Announcement
FLLYR: IFT: Infratil Full Year Results for the year ended 31 March 2022
08:30am
IFT
19/05/2022 08:30
FLLYR
PRICE SENSITIVE
REL: 0830 HRS Infratil Limited
FLLYR: IFT: Infratil Full Year Results for the year ended 31 March 2022
Infratil produces record result, highlights significant investment into high
conviction sector platforms
Infratil Limited today announced a record net parent surplus of $1.17 billion
for the year ended 31 March 2022 - the largest annual profit since Infratil's
establishment.
Proportionate EBITDAF of $513.9 million (before changes in the accounting
treatment of SaaS expenses) was delivered above the mid-point of guidance
which was $500 million to $520 million.
Proportionate EBITDAF including the SaaS adjustment was $474.9 million, up
27.9% percent on the previous year's $371.2 million. The increase
predominately reflects strong earnings growth from Vodafone and an increased
earnings contribution from Infratil's new healthcare platform.
Infratil chief executive Jason Boyes said "the Tilt Renewables sale had
delivered a significant gain of over $1 billion to shareholders, but the year
was most notable for the significant investment activity across the
portfolio, with proportionate capital expenditure and investment of over $1.4
billion. This investment was spread across our key sectors - renewable
energy, digital infrastructure and healthcare - and also saw us enter new
geographies, expanding our global footprint with new investments in the
United Kingdom (Kao Data) and Asia (Gurin Energy)."
"Our strong result represents a series of past strategic decisions and
execution over a number of years. We now see significant future potential in
the high-quality sector platforms we are developing across the portfolio. Our
investments in the healthcare sector are a great example, where during the
year we grew with the acquisition of three diagnostic imaging groups in New
Zealand. These businesses now sit alongside Australian based Qscan group,
representing a material Australasian diagnostic imaging platform."
"Our healthcare portfolio is strategically compelling with strong synergy
opportunities. The investment outlook is very positive, benefitting from the
long-term tailwinds of an ageing demographic and increasing healthcare
expenditure."
"There was also considerable investment activity in our global renewables
platform, as alongside the need to rapidly decarbonise the global economy,
energy security became an increasingly important perspective in understanding
renewable generation. Alongside our United States, European and
New Zealand platforms, we committed US$233 million to establish Gurin Energy,
a renewable energy development platform headquartered in Singapore."
Across these platforms Infratil invested almost $300 million during the year
developing new renewables projects. The majority of this was undertaken by
Longroad Energy which completed the 200MW Sun Streams 2 solar project in
Arizona and the 331MW Prospero 2 solar project in Texas.
With rising global demand for connectivity, the last 12 months also saw an
expansion of Infratil's digital infrastructure portfolio with the acquisition
of 40% of London based data centre business Kao Data for $217.9 million.
CDC Data Centres has made significant progress during the year on
construction of four new data centres, Auckland 1 & 2, Eastern Creek 4 and
Hume 5. These will completed in the first half of FY2023,
increasing total built capacity by over 60% to 268MW, and with significant
capacity already contracted will drive immediate uplift in revenues. In
addition to this, land was acquired in Melbourne during the year that can
accommodate 150MW of capacity, with development now underway.
These contributed to the increase in the valuation of Infratil's investment
in CDC to between A$2.8 billion to A$2.9 billion. Up over 30% from A$2.1
billion to A$2.3 billion at the same time last year.
Vodafone delivered a strong result, with improved trading and a disciplined
approach to cost driving a 15.7% increase in EBITDAF. As the easing global
pandemic allows for more international travel, the business should also see a
rebound in roaming revenues. It is continuing to drive efficiencies through
cost management initiatives and removing business complexity. Meanwhile, it
signalled the possible sale of its passive mobile tower infrastructure
assets, the largest tower portfolio in New Zealand.
"Wellington Airport has come through another turbulent year, navigating
numerous Covid-19 setting changes. It is now focussed on the resumption of
international travel and the ramp up of domestic passengers and is continuing
to take a cautious approach to capital deployment. We continue to see
long-term value in the asset."
Infratil Chair Mark Tume, who yesterday announced he is stepping down from
leading the Board at the end of May, with current Board member Alison Gerry
succeeding him as Chair, highlighted the financial year's excellent results,
delivering returns to shareholders of 18.4% - continuing on years of strong
performance.
"Infratil's after tax return since listing in March 1994 has been 18.7% per
annum, and over the last ten years the returns have averaged 21.6% per annum
after tax.
"Our shareholder returns are a result of Infratil's ability to position
itself at the forefront of trends - with Tilt Renewables a perfect example.
While the realisation reflects exceptionally well in this year's annual
result, it is testament to a clear strategy, careful planning and quality
execution over the last 24 years. It is a reminder that developing
infrastructure in "idea that matters" is a slow and patient process but can
create significant value and deliver outsized returns."
"I have great confidence that with Alison as Chair, and a very capable Board
and management team, Infratil will continue to deliver outstanding results
for shareholders."
Incoming chair Alison Gerry steps up to the role having been an independent
director on Infratil's Board and Chair of the Audit and Risk Committee since
2014. She has had a governance career for the last 15 years and is also on
the boards of ANZ Bank and Air New Zealand, Chair of Sharesies and Co-founder
of OnBeingBold.
Mr Boyes said that Infratil's balance sheet remains strong, even after a busy
12 months of new investments. Total available liquidity at 31 March was
$1,672.6 million, including $773 million of cash.
"There is a significant pipeline of opportunities, both across our existing
platforms and also as we evaluate additional opportunities in key sectors and
new geographies. We will apply a disciplined approach to allocating capital
when assessing potential investments to maintain our record of delivering
strong returns to shareholders in line with our ten-year total shareholder
return target of 11-15%."
As part of its full year results announcement Infratil has also declared a
fully imputed final dividend of 12.0 cents per share, a 4.3% increase on the
prior year.
Guidance for the year ended 31 March 2023 is for Proportionate EBITDAF of
between $510 million to $550 million, up 11.5% on FY2022 at the midpoint.
Investor briefing
There will be a briefing for institutional investors, analysts and media
commencing at 10.00am (NZT). The briefing and Q&A session will also be
available by webcast and teleconference.
The briefing will also be webcast live from
https://infratil.com/for-investors/company-results/
Any enquiries should be directed to:
Mark Flesher, Investor Relations
mark.flesher@infratil.com
End CA:00392296 For:IFT Type:FLLYR Time:2022-05-19 08:30:41
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