Interim results for the period ended 30 September 2021
Infratil Limited 5 Market Lane, PO Box 320, Wellington, New Zealand Tel +64-4-473 3663 www.infratil.com
12 November 2021
Interim results for the period ended 30 September 2021
Infratil performs strongly with half year profit buoyed by Tilt sale
Infratil Limited today announced a Net Parent Surplus from Continuing Operations of $1.086 billion, for the six
months ended 30 September 2021, which is the largest net surplus that Infratil has recorded in its 27-year history.
Infratil chief executive Jason Boyes said the financial performance was buoyed by the sale of Tilt Renewables,
which contributed a $1.015 billion gain, while the overall result showed the business performing strongly and
demonstrating resilience despite the ongoing challenges posed by the Covid pandemic.
Proportionate EBITDAF was $253.6 million, a 28.2% rise on the $197.9 million for the same period the previous
year - reflecting good performances across Infratil’s investments. Proportionate EBITDAF for the year to 31 March
2022 is forecast to be between $500 million and $530 million (previous guidance was $505 million to $550 million),
with the narrower range primarily reflecting the addition of Gurin Energy and Kao Data to the Group, together with
the estimated full year impact of Covid-19 on Wellington Airport and Infratil’s Diagnostic Imaging businesses.
“It is pleasing to see the positive results and outlook from assets across the portfolio, despite all the challenges
which have impacted businesses over the past six months.
“In terms of our returns to shareholders, we will pay an interim dividend of 6.5 cents per share, a 4% increase
from the comparative period. The dividend will also be fully imputed. Infratil’s share price also rose from $7.13 to
$7.96 over the period, with an after-tax return to shareholders over the last five years of 26.0% and 19.0% over
the full 27.5 years since Infratil listed.”
Mr Boyes said Infratil’s profit for the period and financial circumstances could have allowed a special dividend,
but as noted in the 31 March 2021 annual report, we do not view special dividends as the best use of funds. We
do however anticipate dividends increasing further in line with cash earnings from CDC Data Centres, Vodafone
and our Diagnostic Imaging businesses.
“This approach provides our shareholders with a solid and sustainably rising dividend and enables us to continue
to prudently and productively deploy the capital in ideas that matter.
“Over the six months, we deployed $833.8 million across digital infrastructure, global renewables, and social
infrastructure, including our $313.6 million investment in Pacific Radiology. Along with our investment last year
in Qscan and our more recent purchase of a stake in Auckland Radiology Group, we expect to generate
meaningful synergies and reinvestment opportunities from our health businesses in the coming years.
“In September we announced the establishment of Singapore-based Gurin Energy to develop renewable
generation in Asia with a commitment of US$233 million. This means we are now active in renewables in
Australasia, North America, Europe, and Asia. All told the Infratil group has built 3,530MW of solar, wind, and
hydro generation capacity and we expect to more than double that over the next decade.
“CDC Data Centres is significantly expanding its capacity with over A$1 billion of investment across four sites,
including two new facilities in Auckland. When we acquired 48% of CDC Data Centres in 2017 for $411.5 million
the company had 39MW of capacity and earnings of $50.4 million. The most recent independent valuation of
CDC Data Centres at 30 June 2021 valued Infratil’s investment in the range of A$2.3-2.5 billion. Post this half-
year period, we announced the purchase of 40% of London data centre business Kao Data. We see significant
growth potential for this sector.
Infratil Limited 5 Market Lane, PO Box 320, Wellington, New Zealand Tel +64-4-473 3663 www.infratil.com
“The market continues to value assets in the digital infrastructure and renewables sectors at significant premiums
to Infratil’s carrying values. We expect to see a growing awareness that healthcare assets are also becoming the
next set of premium infrastructure assets.”
Upon completion of the Tilt Renewables’ disposal, Infratil fully repaid its drawn bank debt facilities of $840 million,
leaving a net cash balance of more than $1.1 billion. Infratil’s gearing reduced to 4.6% of Infratil’s total capital
with total liquidity available of approximately $2 billion. Infratil also took this opportunity to fully refinance and
extend all of its bank facilities with a range of maturity dates out to July 2026.
Across the portfolio during the period:
• CDC Data Centres continued to progress the 4 facilities it has under construction (totalling 70MW of
capacity), while also adding an additional 150MW of capacity in Melbourne to its development pipeline.
• Vodafone’s cost efficiency programme is creating headroom to reinvest and helping improve margins,
while product simplification is driving down the cost to serve and making the customer experience simpler.
• Trustpower announced the conditional sale of its retail business to Mercury Energy for $441 million, while
its generation business produced a strong result driven largely by higher generation volumes and
wholesale prices.
• Longroad Energy completed construction of a further 530MW of utility scale solar and commenced
construction of a 26MW distributed generation project in Maine.
• Galileo Green Energy continued to expand its business development activities, resulting in a pipeline
expansion over the half year to 2.1GW of dedicated projects.
• RetireAustralia enjoyed a strong half year with 296 sales of villas and apartments during the period and
overall village occupancy increasing to 91%. After pausing development for a period last year,
RetireAustralia now has construction underway at four sites.
• As essential healthcare providers, both Qscan and Pacific Radiology continued to provide critical imaging
services despite lockdowns across New Zealand and Australia. Qscan has three new PET-CT clinics due
to open in FY2022, while Pacific Radiology has a new purpose-built imaging facility under construction in
Frankton, Queenstown.
Investor briefing
There will be a briefing for institutional investors, analysts and media commencing at 10.00am.
A webcast of the presentation will be available live at: https://edge.media-server.com/mmc/p/anoj6ayw
Any enquiries should be directed to:
Mark Flesher, Investor Relations
mark.flesher@infratil.com
---
Interim Results Announcement
For the period ending 30 September 2021
12 November 2021
Digital InfrastructureRenewablesAirportsSocial Infrastructure
InfratilFull year results presentation 2021
Disclaimer
ThispresentationhasbeenpreparedbyInfratilLimited(NZcompanynumber597366,NZX:IFT;ASX:IFT)(Company).
Tothemaximumextentpermittedbylaw,theCompany,itsaffiliatesandeachoftheirrespectiveaffiliates,relatedbodiescorporate,directors,officers,
partners,employeesandagentswillnotbeliable(whetherintort(includingnegligence)orotherwise)toyouoranyotherpersoninrelationtothis
presentation.
Information
ThispresentationcontainssummaryinformationabouttheCompanyanditsactivitieswhichiscurrentasatthedateofthispresentation.The
informationinthispresentationisofageneralnatureanddoesnotpurporttobecompletenordoesitcontainalltheinformationwhichaprospective
investormayrequireinevaluatingapossibleinvestmentintheCompanyorthatwouldberequiredinaproductdisclosurestatementunderthe
FinancialMarketsConductAct2013ortheAustralianCorporationsAct2001(Cth).Thispresentationshouldbereadinconjunctionwiththe
Company’sInterimReportfortheperiodended30September2021,marketreleasesandotherperiodicandcontinuousdisclosureannouncements,
whichareavailableatwww.nzx.com,www.asx.com.auorinfratil.com/for-investors/.
Notfinancialproductadvice
Thispresentationisforinformationpurposesonlyandisnotfinancial,legal,tax,investmentorotheradviceorarecommendationtoacquirethe
Company’ssecurities,andhasbeenpreparedwithouttakingintoaccounttheobjectives,financialsituationorneedsofprospectiveinvestors.
FuturePerformance
Thispresentationmaycontaincertain“forward-lookingstatements”abouttheCompanyandtheenvironmentinwhichtheCompanyoperates,suchas
indicationsof,andguidanceon,futureearnings,financialpositionandperformance.Forward-lookinginformationisinherentlyuncertainandsubject
tocontingenciesoutsideoftheCompany’scontrol,andtheCompanygivesnorepresentation,warrantyorassurancethatactualoutcomesor
performancewillnotmateriallydifferfromtheforward-lookingstatements.
Non-GAAPFinancialInformation
Thispresentationcontainscertainfinancialinformationandmeasuresthatare“non-GAAPfinancialinformation”undertheFMAGuidanceNoteon
disclosingnon-GAAPfinancialinformation,"non‐IFRSfinancialinformation"underRegulatoryGuide230:‘Disclosingnon‐IFRSfinancialinformation’
publishedbytheAustralianSecuritiesandInvestmentsCommission(ASIC)andarenotrecognisedunderNewZealandequivalentstoInternational
FinancialReportingStandards(NZIFRS),AustralianAccountingStandards(AAS)orInternationalFinancialReportingStandards(IFRS).Thenon-
IFRS/GAAPfinancialinformationandfinancialmeasuresincludeProportionateEBITDAF,EBITDAFandEBITDA.Thenon-IFRS/GAAPfinancial
informationandfinancialmeasuresdonothaveastandardisedmeaningprescribedbytheNZIFRS,AASorIFRS,shouldnotbeviewedinisolationand
shouldnotbeconstruedasanalternativetootherfinancialmeasuresdeterminedinaccordancewithNZIFRS,AASorIFRS,andtherefore,maynotbe
comparabletosimilarlytitledmeasurespresentedbyotherentities.AlthoughInfratilbelievesthenon-IFRS/GAAPfinancialinformationandfinancial
measuresprovideusefulinformationtousersinmeasuringthefinancialperformanceandconditionofInfratil,youarecautionednottoplaceundue
relianceonanynon-IFRS/GAAPfinancialinformationorfinancialmeasuresincludedinthispresentation.
FurtherinformationonhowInfratilcalculatesProportionateEBITDAFcanbefoundatAppendixI.
Nopartofthispresentationmaybereproducedorprovidedtoanypersonorusedforanyotherpurpose.
2
Disclaimer
InfratilFull year results presentation 2021
Programme
•Introduction
•Six Month Overview
•Portfolio Composition
•Guidance & Dividend
•Operating Businesses
•Financial Results
•Close & Questions
3
Infratil
Interim Results
Announcement
Record net
parent surplus of
$1.1 billion and
resilient
operating
performance
despite Covid-19
challenges
Presenters
Jason Boyes –Infratil CEO
Phillippa Harford -Infratil CFO
InfratilFull year results presentation 20214
Six
Month
Overview
Record net
parent surplus of
$1.1 billion and
resilient
operating
performance
despite Covid-19
challenges
Net Parent Surplus
New investments
Proportionate EBITDAF
$833.8m
Fully-imputed interim dividend
6 month shareholder return
$1.1b
4
6.5 cps
13.2%
Capital expenditure & investment
$253.6m
+28.2%
+70.5%
+4.0%
-18.9%
+2.53 imputation credits
InfratilFull year results presentation 2021
Portfolio
Composition
High conviction
investment
approach
provides
exposure to four
significant
platforms and
geographic
diversification
Digital
Infrastructure
Renewables
Social
Infrastructure
Airports
55%21%9%15%
InfratilFull year results presentation 2021
Portfolio
Composition
Material progress
in building out
our existing
platforms, with
four significant
investments in
the period
•Acquisition of Pacific Radiology, the largest diagnostic imaging
service provider in New Zealand, operating 46 clinics in the
South Island and lower North Island
•Agreement to partner with Auckland Radiology, creating a
national diagnostic imaging business, with 15 Auckland clinics
•Alongside Qscanthese businesses create a meaningful
Australasian healthcare platform
•Establishment of GurīnEnergy, headquartered in Singapore, to
develop renewable generation projects across Asia
•Enables Infratil to further diversify its growth and risk profile, both
from geographic and technology perspectives
•Extends Infratil’sglobal commitment to renewables
•Targeting a steady state run rate of 300MW of projects per annum
•Commitment of £120-130 million of growth capital to London
data centre business Kao Data, alongside high quality partners
Legal & General Group and the Noé Group
•Kao Data develops and operates technically advanced, highly
sustainable colocation data centres
•Further value accretive growth potential through pipeline of
development opportunities beyond the existing site (50MW+)
InfratilFull year results presentation 2021
Guidance
•FY2022 Proportionate EBITDAF guidance range is
narrowed to $500-$530 million (previously $505-
$550 million)
•The top end of the range has been revised to
reflect the acquisitions of Kao Data and Gurin
Energy during the period, which are forecast to
be a net cost of $12 million, and to reflect the
current estimates of the full year impact of
Covid-19 on Wellington Airport and Infratil’s
diagnostic imaging businesses
•The guidance range has not been adjusted for
the possible impact of the IFRIC clarification
relating to the accounting treatment of software-
as-a-service and assumes a full year contribution
from Trustpowerretail
Guidance and
Interim
Dividend
Guidance range
narrowed and
interim dividend
of 6.5 cents per
share, fully
imputed
Dividend
•A fully imputed interim dividend of 6.5 cps has
been announced as part of the interim result
•The FY2022 interim dividend is a 4.0% increase
(excluding imputation credits) from the
comparative period and reflects confidence in
forecast cashflows
•The record date will be 6 December 2021, with
payment on 23 December 2021
•The dividend reinvestment plan will be activated
for this dividend
•The dividend outlook is for modest continued
growth, reflecting expected growth in operating
earnings from CDC Data Centres and Vodafone
and the addition of Qscanand Pacific Radiology
to the Group
Operating Businesses
Digital InfrastructureRenewablesAirportsSocial Infrastructure
InfratilFull year results presentation 2021
Digital InfrastructureRenewablesAirportsSocial Infrastructure
9
CDC Data
Centres
Continued strong
offering,
execution and
outlook,
including
expansion to a
fourth
geography
Operating Performance
•EBITDA for the period was A$75.2 million, a A$1.4 million
(1.9%) increase on the comparative period
•Focus remains on $1 billion of construction currently
underway across four sites, which remain on track for
commissioning in CY2022
•The business is ramping up for the next phase of growth,
with a 46% increase in employees since this time last year
Outlook
•Differentiated offering, as CDC builds to the highest security,
availability and resilience standards. Only large-scale provider
to achieve a ‘Certified Strategic’ accreditation for all ofits data
centres
•Plans to enter Melbourne market adding 150MW of capacity
to the development pipeline, enabling CDC to reach a total of
over 700MW of combined operating and development
capacity
•On track to meet FY2022 EBITDA guidance of A$160 -A$170
million, and medium-term growth targets through the
commissioning of capacity currently under construction
InfratilFull year results presentation 2021
Digital InfrastructureRenewablesAirportsSocial Infrastructure
10
Vodafone
Transformation
progressingand
solid foundations
beinglaid to
improve
performance
and create value
Operating Performance
•EBITDA for the period was $251.8 million, a $27.1 million (12.1%)
increase on the comparative period
•Cost efficiency programme is creating headroom to reinvest and
improving margins, while product simplification is driving down
the cost to serve and making the customer experience simpler
•Investment in talent in growth areas including digitisation,
automation, data analytics, enterprise ICT, cyber-security and CX
•Covid-19 continues to impact retail stores, roaming and pre-pay
revenues and the broadband market remains highly competitive
and commoditised
Outlook
•Transformation continues, and expected to deliver further
margin and CX improvements over the medium term
•Investment continues in both 4G and 5G capability with
improved utilisation through the expansion of wholesale activity
•Network sharing is proving particularly necessary to improve
rural connectivity, and telecommunications companies are
working to bring this about while preserving the benefits of
competition
•Vodafone continues to explore the possibility of further
infrastructure sharing arrangements and network capital release
options
InfratilFull year results presentation 2021
Digital InfrastructureRenewablesAirportsSocial Infrastructure
11
Longroad
Energy
Established as a
leading U.S.
