Infratil Limited · NZX:IFT
Infratil — Shareholder Meeting (August 2015)
32 slides from Infratil's shareholder meeting presentation, Aug 21, 2015
Slide 1: Infratil Annual Meeting 2015
INFRATIL ANNUAL MEETING 2015 21 August 2015
Slide 2: Agenda
Infratil Annual Meeting Agenda • Chairman’s introduction • Chief Executive’s Review • Discussion of the Annual Report for the year ended 31 March 2015 • Questions from Shareholders • Resolutions • Close and Afternoon Tea INFRATIL 2 2015
Slide 3: Mark Tume, Chairman
Mark Tume Chairman • Independent Director since 2007 and Chairman since 2013 • Director of RetireAustralia, several listed and private companies, Guardian of NZ Superannuation Fund • Finance industry background INFRATIL 3 2015
Slide 4: Humphry Rolleston, Director
Humphry Rolleston Director • Independent Director of since 2006 • Director of several listed and private companies involved with finance, property, tourism, manufacturing and agriculture • Fellow of New Zealand Institute of Directors and the Institute of Management • Retiring by rotation and up for
Slide 5: Marko Bogoievski, CEO and Director
Marko Bogoievski CEO and Director • Joined Morrison & Co in 2008, and Infratil Board 2009 • Substantial experience in New Zealand and the USA in finance, operations and sales • Director of Z Energy Limited • Director Trustpower Limited • Fellow of the New Zealand Institute of Chartered Accountants I
Slide 6: Duncan Saville, Director
Duncan Saville Director • Foundation Director • Director of Infratil’s manager, Morrison & Co • Director of the manager of Utilico (6.3% Infratil shareholder) • Extensive investment and utility sector experience • Fellow of both the Australian Institute of Company Directors and Institute of Chartere
Slide 7: Anthony Muh, Alternate Director
Anthony Muh Alternate Director • Director since 2007, alternate director for Duncan Saville since 2010 • Joined Morrison & Co in 2010 – Hong Kong based • Finance and investment sector experience • Fellow of INFINZ and the Hong Kong Securities Institute INFRATIL 7 2015
Slide 8: Paul Gough, Director
Paul Gough Director • Joined the Infratil board as an independent director in 2012 • Extensive investment banking and private equity experience in New Zealand and the UK • Transport and energy sector expertise • Retiring by rotation and up for re-election INFRATIL 8 2015
Slide 9: Alison Gerry, Director
Alison Gerry Director • Joined the Infratil board as an independent director in July 2014 and is Chair of the Audit & Risk Committee • Extensive international experience in finance and treasury • Professional director INFRATIL 9 2015
Slide 10: Report to Shareholders: Chief Executive Review
REPORT TO SHAREHOLDERS CHIEF EXECUTIVE REVIEW
Slide 11: The Infratil model at work
The Infratil model at work Record earnings and cash flows following asset realisations • Record net surplus following asset realisations • Portfolio renewal and capital expenditure: - Acquisition of 50% of RetireAustralia - Acquisition of Green State Power by Trustpower - Completion of Snowtown Stag
Slide 12: Value creation reflected in share price
Value creation reflected in share price Capital allocation decisions and performance drive growth 80% 60% Capital Return 40% Div Return 20% 5 Year Return 0% -20% -40% 2003 2007 2011 2015 1995 1996 1997 1998 1999 2000 2001 2002 2004 2005 2006 2008 2009 2010 2012 2013 2014 $100 invested in Infratil on
Slide 13: Lumo and Z Energy case studies
Lumo and Z Energy case studies Material gains from two contrasting investments LUMO / INFRATIL ENERGY AUSTRALIA Z ENERGY • ~9 year development programme • ~5 year development programme • Start-up investment • Acquisition of existing business with significant • Early losses and free cash flow negativ
Slide 14: The case for capital retention
The case for capital retention Committed capital is one of our keys to success • Current origination outlook suggests capital base is appropriate • Goal is to maintain financial flexibility in any future capital structure • Sentiment around infrastructure and capital markets is shifting; – we remain
Slide 15: Our current assumptions and beliefs
Our current assumptions and beliefs “Lower for longer” mantra hides other growth opportunities 1 • Capital, fuelled by continued inflows, record low interest rates and the search for yield, will begin Capital will begin moving moving up the risk curve into operationally complex/greenfield assets up
Slide 16: Current Infratil origination focus
Current Infratil origination focus Internal origination and development of existing platforms • Development of internal capital expenditure options and existing renewable and retirement platforms; – Policy makers and governments will need to address a low-carbon environment – Trustpower Australian w
Slide 17: Infratil has invested ~$2.3 billion over the last 5 years
