Challenger Limited · ASX:CGF
Challenger — Challenger Infrastructure Fund — Non-Deal Roadshow (May 2008)
20 slides from Challenger's roadshow presentation, May 29, 2008
Slide 1: Challenger Infrastructure Fund: Overview of Fund
Challenger Infrastructure Fund Overview of Fund Steve Bickerton Chief Executive 29 – 30 May 2008
Slide 2: Important notice
Important notice Information contained in this publication is current as at 29 May 2008 unless otherwise specified and is provided by Challenger Listed Investments Limited (ABN 94 055 293 644) (AFSL 236887) (“Challenger”), as Responsible Entity of CIF Investment Trust 1 (ARSN 114 139 703) and CIF In
Slide 3: Agenda
Agenda 1. Overview of Fund 2. Structure 3. Assets 4. Outlook 3
Slide 4: 1. Overview of Fund
1. Overview of Fund
Slide 5: Overview of Fund
Overview of Fund - Diversified infrastructure and utilities portfolio with gross assets of A$1.6bn1 Portfolio - Attractive yield plus capital growth via a portfolio of global assets - Highly cash generative assets that are either in regulated industries or have monopolistic characteristics - Assets
Slide 6: History of Fund
History of Fund 22 August 2006 22 May 2008 CIF begins trading 16 July 2007 21 December 2007 CIF announces sale of on fully paid basis Raised A$249m via CIF successfully Arqiva and FY2009 1 September 2005 post payment of distribution of A$0.357 1:4 Entitlement syndicates acquisition CIF acquires Inex
Slide 7: Distributions
Distributions Distributions Distribution Profile – 2008FY guidance of 34c per security and forecast to be approximately 25% tax deferred – 2009FY guidance of 35.7c per security, 5% 45 increase from FY2008 K5% 40 35.7 34.0 35 32.1 Cents per security – 2009FY distribution will be: 30 25 • More than 90
Slide 8: Portfolio Diversification
Portfolio Diversification Diversification by Asset1 30 June 2007 Pro-forma post asset sales 2 LBC 24% Arqiva 22% LBC 24% Southern Water 43% Gas Distribution Networks 14% Inexus 33% Inexus 40% Diversification by Revenue Type 30 June 2007 Pro-forma post asset sales2 Competitive 13% Regulated 48% Contr
Slide 9: CIF Strategy
CIF Strategy • A diversified global portfolio of high quality infrastructure and utility assets • Investment criteria to identify high quality assets that have long-term, predictable cash-flows with the potential for capital growth • Investment goal to deliver a combination of attractive and growing
Slide 10: 2. Structure
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Slide 11: Gearing at the Asset Level
Gearing at the Asset Level Pro-forma Dec 2007 June 2007 March 20081 $m $m $m Asset level proportional net total debt 2,679.1 3,271.5 1,680.8 Fund level net senior debt2 - 488.9 218.0 Total proportional net debt 2,679.1 3,760.4 1,898.8 CIF Assets under Management3 1,580.8 2,087.1 1,351.0 Total propor
Slide 12: Debt Maturity Profile (proportional consolidation)
Debt Maturity Profile1 (proportional consolidation) • Proportional weighted average maturity of approximately 15-16 years • Next major refinance point – August 2010 Inexus Refinance 1,600 1,400 1,200 1,000 $AM 800 600 400 200 - FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 and beyo
Slide 13: 3. Assets
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Slide 14: Inexus
Inexus Asset Snapshot Description - Leading UK independent last mile gas and electricity connections business CIF Ownership 80.4% - Inexus constructs and owns connections Date of Initial Investment Sept 2005 CIF Acquisition cost (£m) 152.0 Revenue - Availability charge paid by the gas shippers and C
Slide 15: LBC
LBC Asset Snapshot Description - Second largest independent bulk chemical storage terminals company globally CIF Ownership 66.2% - 2.2 million m3 of capacity Date of Initial Investment June 2007 - 13 terminals in USA, Europe and Asia CIF Acquisition Cost (€m)1 214.7 Revenue - Rental fee for capacity
Slide 16: Southern Water
Southern Water Asset Snapshot Description - Fastest growing UK water and wastewater company (WaSC’s) CIF Ownership 23.4% - Located in the south-east of England, the region Date of Initial Investment October 2007 with the highest population growth in the UK CIF Acquisition Cost (£m)1 312.1 Revenue -
Slide 17: 4. Outlook
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Slide 18: Outlook
Outlook – Optimising the current assets in the portfolio Focus – Maintaining a disciplined approach to build a portfolio of high quality assets - Forecast distribution yield of 11.5%1 in 2008FY Distributions - 2008FY guidance of 34 cents per security and forecast to be approximately 25% tax deferred
Slide 19: Questions
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Slide 20: Contacts
Contacts Steve Bickerton Chief Executive Tel: 61 2 9994 7327 Email: [email protected] Jenny Warat-Hughes Senior Manager, Investor Relations Tel: 61 2 9994 7663 Email: [email protected] 20
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