renewables
developer, owner
& operator,
preparing for a
step change in
scale
Operating Performance
•Longroadcontinues to demonstrate its capability with the
commissioning of 530MW of solar generation in the last six
months
•Sun Streams 2 (199MW), commissioned in July with a 20-year
agreement with Microsoft for the energy and renewable
credits
•Prospero 2 (331MW), commissioned in August with two
15-year power purchase agreements in place
•Both completed on time and on budget despite Covid-19
related restrictions and supply constraints
Outlook
•Commenced construction of a 26MW distributed generation
project in Maine with operations expected by the end of
CY2021
•Several Biden Administration led initiatives are currently being
considered by Congress which, if passed, will stimulate
investment in renewable generation
•Expected to retain a greater proportion of assets developed,
and evaluating inorganic growth and partnering opportunities
to accelerate growth
•Strong investor appetite for high-quality renewable
development platforms with operating portfolios
InfratilFull year results presentation 2021
Digital InfrastructureRenewablesAirportsSocial Infrastructure
12
Trustpower
Portfolio of
flexible and
geographically
diverse
generation
schemes
responded well
to favourable
hydrology
conditions
Operating Performance
•Generation EBITDA for the period was $106.4 million,
a $14.3 million (15.5%) increase on the comparative period
•Covid-19 lockdowns have been addressed with minimal
impact; Generation operations have been relatively unaffected
and retail customers continue to be supported
•Wholesale prices along with a return to normal inflows in the
second quarter contributed to a solid generation result
•Conditional sale of the retail business (excluding Commercial
and Industrial customers) to Mercury Energy for $441 million,
with two of the three conditions met to date
Outlook
•Focus remains on the current business while also building
capability to support a standalone ‘Manawa Energy’
•Improved asset reliability has been delivered by targeted
routine maintenance and longer-term asset investment
•$83 million forecast capex over the next 5 years to undertake
material enhancements to existing assets, expected to
generate an additional 67GWh of energy per annum
•Expanding development team, with new development options
secured in both the North and South islands
InfratilFull year results presentation 2021
Digital InfrastructureRenewablesAirportsSocial Infrastructure
13
Wellington
Airport
Short term
challenges, long
term recovery
and value
Operating Performance
•EBITDA for the period was $31.5 million, a $20.6 million
(189%) increase on the comparative period, and cashflow
positive, including interest and capital expenditure
•July’s 424,000 domestic passengers reflected strong recovery
of local travel, with AirNZ, JetStar, SoundsAirand regional
airlines operating near full schedules
•Following re-imposition of travel restrictions , traffic in
September was back to 1/3
rd
of pre-Covid 19 levels
•Programme of safety and resilience capital works maintained,
including earthquake strengthening, seawall and airfield
remediation
•New bond issue of $125 million in September (with a 10-year
maturity), enabling the repayment of all drawn bank debt
Outlook
•Air travel (international and domestic) is expected to quickly
recover as soon as travel restrictions are lifted, and people
feel safe
•The Airport welcomed its first electric aircraft (see picture)
and is in discussion with the Regional Council about restarting
public transport links with electric buses
InfratilFull year results presentation 2021
Digital InfrastructureRenewablesAirportsSocial Infrastructure
Operating Performance
•Underlying Profit for the period was A$22.8 million,
a A$9.5 million (71.4%) increase from the comparative period
•Priority continues to be the health and wellbeing of
RetireAustralia’s residents and its staff
•296 sales of villas and apartments during the period,
comprising 255 resales and 41 new sales, compared to 343
achieved in the full year to 31 March 2021
•15 of RetireAustralia’s 28 villages now operate waiting lists
and average village occupancy increased to 91%, against the
Australian industry average of 87%
Outlook
•After pausing development for a period last year,
RetireAustralia now has construction underway at four sites
•34 apartments will be added at The Rise at Wood Glen, and
22 units at ForrestersBeach -both on the NSW Central Coast
•In Southeast Queensland, construction of 66 apartments is
underway at The Verge, and at the new 94 apartment village,
The Green
•Several other projects at the feasibility stage or with
development applications underway
14
Retire
Australia
Strong rebound in
performance,
reflecting
positive sentiment
towards
retirement
villages and the
business’s ability
to respond
InfratilFull year results presentation 2021
Digital InfrastructureRenewablesAirportsSocial Infrastructure
15
Diagnostic
Imaging
A new platform
providing
opportunities for
further
investment and
strong cashflows
Operating Performance
•As essential healthcare providers, both businesses
continued to provide critical imaging services despite
lockdowns across New Zealand and Australia
•The year-to-date EBITDA impact of Covid-19 is estimated
at ~$7 millionacross both businesses, although some
recovery is likely over the balance of the year as pent-up
volume returns
•Qscan has three new PET-CT clinics due to open in FY2022,
while Pacific Radiology has a new purpose-built imaging
facility under construction in Frankton, Queenstown
Outlook
•Since period end, Pacific Radiology has executed an
agreement to partner with Auckland Radiology, creating a
national diagnostic imaging business
•Auckland Radiology operates 15 strategically located clinics
in the greater Auckland area, employing 32 radiologists
•The partnership alongside Qscan will, over time, translate
into enhanced offerings to patients and referrers across
Australasia, including access to a larger pool of
sub-specialty radiologists, potential for improved after-
hours services and load sharing, and the introduction of
new services
16
Financial Results
EarningsInvestmentFundingPerformance
InfratilFull year results presentation 2021
•Operating revenue reflects the addition of
Qscanand Pacific Radiology and a higher
contribution from associates. The comparative
period also included the initial impacts of
Covid-19 on Wellington Airport
•The incentive fee largely reflects an accrual for
the annual incentive fee for the year ended
31 March 2022
•Net increase in depreciation & amortisation
and net interest primarilydue to the addition
of Qscanand Pacific Radiology
•The increase in tax expense is largely due to
Trustpower’sincreased net profit before tax
and the addition of Qscanand Pacific
Radiology
•Realisations and revaluations largely reflect
movements in electricity derivatives, partially
offset by interest rate swap movements and
property revaluations
•Discontinued operations relate to Tilt
Renewables and Trustpower’sRetail business,
and include the $1,014.7 million gain on the
sale of Tilt Renewables
17
Results
Summary
Record net
surplus for the
period largely
reflecting the
gain recorded on
the sale of
Tilt Renewables
30 September ($Millions)20212020
Operating revenue541.1244.1
Operating expenses(289.8)(76.7)
Operating earnings251.3167.4
Incentive fee(9.4)(57.7)
Depreciation & amortisation(43.2)(24.2)
Net interest(80.0)(65.9)
Tax expense(58.1)9.4
Realisations and revaluations75.8(5.4)
Net surplus/(loss) continuing 136.423.6
Discontinuedoperations
1
993.933.4
Net surplus/(loss)1,130.357.0
Minority earnings(49.7)(29.2)
Net parent surplus/(loss)1,080.627.8
Notes:
1.Discontinued operations represent businesses that have been divested, or businesses which will be recovered principally through a sale
transaction rather than through continuing use. The realised incentive fee in relation to Tilt Renewables ($122.1 million) is included in the
gain on sale that is recorded as part of discontinued operations
InfratilFull year results presentation 202118
Proportionate
EBITDAF
Solid
contributions
overall and an
uplift from the
diagnostic
imaging
acquisitions
30 September ($Millions)20212020
CDC Data Centres38.338.0
Vodafone New Zealand125.6112.1
Trustpower54.447.0
Longroad Energy13.79.4
Wellington Airport20.87.2
Qscan Group18.7-
Pacific Radiology12.4-
RetireAustralia6.35.1
Corporate & other(36.6)(20.9)
Proportionate EBITDAF
1
253.6197.9
Discontinued operations15.831.6
Total269.4229.5
•Increased CDC operating expenses have offset
much of the 6.6% revenue growth as the business
ramps up for the delivery of H5, EC4, AKL1 and
AKL2 in the first half of CY2022
•Vodafone’s cost out programme and efficiency
gains have contributed to improved EBITDA
•Trustpower’s generation EBITDAF reflects higher
generation volumes and prices along with a
revaluation of carbon credits
•Wellington Airport saw an increase in passenger
traffic with the recovery from the initial impacts of
Covid-19
•Longroad uplift reflects the commissioning of
material solar projects
•New contributions from Qscan (acquired
22 December 2020) and Pacific Radiology Group
(acquired 31 May 2021)
•Corporate expenses reflect increased
management fees driven by Infratil share price
appreciation and higher other corporate costs
•Discontinued operations relate to operating
results of Tilt Renewables and Trustpower Retail in
both periods
Notes:
1.Proportionate EBITDAF represents Infratil’s share of the consolidated net earnings before interest, tax, depreciation, amortisation, financial
derivative movements, revaluations, gains or losses on the sales of investments, and excludes the impact of International Portfolio Incentive
Fees. A reconciliation of NPAT to Proportionate EBITDAF is contained in Appendix I.
InfratilFull year results presentation 202119
Proportionate
Capital
Expenditure &
Investment
Significant
investment in
Infratil’s existing
assets will
continue to fuel
growth
30 September ($Millions)20212020
CDC Data Centres99.877.4
Vodafone New Zealand110.544.9
Trustpower7.87.9
Tilt Renewables21.9200.3
Longroad Energy189.1113.9
Wellington Airport4.77.6
Qscan Group3.1-
RetireAustralia6.915.4
Other-13.9
Capital Expenditure443.8481.3
Pacific Radiology acquisition313.6-
Kao Data acquisition73.6-
Other2.87.6
Investments390.07.6
Proportionate Capex & Investment833.8488.9
•CDC Data Centres’ ongoing construction of H5,
EC4, AKL1 and AKL2 totalling 104MW
•Vodafone expansion of 4G and 5G, especially in
regional New Zealand, with Manawatū, Bay of
Plenty, Southland and Taranaki complete or
underway
•Growth capital projects suspended at Wellington
Airport, however, safety and resilience capital
works are tracking well
•After pausing development for a period last year,
RetireAustralianow has construction underway
at four sites
•LongroadEnergy completed construction of
530MW of Solar projects in the period in Arizona
and Texas
•Acquisition of stakes in Pacific Radiology Group
and Kao Data in the period
Notes:
1.The table shows Infratil’s share of the investment spending of investee companies. In a period where Infratil acquires a new investment, the
consideration paid is shown as the investment for that period. In May 2021, Infratil acquired a 56.0% share of Pacific RadiologyGroup for
$313.6 million, and therefore this is show as the investment spending. Next period, Infratil’s share of Pacific Radiology’s capital expenditure
would be presented.
