Infratil Limited · NZX:IFT
Infratil — FY2017 Earnings Presentation
24 slides from Infratil's earnings presentation, May 18, 2017
Slide 1: Infratil 2017 Full Year Result
Infratil 2017 Full Year Result 18 May 2017
Slide 2: Full Year Overview
Full Year Overview Capital deployment, new platforms and second-half tail winds feature in FY17 • Net parent surplus for the year was $66.1 million compared to $438.3 million in the prior period which included $436.3 million of gains from the sales of Z Energy and iSite • A strong finish to the year
Slide 3: Financial Highlights
Financial Highlights Uplift in earnings from core businesses Full Year ended 31 March ($Millions) 2017 2016 Variance % Change Underlying EBITDAF (continuing activities)1 519.5 462.1 57.4 12.4% Net Parent Surplus 66.1 438.3 (372.2) (84.9%) Net Operating Cash Flow 245.0 250.5 (5.5) (2.2%) Capital Expe
Slide 4: Results Summary
Results Summary Reported comparisons impacted by revaluations and prior year gains on sale 31 March ($Millions) 2017 2016 • Operating revenue increased 7.8%, largely attributable to Australian Renewable assets Operating revenue 1,913.8 1,775.7 • Increased depreciation and amortisation Operating expe
Slide 5: Underlying EBITDAF
Underlying EBITDAF Core assets provide underlying earnings uplift during the period Underlying EBITDAF ($Millions) 2017 2016 • Trustpower – Australian hydro assets delivered an exceptional result while NZ generation was also strong, Trustpower (pre demerger) - 329.4 including a full period contribut
Slide 6: Group Capital Expenditure and Investment
Group Capital Expenditure and Investment Significant capital deployed through existing assets and acquisitions 31 March ($Millions) 2017 2016 • Trustpower and Tilt capex represents operational Trustpower 26.7 119.3 and maintenance capex programme Tilt Renewables 6.3 - • Wellington Airport has severa
Slide 7: Asset Values
Asset Values Strong demand for lower-risk cash flows underpins the value of the portfolio Investment ($Millions) March 2017 March 2016 Appetite for lower-risk cash flows and supply of capital continues to drive up valuations in the infrastructure Trustpower (pre demerger) - 1,223.6 sector, highlight
Slide 8: Debt Capacity and Facilities
Debt Capacity and Facilities Strong capital base remains with cash position, facility head room and duration • Cash position of $384 million and wholly owned subsidiaries bank facilities drawn of $61 million at 11 April 2017 • Senior debt facilities have maturities up to 3.5 years and 5 years (for b
Slide 9: Funds Available for Investment
Funds Available for Investment Significant capacity remains to support further investment • $631 million of cash and undrawn bank facilities remain on hand 31 March ($Millions) 2012 2013 2014 2015 2016 2017 Net bank debt (cash on hand) 363 364 72 (228) (661) (92) Infratil bonds (incl. PiiBs) 859 912
Slide 10: Divestment of Metlifecare
Divestment of Metlifecare Divestment realises $237.9 million and delivers a 15.8% annualised IRR • IFT acquired a 19.9% stake in MET in Gain on MET Sale $Millions November 2013 for $3.53 and sold the investment on 11 April 2017 for $5.61 per share Acquisition Cost 147.9 • Infratil was very active in
Slide 11: Distributions
Distributions Growth in dividend per share maintained Dividend Per Share Profile FY 2012-2017 FINAL ORDINARY 35 DIVIDEND 30 Final ordinary dividend of 25 10.0 cps, fully imputed, payable 20 on 15 June 2017 to shareholders recorded as 15 owners by the registry as at 10 2 June 2017 (last year final 5
Slide 12: Trustpower
Trustpower Multi-product customer growth during demerger and a flat New Zealand market FY17 EBITDAF $234 million, excluding demerger costs of $16.7 million Customers • Total accounts up 4% since 31 March 2016 to 385,000 • Total accounts with two or more utilities up 17% since 31 March 2016 to 90,000
Slide 13: Tilt Renewables
Tilt Renewables Bringing a fresh approach to renewable energy generation FY17 EBITDAF A$124.0 million, A$0.7 million below FY16 • Australian revenue A$174.5 million, up 8%, due to stronger production, contracted price increases and stronger LGC prices for uncontracted production • New Zealand revenu
Slide 14: Longroad Energy
Longroad Energy Continued development of renewables in the U.S. • Longroad undergoing an accelerated start-up; • Now fully staffed with 26 employees • Secured up to 600 MW of 100% PTC qualified wind turbines • Acquired 3 GW solar PV development pipeline • Targeting establishment of ~10 GW wind and s
Slide 15: Canberra Data Centres
Canberra Data Centres Compelling platform in an emerging growth sector • IFT completed its acquisition of 48% of Canberra Data Centres (CDC) on 14 September 2016, for a total cash equity cost of A$385.7 million • From acquisition through to 31 March 2017 CDC delivered EBITDAF of A$25.6 million (on a
Slide 16: Wellington International Airport
Wellington International Airport Capital investment supports passenger growth and customer experience EBITDAF of $90.5 million +5.1% • Almost 6 million passengers. +2.9% or 167,000 (ten year average growth 133,000 p.a.) • Commercial revenues up 3.6% through higher transport income and retail benefit
Slide 17: NZ Bus
NZ Bus Improved financial performance for FY17 offset by loss of contracts EBITDAF of $43.7 million, +4% • Revenue down 1%, due to the end of some South Auckland services, partially offset by additional capacity introduced into Central Auckland. • Expenses down 8% reflecting the end of some South Au
Slide 18: RetireAustralia
RetireAustralia Strong FY17 result with development and care strategies progressing Operating performance • Net profit after tax (IFRS) A$55 million, post A$18 million deferred tax provision • Underlying profit A$59 million driven by strong price rises and realised development margins • 105 new unit
Slide 19: Perth Energy
Perth Energy Improved performance since half year result • EBITDAF loss for the year of A$13.3 million, with improved performance in the second half • A$22.9 million shareholder loan provided during the year to assist with liquidity requirements Retail • Loss making contracts maturing but market rem
Slide 20: Australia National University Student Accommodation
Australia National University Student Accommodation Evolving standalone sector with attractive yield and development profile • Investment is a 50% interest in a 30-year revenue stream from nine on-campus residences of Australian National University (“ANU”) in Canberra • Provides Infratil with exposu
Slide 21: 2017/18 Outlook
2017/18 Outlook Outlook reflects portfolio changes and normal weather conditions • Outlook for 2017/18 reflects: Investment ($Millions) 2017 2018 •Return to long run average weather Actual Outlook conditions and house price inflation Underlying EBITDAF 519.5 460-500 • Expected future scale of NZ Bus
Slide 22: Summary
Summary The focus is clear Reshaping of portfolio has established high quality platforms in several meaningful sectors • Targeting essential services supported by long-term secular trends, consumers and regulators • Developed extensive proprietary pipelines in several jurisdictions Clear deliverable
Slide 23: For more information
For more information www.Infratil.com INFRATIL FULL YEAR RESULTS PRESENTATION 2017 23
Slide 24: Appendix I – Reconciliation of NPAT to Underlying EBITDAF
Results Summary Appendix I – Reconciliation of NPAT to Underlying EBITDAF 31 March ($Millions) 2017 2016 • Underlying EBITDAF is a non-GAAP measure of Net profit after tax 130.4 495.5 financial performance, presented to show management’s view of the underlying business less: share of MET & RA associ