Infratil Limited · NZX:IFT
Infratil — FY2016 Earnings Presentation
21 slides from Infratil's earnings presentation, May 18, 2016
Slide 1: Infratil 2016 Full Year Results Presentation
Infratil 2016 Full Year Results Presentation 18 MAY 2016
Slide 2: Full Year Overview
Full Year Overview Successful divestments lead to record net surplus and opportunity for renewal • Record net parent surplus of $438 million boosted by asset realisations • Underlying EBITDAF from continuing operations of $462 million, an increase of 2.5% • Further portfolio renewal provides interna
Slide 3: Financial Highlights
Financial Highlights Net Parent Surplus of $438 million dominated by gain on sale of Z Energy and iSite Full Year Ended 31 March ($Millions) 2016 2015 Variance % Change Underlying EBITDAF (continuing activities)1 462.1 450.7 11.4 2.5% Net Parent Surplus 438.3 383.5 54.8 14.3% Net Operating Cash Flow
Slide 4: Results Summary
Results Summary Full year dividend growth of 14% delivered 31 March ($Millions) 2016 2015 • Operating revenue increased 8.6% against an 8.3% increase in operating expenses Operating revenue 1,775.7 1,635.0 • Depreciation and amortisation has increased following FY15 asset revaluations Operating expe
Slide 5: Results Summary
Results Summary Steady growth in earnings has the portfolio well positioned for the future Underlying EBITDAF ($Millions) 2016 2015 • Trustpower – The continuation of challenging conditions and customer acquisition costs, in line with substantial increases Trustpower 329.4 330.7 in connections, deli
Slide 6: Group Capital Expenditure and Investment
Group Capital Expenditure and Investment Reinvestment in existing businesses to provide a catalyst for future earnings growth Investment1 ($Millions) 2016 2015 • Trustpower acquired a 65% shareholding in King Country Energy during the year at a cost of Trustpower 119.3 157.4 $78 million • Wellington
Slide 7: Asset Values
Asset Values Strong demand for Infrastructure assets underpins the value of Investment Portfolio Investment ($Millions) 2016 2015 Lower for longer expectations continue to drive up valuations in the infrastructure sector Trustpower 1,223.6 1,270.0 highlighting potentially significant gaps between bo
Slide 8: Portfolio Divestments
Portfolio Divestments Execution of divestments contributes exceptional cash and IRR returns to the portfolio • On 30 September 2015, Infratil completed the sale of its residual 20% stake in Z Energy for a net sales price of $480 million, recognising a gain on sale of $392 million – Infratil acquired
Slide 9: Debt Position
Debt Position Strong capital base remains with facility head room and duration • Cash position of $729 million and wholly owned subsidiaries bank facilities drawn of $67.5 million • Senior debt facilities have maturities up to 4.5 years and 5.5 years (for bus finance export credit facility) • A new
Slide 10: Trustpower
Trustpower Growth agenda continuing to deliver despite the continuation of challenging market conditions • EBITDAF for FY16 was $329 million, 0.5% below FY15 - FY16 result shows continuing, challenging conditions characterised by low wholesale prices, generation over‐capacity, flat demand and high N
Slide 11: Trustpower
Trustpower Proposed demerger provides path to deploy capital and build out near-term wind developments Trustpower is currently considering a demerger to create NewCo and Trustpower Core. Shareholders will receive 1 share in each company • NewCo will hold Trustpower’s Australian and NZ existing • Tru
Slide 12: Wellington International Airport
Wellington International Airport EBITDAF reflects strong uplift in passenger numbers • EBITDAF +4.9% to $86 million – Total passengers 5.8 million, +339,000 (long run average growth +124,000 p.a.), International passenger growth of +16% – Five new services launched from Jetstar, Fiji Airways and Qan
Slide 13: NZ Bus
NZ Bus Strong result for the year as the business focuses on the future • Underlying EBITDAF of $42 million, +22.8% • Revenue +0.4%, reflecting stable patronage levels and yield growth on contracted services • Expenses -1.3%, reflective of lower fuel prices and lower maintenance costs resulting from
Slide 14: NZ Bus
NZ Bus Investment in Fleet and Emerging Technologies • Fleet Investment - Acquisition of 23 ADL double decker buses for use on key Auckland corridors to reduce congestion - On-going research into emerging vehicle technologies including US$30 million deal to purchase electric powertrain technology fr
Slide 15: RetireAustralia
RetireAustralia Implementing plans to provide residents with more of what they want and need • Strong first full year result in IFT portfolio - Net profit after tax (IFRS) A$46 million - Underlying profit A$39 million • Operating Metrics - Strong sales momentum – 102 new sales and 376 resales - Real
Slide 16: Metlifecare
Metlifecare Preparing for next stage of growth • $12 million Underlying EBITDAF contribution to Infratil, up from $9 million in FY15 - Underlying Profit of $33.5 million in 1H161 up 29% - Revaluation gains $128.5 million and realised gains of $28.6 million (1H16) - Strong growth in the key profit me
Slide 17: Capital Management
Capital Management Divestments of assets has created unprecedented financial flexibility within the portfolio Infratil’s current capital position is appropriate given our future investment plans and our key development platforms • Confidence in internal and external origination pipeline with near- t
Slide 18: 2016/17 Outlook
2016/17 Outlook Strong growth forecast from continuing operations • Underlying EBITDAF trends reflect current Investment ($Millions) 2016 Actual 2017 Outlook momentum and changes in the portfolio including: - A full period contribution from King Country Energy Underlying EBITDAF 462.1 475-515 - Trus
Slide 19: Summary
Summary Targeting a balance of incremental high confidence moves and future option development Infratil is set to perform well under a number of scenarios • Underlying performance of existing assets • Quality of people and capability • Strength of origination pipeline • Access to capital and capital
Slide 20: www.infratil.com
For more information: www.infratil.com INFRATIL FULL YEAR RESULTS PRESENTATION 2016 20
Slide 21: Appendix I – Reconciliation of NPAT to Underlying EBITDAF
Results Summary Appendix I – Reconciliation of NPAT to Underlying EBITDAF 31 March ($Millions) 2016 2015 • There has been no change to the methodology for Net profit after tax 495.5 466.3 reporting EBITDAF for the balance of Infratil’s less: share of MET & RA investment property revaluations (58.4)