InfratilFull year results presentation 2021
•The CDC Data Centres accrual is based on an independent valuation as of 30 June 2021, which valued Infratil’s
investment at A$2,313 million -A$2,469 million
•The RetireAustralia accrual is based on an independent valuation as of 30 June 2021, which valued Infratil’s
investment at A$308.3 million -A$364.1 million
•The Longroad accrual is based on the most recent independent valuation as of 30 June 2021, adjusted for
movements in foreign exchange and capital movements since that valuation date
•The FY2022 annual incentive fee, if ultimately payable, will be payable in three annual tranches, with payment of the
second and third tranche being subject to the total value of the assets being maintained at the relevant date
•No initial incentive fee accrual has been accrued as at 30 September, however the performance of Galileo Green
Energy will be assessed at 31 March 2022
20
International
Portfolio
Incentive Fees
Performance fees
largely driven by
realisation of
Tilt Renewables
30 September ($Millions)
FY2021CapitalDistributionsHurdle
1
ValuationAnnual FeeIRR
2
CDC Data Centres
2,401.4 (11.1)5.8 (144.7)2,568.9 3.5
37.7%
Longroad Energy136.2 8.3 1.5 (7.5)156.6 4.5
39.3%
RetireAustralia361.0 --(21.7)392.7 2.0
3.5%
FY2021CapitalDistributionsHurdle
1
ProceedsRealised FeeIRR
2
Tilt Renewables1,317.5 -22.3 (53.7)1,959.3 122.1
35.2%
ASIP45.6 --(2.0)44.3 (0.7)
10.3%
4,261.7 (2.8)29.6 (229.6)5,121.8 131.4
Notes:
1.The hurdle rate is calculated on a daily basis compounding, and adjusted for any capital movements and distributions during the period
2.IRR calculated in NZD after incentive fees and calculated as at 30 September 2021
InfratilFull year results presentation 202121
Debt Capacity
& Facilities
Well positioned
for capital
deployment with
$1.0 billion of
Tilt proceeds
remaining and
significant fully
refinanced
undrawn bank
facilities
($Millions)11 November31 March 2021
Net bank debt/(cash)
(1,029.2)328.2
Infratil Infrastructure bonds
1,163.71,155.2
Infratil Perpetual bonds
231.9231.9
Total net debt366.4 1,715.3
Market value of equity5,921.05,151.0
Total capital6,287.46,866.3
Gearing
1
5.8%25.0%
Infratil wholly owned undrawn bank facilities
2
894.0 353.0
100% subsidiaries cash1,029.2 13.8
Liquidityavailable1,923.2366.8
Debt Maturity Profile as at 10 November 2021 (NZ$ million)
2
•Upon completion of the Tilt Renewables’
disposal, Infratil fully repaid its drawn bank
debt facilities, leaving a net cash balance of
~$1.0 billion
•While undrawn Infratil has fully refinanced
all of its bank facilities with a range of
maturity dates up to 31 July 2026
•These include undrawn core facilities of
$744 million and term facilities of
$150 million, with access to additional
acquisition facilities if required
•10 November gearing 5.8%, significantly
below the target range of 30%
•Infratil's next two bond maturities are
$93.7 million of IFT190 bonds in June 2022
and $100.0 million of IFT240 bonds in
December 2022
--
40
439
415
-0
194
122
156
692
232
-
200
400
600
800
1,000
1,200
FY22FY23FY24FY25FY26-31>FY31
Wholly owned bank facilitiesBonds
Notes:
1.Gearing calculated as total net debt / total capital based on the Infratil share price at 10 November 2021
2.Includes Core debt facilities and Term Loan debt facilities only
InfratilFull year results presentation 2021
Half Year Overview
•Net parent surplus of NZ$1.1 billion with the completion of the sale of Tilt Renewables. A record
outcome, many years in the making
•Operating performance has been resilient in the half-year despite the ongoing challenges posed
by the pandemic, with bounce back expected as lock downs ease in Australia and New Zealand
•We have lifted our interim dividend, and narrowed guidance
•We remain high conviction on our current focus sectors of Digital Infrastructure, Renewable Energy
and Healthcare, with significant investment in existing assets, and four new investments in those
sectors in the period
•The portfolio remains well positioned in these sectors with high quality positions
•Investor interest in these sectors remains high, but we continue to see a pipeline of attractive
investment opportunities with our expertise, track record and long-term approach
•We are continuing our patient and disciplined approach
Half Year
Overview
Delivering:
Profits and
Reinvestment
Ideas That Matter
www.infratil.com
InfratilFull year results presentation 2021
Total Shareholder Return
1
PeriodTSR
6 months13.2%
5 Year26.0%
10 Year22.7%
Inception –27.5 years19.0%
1
Total shareholder returns are to 30 September 2021 based on a closing share price of $7.96
24
Share Price
Performance
Outstanding
returns delivered
over the medium
and long-term
5.00
5.50
6.00
6.50
7.00
7.50
8.00
8.50
9.00
30/0931/1030/1131/1231/0128/0231/0330/0431/0530/0631/0731/0830/0931/10
Infratil Share Price
InfratilFull year results presentation 202125
Appendix I
Reconciliation of
NPAT to
Proportionate
EBITDAF
Proportionate EBITDAF is an unaudited
non-GAAP (‘Generally Accepted Accounting
Principles’) measure of financial
performance, presented to provide
additional insight into management’s view
of the underlying business performance.
Specifically, in the context of operating
businesses, Proportionate EBITDAF provides
a metric that can be used to report on the
operations of the business (as distinct from
investing and other valuation movements).
30 September ($Millions)20212020
Net profit after tax (‘NPAT’)1,130.3
57.0
Less: Associates
1
equity accounted earnings(114.1)
(83.8)
Plus: Associates
1
proportionate EBITDAF180.9
162.9
Less: minority share of Subsidiary
2
EBITDAF(77.0)
(48.6)
Plus:share of Subsidiary
2
Transaction Costs12.5
-
Net loss/(gain) on foreign exchange and derivatives(73.6)
19.1
Net realisations, revaluations and impairments(2.2)
(13.7)
Discontinued operations(993.9)
(33.4)
Underlying earnings62.9
59.5
Plus: Depreciation & amortisation43.2
24.2
Plus: Net interest80.0
65.9
Plus: Tax58.1
(9.4)
Plus: International Portfolio Incentive fee9.4
57.7
Proportionate EBITDAF253.6197.9
Notes:
1.Associates include Infratil’s investments in CDC Data Centres, Vodafone NZ, Kao Data, RetireAustralia, Longroad Energy, and Galileo Green Energy
2.Subsidiaries include Infratil’s investments in Trustpower, Qscan, Pacific Radiology, Wellington Airport and GurīnEnergy
InfratilFull year results presentation 2021
26
Appendix II
Movements in
Wholly Owned
Group Net Bank
Debt
The Wholly Owned Group comprises
Infratil and its wholly-owned subsidiaries
and excludes Trustpower, Tilt Renewables,
Wellington Airport, QscanGroup, Pacific
Radiology, Gurin Energy, CDC Data Centres,
Vodafone NZ, RetireAustralia, Longroad
Energy, Kao Data and Galileo Green Energy
Wholly Owned Net Bank Debt comprises
the drawn bank facilities (net of cash on
hand) of Infratil’s wholly owned subsidiaries
1
1
30 September ($Millions)
Opening Wholly Owned Net Bank Debt –1 April 2021(328.2 )
Trustpower dividend29.6
Tilt Renewables dividend16.1
Clearvision dividend1.6
Vodafone distributions and shareholder loan interest payments24.5
CDC distributions and shareholder loan interest payments5.8
Longroad Energy distributions and capital return44.8
Annual Incentive Fee (FY2020 Second and FY2021 First Instalment)(116.2)
Net interest(36.6)
Other operating cashflows(32.5)
Sale of Tilt Renewables1,959.3
Sale of ASIP44.8
Receipt of NZ Bus depot contingent consideration16.1
FY2021 Final Dividend(83.1)
IFT220 bond maturity(93.9)
IFT310 bond issue101.2
Pacific Radiology investment(313.6)
Kao Data investment (73.6)
Other investing and financing cashflows(51.8)
Closing Wholly Owned Net Bank Debt/(Cash)1,116.4
Longroad Energy(35.0)
CDC Data Centres(11.1)
Gurīn Energy(2.8)
Other(2.9)
Net other investment & financing cashflows(51.8)
InfratilFull year results presentation 2021
Guidance
•Infratil issues guidance on a proportionate EBITDAF basis. Proportionate EBITDAF shows Infratil’s share of the EBITDAF of the
companies it has invested in, less Infratil’s operating costs, excluding discontinued operations, and before incentive fees
•Infratil first issued guidance for the year ending 31 March 2022 (‘FY2022’) on 19 May 2021. This was released alongside the
full year results announcement for the year ended 31 March 2022. The initial guidance range from continuing operations
was set at $470-$520 million
•Following completion of the Pacific Radiology acquisition on 31 May 2021 the guidance range was increased to
$505 to $550 million, which included a 10-month contribution from Pacific Radiology. This guidance was maintained at the
Annual Meeting on 19 August 2021
•FY2022 Proportionate EBITDAF guidance has been narrowed to $500-$530 million at the interim results announcement to
reflect the acquisitions of Kao Data and Gurin Energy during the period, which are forecast to be a net cost of $12 million,
and to reflect the current estimates of the full year impact of Covid-19 on Wellington Airport and Infratil’s diagnostic
imaging businesses
•Current guidance contains the following material components:
‐CDCDataCentresEBITDAFofA$160-$170million(Infratilshare:48.0%)–unchanged
‐VodafoneEBITDAFof$480-$510million(Infratilshare:49.9%)–unchanged
‐TrustpowerEBITDAFof$210-$225million(Infratilshare:51.0%)–perTrustpowerrelease
‐WellingtonAirportEBITDAFof$55-$65million(Infratilshare:66%)–revised
‐QscanGroupEBITDAFofA$65-$70million(Infratilshare:56.3%)–forecastinglowerend
‐PacificRadiologyEBITDAFof$61-$65million
1
(Infratilshare:51.0%)–unchanged
‐TiltRenewablesisexcludedfromguidancefromcontinuingoperations
•The range has not been adjusted for the possible impact of the IFRIC clarification relating to the accounting treatment of
software-as-a-service and assumes a full contribution from Trustpower Retail
Appendix III
Guidance for the
year ended
31 March 2022
Guidanceisbasedon Infratil’s continuing
operations and assumes no major changes
tothe composition of theportfolio
Guidance is based on Infratil management’s
current expectations and assumptions about
the trading performance, is subject to risks
and uncertainties, and dependent on
prevailing market conditions continuing
throughout the outlook period
Notes:
1.Excluding transaction expenses
---
1
Infratil
Interim Report
2021
Delivering:
Profits &
Reinvestment
2
1
Six Month
Score Card
May
After almost 30 years, Vodafone
shut down its dial-up internet service
on 31 May 2021 (and 3.5 cps
imputation credits).
Infratil announces a new offer of
Infrastructure Bonds maturing in
December 2027 with a coupon of
3.60% per annum.
Infratil undertakes the acquisition
of a 53.5% stake in Pacific Radiology
for $313.6 million.
August
Infratil completes the $2.0 billion
sale of its 65.15% stake in
Tilt Renewables.
Trustpower announces its new
generation business name,
Manawa Energy.
The New Zealand Government
reinstates Covid-19 restrictions
across the country.
Vodafone adds Manawatū-
Whanganui to its 5G coverage.
Longroad commences construction
of 26MW distributed solar project
in Maine and completes construction
of the 331MW Prospero 2 solar project
in Texas.
April
Jason Boyes succeeds
Marko Bogoievski as CEO effective
from 1 April 2021. Jason is the third
CEO in Infratil’s 27 year history.
Wellington Airport welcomes its first
trans-Tasman, quarantine-free flight
in over a year.
Tilt Renewables sale price increased
from NZ$7.80 to NZ$8.10 per share.
July
Longroad Energy completes
construction on the 199MW
Sun Streams 2 solar project
in Arizona.
Pacific Radiology opens two new
clinics in Rolleston and Wellington
with continued investment in leading
high-tech medical equipment.
The New Zealand Government
suspends trans-Tasman, quarantine-
free flights.
June
Infratil pays a 11.5cps final cash
dividend for FY2021 (and 3.5 cps
imputation credits).
Trustpower announces the
conditional sale of its utility retail
business to Mercury Energy for
$441 million.
CDC achieves ‘Certified Strategic’
accreditation under the Australian
Federal Government’s hosting
framework across all its Australian
data centre facilities.
RetireAustralia officially opens its first
vertical village, The Verge, which
overlooks the Burleigh golf course.
September
Infratil announces a US$233 million
investment to establish Gurīn Energy,
a renewable energy development
platform headquartered in Singapore
which will focus on projects across
Asia.
Infratil commits £120-130 million of
growth capital to London data centre
business Kao Data.
Wellington Airport issues $125 million
of 3.32% 10-year bonds.
