 1: Presentation to Infratil Investor Briefing
Presentation to Infratil Investor Briefing February 2008
Slide 2: Agenda
Agenda • TrustPower – Key Facts and Organisation Structure • FY 2008 Financial Performance YTD • Competitor Benchmarking • Regulatory Environment • Strategic Focus • Questions and Answers
Slide 3: TrustPower – Key Facts
TrustPower – Key Facts • Tauranga based national electricity generator / retailer • Market capitalisation circa NZD 2.4 billion • Key Shareholders Infratil (50.5%), TECT (33%) • Freefloat 16.5% • By FY 08 generation capacity (hydro / wind) 594MW producing circa 2,325 GWh per annum in average year •
Slide 4: TrustPower Organisation Structure
TrustPower Organisation Structure Board CEO Generation Retail Energy Trading & Corporate Risk Management •Asset Management •Mass Market •Finance •Generation •Time of Use •Counterparty • Strategy Development •Customer Service Hedging •Community •Resource •Meter Reading •Reconciliation Relations Conse
Slide 5: NZ Generation / Customer Map
NZ Generation / Customer Map TRUSTPOWER GENERATION ASSETS North Island Kaimai Matahina Wheao/Flaxy Hinemaiaia Mangorei Motukawa Patea Tararua Wind Farm 11 10 ONAN PWN = South Island 9 Cobb 10 Waihopai 11 Argyle / Wairau 12 Arnold 13 Kumara/Dillmans /Duffers 14 Kaniere Forks /McKays Creek 15 Coleridg
Slide 6: TrustPower Generation Assets
TrustPower Generation Assets TrustPower’s New Zealand Generation Assets Assets Generation Average Annual Capacity (MW) Output (GWh) North Island Bay of Plenty Hydro 151 581 Taranaki Hydro 40 152 Tararua Wind 161 616 TOTAL North Island 352 1,349 South Island Nelson / Marlborough Hydro 44 245 West Coa
Slide 7: NZ Electricity Spot Prices
NZ Electricity Spot Prices Last 12 Months $140 $120 $100 $80 $/MWh $60 $40 $20 $0 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan Benmore Haywards Huntly Otahuhu
Slide 8: Financial Summary
Financial Summary 9 Months 9 Months % Dec 07 Dec 07 Change $m $m Operating Revenue 505.8 492.5 2.5 Operating Costs 343.9 331.5 3.7 EBITDAF 161.8 161.0 0.5 Depreciation, Amortisation & Investment 23.9 21.1 13.3 Asset Changes EBIT 140.1 141.6 (1.1) Net Interest 29.5 20.3 45.3 Tax 31.6 33.7 (6.2) Net S
Slide 9: Comments on Financial Result
Comments on Financial Result Key Points • Own generation down 205 GWh versus long term average • Hydro down 180 GWh on prior period (13%) but wind production also below expectation • Generation shortfall equates to circa $10m EBITDAF • Some generation development spend accelerated to progress consen
Slide 10: EBITDA & Net Surplus After Tax
EBITDA & Net Surplus After Tax EBITDAF - and Net Profit after Tax 250 200 150 $M's 100 50 0 2004 2005 2006 2007 Nine months 2008 to Dec 2007 EBITDAF Net Profit
Slide 11: CAPEX Forecast Update
CAPEX Forecast Update Generation CAPEX FY 08 NZDm Tararua Stage III 12 Deep Stream Hydro 12 Snowtown 140 46m Generation Portfolio 11 Spent 9 months to Dec 07 Other 5 180 Generation CAPEX FY 09 Snowtown 54 First Half Generation Portfolio 10 Even Spread 64
Slide 12: Current Sources of Debt Funding
Current Sources of Debt Funding Funding Source Committed Maturity Tranches Amount Banks NZD350m 2008 - 2012 3 Amortising ECA NZD108m 2020 1 Backed Funding AUD Bank Facility AUD160m 2010 1 Subordinated NZD214m Dec 2008 – 3 Bonds March 2014 Total NZD 854m Equivalent • Funding Facilities drawn to NZD 5
Slide 13: Gearing
Gearing Debt to Debt + Equity 50% 40% 30% 20% 10% 0% 2004 2005 2006 2007 2008 2009 2010 Year ending 31 March Actual Forecast
Slide 14: Sources of Generation
Sources of Generation Source of Generation 2,500 2,000 GWh's Produced 1,500 1,000 500 0 2004 2005 2006 2007 Nine2008 months to Dec 2007 South Island Hydro North Island Hydro Wind Generation
Slide 15: Overhead Costs and Customer Numbers
Overhead Costs and Customer Numbers Overhead Costs and Customer Numbers 300 120 250 100 Customers 000's $ per Electricity 200 80 Customer 150 60 100 40 50 20 0 0 2004 2005 2006 2007 2008 Electricity Customers Telecommunication Customers Overheads Per Electricity Customer
Slide 16: Competitor Benchmarking
Competitor Benchmarking EBITDA Return on Adjusted Capital Contact Genesis Meridian MRP TPW 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07
Slide 17: New Generation Improves Risk Management
New Generation Improves Risk Management 3500 3000 Market Hedges 2500 Market Hedges Physical Supply Contracts GWh per annum Fixed Price Demand 2000 Physical Supply Contracts 1500 Own Generation Own Generation 1000 500 March 07 March 08
Slide 18: Regulatory Environment
Regulatory Environment • Climate Change Bill tabled in Parliament in December. Legislation likely to be enacted 1H08. • Emissions Trading Scheme – electricity sector included from January 2010. • 10 Year moratorium on base load fossil fuel thermal generation except as required to maintain security o
Slide 19: Strategic Focus
Strategic Focus • Generation Development – Resource Consents for Mahinerangi Wind, Wairau Hydro, Arnold Hydro, Kaiwera Downs, should be concluded in 2008 – North Island Wind Options • Australia – Completion of Snowtown Stage I – 40MW at Myponga still a possibility – Pursue other opportunities that a
Slide 20: The Case for Renewables
The Case for Renewables NI Base Load Equivalent New Entry Costs NZ $/MWh CO2 Tax=$25/t, HVDC charge=$25/kW, WACC=9.0% $120 $110 $100 HVDC charge $90 Wind backup $80 cost $70 CO2 25$/t $60 $50 Fuel $40 O&M $30 $20 Capital $10 $0 ASC Coal CCGT - gas CCGT - LNG Geothermal - Geothermal - Wind Typical NI
Slide 21: TrustPower's renewable energy options could double generation capacity
TrustPower’s renewable energy options could double generation capacity Australian Wind under Wind Options Renewables – construct- ion New Zealand Renewables – SI Hydro SI Wind Resource Consenting Current Generation SI Hydro NI Hydro NI Wind Capacity 0 100 200 300 400 500 600 Capacity MW