Infratil has invested ~$2.3 billion over the last 5 years Energy dominates historic investment, diversification increasing 5 Year Cumulative Capex 31 March Other ($Millions) 2015 NZ Energy Fuel Marketing NZ Energy 268 & Distribution Australian Energy* 858 Wellington Airport 92 Public Transport 221 R
Slide 18: Group capital expenditure and investment
Group capital expenditure and investment Lower capex profile compared to recent years FY16 • Trustpower – Snowtown II dominated FY15. Capex ($Millions) 31 March 2015 Outlook No major FY16 capex planned Trustpower 199.8 40-50 • Wellington Airport - terminal expansion, airfield engineering and multi-l
Slide 19: Risks still need to be managed
Risks still need to be managed IFT remains cautious about the state of the capital markets RECENT DEVELOPMENTS IFT POSITION • Greek crisis and flow-on effects from • Prudent approach to balance sheet and liability Europe management • US Federal Reserve poised to begin • Comprehensive wholesale risk
Slide 20: Australasian Energy - Trustpower
Australasian Energy - Trustpower Growth agenda delivering despite difficult conditions • EBITDAF increased 19% over prior period – Commissioning of Snowtown Stage 2 – Benefits from multi-product growth strategy • $400m revaluation of generation assets; – Snowtown Stage 2 up AUD$300m validating the a
Slide 21: NZ Airports – Wellington Airport
NZ Airports – Wellington Airport New round of significant capital expenditure supporting growth • Total Passenger numbers now ~ 5.5m - International PAX growth due to growth in Melbourne and introduction of new routes to Coolangatta and Fiji • $22m of capex invested during the year including start o
Slide 22: NZ Fuel Distribution – Z Energy
NZ Fuel Distribution – Z Energy Proposed acquisition of Caltex NZ a positive development • Z Energy has agreed to acquire Chevron NZ’s downstream fuels business (Caltex NZ) – Subject to NZ Overseas Investment Office approval and NZ Commerce Commission clearance • Purchase price of $785m – 146 Caltex
Slide 23: Acquisition of RetireAustralia
Acquisition of RetireAustralia High quality access point in an attractive sector with strong trends • Infratil and NZ Superannuation Fund acquired a 50:50 interest in RetireAustralia for an equity value of $406m • RetireAustralia operates 28 retirement villages across NSW, Queensland and South Austr
Slide 24: NZ Public Transport – NZ Bus
NZ Public Transport – NZ Bus Strong PAX growth offset by yield changes and restructuring costs • Total passengers of 60m, 4.2% growth over the prior year • EBITDAF of $34.2m, -14% – Patronage growth offset by a decline in fare yield in Auckland and investment in future efficiency initiatives – $2m p
Slide 25: 2015/16 Outlook
2015/16 Outlook Significant growth forecast from continuing operations $Millions FY 2015 Actual FY 2016 Outlook(1) EBITDAF(2) – continuing operations 453.4 520 – 550 Net interest 178.2 165 – 175 Operating cash flow 235.6 270 – 300 Depreciation and amortisation 149.7 160 – 170 2015/16 EBITDAF range $
Slide 26: Infratil Group – Summary
Infratil Group – Summary Confidence in origination supports the case for capital retention • Long-term Infratil track record enhanced by recent performance • Origination focus will be on building out our existing platforms in the renewables and retirement sectors – Internal pipeline of development o
Slide 27: Discussion of the Annual Report; Questions from shareholders
Discussion of the Annual Report for the year ended 31 March 2015 Questions from shareholders
Slide 28: Resolution 1: Re-election of Director
Resolution 1 Re-election of Director • Re-election of Paul Gough: That Paul Gough who retires by rotation in accordance with the Company’s constitution, NZX Main Board Listing Rule 3.3.11, and ASX Listing Rule 14.4, and is eligible for re-election, be re-elected as a director of the Company. For Aga
Slide 29: Resolution 2: Re-election of Director
Resolution 2 Re-election of Director • Re-election of Humphry Rolleston: That Humphry Rolleston who retires by rotation in accordance with the Company’s constitution, NZX Main Board Listing Rule 3.3.11, and ASX Listing Rule 14.4, and is eligible for re-election, be re-elected as a director of the Co
Slide 30: Resolution 3: Directors' Remuneration
Resolution 3 Directors’ Remuneration • The resolution for shareholders is that the maximum aggregate remuneration payable to directors of the Company, by the Company and any of its subsidiaries, be authorised as $940,923 per annum (plus GST if applicable) being an increase of $44,068 per annum on th
Slide 31: Resolution 4: Auditor's Remuneration
Resolution 4 Auditor’s Remuneration • That the Directors be authorised to fix the auditor’s remuneration. For Against Discretionary 264,256,510 (98.58%) 122,904 (0.05%) 3,683,657 (1.37%) INFRATIL 31 2015
Slide 32: www.infratil.com
For more information: www.infratil.com INFRATIL 32 2015