Infratil announces its investment in
Auckland Radiology Group on
4 October.
2
Corporate
Structure
Airport
66% Infratil
34% Wellington
City Council
Connectivity
49.9% Infratil
49.9% Brookfield
Asset Management
Energy
5% Infratil
27% Tauranga Energy
Consumer Trust
40% Infratil
40% New Zealand
Superannuation Fund
20% Management
40% Infratil
20% Commonwealth
Superannuation
Corporation
20% New Zealand
Superannuation Fund
20% MGIF
95% Infratil
5% Management
Shareholders
Banks
00% owned
Funding Subsidiaries
Bondholders
Data
48% Infratil
24% Commonwealth
Superannuation
Corporation
24% Future Fund
4% Management
Social/Other
50% Infratil
50% New Zealand
Superannuation Fund
Clearvision Fund
Infratil Infrastructure
Property
Healthcare
56% Infratil
30% Doctors and Sta
4% MGIF
5% Infratil *
49% Doctors and Staff
40% Infratil *
30% Legal & General
30% Goldacre
* Target
* Target shareholding
SectorsCapital Structure
Renewable Energy
Airport
Digital Infrastructure
Social Infrastructure & Healthcare
Net bank debt and dated bonds
Perpetual bonds
Equity (market value)
Airport
66% Infratil
34% Wellington
City Council
Connectivity
49.9% Infratil
49.9% Brookfield
Asset Management
Energy
5% Infratil
27% Tauranga Energy
Consumer Trust
40% Infratil
40% New Zealand
Superannuation Fund
20% Management
40% Infratil
20% Commonwealth
Superannuation
Corporation
20% New Zealand
Superannuation Fund
20% MGIF
95% Infratil
5% Management
Shareholders
Banks
00% owned
Funding Subsidiaries
Bondholders
Data
48% Infratil
24% Commonwealth
Superannuation
Corporation
24% Future Fund
4% Management
Social/Other
50% Infratil
50% New Zealand
Superannuation Fund
Clearvision Fund
Infratil Infrastructure
Property
Healthcare
56% Infratil
30% Doctors and Sta
4% MGIF
5% Infratil
*
49% Doctors and Staff
40% Infratil *
30% Legal & General
30% Goldacre
* Target
* Target shareholding
3
30 September 202130 September 2020
Net parent surplus$1,080.6 million$27.8 million
Proportionate EBITDAF
1
$253.6 million $197.9 million
Proportionate capital expenditure
2
$833.8 million $488.9 million
Net debt
3
$280.9 million $1,389.6 million
Dividends declared
6.50 cps cash
2.53 cps imputation
6.25 cps cash
1.75 cps imputation
Shareholder returns (6 months)13.2%32.1%
1. EBITDAF is a non-GAAP measure of net earnings before interest, tax, depreciation, amortisation, financial derivative movements, revaluations, and
non-operating gains or losses on the sales of investments and assets. EBITDAF does not have a standardised meaning and should not be viewed in isolation,
nor considered a substitute for measures reported in accordance with NZ IFRS, as it may not be comparable to similar financial information presented by
other entities. Proportionate EBITDAF shows Infratil’s operating costs and its share of the EBITDAF of the companies it has invested in. It excludes discontinued
operations and management incentive fees. A reconciliation of net profit after tax to Proportionate EBITDAF is provided in the 30 September 2021 Interim
Results Presentation.
2. Infratil's share of the capital expenditure of investee companies, and investments made by Infratil.
3. Infratil Corporate and 100% subsidiaries.
Financial
Highlights
Infratil has continued to perform
strongly despite the challenges
posed by the pandemic. Many
of Infratil’s companies provide
essential services and are
demonstrating their resilience
and the benefits of Infratil’s
diversification.
The net parent surplus for the six months
ended 30 September 2021 was
$1,080.6 million, up from $27.8 million in
the prior period. The key contributor to
the surplus was the $1,014.7 million gain
recorded on the sale of Tilt Renewables.
A detailed overview of the 23-year history
of Infratil’s investment in Tilt Renewables
was provided in Infratil’s most recent
Annual Report, dating back to the
construction of the Tararua Wind Farm.
Over the period Infratil continued to
invest, with $833.8 million invested either
through its portfolio companies, or directly.
This included the acquisition of Pacific
Radiology ($313.6 million), the acquisition
of a stake in Kao Data ($73.6 million) and
the establishment of Gurīn Energy. These
investments were focused across Infratil’s
core platforms, Digital Infrastructure,
Renewables and Social Infrastructure.
4
Report of the
Chief Executive
Having reported a billion
dollar net parent surplus, the
six months saw good broad-
based progress on our goal of
long-term returns for Infratil’s
shareholders:
CDC’s A$1 billion of construction will next
year deliver over 100MW of data centre
capacity in Canberra, Sydney and
Auckland, with more to come, notably in
Melbourne.
Infratil’s establishment of Gurīn Energy to
develop renewable generation in Asia
means we are now active in this field in
Australasia, USA, Europe and Asia. All told
the Infratil group has built 3,530MW of
solar, wind, and hydro generation
capacity and we expect to more than
double that over the next decade.
Trustpower has conditionally divested
its utilities retailing activities, illustrating
our focus on returns and management
of capital.
We are well underway in healthcare with
our investments in Qscan, Pacific
Radiology and Auckland Radiology and
better understanding the potential of
technology to improve lives and lower
healthcare costs.
Vodafone is showing the gains possible
from localisation of management and
focusing on better, simpler services.
RetireAustralia and Wellington Airport, our
businesses most adversely affected by
Covid-19, are both showing operational
resilience and a capacity to deliver value
growth through investment.
Capital allocation. Business
efficiency. Risk management
Our approach to delivering good risk-
adjusted returns for shareholders has
three key aspects; Capital allocation.
Business efficiency. Risk management.
To comment on CDC, as Infratil’s largest
investment, and medical diagnosis as
the newest.
When we acquired 48% of CDC in
FY2017 for $411.5 million the company
had 40MW of capacity and earnings
of $50 million. The most recent
independent valuation of CDC at
30 June 2021 valued Infratil’s investment
in the range of A$2.3–2.5 billion.
A$1 billion of construction is underway
with more to follow. Earnings’ risk has been
materially reduced by contracting
long-term utilisation of facilities. And CDC
is achieving best-in-class construction
and operating efficiency and
environmental impact, as measured by
use of water for cooling and procurement
of renewably generated electricity.
Over the last year we invested
$686.9 million acquiring shareholdings in
Qscan, Pacific Radiology and Auckland
Radiology. Our co-shareholders in these
business are doctors and other staff.
The attraction of diagnostic businesses is
simply that their technology + expertise
delivers demonstrably better care at
significantly lower cost. And this is only
one of the medical sectors where this is
happening. Private provision of health
services isn’t immune to political
interventions, but it offers immense
potential.
Climate Change
If Covid-19 is the immediate challenge,
climate change is harder and longer term.
By 31 March 2022 Infratil will have been
operating for 28 years, and 28 more years
gets us to 2050 and net-zero.
5
I am confident we are doing a good job
managing the risks we can manage, and
while there are an unusual number of
other threats, we have a strong capital
base and our activities are diversified.
Guidance
Our FY2022 Proportionate EBITDAF
guidance range has been narrowed
to $500-$530 million (previously
$505-$550 million).
The top end of the range has been revised
to reflect the acquisitions of Kao Data and
Gurin Energy during the period, which are
forecast to be a net cost of $12 million,
and to reflect the current estimates of the
full year impact of Covid-19 on Wellington
Airport and Infratil’s diagnostic imaging
businesses.
It is worth noting the recent purchases
of ASX listed companies Sydney Airport,
AusNet and Spark Infrastructure for a
combined $41 billion. In each case the
acquisition values anticipate a full
earnings recovery as covid-restrictions
are relaxed. The transactions are
indicative of the investment appetite of
institutional investors. This is positive for
the value of Infratil’s assets.
It also means that Infratil’s investment
activities have to avoid competing with
those with very deep pockets, which we
have shown we can do with Kao Data,
Gurīn Energy and medical diagnostics.
These are stressful times, lockdowns,
missing important family, business and
social activities. Plans and expectations
have gone west. “Keep calm and carry on”
sounds corny, but I hope we can be
generous to those doing it hard.
Jason Boyes
Chief Executive
“30% reduction by 2030” is fine for now,
but we may be able to do more if we know
the costs and benefits in a financial as
well as environmental sense.
Shareholder Returns
Over the six months Infratil paid dividends
of 15 cents per share (11.5 cps cash and
3.5 cps imputation credits) and the share
price rose from $7.13 to $7.96.
For the current period Infratil is to pay a
dividend of 9.03 cps (6.5cps cash and
2.53 cps imputation credits), 13% higher
than last year, (the cash is up 4%).
The payment is to be on 23 December
to shareholders of record as at
6 December.
Obviously Infratil’s profit for the period
and financial circumstances would have
allowed a far larger payment. We stuck
to gradually increasing the pay-out as
operating earnings grow rather than
providing a windfall.
We believe that shareholders would
rather have a solid sustainably rising
dividend than surprises, even pleasant
ones, and while Infratil has over $1 billion
of capital available for investment or
return to shareholders, we are confident
the majority of shareholders would
rather we invest on their behalf, and
we are confident we can productively
deploy this capital.
DRP
The dividend reinvestment plan is again
operating. We know that many individual
shareholders value the convenience.
Liabilities & Risks
With receipt of the Tilt sale proceeds,
Infratil has little net debt. However, we
are conscious that inflation and nominal
interest rates are rising, and there are
hard to quantify risks from government
debt, geo-political tension, wealth-
inequality, Covid-19 and climate change.
We can be proud of what we have
achieved over the first 28 years.
Trustpower, Longroad, and Tilt built
3,530MW of renewable generation
capacity, sufficient electricity for about
1.4 million households, producing
4.3 million tonnes less emissions than
gas-fired generation (about 10% of
all New Zealand’s CO
2
emissions).
Companies have a large role in delivering
net zero. A recent report calculated
that the combined emissions of the
40 highest emitting companies in each
of the USA and Europe were greater than
the entire emissions of either Africa or
South America. 40 companies equals
a continent!
But for companies to deliver requires
predictable policies and regulations.
A plethora of policies are emerging to
reduce emissions, but are they coherent,
will outcomes be predictable, will
consumers and companies change their
behaviour?
Infratil made submissions on the incipient
New Zealand policies with the key theme
that regulations and government
spending should be compatible with long-
term investment decisions and link with a
reliable price for emissions.
Emissions use to cost emitters and
consumers nothing (whether from
electricity generation, cars, aircraft,
industrial processes, etc). Now, the cost of
a return airline ticket Auckland-Wellington
includes about $9 for emissions. The
emissions of a car doing that round trip
costs about $21. Costs send signals which
companies and consumers factor into
decisions. $21 of carbon charges on a
1,400 kilometre road trip may not cause a
motorist to buy an electric vehicle, but
eventually price “works”.
At Infratil we are setting expectations
across our businesses to provide reporting
on emissions and targets. But we want to
put a cost on the emissions. A goal like
6
The last six months have
been a period of significant
activity, as Infratil transitioned
to a new Chief Executive and
dealt with the continuing
challenges posed by the
Covid-19 pandemic.
One of a board’s key responsibilities is
selecting a Chief Executive.
We were very fortunate to have
Marko Bogoievski, who stood down on
1 April. Marko has been an outstanding
leader for Infratil since taking over the
reins in 2009, leading an investment and
portfolio strategy which has delivered
remarkable results.
Early investments in emerging
infrastructure themes were a hallmark
of Marko’s time. These included fuel
distribution, data and connectivity,
global renewables development
platforms, and, most recently, the
investment into our healthcare portfolio.
In Jason Boyes, we have an excellent
new CEO and the transition has been
seamless, as the half year results show.
The Board is highly confident that, with
Jason’s skills and experience coupled
with the support of a seasoned team,
we have the capability required to
successfully implement our strategy.
Capital allocation and risks are
always front of mind. Activity over
the period included the sale of
Tilt Renewables, sale of the retail
operations of Trustpower, and the
refinancing and extension of our bank
facilities. We also received a very positive
response to our last bond issue.
This puts us in an unusually secure
position. In the context of uncertainties
such as rising interest rates, more
interventionist Government policies, helter
skelter energy markets, and Covid-19
Report of the
Board Chair
disruptions, we are comfortable to be
in this position.
However, our job isn’t to sit on cash
earning 1%. It is to build sustainable,
long-term value for shareholders. We
are fortunate to have subsidiaries that
will do much of the work by growing
and investing in their own activities.
Additionally, we are also willing to invest
directly in “early stage” companies. Gurīn
Energy and Kao Data are in this category.
Gurīn Energy combines the local
knowledge and sector expertise of the
Singapore based management team lead
by Dr Assaad Razzouk, with the not
inconsiderable renewables development
capability, financial resources, and
investment discipline of Infratil. The
success of Tilt Renewables and Longroad
Energy enabled Infratil to establish Gurīn
with a team who are responsible for
developing over 5,000MW of renewable
generation capacity in Asia - a track
record and legacy we expect to build on.
We are pleased with our recent
investment decisions, but many proposals
do not get over the line, often because of
the price being asked for growth.
With Pacific Radiology, Qscan and
Auckland Radiology, we did pay for both
existing operations and their potential. We
believe there are enormous opportunities
to deploy technology to deliver better
healthcare at lower cost. This goes
beyond diagnostic imaging.
One of the largest uncertainties we are all
dealing with relates to climate change.
We know there will be continuing changes
to weather patterns, that carbon
emissions are unsustainable, and this will
require unprecedented government policy
alignment across the globe.
Infratil’s first ever investment was into
renewable generation, and renewables
are a central thematic to our strategic
thinking. With global emissions rising
we need to be certain we understand
how any investment will impact our
environmental footprint. We are putting
a lot of effort into developing detailed
metrics that will help us more accurately
measure the impact of our activities
across a range of factors. If we are looking
to build sustainable long-term value for
shareholders, then by definition, this work
is critical.
