Infratil Limited · NZX:IFT
Infratil — Investor Day (March 2017)
14 slides from Infratil's investor day presentation, Mar 29, 2017
Slide 1: Infratil Future Directions Investor Day
Infratil Future Directions Investor Day 29 March 2017
Slide 2: Infratil focus is clear
Infratil focus is clear Enhance the core while harvesting the new set of proprietary development options • Active reset of the Infratil portfolio over the last few years to exit long-term positions and create new growth platforms • Achieved equilibrium across core assets and new platforms with long-
Slide 3: Infratil idea generation and execution
Infratil idea generation and execution Multiple work streams required to convert insights into superior returns Origination Market Events High conviction Proprietary New Options beliefs Options Research and Platform Asset Market Scans Development Management Option Capital Shareholder Development Man
Slide 4: Committed to investing in ideas that matter
Committed to investing in ideas that matter Willingness to invest early and redefine industries and customer experience • Why focus on ideas that matter? Examples of ideas that matter: – Early exposure to long term trends implies a strong capital requirement and potential for higher returns - Loweri
Slide 5: Valuation also matters
Valuation also matters Discount to NAV has widened while the new positions have been established • The implied net asset value discount on an Infratil share has widened as new sector positions have been established – Discount likely to narrow as platforms reach independent scale • Still plenty to do
Slide 6: Proprietary platforms are a critical indicator of future success
Proprietary platforms are a critical indicator of future success Emphasis is shifting back to capital growth • Important enabling initiatives have been Key Questions around IFT outlook: executed - Investment thesis – supported by long term trends – TPW separation and Tilt demerger in energy, demogra
Slide 7: Our approach to capital management reflects a development bias
Our approach to capital management reflects a development bias Maintain flexibility while reserving capital for proprietary pipelines • Significant near-term capital deployment Current Settings opportunities in the renewable, eldercare and - $380m of cash and available facilities prior to any data i
Slide 8: IFT Portfolio strategy on a page
IFT Portfolio strategy on a page High return development platforms supported by a cash-generating core CORE CASH GENERATIVE ASSETS Although the focus is on growth, it is important to retain a proportion of core infra in the portfolio to facilitate the model Renewables Eldercare Data Emerging Platfor
Slide 9: IFT Portfolio strategy on a page
IFT Portfolio strategy on a page High return development platforms supported by a cash-generating core CORE CASH GENERATIVE ASSETS Rotate out of Core portfolio generates cash businesses with to support IFT- declining outlooks level debt and dividends Remain opportunistic for Renewables Eldercare Dat
Slide 10: IFT Portfolio strategy on a page
IFT Portfolio strategy on a page High return development platforms supported by a cash-generating core CORE CASH GENERATIVE ASSETS • Core, mature assets with history of generating ~10-12% equity returns • Reinvestment options with stronger marginal returns • Allows overall e.g., mid-teens for large
Slide 11: Performing at the core
Performing at the core Positioning for model shifts, changing industries and more active politicians & regulators • TRUSTPOWER • WELLINGTON AIRPORT • NZ BUS – Diverse and flexible renewable – Part-way through a significant – Mid-way through major re- generation plant throughout capital expenditure p
Slide 12: Focusing on what we have
Focusing on what we have Infratil has largely established the main areas of new growth for the medium term • RENEWABLES • ELDERCARE • DATA INFRASTRUCTURE – Tilt ~2GW pipeline of – Our NZ & Australian retirement – CDC positioning for long term opportunities in Australia with businesses have enhanced
Slide 13: Infratil FY18 guidance and near term outlook
Infratil FY18 guidance and near term outlook Guidance range reaffirmed at $485-$505 million for FY17 • FY17 underlying EBITDAF forecast 2017 2018 $485-$505 million Outlook Outlook $m $m • Outlook for 2017/18 is flat year on year, assuming: Underlying EBITDAF 485-505 470-510 – long run average hydrol
Slide 14: Focused on Ideas that Matter
Focused on Ideas that Matter Execution priorities and deliverables are clear • Infratil is poised to benefit from the establishment of high quality platforms in areas of high conviction – Targeting essential services supported by long-term secular trends, consumers, and regulators – Secured high-cal