Infratil Limited · NZX:IFT
Infratil — H1 FY2011 Earnings Presentation
19 slides from Infratil's earnings presentation, Nov 16, 2010
Slide 1: Half Year Result Ended September 30, 2010
HALF YEAR RESULT ENDED SEPTEMBER 30, 2010 NOVEMBER 16, 2010 1
Slide 2: Half year summary – momentum and growth
Half year summary – momentum and growth • Significantly improved cash flow and earnings with strong momentum leading into FY 2011-13 • Strong overall first half performance with a number of business units performing above plan: - Infratil Energy Australia EBITDAF result +A$40m on prior period - stro
Slide 3: Consolidated half year performance
Consolidated half year performance Half Year Ended 30 September 2010 ($Millions) 2010 2009 Operating Revenue $1,068.1 $963.8 EBITDAF $257.8 $207.3 Net Interest ($80.2) ($80.6) Depreciation & Amortisation ($58.2) ($56.3) Operating Earnings $119.4 $70.4 Net (loss) on revaluation of financial derivativ
Slide 4: Significantly improved cash flow and earnings
Significantly improved cash flow and earnings • EBITDAF - $50.5 million increase to $257.8 million (+24.4% pcp) - improved contribution from IEA, NZ Bus and Wellington Airport and $13 million from equity accounting Greenstone - stand-alone Greenstone EBITDAF of $100m (including $9m of NZRC associate
Slide 5: Consolidated EBITDAF breakdown
Consolidated EBITDAF breakdown HY 30 September • TrustPower – credible performance ($Millions) 2010 2009 given the weather and market changes TrustPower $147.7 $154.9 • IEA – strong winter sales and absence Infratil Energy Australia $61.2 $10.0 of adverse abnormal impacts from pcp. Revenue growth +2
Slide 6: Active management of capital structure & risk
Active management of capital structure & risk • Dated debt / total debt + equity capitalisation 37% (from 32% 31 March, 2010) - $183 million increase in Infratil bank debt to a net $265 million ($210 million investment in Greenstone was funded in April) - unutilised bank facilities $258 million (fro
Slide 7: Potential new bond issue terms
Potential new bond issue terms Infratil is considering making an offer of bonds to the public. No money is currently being sought and no applications for the bonds will be accepted or money received unless the subscriber has received the simplified disclosure prospectus • $112 million of 8.25% pa bo
Slide 8: Comfortable bank debt and bond maturities
Comfortable bank debt and bond maturities • Total Infratil parent company and wholly owned subsidiaries borrowing facilities of $673 million (1) (net drawings $265 million 30 September 2010) - borrowing facilities increased $41 million during the period HY 30 September ($Millions) (1) 2011 2012 2013
Slide 9: Assets and liabilities
Assets and liabilities Assets: HY 30 September 30 Sep 31 Mar • Market or book value of assets ($Millions) 2010 2010 - $210 million invested in Greenstone (50% TrustPower $1,163 $1,153 interest) + net income. Market value likely to be significantly in advance of purchase price Infratil Energy Austral
Slide 10: TrustPower – the first half result in context
TrustPower – the first half result in context • Earnings reduced by adverse weather: - poor South Australian wind conditions and NZ’s milder winter temperatures contributed to lower household consumption • Value drivers remain in place: - diversified portfolio of high-quality hydro and wind assets e
Slide 11: Greenstone Energy – performing ahead of plan
Greenstone Energy – performing ahead of plan • Momentum has resulted in H1 CC EBITDAF of $100m versus $71m in 2009 - organic volume growth in a flat or declining market has lead to gains in market share - greater commercial thinking applied to daily operations on an integrated basis • Majority of tr
Slide 12: Greenstone's competitive position has improved
Greenstone’s competitive position has improved 105 Petrol Volumes – all channels • Greenstone 4% volume growth 104 103 • Petrol and diesel sales represent 102 about 70% of Greenstone’s total 101 volumes 100 99 • For Financial YTD, YoY sales for 98 the four major integrated Jan-10 Mar-10 May-10 Jul-1
Slide 13: A closer look at Greenstone's earnings
A closer look at Greenstone’s earnings… • Overall volumes +4% • Operating EBITDAF +31% although normalised operating EBITDAF closer to $80m for H1 - ($5m) transition costs absorbed within operating costs - $5m of one-off and non-recurring gains - approximately $10m of spend deferred to H2 • Share of
Slide 14: IEA – delivering on potential
IEA – delivering on potential • EBITDAF A$48.6m (+A$40.6m over pcp) • Revenue growth +24% over pcp • Mass market retail customers net growth +3% to 424,461 billable accounts - net growth in SA and QLD. Slight decline in VIC - VIC annualised churn now approaching 28% as lower wholesale costs encourag
Slide 15: IEA short and medium term outlook
IEA short and medium term outlook • FY 2011 outlook - FY EBITDAF forecast to be A$30m – A$38m - 2nd half outcome consistent with historical seasonality - FY forecast represents significant improvement over the A$8.8m result for FY2009/10: - approx A$15m YoY improvement in gas gross margins - A$4m im
Slide 16: 2011 Outlook: EBITDAF earnings
2011 Outlook: EBITDAF earnings HY 30 September • Revised EBITDAF range $415 million to 2010 H1 FY 2011 $435 million – major assumptions: ($Millions) 2011 Guidance - approx $30 million equity earnings contribution from 50% of Greenstone Energy EBITDAF $258 $415-$435 - TrustPower EBITDAF in line with
Slide 17: 2011 Outlook: Capital investment
2011 Outlook: Capital investment • TrustPower HY 30 September 2010 2011 - $75 million stage I Mahinerangi wind farm ($Millions) scheduled for completion May 2011 TrustPower $29 $100-$120 - Highbank pumping station first stage of wider irrigation initiatives in Canterbury Australian Energy $116 $100-
Slide 18: Confidence in the long-term outlook
Confidence in the long-term outlook • Favourable sector trends and capital investment programme will drive consolidated EBITDAF towards $500 million - exposure to rising energy prices and consumption, air travel, and urban mobility - TrustPower development pipeline, medium term outlook for New Zeala
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