Some of the policies being developed
by Governments to reduce emissions are
problematic. We have actively engaged
in policy debate and participated in
consultations. We believe there should
be a cost on emissions. A functioning
international emissions pricing system
is the subject of intense discussion in
Glasgow at COP26. We hope they get
it right as it is a long way from where it
needs to be.
A final point. New Zealand is seeing
the emergence of a new group of
shareholders operating through low-cost
investment platforms like Sharesies and
Hatch. Infratil now has 12,000 individual
shareholders through the former. They own
on average of just over $1,000 of our shares.
We hope we can reward their support, and
we also hope they get to know Infratil. To
help with this we are updating our website
structure and content.
To all our shareholders and bondholders
thank you for your support, it is very much
appreciated.
Mark Tume
Chair
7
8
Over the six months to
30 September 2021 the
following meetings were held
with share and bond holders.
In all cases there were opportunities for
attendees to provide feedback and raise
questions and concerns with directors and
management.
• The Annual Meeting on 19 August;
including shareholder resolutions, a
speech by the Chair on governance
and strategy, and a presentation by
management on activities and
prospects.
• The annual results announcement on
29 May and interim results
announcement on 12 November.
• The annual cycle of presentations to
shareholders around New Zealand
which ran from 31 May to 22 June.
The Annual Meeting
The Annual Meeting was again impacted
by Covid-19 lockdown restrictions. All of
the following participated from their own
homes; the Chair Mark Tume and all the
other directors, auditors, legal advisers,
members of Infratil’s management and
the management of Infratil’s subsidiaries.
A record of the meeting is available on
Infratil’s website, as is the manager
Communication
with Shareholders
& Bondholders
presentation, and the details of the formal
aspects of the meeting (voting results).
396 people participated in the meeting
remotely. A number submitted questions.
Shareholder Presentations
The annual series of presentations to
shareholders and bondholders ran across
15 meetings from 31 May 2021 to 22 June
2021. Meetings were held in Invercargill,
Dunedin, Queenstown, Christchurch,
Nelson, Wellington, Kāpiti, Palmerston
North, Napier, New Plymouth, Rotorua,
Tauranga, Hamilton, Auckland, and the
North Shore.
Approximately 2,000 people attended
across the country. The meetings entailed
a 45-minute presentation by two or three
members of Infratil’s management, about
15 minutes of Q&A, followed by light
refreshments where attendees could have
one-on-one time with management.
Attendees were surveyed after the
presentations. 97% of people found that it
helped them understand Infratil's goals,
strategy, circumstances and prospects.
94% felt they had a good opportunity to
talk to management and have their
questions addressed. The topics of
greatest interest were Infratil’s strategies
and areas of opportunity. The others are
shown in the pie chart.
Often similar questions were asked at
many of the meetings. The most common
ones were:
“Why did you sell Tilt Renewables? Does
this mean that you are now no longer
looking to invest in renewables? What is
the plan to reinvest the proceeds from the
sale of Tilt Renewables?”
There is huge demand for more renewable
generation on both sides of the Tasman.
The key justification for selling was that
the sale price offered for the Australian
assets placed a large value on Tilt’s
development pipeline; we estimated
about $1 billion.
We had to ask ourselves, should we
hold on to our stake and capture that
value over the next several years by
Tilt Renewables progressing the
developments? Or could we take that
$1 billion and invest it elsewhere, ideally
where Infratil would end up with both
$1 billion and the returns we have
generated on that $1 billion. Because
Infratil investor companies are actively
undertaking renewables projects in
Europe, Asia and the USA we have both
high confidence that we can find uses for
it and grow the $1 billion.
“What is happening with Wellington
Airport’s runway extension?”
At present the project is bogged down in
the regulatory, legal and consenting
process. However, the Airport is committed
to the project, but the reasons for the
construction have become more nuanced.
One of the Airport’s absolute priorities is a
safe and functional airfield. To deliver on
these criteria the Airport is going to have
to replace the seawall which was built in
the 1950s and 1970s. Rising sea levels and
more devastating storms means this has
to happen, sooner than later.
Another related consideration is making
sure that the airfield has appropriate
safety allowances at each end (called
the Runway End Safety Areas, “RESA”).
Strategy & opportunities
Portfolio overview & performance
Renewables
Data Centres
Wellington Airport
Healthcare
Dividends
Sustainability
Economy
Vodafone
Management & Governance
Financial Results
What content are you most interested in?
9
At present the RESA is 90 metres but
depending on the aircraft used by the
airlines servicing Wellington it may be
desirable to increase this to 140 metres.
The third reason for extending the airfield
would be to improve Wellington’s
connectivity with the rest of the world via
services which could fly direct to Asia and
North America rather than via stop-offs.
This is more of a commercial and
environmental consideration than one
related to resilience and safety.
“What happened to the AustralianSuper
takeover offer?”
During 2020, Infratil’s independent
directors were approached with two
takeover offers from AustralianSuper.
The board rejected these offers as
undervaluing Infratil’s assets and not
reflecting the potential of Infratil to
continue to deliver for its shareholders.
Feedback on the decision was mostly
positive. In particular, several business
journalists noted that Infratil provides
New Zealand investors with something
quite unique, and its takeover would leave
a real hole.
“Is CDC interested in building a data
centre at Tiwai Point?”
CDC’s developments are customer-led
and if customers were to demand a
substantial new data centre in Invercargill,
CDC would investigate a development.
However, at present CDC isn’t aware of
such demand.
It is worth noting that CDC’s customers
tend to require immediate proximity
to their data and processing, so that
access is instantaneous. This is the
rationale behind CDC having data centres
in Canberra and Sydney and building in
Auckland (and soon Melbourne). Some
data centres store data where speed of
access isn’t so critical, which would likely
be the case if a data centre was
developed in Invercargill.
“What do shareholders get for the
Management fees paid to Morrison & Co?”
There is little difference between Morrison
& Co’s day-to-day responsibilities and
those of any corporate management
team. The same can be said about the
board.
Board and management set corporate
goals, strategies, and risk parameters.
Management executes the goals and
the board monitors management’s
performance and makes the final
decisions about investments and
divestments.
There are probably two key points of
difference relative to the management
team which Infratil would employ were it
hiring people one at a time. One is that
Morrison & Co employs many more
people than a company of Infratil’s size
could afford. This is because Morrison &
Co also manages investments for other
parties. A second is that Morrison & Co
must absolutely prioritise returns to
shareholders. Of course, regular
management would too, but a threat
to one or two people should they
under-perform isn’t quite as powerful
as a threat to a whole team.
ESG performance
We believe that benchmarking
the performance of Infratil
and its investments using
industry recognised ESG rating
systems provides valuable
insights into the maturity of
ESG approaches on an absolute
and relative basis.
Robust ESG benchmarking also informs
investment and asset management
priorities, and simplifies the communication
of ESG performance to stakeholders. In
2020, Infratil and three of its portfolio
entities successfully piloted the GRESB
Infrastructure Assessment and we
subsequently sought broader participation
across the portfolio in 2021.
The GRESB Infrastructure Fund Assessment
was launched in 2015 and assesses the
ESG performance of infrastructure funds
and investment companies. The
assessment is split into two key areas –
‘Management’ and ‘Performance’.
Management considers ESG leadership,
policies, reporting, risk management and
stakeholder engagement, and is focused
on the systems and processes that have
been established by the organisation’s
management team.
Performance is the Net Asset Value (NAV)
weighted average GRESB performance of
the entity’s underlying investments (a score
of zero is allocated to investments that do
not participate).
The GRESB Infrastructure Asset Assessment
assesses the ESG performance of
individual infrastructure assets. The
assessment also includes two key focus
areas, ‘Management’ and ‘Performance’.
For assets, the Management aspect
considers the six aspects noted previously.
The Performance aspect, which has a
60% weighting, considers the extent of
reporting on environmental, safety and
social sustainability performance and
rewards entities that have established
targets for each ESG metric.
Participants in the Fund Assessment are
assigned three GRESB scores:
1. Management score: Performance
against the five ESG indicators that
consider the management of the fund/
investment company.
2. Performance score: The weighted
average performance of the entity’s
underlying investments.
3. Overall GRESB score: Combination of
the entity’s Management score (30%
weighting) with its Performance score
(70% weighting).
In 2021, Infratil achieved an outstanding
Management score of 97% as part of its
Fund Assessment. The chart (below left)
demonstrates that Infratil outperformed its
peers materially in several Management
categories, particularly in ESG risk
management and stakeholder
engagement.
Nine portfolio entities participated in the
Asset Assessment in 2021 - CDC Data
Centres, Tilt Renewables, Trustpower,
Vodafone, Wellington International Airport,
Qscan, RetireAustralia, Longroad Energy
and Galileo Green Energy.
Infratil’s Performance score (the NAV
weighted average of the Portfolio Entities)
was 63%.
Infratil’s Management and Performance
scores generated an overall GRESB Score
of 73%.
The average of the scores achieved by
Infratil’s portfolio entities (by category) are
described in the chart (below right). The
chart also shows the average score that
was achieved by sector peers.
The chart demonstrates that while there
are several opportunities for Infratil’s
portfolio entities to improve their approach
to ESG integration, the portfolio did not
materially underperform the relevant peer
groups.
Management performanceAverage portfolio entity performance
10
ESG leadership
00%
ESG policies
00%
ESG reporting
97%
ESG reporting
57%
ESG policies
60%
ESG leadership
68%
ESG performance
65%
Stakeholder
engagement
8 %
Risk
management
8 %
ESG management
96%
Stakeholder engagement
95%
InfratilPeer Group
Portfolio entitiesPeer Group
Carbon emissions
footprint
We are committed to
measuring, monitoring and
reducing the carbon emissions
arising through Infratil’s
operations and investment
portfolio, and have assessed
Infratil’s 2020 carbon footprint.
Carbon emissions data has been sourced
from each entity’s response to the GRESB
Infrastructure Asset Assessment which
rewards participating entities that
comprehensively report on the carbon
emissions arising through their operations,
particularly Scope 1 and Scope 2 carbon
emissions. The reporting of Scope 3
emissions is also encouraged (refer to
definitions below).
To calculate Infratil’s gross carbon
emissions footprint each entity’s data has
been adjusted based on the equity
ownership percentage held in each
investment during the reporting period,
and then aggregated.
Infratil’s gross 2020 carbon emissions
footprint (Scope 1 and 2) has been
estimated at approximately 16,000 tonnes
CO
2
-e.
To account for the carbon offsets delivered
through energy suppliers’ participation in
New Zealand’s Emissions Trading Scheme,
the Scope 1 and 2 carbon emissions for
each New Zealand based entity have
been adjusted from Infratil’s gross carbon
footprint to calculate its net footprint.
Infratil’s net carbon emissions footprint for
2020 (Scope 1 and 2) has been estimated
at approximately 7,000 tonnes CO
2
-e.
The charts (right) demonstrate that
Infratil’s renewable energy businesses were
the primary contributors to its carbon
emissions footprint, predominantly due
to the use of diesel during construction.
Investments in the Digital Infrastructure
sector also made a significant contribution
to Infratil’s gross footprint, primarily due to
Vodafone’s electricity requirements.
It should be noted that the carbon
emissions data excludes Qscan, Pacific
Radiology (acquired after the reporting
period), ASIP, Infratil Infrastructure Property
and Clearvision Ventures. The data only
includes Tilt Renewables’ Australian
operations, and carbon emissions
associated with CDC Data Centres’
tenants’ IT equipment and ancillary
systems e.g., cooling has been excluded
as it is considered to be Scope 3 for Infratil.
The data has not been independently
verified or assured.
Infratil’s carbon emissions footprint will be
measured, verified and disclosed annually.
11
Corporate carbon emissions sources
7%
3%
90%
GROSS
Scope emissions
GROSS
Scope 2 emissions
GROSS
Scope & 2 emissions
NET
Scope & 2 emissions
Renewable Energy
Transport
Digital Infrastructure
Social Infrastructure
67%
3%
62%49%
8%
39%
9%
9%
4%
15%
5%
Carbon emissions by sector
Scope 1 emissions arise through the
direct combustion of fossil fuels by
organisations e.g., natural gas for
heating, fuel for vehicles and plant,
and the leakage of other greenhouse
gases such as refrigerants.
Scope 2 emissions are associated
with the carbon emissions of the
electricity being purchased and
consumed by an organisation.
Scope 3 emissions are those that
typically arise in an organisation’s value
chain, particularly where the organisation
has limited control e.g., the emissions
associated with corporate air travel,
cloud based data storage and employee
commuting. While information relating
to Scope 3 emissions is becoming
available, a complete dataset for Infratil
is not available at this time.
Financial Trends
These graphs have been chosen to illustrate the
key financial trends over the last decade.
For FY2022 shareholder returns, assets and funding
are as at 30 September 2021. Proportionate
EBITDAF and investment are annualised based on
the latest forecasts and guidance.
Proportionate EBITDAF
1
The calculation of proportionate EBITDAF is
outlined on page 3 of this report. It is intended to
show Infratil’s share of the earnings of the
companies in which it has a shareholding.
The figures include the contribution of assets
held for sale and disposed over the period.
