Challenger Limited · ASX:CGF
Challenger — Challenger Infrastructure Fund — Non-Deal Roadshow (April 2009)
23 slides from Challenger's roadshow presentation, Apr 27, 2009
Slide 1: Challenger Infrastructure Fund UK Roadshow
Challenger Infrastructure Fund UK Roadshow Chief Executive - Steve Bickerton Chief Financial Officer - Lucas Barry 27 April 2009
Slide 2: Important Notice
Important Notice Information contained in this publication is current as at 27 April 2009 unless otherwise specified and is provided by Challenger Listed Investments Limited (ABN 94 055 293 644) (AFSL 236887) (“CLIL”), as Responsible Entity of CIF Investment Trust 1 (ARSN 114 139 703) and CIF Invest
Slide 3: Agenda
Agenda 1. Overview of Fund 2. 2009 Half Year Results Overview 3. Assets 4. Outlook Appendicies 3
Slide 4: 1. Overview of Fund
1. Overview of Fund
Slide 5: Overview of Fund
Overview of Fund - Diversified infrastructure and utilities portfolio with total assets under management Portfolio of A$1.1bn - Highly cash generative assets that are either in regulated industries or have monopolistic characteristics - Assets are diversified geographically and by revenue type - CIF
Slide 6: History of Fund
History of Fund 22 May 2008 CIF announces sale 22 Aug 2006 16 Jul 2007 of Arqiva and FY2009 21 Dec 2007 CIF begins trading Raised A$249m distribution of 1 Sept 2005 on fully paid basis via 1:4 CIF successfully A$0.357 cents per CIF acquires Inexus post payment of Entitlement syndicates security seco
Slide 7: 2. 2009 Half year Results Highlights
2. 2009 Half year Results Highlights
Slide 8: Highlights
Highlights Earnings - Highly predictable yet diversified cashflow – 62% regulated revenues Quality - Revenue of $251.9m up 28% pcp - Underlying Proportionate EBITDA growth of 19% pcp1 Capital - Sale of £100 million of Southern Water at NAV Management - Reduction in total proportional net debt by $1.
Slide 9: Earnings Quality – Resilient Asset Performance
Earnings Quality – Resilient Asset Performance CIF - Revenue growth 28% pcp - Underlying Proportionate EBITDA growth 19% pcp1 Inexus - Revenue growth of 24% pcp, reflecting build out of the order book - Underlying EBITDA growth of 28% pcp - Record half year sales of 59,981 (25% pcp), reflecting pote
Slide 10: Capital Management – Derisking & Prudent Management of Fund
Capital Management – Derisking & Prudent Management of Fund ¾ Completed sale of 1/3 of CIF’s stake in Southern Water for £100m - Sale price at NAV - Repaid £50.7 million of Redeemable Preference Securities (RPS) - Reducing CIF’s proportional net debt by A$560 million - $64 million of cash held at Fu
Slide 11: Distributions – Strong Operating Cashflow Generation
Distributions – Strong Operating Cashflow Generation ¾ Free cash flow of 31 cents per stapled security1 ¾ Interim distribution of 12 cents per stapled security 0.60 60 54 0.54 18 0.18 50 0.50 40 0.40 Cents per security 6 0.06 31 0.31 0.13 13 30 0.30 0.20 12 0.12 20 0.1 100 6 0.06 0.00 0 Operating Ca
Slide 12: Net Asset Value of $3.35 per Security
Net Asset Value of $3.35 per Security1 4.00 3.74 0.02 0.24 0.32 0.04 0.16 0.07 3.50 3.35 3.00 $AUD per security 2.50 2.00 1.50 1.00 0.50 0.00 NAV 30 Jun Southern Water Inexus LBC FX Spot Net Hedging Working Capital NAV 31 Dec 2008 2008 Notes: 1. Net asset value per security is calculated as the Dire
Slide 13: 3. Assets
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Slide 14: Inexus
Inexus Asset Snapshot Description - Leading UK independent last mile gas and electricity connections business CIF Ownership 80.4% - Inexus constructs and owns connections Date of Initial Investment Sept 2005 Cost of Acquisition (£m)1 152.0 Revenue - Availability charge paid by the gas shippers and 3
Slide 15: LBC
LBC Asset Snapshot Description - Second largest independent bulk chemical storage terminals company globally CIF Ownership 66.2% - 2.4 million m3 of capacity Date of Initial Investment June 2007 - 13 terminals in USA, Europe and Asia Cost of Acquisition (€m)2 214.7 Revenue - Rental fee for capacity
Slide 16: Southern Water
Southern Water Asset Snapshot Description - Fastest growing UK water and wastewater company CIF Ownership 15.6% - Located in the south-east of England, the region Date of Initial Investment October 2007 with the highest population growth in the UK Cost of Acquisition (£m) 1,3 208.1 Revenue - Exclusi
Slide 17: 4. Outlook
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Slide 18: Asset Outlook Summary
Asset Outlook Summary Southern - Regulatory reset to provide certainty to March 2015, RCV growth expected to be consistent with current regulatory period Water - Strong capital position – long dated maturity profile (average maturity of 20 years) - Majority of temporary shareholder loan to be repaid
Slide 19: Fund Outlook
Fund Outlook High Quality - Highly predictable yet diversified cashflow – 62% regulated revenues2 Assets - Proportional weighted average debt maturity of ~ 11 years - Highly predictable EBITDA in 2009 - Strong financial position to respond to difficult financial markets - Distribution funded 100% fr
Slide 20: Questions
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Slide 21: Contacts
Contacts Steve Bickerton Chief Executive Tel: 61 2 9994 7327 Email: [email protected] Lucas Barry Chief Financial Officer Tel: 61 2 9994 7022 Email: [email protected] Jenny Warat Investor Relations Manager Tel: 61 2 9994 7663 Email: [email protected] Website: www.challenger.
Slide 22: Appendix
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Slide 23: Proportionate Debt Maturity Profile
Proportionate Debt Maturity Profile1 ¾ Proportional weighted average maturity of ~11 years1 ¾ Next major refinance point – August 2010 Inexus refinance 1,000 900 800 AUD $million 700 AUD $ million 600 500 400 300 200 100 - FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 and beyond LBC Inexus
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