Challenger Limited · ASX:CGF

Challenger — Inexus Group — Corporate Update (October 2007)

13 slides from Challenger's corporate update, Oct 29, 2007

  1. Slide 1: Market update / presentation by Inexus Chief Executive

    29 October 2007 The Manager Company Announcement Platform Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Market update / presentation by Inexus Chief Executive, Mr Philip Gibb Please find attached an investor presentation by Mr Phil Gibb, Chief Executive of Inexus,

  2. Slide 2: Philip Gibb – Chief Executive, Inexus

    Philip Gibb – Chief Executive, Inexus 29 October 2007

  3. Slide 3: Financial Dashboard - Inexus Group Limited Jun-07

    Financial Dashboard - Inexus Group Limited Jun-07 Actual Plan R/A/G Income Drivers Total income (£'000) 31,518 31,575 Green Total connections to date 419,448 Green Order book 218,461 Green Contracted sales 105,919 87,000 Green Connections - Gas 51,343 50,000 Green Earnings EBITDA (£'000) - UK GAAP -

  4. Slide 4: EBITDA CAGR of 18% over past 5 years

    • EBITDA CAGR of 18% over past 5 years Total Connections & Sales ('000) • Unit operating expenditure for ongoing 700 asset management trending down 600 • Operational KPI’s showing benefits of 500 Multi Utility offering: 400 - Mains laid per FTE 19% increase on 300 previous year 200 - Services connec

  5. Slide 5: Gas and Electricity – Next Mile

    Gas and Electricity – Next Mile Actual Budget 2006/07 2007/08 (£000) (£000) Revenue 30,267 35,075 AMSA Opex (6,259) (6,584) Overheads EBITDA 23,755 27,994 EBITDA Margin^ 78% 80% * Asset only companies (IPL, IPNL, IML, QPL). ^ The consolidated group FY07 EBITDA margin (including corporate overheads a

  6. Slide 6: Inexus - Connections Snapshot

    Inexus - Connections Snapshot Jun-05 Jun-06 Jun-07 New Sales Gas 62,869 67,035 77,278 Electricity 5,229 15,365 28,641 68,098 82,400 105,919 Gas Connections Gas Opening 265,028 314,006 364,535 Gas new cons constructed 48,978 50,529 51,343 Closing 314,006 364,535 415,878 Electricity Connections Electr

  7. Slide 7: On budget for 2007/08 financial year

    • On budget for 2007/08 financial year Gas Electricity Total sales sales sales July – Oct 2007 22,129 7,816 29,945

  8. Slide 8: Direct Sales in 3rd Party Sales Totals

    ! " # Direct Sales in 3rd Party Sales TOTALS 2006/07 2006/07 Gas Elect. Gas Elect. (000) (000) (000) (000) Inexus 62 29 15 - 106 GTC 15-20 2 52-57* 69-79 East Surrey ? - ? - ? Scottish and ? - ? - ? Southern * 30k are estimated to be sourced from BG Connections

  9. Slide 9: Acquisition of Exoteric Gas Solutions; Water; Fibre to the Home

    $ % & • Acquisition of Exoteric Gas Solutions • Water Licence and Connections • Fibre to the Home

  10. Slide 10: IWNL water inset appointments

    ' ( • IWNL granted inset appointment for 950 plot development in Corby • IWNL has demonstrated ability to compete with incumbent water companies • Second application for 5,900 unit project submitted to Ofwat with several other applications in progress • IWNL income is “All the way” less boundary cha

  11. Slide 11: Economic Rationale

    " )' Economic Rationale Income £100 - £160 p.a. Capex £350 - £600 Opex £30 - £40 p.a. Repex £0.00 Network. Life of Assets > 40 years £40.00 per meter replaced every 10 years

  12. Slide 12: Market rationale – Why Inexus?

    * + , +- $ % . # Market rationale – Why Inexus? - Ideal application in Greenfield developments - In Europe market being opened by non-monopoly, non- telecom players - Not started in Germany, UK, Spain and Italy - ‘Established’ product worldwide including USA (Verizon), Japan and parts of Europe - Nu

  13. Slide 13: Economic Rationale

    * + , +- " Economic Rationale Voice / Data (8 mbps) >£15 per Month Income More data capacity £ ? Per Month Video on demand (VOD) £ ? Per Month HD Multi-room TV £ ? Per Month Capex £500 - 700 per dwelling Opex Low Repex Non-fibre hardware c.10 years Fibre > 40 Year life Capacity Now - 100 mbps indepe

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