Infratil's Assets
Proportionate Investment
0
0
20
30
40
50
60
70
80
90
00
%
Infratil's Capital Structure
0
5
0
5
20
0
00
200
300
400
500
600
700
Dividend, cents per share
$Millions
$Millions
EBITDAF, Free Cash Flows, Dividends
Sources of Consolidated EBITDAF
0
$Millions
Data
Other
SocialTransportTelecommunications
Energy
00
- 00
200
300
400
500
600
Perpetual bondsEquity (market value)Net bank debt and dated bonds
Operating cash flow
Interest, tax, working capital
Dividend (rhs)
200
400
600
0
800
,000
,200
,400
,600
,800
2,000
500
,000
,500
2,000
2,500
3,500
3,000
Sold
RetireAustralia
Wellington Airport
Trustpower
Vodafone NZ
Other
0
2022
4,500
4,000
$Millions
5,000
6,000
5,500
2022 202 2020 208209 203204207206205
2020 208209 20 202 203 204 207206 205
2022
2020 208209 20 202 203 204 207206 205
CDC
Tilt Renewables
202 2020 208209 203 204 207206 205
0
500
,000
,500
2,000
2,500
3,500
3,000
Sold
RetireAustralia
Wellington Airport
Trustpower
Vodafone NZ
Other
202
4,500
4,000
$Millions
5,000
CDC
Tilt Renewables
2020 208209 202 203 204 207206 205
0
200
400
600
800
,000
,400
,200
Longroad
RetireAustralia
Wellington Airport
Trustpower
Other
Qscan & Pacific Radiology
Qscan
Pacific Radiology
Kao Data
Kao Data
2022
,800
,600
$Millions
2,000
CDC
Vodafone NZ
Tilt Renewables
Longroad
RetireAustralia
Wellington Airport
Trustpower
Sold
Total
Corporate
CDC
Vodafone NZ
Tilt Renewables
202 2020 208209 203 204 207206 205
0
00
200
300
400
500
60%
40%
20%
0
-20%
-40%
2082020
209
Dividend ReturnCapital Return
207202203204205
Accumulation Index
Accumulation Index
70%
80%
Annual Return
206
202
202 2020 208209 203 204 207206 205
$50
$ 00
$ 50
$200
$250
$300
0
2032 20292030 2022 2028 20312023 2024 20272026 2025
$50
$ 00
$ 50
$200
$250
$300
0
2032 20292030 2022 2028 20312023 2024 20272026 2025
Qscan &
Pacific Radiology
0
60
320
480
640
800
60%
40%
20%
-20%
2082020
209
Dividend ReturnCapital Return
207202203204205
Accumulation Index
80%
00%
Annual Return
206
0
2022022
Accumulation
Index
Shareholder Returns
Between 1 October 2011 and 30 September
2021 Infratil provided its shareholders with
an after-tax return of 22.7% per annum.
$100 invested at the start of the period would
have compounded to $775 by the end if all
distributions were reinvested.
The graphs show six month returns for 2012
and 2022 and full years in between.
Infratil's Assets
Proportionate Investment
0
0
20
30
40
50
60
70
80
90
00
%
Infratil's Capital Structure
0
5
0
5
20
0
00
200
300
400
500
600
700
Dividend, cents per share
$Millions
$Millions
EBITDAF, Free Cash Flows, Dividends
Sources of Consolidated EBITDAF
0
$Millions
Data
Other
SocialTransportTelecommunications
Energy
00
- 00
200
300
400
500
600
Perpetual bondsEquity (market value)Net bank debt and dated bonds
Operating cash flow
Interest, tax, working capital
Dividend (rhs)
200
400
600
0
800
,000
,200
,400
,600
,800
2,000
500
,000
,500
2,000
2,500
3,500
3,000
Sold
RetireAustralia
Wellington Airport
Trustpower
Vodafone NZ
Other
0
2022
4,500
4,000
$Millions
5,000
6,000
5,500
2022 202 2020 208209 203204207206205
2020 208209 20 202 203 204 207206 205
2022
2020 208209 20 202 203 204 207206 205
CDC
Tilt Renewables
202 2020 208209 203 204 207206 205
0
500
,000
,500
2,000
2,500
3,500
3,000
Sold
RetireAustralia
Wellington Airport
Trustpower
Vodafone NZ
Other
202
4,500
4,000
$Millions
5,000
CDC
Tilt Renewables
2020 208209 202 203 204 207206 205
0
200
400
600
800
,000
,400
,200
Longroad
RetireAustralia
Wellington Airport
Trustpower
Other
Qscan & Pacific Radiology
Qscan
Pacific Radiology
Kao Data
Kao Data
2022
,800
,600
$Millions
2,000
CDC
Vodafone NZ
Tilt Renewables
Longroad
RetireAustralia
Wellington Airport
Trustpower
Sold
Total
Corporate
CDC
Vodafone NZ
Tilt Renewables
202 2020 208209 203 204 207206 205
0
00
200
300
400
500
60%
40%
20%
0
-20%
-40%
2082020
209
Dividend ReturnCapital Return
207202203204205
Accumulation Index
Accumulation Index
70%
80%
Annual Return
206
202
202 2020 208209 203 204 207206 205
$50
$ 00
$ 50
$200
$250
$300
0
2032 20292030 2022 2028 20312023 2024 20272026 2025
$50
$ 00
$ 50
$200
$250
$300
0
2032 20292030 2022 2028 20312023 2024 20272026 2025
Qscan &
Pacific Radiology
0
60
320
480
640
800
60%
40%
20%
-20%
2082020
209
Dividend ReturnCapital Return
207
202
203204205
Accumulation Index
80%
00%
Annual Return
206
0
2022022
Accumulation
Index
1. Proportionate EBITDAF is an unaudited non-GAAP measure and is defined on page 3.
12
Infratil Assets
This graph shows the book values of Infratil’s
unlisted assets and the NZX values of those
listed. In some cases, these values can
be lower than fair value (private market
valuations).
This is highlighted by Infratil’s investment in
CDC Data Centres which has a current book
value of $899.2 million compared to an
independent valuation at 30 June 2021 of
A$2,313-2,469 million.
Infratil's Assets
Proportionate Investment
0
0
20
30
40
50
60
70
80
90
00
%
Infratil's Capital Structure
0
5
0
5
20
0
00
200
300
400
500
600
700
Dividend, cents per share
$Millions
$Millions
EBITDAF, Free Cash Flows, Dividends
Sources of Consolidated EBITDAF
0
$Millions
Data
Other
SocialTransportTelecommunications
Energy
00
- 00
200
300
400
500
600
Perpetual bondsEquity (market value)Net bank debt and dated bonds
Operating cash flow
Interest, tax, working capital
Dividend (rhs)
200
400
600
0
800
,000
,200
,400
,600
,800
2,000
500
,000
,500
2,000
2,500
3,500
3,000
Sold
RetireAustralia
Wellington Airport
Trustpower
Vodafone NZ
Other
0
2022
4,500
4,000
$Millions
5,000
6,000
5,500
2022 202 2020 208209 203204207206205
2020 208209 20 202 203 204 207206 205
2022
2020 208209 20 202 203 204 207206 205
CDC
Tilt Renewables
202 2020 208209 203 204 207206 205
0
500
,000
,500
2,000
2,500
3,500
3,000
Sold
RetireAustralia
Wellington Airport
Trustpower
Vodafone NZ
Other
202
4,500
4,000
$Millions
5,000
CDC
Tilt Renewables
2020 208209 202 203 204 207206 205
0
200
400
600
800
,000
,400
,200
Longroad
RetireAustralia
Wellington Airport
Trustpower
Other
Qscan & Pacific Radiology
Qscan
Pacific Radiology
Kao Data
Kao Data
2022
,800
,600
$Millions
2,000
CDC
Vodafone NZ
Tilt Renewables
Longroad
RetireAustralia
Wellington Airport
Trustpower
Sold
Total
Corporate
CDC
Vodafone NZ
Tilt Renewables
202 2020 208209 203 204 207206 205
0
00
200
300
400
500
60%
40%
20%
0
-20%
-40%
2082020
209
Dividend ReturnCapital Return
207202203204205
Accumulation Index
Accumulation Index
70%
80%
Annual Return
206
202
202 2020 208209 203 204 207206 205
$50
$ 00
$ 50
$200
$250
$300
0
2032 20292030 2022 2028 20312023 2024 20272026 2025
$50
$ 00
$ 50
$200
$250
$300
0
2032 20292030 2022 2028 20312023 2024 20272026 2025
Qscan &
Pacific Radiology
0
60
320
480
640
800
60%
40%
20%
-20%
2082020
209
Dividend ReturnCapital Return
207202203204205
Accumulation Index
80%
00%
Annual Return
206
0
2022022
Accumulation
Index
Proportionate Capital Investment
Over the decade Infratil has invested over
$7 billion, with the majority undertaken by
investee companies.
Funding for new investments has been
provided by operating cashflows, debt,
equity issuance and divestments.
Infratil's Assets
Proportionate Investment
0
0
20
30
40
50
60
70
80
90
00
%
Infratil's Capital Structure
0
5
0
5
20
0
00
200
300
400
500
600
700
Dividend, cents per share
$Millions
$Millions
EBITDAF, Free Cash Flows, Dividends
Sources of Consolidated EBITDAF
0
$Millions
Data
Other
SocialTransportTelecommunications
Energy
00
- 00
200
300
400
500
600
Perpetual bondsEquity (market value)Net bank debt and dated bonds
Operating cash flow
Interest, tax, working capital
Dividend (rhs)
200
400
600
0
800
,000
,200
,400
,600
,800
2,000
500
,000
,500
2,000
2,500
3,500
3,000
Sold
RetireAustralia
Wellington Airport
Trustpower
Vodafone NZ
Other
0
2022
4,500
4,000
$Millions
5,000
6,000
5,500
2022 202 2020 208209 203204207206205
2020 208209 20 202 203 204 207206 205
2022
2020 208209 20 202 203 204 207206 205
CDC
Tilt Renewables
202 2020 208209 203 204 207206 205
0
500
,000
,500
2,000
2,500
3,500
3,000
Sold
RetireAustralia
Wellington Airport
Trustpower
Vodafone NZ
Other
202
4,500
4,000
$Millions
5,000
CDC
Tilt Renewables
2020 208209 202 203 204 207206 205
0
200
400
600
800
,000
,400
,200
Longroad
RetireAustralia
Wellington Airport
Trustpower
Other
Qscan & Pacific Radiology
Qscan
Pacific Radiology
Kao Data
Kao Data
2022
,800
,600
$Millions
2,000
CDC
Vodafone NZ
Tilt Renewables
Longroad
RetireAustralia
Wellington Airport
Trustpower
Sold
Total
Corporate
CDC
Vodafone NZ
Tilt Renewables
202 2020 208209 203 204 207206 205
0
00
200
300
400
500
60%
40%
20%
0
-20%
-40%
2082020
209
Dividend ReturnCapital Return
207202203204205
Accumulation Index
Accumulation Index
70%
80%
Annual Return
206
202
202 2020 208209 203 204 207206 205
$50
$ 00
$ 50
$200
$250
$300
0
2032 20292030 2022 2028 20312023 2024 20272026 2025
$50
$ 00
$ 50
$200
$250
$300
0
2032 20292030 2022 2028 20312023 2024 20272026 2025
Qscan &
Pacific Radiology
0
60
320
480
640
800
60%
40%
20%
-20%
2082020
209
Dividend ReturnCapital Return
207202203204205
Accumulation Index
80%
00%
Annual Return
206
0
2022022
Accumulation
Index
Infratil Funding
Infratil uses a mix of debt and equity funding
which is bound by Infratil’s policy of
maintaining credit metrics which are broadly
consistent with an Investment Grade credit
rating (Infratil is not credit rated).
Changes to the relative funding occurs as
businesses are sold and acquired as seen at
30 September 2021 following the receipt of
the Tilt proceeds.
