Infratil Limited

Wednesday 3rd June 2015

Infratil Limited is a New Zealand-based infrastructure company engaged in the businesses of the energy (mainly renewable), airport and public transport sectors. Its energy operations are predominantly in New Zealand and Australia. The Company owns Wellington Airport in New Zealand and its public transport services are in Auckland and Wellington, New Zealand. The Company operates in following segments: TrustPower, which is the Company’s renewable generation investment; Wellington International Airport, which is the Company’s Wellington Airport Investment; NZ Bus, which is the Company’s transportation investment; Perth Energy, which is the Company’s non-renewable generation investment. Besides these the principal investment in corporate is the interest in Z energy. The Company acquired outdoor media company iSite from Wellington Airport in July 2011. Also following this, infratil reduced its holding in Z Energy and invested in retirement village operator Metlifecare (NZ) and Retire Australia. Infratil was one of the world's first listed infrastructure funds when it was established and listed on the New Zealand Exchange in 1994. Its first investment was a minority stake in TrustPower. It expanded into airport ownership in 1998 when it bought a 66% shareholding in Wellington Airport. Infratil was named Deloitte/Management Magazine Company of the Year in 2007.

For the year ended 31 March 2015 Infratil reported a Net parent surplus was $384 million, up from $199 million last year (68 cents per share up from 34 cents in the prior year).This reflects

· Consolidated EBITDAF from continuing operations was $453 million, up 4% on last year’s $437 million

· Investments totalled $508 million ($616 million the previous year)

· Net debt of Infratil and wholly owned subsidiaries fell to $761 million from $1,062 million at the start of the period

· Capital management initiatives totalled $120 million.

The Board stated that EBITDAF is forecast to increase by between 7% and 14% due mainly to past investment. There will be the full year contribution from Trustpower’s Australian generation which was commissioned or acquired last year and Trustpower’s New Zealand retailing base is also expected to continue to grow. Retire Australia will be making a full year contribution, Wellington Airport’s earnings are expected to rise due to increased traffic and aeronautical charges, and most of Infratil’s other businesses are also expected to increase their contributions. The Board indicated that EBITDAF for FY2016 would be in the range of $520-550 million and Operating cash flows between $270-300 million. These forecasts assume that business conditions remain consistent with those currently being observed and that no material investments, divestments or capital management initiatives occur beyond those already announced. However, it should be noted that it is reasonable to expect that some combination of these will occur over the course of the fiscal year.

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