Challenger Limited · ASX:CGF
Challenger — Challenger Infrastructure Fund — Macquarie Global Infrastructure Conference 2007
18 slides from Challenger's conference presentation, June 2007
Slide 1: Challenger Infrastructure Fund: Fund Overview
Challenger Infrastructure Fund Fund Overview Steve Bickerton Chief Executive June 2007
Slide 2: Important notice
Important notice Information contained in this publication is current as at 19 April 2007 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
Slide 3: Agenda
Agenda Investment highlights 4 History of CIF 5 Investment criteria 6 Distributions 7 Portfolio overview 8 Asset overviews 9 Investment opportunities 15 Summary 16 3
Slide 4: Investment highlights
Investment highlights • Diversified infrastructure and utilities portfolio – Market capitalisation A$1.0bn, gross assets A$1.3bn • Attractive yield plus capital growth via a portfolio of global assets • Invests in growth orientated assets with: – Long term predictable income streams – Potential for
Slide 5: History of CIF
History of CIF 4 3.20 4.60 4.50 19 April 2007 1 September 2005 3 3.00 CIF acquires LBC 4.4 4.40 CIF acquires Inexus and raises A$138m 4 April 2007 2.8 2.80 4.2 4.20 CIF partakes in Arqiva rights issue to fund 44.00 2.6 2.60 19 October 2005 22 August 2006 acquisition of National Raised A$210 million
Slide 6: Diverse portfolio meets investment criteria
Diverse portfolio meets investment criteria Investment Criteria Regulated industry or monopolistic 3 3 3 3 characteristics High barriers to entry 3 3 3 3 Strong cash generation and attractive cash returns 3 3 3 3 Long term predictable cash flows 3 3 3 3 Growth potential 3 3 3 3 First class managemen
Slide 7: Secure and growing distributions
Secure and growing distributions • On track to deliver FY07 distribution guidance of A$0.321 per unit • FY08 distribution guidance A$0.34 per unit (6% pcp growth) • Medium term distribution growth guidance of 5% pa 40 35 34.0c 32.1c Cents per unit in A$ 30 25 17.7c Paid distribution 20 Forecast dist
Slide 8: Portfolio overview
Portfolio overview CIF portfolio1 By investment By geography Northern Gas North America Networks 7% 16% Wales & Inexus 37% UK 73% West 7% Europe 11% Arqiva 22% LBC Tank Terminals 27% 1 Graphs based on gross asset value as at 19 April 2007 8
Slide 9: Asset overviews - Inexus
Asset overviews - Inexus • Description – Enterprise value A$1.3bn, CIF share 80.4% – Leading UK independent last mile gas and electricity connections business – Inexus constructs and owns connections • Revenue – Availability charge paid by the gas shippers and electricity suppliers to allow access t
Slide 10: Asset overviews - Inexus (cont'd)
Asset overviews - Inexus (cont’d) 700,000 • Asset update Total order book – Maintaining market leading position 600,000 • 60% of new gas connections in UK 500,000 No. of Connections – Electricity business successfully 400,000 launched in 2006 • Connections business driving to 300,000 increasing grow
Slide 11: Asset overviews - LBC Group
Asset overviews - LBC Group • Signed agreement 19 April 2007 – Enterprise value A$1.1bn, CIF share 66% – Paid 9.2x EBITDA (incl. transaction costs) – Identified and originated by Challenger Asset Management – Settlement 31 May 2007 • Description – Second largest independent bulk chemical LBC Houston
Slide 12: Asset overviews - LBC Group (cont'd)
Asset overviews - LBC Group (cont’d) • Investment highlights – Terminals strategically located in USA and Western Europe – Typical customer relationship greater than 10 years – 34–40% EBITDA margins • Growth opportunities LBC Rotterdam, Netherlands – Customers contract future capacity ahead of const
Slide 13: Asset overviews - Arqiva
Asset overviews - Arqiva UK’s leading broadcast transmission and site leasing infrastructure operator – Total asset value A$8.7bn, CIF share 6.3% • Revenue – Generated from leasing of broadcast towers, teleports and wireless sites via long term contracts to TV /radio broadcasters/wireless providers
Slide 14: Asset overviews - Gas distribution networks
Asset overviews - Gas distribution networks • Wales & West Utilities (W&W) and Northern Gas Networks (NGN) are; – W&W total asset value A$3.4bn, CIF owns 8.6% – NGN total asset value A$3.8bn, CIF owns 5.8% – Two of the eight regulated gas distribution networks (GDNs) in the UK • Revenue – Derived fr
Slide 15: Investment opportunities
Investment opportunities Investment focus Growth orientated infrastructure and utility assets with: - Long-term predictable income streams - Potential for capital growth North America UK Europe Australia Market position Financial attraction Growth potential Strategic stakes • Regulated industry • St
Slide 16: Summary
Summary • CIF delivering an attractive yield – 6% forecast distribution growth in FY08 – Medium term distribution growth guidance of 5% pa • Growth coming from: – Inexus: electricity and water – LBC: contracted capacity expansion – Arqiva: strategic opportunities from shift to digital technology • M
Slide 17: Questions
challenger @ >
Slide 18: CIF contacts
CIF contacts: Steve Bickerton Chief Executive Tel: 61 2 9994 7327 Email: [email protected] Josie Ashton Investor Relations Tel: 61 2 9994 7898 Email: [email protected] 18
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