Infratil's Assets
Proportionate Investment
0
0
20
30
40
50
60
70
80
90
00
%
Infratil's Capital Structure
0
5
0
5
20
0
00
200
300
400
500
600
700
Dividend, cents per share
$Millions
$Millions
EBITDAF, Free Cash Flows, Dividends
Sources of Consolidated EBITDAF
0
$Millions
Data
Other
SocialTransportTelecommunications
Energy
00
- 00
200
300
400
500
600
Perpetual bonds
Equity (market value)Net bank debt and dated bonds
Operating cash flow
Interest, tax, working capital
Dividend (rhs)
200
400
600
0
800
,000
,200
,400
,600
,800
2,000
500
,000
,500
2,000
2,500
3,500
3,000
Sold
RetireAustralia
Wellington Airport
Trustpower
Vodafone NZ
Other
0
2022
4,500
4,000
$Millions
5,000
6,000
5,500
2022 202 2020 208209 203204207206205
2020 208209 20 202 203 204 207206 205
2022
2020 208209 20 202 203 204 207206 205
CDC
Tilt Renewables
202 2020 208209 203 204 207206 205
0
500
,000
,500
2,000
2,500
3,500
3,000
Sold
RetireAustralia
Wellington Airport
Trustpower
Vodafone NZ
Other
202
4,500
4,000
$Millions
5,000
CDC
Tilt Renewables
2020 208209 202 203 204 207206 205
0
200
400
600
800
,000
,400
,200
Longroad
RetireAustralia
Wellington Airport
Trustpower
Other
Qscan & Pacific Radiology
Qscan
Pacific Radiology
Kao Data
Kao Data
2022
,800
,600
$Millions
2,000
CDC
Vodafone NZ
Tilt Renewables
Longroad
RetireAustralia
Wellington Airport
Trustpower
Sold
Total
Corporate
CDC
Vodafone NZ
Tilt Renewables
202 2020 208209 203 204 207206 205
0
00
200
300
400
500
60%
40%
20%
0
-20%
-40%
2082020
209
Dividend ReturnCapital Return
207202203204205
Accumulation Index
Accumulation Index
70%
80%
Annual Return
206
202
202 2020 208209 203 204 207206 205
$50
$ 00
$ 50
$200
$250
$300
0
2032 20292030 2022 2028 20312023 2024 20272026 2025
$50
$ 00
$ 50
$200
$250
$300
0
2032 20292030 2022 2028 20312023 2024 20272026 2025
Qscan &
Pacific Radiology
0
60
320
480
640
800
60%
40%
20%
-20%
2082020
209
Dividend ReturnCapital Return
207202203204205
Accumulation Index
80%
00%
Annual Return
206
0
2022022
Accumulation
Index
13
Financial Performance
& Position
Infratil provides audited financial statements annually for years to 31 March. The six month interim accounts to 30 September are
reviewed by Infratil’s auditors but not audited. A summary of the interim accounts is provided in this report. The full financial
statements are available by contacting Infratil or on its website.
Infratil consolidates companies when it owns more than 50%, including Trustpower, Wellington Airport, Qscan and Pacific Radiology.
Associates such as CDC Data Centres, Vodafone New Zealand, Longroad Energy and RetireAustralia are not consolidated. For those
investments, the EBITDAF column shows 100% of their EBITDAF and the "Revaluations and other adjustments" column includes the
adjustment required to reconcile Infratil's share of their net surplus after tax. The contribution of Pacific Radiology is for the period
since its acquisition on 31 May 2021.
Six months ended 30 September 2021
$MillionsShare
EBITDAF
100%D&AInterestTa x
Revaluations
& other
adjustmentsMinorities
Infratil’s
share of net
surplus after
tax
CDC Data Centres 48% $79.8 - - - ($24.8) - $55.0
Vodafone 50% $251.8 - - - ($242.8) - $9.0
Trustpower 51% $106.4 ($11.9)($14.4)($45.4) $78.5 ($58.6) $54.6
Longroad Energy 40% $41.8 - - - ($17.3) - $24.5
Wellington Airport 66% $31.5 ($14.4)($12.5)($3.6) $2.1 ($1.1) $2.0
Qscan Group 56% $33.1 ($14.4)($9.4)($3.5) - ($2.5) $3.3
Pacific Radiology 53% $22.2 ($2.6)($5.5)($3.3)($20.9) $4.6 ($5.5)
RetireAustralia 50% $12.6 - - - $16.2 - $28.8
Corporate & Other - ($50.6) - ($38.2)($2.3)($1.8) - ($92.9)
Total
(continuing) $528.6 ($43.3)($80.0)($58.1)($210.8)($57.6) $78.8
Tilt Renewables 65% $12.1 ($19.5)($6.3) $3.7 $1,002.0 $ 7. 9 $999.9
Trustpower Retail 51% $15.8 ($12.6)($0.6)($0.7) - - $1.9
To ta l $556.5 ($75.4)($86.9)($55.1) $791.2 ($49.7) $1,080.6
Six months ended 30 September 2020
$MillionsShare
EBITDAF
100%D&AInterestTa x
Revaluations
& other
adjustmentsMinorities
Infratil’s
share of net
surplus after
tax
CDC Data Centres 48% $79.1 - - - $29.4 - $108.5
Vodafone 50% $224.7 - - - ($240.3) - ($15.6)
Trustpower 51% $92.1 ($10.7)($14.4)($11.5)($26.5)($16.7) $12.3
Longroad Energy 40% $27.8 - - - ($41.6) - ($13.8)
Wellington Airport 66% $10.9 ($13.5)($12.9) $8.2 $4.5 ($2.6)($5.4)
RetireAustralia 50% $10.2 - - - ($3.8) - $6.4
Corporate & Other ($81.2) - ($38.6) $12.7 $19.1 - ($88.0)
Total
(continuing) $363.6 ($24.2)($65.9) $9.4 ($259.2)($19.3) $4.4
Tilt Renewables 65% $34.1 ($21.8)($5.5)($12.5) $34.4 ($9.9) $18.8
Trustpower Retail 51% $18.3 ($11.2)($0.7)($1.8) - - $4.6
To ta l $416.0 ($57.2)($72.1)($4.9)($224.8)($29.2) $27.8
14
Consolidated Results
The net parent surplus for the six
months ended 30 September 2021
was $1,080.6 million, up from
$27.8 million in the prior period.
The key contributor to the surplus was
the $1,014.7 million gain recorded on
the sale of Tilt Renewables. The other
notable change from the prior period
includes the contributions from Qscan
and Pacific Radiology, which have both
been acquired in the last 12 months
and are consolidated by Infratil.
Recognised in the gain on sale is a
$122.1 million realised incentive fee
accrual relating to the sale of
Tilt Renewables.
Discontinued operations include the gain
on sale, as well as the operating results
of both Tilt Renewables and Trustpower’s
Retail business for the period.
Six months ended 30 September ($Millions)Share20212020
CDC Data Centres 48% $38.3 $38.0
Vodafone 50% $125.6 $112.1
Trustpower 51% $54.4 $47.0
Longroad Energy 40% $13.7 $9.4
Wellington Airport 66% $20.8 $7.2
Qscan Group 56% $18.7 -
Pacific Radiology 53% $12.4 -
RetireAustralia 50% $6.3 $5.1
Corporate & Other ($36.6)($20.9)
Proportionate EBITDAF
1
$253.6 $197.9
International Portfolio incentive fees ($9.4)($57.7)
Tilt Renewables 66% $7.8 $22.3
Trustpower Retail 51% $8.0 $9.3
To ta l $260.0 $171.8
1. Proportionate EBITDAF is an unaudited non–GAAP measure and is defined on page 3.
Proportionate EBITDAF
Proportionate EBITDAF is intended to
show Infratil’s share of the earnings of the
companies in which it has a shareholding.
Proportionate EBITDAF is shown from
continuing operations and includes
corporate and management costs,
however, excludes international portfolio
incentive fees and contributions from
businesses sold, or held for sale.
To illustrate the calculation of
Proportionate EBITDAF, Infratil owns 48.0%
of CDC Data Centres, CDC Centres’
EBITDAF for the period was A$75.2 million,
and 48% of that translated into NZD is
$38.3 million.
Six months ended 30 September ($Millions)20212020
Operating revenue $541.1 $244.1
Operating expenses($289.8)($76.7)
International Portfolio incentive fee($9.4)($57.7)
Depreciation & amortisation($43.2)($24.2)
Net interest($80.0)($65.9)
Tax expense($58.1) $9.4
Realisations and Revaluations $75.8 ($5.4)
Discontinued operations $993.9 $33.4
Net surplus after tax $1,130.3 $57.0
Minority earnings($49.7)($29.2)
Net parent surplus $1,080.6 $27.8
15
Financial Performance & Position
Proportionate Capital
Expenditure and Investment
This table shows Infratil's share of
the capital expenditure of investee
companies, and investments made
by Infratil during the period.
To illustrate the calculation of
Proportionate capital expenditure,
Infratil owns 49.9% of Vodafone, Vodafone’s
capital expenditure for the period
was $221.3 million, and 49.9% of that
is $110.5 million.
Investment undertaken by Infratil in the
period amounted to $390.0 million.
This primarily included the investments
in Pacific Radiology and Kao Data.
Six months ended 30 September ($Millions)Share20212020
CDC Data Centres48% $99.8 $77.4
Vodafone50% $110.5 $44.9
Trustpower51% $7.8 $7.9
Tilt Renewables65% $21.9 $200.3
Longroad Energy40% $189.1 $113.9
Wellington Airport66% $4.7 $7.6
Qscan Group56% $3.1 -
RetireAustralia50% $6.9 $15.4
Capital expenditure $443.8 $467.4
Pacific Radiology $313.6 -
Kao Data $73.6 -
Other$2.8 $21.5
Proportionate capital expenditure
and investment $833.8 $488.9
Infratil and Wholly Owned
Subsidiaries Operating Cash
Flows
This table shows the operating cash
flows of Infratil and its 100% subsidiaries.
Receipts include dividends from
portfolio companies, interest and
capital returns. Outgoings are primarily
operating costs and interest payments.
Corporate & Other includes $27.9 million
of management expenses.
The Incentive Fees paid during the
period related to the second tranche of
the FY2020 incentive fee and the first
tranche of the FY2021 incentive fee.
Six months ended 30 September ($Millions)20212020
CDC Data Centres $5.8 -
Vodafone $24.5 $42.2
Trustpower $29.6 $24.8
Tilt Renewables $16.1 $179.6
Longroad Energy $44.8 $19.1
Wellington Airport-$37.5
Clearvision Ventures $1.6 -
Net interest paid($36.6)($34.2)
Corporate & Other($32.5)($30.5)
Operating cashflow $53.3 $238.5
International Portfolio Incentive Fees($116.2)($41.7)
Operating cashflow (after incentive fees)($62.9)$196.8
16
($Millions)
30 September
2021
31 March
2021
Net bank debt/(cash)($1,114.4) $328.2
Infratil Infrastructure bonds $1,163.4 $1,155.2
Infratil Perpetual bonds $231.9 $231.9
Market value of equity $5,754.7 $5,151.0
Total capital$6,035.6 $6,866.3
Dated debt/total capital 0.8% 21.6%
Total debt/total capital 4.7% 25.0%
Infratil Funding and
Capital Structure
This table shows the mix of debt and
equity funding at Infratil’s Corporate level.
Over the period, $93.9 million of bonds
matured of which $54.8 million were
exchanged for IFT310 bonds and the
remaining $39.2 million were repaid.
A further $47.6 million of IFT310 bonds
were issued, taking the total issue
to $102.4 million, a net increase of
$8.5 million of bonds on issue.
There were no shares issued during the
period, with the change in the market
value of equity reflecting an increase in
the Infratil share price from $7.13 to $7.96.
$Millions
30 September
2021
31 March
2021
CDC Data Centres $899.2 $873.0
Vodafone $846.7 $857.3
Kao Data $72.6 -
Trustpower $1,167.7 $1,314.7
Tilt Renewables - $1,869.3
Longroad Energy $51.4 $44.9
Wellington Airport $558.9 $511.2
Qscan Group $309.6 $309.6
Pacific Radiology $313.6 -
RetireAustralia $355.9 $340.9
Other $181.0 $238.1
To ta l$4,756.6 $6,359.0
Infratil Assets Book Values
This table shows the book values of
Infratil’s unlisted assets and the NZX
values of the listed ones.
The asset values in the table are
presented in accordance with NZ IFRS
with the exception of Trustpower which
is shown at its NZX value, Wellington
Airport which reflects Infratil’s share of
net assets excluding deferred tax, and
Qscan and Pacific Radiology which are
shown as Infratil’s initial investment
amount.
Other includes Infratil Infrastructure
Property, Galileo Green Energy, Gurīn
Energy and Clearvision Ventures.
17
Year ended 31 March
Six months ended 30 September
All A$ unless noted
30 September
2021
30 September
2020
31 March
2021
Data Centre capacity (built)
1
164MW164MW164MW
Capacity under construction104MW28MW104MW
Development pipeline436MW362MW286MW
Weighted average lease term (with options)22.5 years15.4 years14.4 years
Rack utilisation74%64%69%
Target PUE
2
1.19n/an/a
EBITDAF$75.2m$73.8m$147.3m
Capital expenditure$195.8m$150.3m$231.6m
Net debt$1,219.6m$1,031.8m$1,041.4m
Infratil cash income (NZ$)$5.8m-$5.8m
1. Built capacity is the total available power to support ICT load and cooling within a data centre. The presentation
of MW capacity has been restated where necessary to reflect built capacity on a consistent basis across the
portfolio. From time to time this will change, in particular as design and planning for future builds progresses.
2. PUE is a ratio defined as the power used by a data centre divided by the power used by the ICT equipment it
houses. It shows how much power is used by IT equipment (which provides revenue) compared with the power
used by all the data centres services, which also includes cooling, lighting and other equipment.
CDC
Data Centres
Digital Infrastructure
Infratil 48%
Commonwealth Superannuation Corporation 24%
Future Fund 24%
Management 4%
From 40MW of capacity in 2017,
CDC is on track to have 268MW
in 2022, with a development
capability for an additional
436MW.
In five years, CDC has gone from operating
data centres at two Canberra campuses,
to a third in Sydney, building two more in
Auckland, and expanding into Melbourne.
Growth opportunities in other Australian
markets are also under assessment.
In a market where announcements
about projected data centre capacity
investments are now commonplace
(and rarely include when construction
will commence), CDC is distinguishing
itself with over $1 billion of construction
underway adding 104MW of capacity
and construction of a further 20MW
expected to start shortly.
CDC’s expansion to four geographies
reflects both a desire to meet client
demands and the benefits of being able
to do so. Over the last three years, CDC
has secured contracts for utilisation that
have underpinned the economics of new
capacity, allowing construction to be
debt funded and locking in the value of
new capacity before construction has
even started. While current customer
demand for capacity is not abating,
CDC’s scale and rising earnings are
allowing consideration of projects where
capacity can be built to also address
expected forward demand.
The factors driving demand for capacity
in CDC’s facilities are intensifying.
Governments, companies and individuals
are demanding their data is housed locally,
both due to concerns about security and
by the need for faster communication
speeds between users and their data.
Meanwhile, the volume of data requiring
storage is growing by over 50% per annum
and the advantages of having computers
and data housed in the type of specialist
data centres that CDC owns is increasing.
The Australian Government’s digitalisation
plan is for 80% of its data to be stored
electronically. With only 20% of its data
stored electronically today, and the volume
of data doubling every two years, demand
for data storage will remain strong.
In response to the new requirements
imposed by the Australian Government in
March 2021, CDC was the first provider to
achieve ‘Certified Strategic’ accreditation
by the Australian Government for all of its
data centres. In addition, only CDC
achieved this status for all its capacity
across all its Australian locations, while
other operators were only able to provide
limited enclaves within their centres
capable of being certified. This provides
a clear indication of CDC’s ability to
meet customer needs and provide a
differentiated value proposition.
CDC’s market leading position in Australia
(and in due course New Zealand) is based
on meeting client needs as they arise,
reflecting CDC’s huge investment
in capacity, the cost advantages
generated by its construction and
development expertise, local ownership,
reliability and security credentials, track
record, and the ability to more than
double its presence in size and locations
over the next two years.
CDC is also rising to the sustainability
challenge. CDC was started with a clear
vision to be a clean and green data centre
provider and has a significant track record
of using 100% renewably generated
electricity in its facilities, along with
operating zero-water cooling solutions,
saving the environment tens of millions of
litres of water per day. CDC has also
achieved zero waste across its operations
and is well on its journey to be recognised
as the ESG leader of the industry.
18
FacilityStatus
Built
capacity
(MW)
Hume 1 & 2Operating12
Hume 3Operating9
Hume 4Operating29
Hume 5Under Construction22
Fyshwick 1Operating19
Fyshwick 2Operating26
Eastern Creek 1Operating7
Eastern Creek 2Operating20
Eastern Creek 3Operating42
Eastern Creek 4Under Construction54
Auckland 1 & 2 Under Construction28
Total Operating and Under Construction268
CanberraFuture Build178
SydneyFuture Build108
MelbourneFuture Build150
0
50
00
50
Infratil invests
200
250
MW
2008
2009
200
20
202
203
204
205206
207
208
209
2020
202
2022
Canberra
Sydney
Auckland
Facilities and Capacity
19
Society & Environment
Well on its way to be the ESG leader
of the industry, including through using
100% renewable power, zero waste
and zero water cooling solutions.
Dollar for dollar charitable donation
matching in place for donations from
employees.
Employees given financial incentives
and in-kind support to promote
vaccination and support Covid-19
recovery.
20
Vodafone
New Zealand
Digital Infrastructure
Infratil 49.9%
Brookfield Infrastructure Partners 49.9%
Management 0.2%
Year ended 31 March
Six months ended 30 September
30 September
2021
30 September
2020
31 March
2021
Mobile revenue$401.2m$401.1m$793.7m
Fixed revenue$358.3m$372.6m$728.1m
Other revenue$196.9m$167.7m$431.9m
Operating costs($704.6m)($716.8m)($1,505.9m)
EBITDAF$251.8m$224.7m$447.8m
Capital expenditure$221.4m$90.0m$253.4m
Net debt$1,389.8m$1,232.7m$1,300.8m
Infratil’s book value$846.7m$917.5m$857.3m
Infratil cash income$24.5m$42.2m$96.7m
Vodafone is on track with its
transformation strategy and
has laid solid foundations to
remediate legacy investment
deficits and improve performance.
Since its acquisition for $3.4 billion in July
2019, the focus of the Vodafone team
has been on improving the experience
for customers and reducing costs. This
is entailing a major transformation of
the company’s information systems,
simplification of product offering, and
investment in expanding 4th and 5th
generation cellular-network capability.
The goal is for Vodafone to be
New Zealand’s lowest-cost
telecommunications provider, with the
best network, and a suite of services
which attracts and retains both those
customers interested in value and also
those with more complex requirements.
During the period Vodafone’s banks also
responded to the good progress by
renewing and extending Vodafone’s
facilities at lower margins.
Vodafone’s progress is not just being
noticed by customers and capital
providers. In a tight labour market where
the calibre of staff makes a real
difference and everyone has employment
choices, Vodafone’s operational
improvements are also enabling the
company to be an employer of choice
for talented people.
High calibre staff, network reliability and
reach, and efficient systems are allowing
Vodafone to offer enhanced services for
an increasing number of receptive
customers. Globally, the last two years
has seen huge increases in data use,
reliance on cloud-computing and
external data storage, remote working,
and cyber-security concerns. These
developments are causing business
customers to prioritise a package of
factors; reliability, availability, services,
security, and value. To satisfy these
diverse needs without incurring the cost
of building in-house capability, Vodafone
aggregates services provided by parties
such as AWS, Palo Alto, and Microsoft.
Individuals’ demands are also changing.
As people utilise more data, they find it
efficient to shift to “unlimited use”
packages. The benefit for Vodafone is
that these customers are more loyal and
likely to buy additional products, so long
as they have a good network and service
experience.
The quality of Vodafone’s network
remains the foundation of its mobile,
broadband, and other services, and
investment continues in both 4G and 5G
capability. During the last six months
improvements were delivered in the
Manawatu, Bay of Plenty, Southland, and
Taranaki. This is encouraging increased
utilisation from Vodafone’s customers,
wholesalers and other telecommunication
companies seeking to cost-efficiently fill
“holes” in their own networks.
Globally, the telecommunications sector
continues to attract investor attention,
with a series of transactions and strong
valuations being realised over the last
12 months.
Mobile tower assets are a particular focus
for infrastructure investors with new
operating and ownership models
emerging. Network sharing is
improving connectivity, reducing
costs and risk, while ensuring retail
service providers compete and
innovate in product development
and customer service.
In New Zealand, network sharing
is proving particularly necessary
to improve rural connectivity, and
telecommunications companies are
working to bring this about while
preserving the benefits of competition.
Vodafone continues to explore the
possibility of further infrastructure
sharing arrangements and network
capital release options, with a number
of recent transactions highlighting the
potential value achieved through such
arrangements.
One area of further opportunity is
wireless broadband, with the broadband
market continuing to be dominated by
fibre connections.
In relation to 5G services, in the short
term the lack of 5G phones and
applications with very high data
demands (e.g., 3D gaming) is limiting
consumer demand, but if history is a
guide, consumers will find ways to fully
utilise the increased network capacity.
Society & Environment
Vodafone employees offered $100
each to spend at local SMEs to help
with Covid-19 recovery.
$1.55 million provided in 2021 to
charitable works through Te Rourou,
Vodafone Aotearoa Foundation.
‘Thriving Rangatahi Population
Explorer’ tool launched.
Vodafone’s proactive response to
Covid-19 has included its ”Shot Bro”
campaign with the Vodafone Warriors.
21
22
Kao Data
Digital Infrastructure
Infratil 40%
1
Legal & General Group 30%
Goldacre 30%
Data centres have become a
fundamental component of all
our lives.
We now interact with data centres more
regularly than we do with other humans.
The average connected individual is in
contact with a data centre – without ever
really being aware of it – well in excess of
250 times a day.
During the period Infratil committed
£120-130 million of growth capital to
London data centre business Kao Data.
Infratil will obtain a 40% stake alongside
current owners, Legal & General Group,
one of Europe's largest asset managers,
and Goldacre, founder of Kao Data and
part of the Noé Group, a family run
investment and asset management
business. They will each retain a 30% stake.
Infratil, together with Legal & General
Group and Goldacre, intend to build Kao
Data into a £500 million multi-site data
centre platform in the medium term.
Kao Data owns a 15-acre data centre
campus in Harlow, north of London. Kao
Data has built one data centre on that
campus, with construction of a second
to begin this financial year. Once fully
developed, the campus will be home to
four energy efficient data centres, which
are all expected to be powered by 100%
renewable energy.
The Harlow campus is located in the UK
Innovation Corridor between London and
Cambridge, home to world class
academic, technology and bioscience
institutions and companies. Kao Data’s
technically advanced data centres are
designed to meet their high-performance
computing requirements. The facility is
highly energy efficient (<1.2 Power Usage
Effectiveness, or PUE) positioning it as one
of the most efficient (and therefore low
cost) facilities in London. Kao Data’s first
data centre houses Nvidia’s Cambridge-1,
the most powerful supercomputer in the
UK, which provides computing capacity to
healthcare companies such as
AstraZeneca and GlaxoSmithKline.
High performance computing (‘HPC’) is a
high growth sector due to continuing
technological advancements and is a key
differentiator in the UK market. Kao Data is
well placed to serve HPC and AI due to its
location in the ‘Innovation Corridor’ and
Greater London. UK competitors are not
typically focused on this market and
cannot match Kao Data’s offering which
includes the flexibility to offer a build-to-
suit model so that customers can
customise the data centre to their needs.
The UK government has recently
announced a National AI Strategy to
“boost business use of AI, attract
international investment and develop [the]
next generation of tech talent” in the
United Kingdom. The strategy focuses on
three key pillars: guaranteeing investment
in the long-term growth of AI; ensuring all
sectors and regions of the economy
benefit from AI; and implementing
governance rules to stimulate innovation
while protecting the public. The aim is to
“position the UK as the best place to live
and work with AI, with clear rules, applied
ethical principles and a pro-innovation
regulatory environment”.
Kao Data has also recently signed an
agreement to acquire two UK prime
location data centres with a long-term
anchor lease from a large financial
services business. This purchase will
enable Kao Data to deliver multi-site
services for its clients and expand
potential capacity to ~55MW, while
delivering long-term trusted operations for
clients' mission-critical infrastructure.
The UK data centre market is
concentrated around four players (Equinix,
Digital Realty, Virtus and Global Switch)
which are all large and operate
internationally. Kao Data is positioned well
to address the location-sensitive demand
and differentiates itself through its offering
to high performance computing customers
with high density workloads while
helping customers manage Scope 3
emissions due to the efficient design
and high sustainability. Kao Data’s
experienced operational team also serves
as an important advantage for complex
procurement processes which are part
of the reason the UK market has proven
to have high barriers to entry – Kao Data
is one of the only new entrants in the
Broader London data centre market in
the past ten years.
As of 2020, the two to three per cent of
global carbon emissions that come from
the world’s 8.4 million data centres have
already surpassed the pre-Covid-19
levels for both global aviation and
shipping. In the twenty years leading up to
2040, data centre emissions are predicted
to rise by six to seven times to a
staggering 14 per cent - roughly the
equivalent of the entire carbon footprint
of the United States of America.
From its inception, Kao Data’s leadership
team has been committed to developing
and operating one of the UK’s most
sustainable and energy efficient data
centres. This ambition included a number
of technical design and engineering “firsts”
that were incorporated into the structure
and operations of the Harlow facility, in
addition to committing the campus to
100 per cent certified, renewable energy.
When fully operational, the 100 per cent
renewable energy contracts will avoid CO2
emissions of over 80,000 tonnes per
annum, the equivalent of removing over
30,000 vehicles from the road.
The investment in Kao Data helps expand
Infratil’s Global Digital Infrastructure
platform, providing exposure outside of
Australasia and a rare platform investment
opportunity in the attractive UK data
centre market. Kao Data is expected to
have an EBITDA loss of less than £5 million
in FY2022, with break-even EBITDA
expected within two years as the business
scales up. Infratil has provided £35 million
of capital to date.
1 Target shareholding
23
Harlow data centre campus
Society & Environment
Operations powered by 100%
certified renewable energy.
The UK’s first 100% free-cooling
multi-tenant data centre.
The UK’s first data centre operator to
fuel all its back-up generators with
HVO (hydrotreated vegetable oil) fuel
in place of traditional diesel,
eliminating up to 90% of net CO
2
.
1 Target shareholding
24
Trustpower
Renewables
Infratil 51%
Tauranga Energy Consumer Trust 26.8%
Public 22.2%
Year ended 31 March
Six months ended 30 September
30 September
2021
30 September
2020
31 March
2021
Retail electricity sales 1,077GWh 1,051GWh 1,824GWh
Generation 1,000GWh 945GWh 1,708GWh
Av. Generation spot price 20.8c/kwh 13.5c/kwh 14.4c/kwh
Total utility accounts 424,000 411,000 421,000
Generation EBITDAF $106.4m $92.1m $156.7m
Retail EBITDAF$15.8m $18.3m $43.5m
EBITDAF $122.2m $110.4m $200.2m
Capital expenditure $16.0m $19.9m $36.2m
Net external debt $663.9m $662.0m $726.8m
Infratil cash income$29.6m$24.8m$51.9m
Fair value of Infratil’s investment $1,167.7m $1,142.2m $1,314.7m
1. Based on the NZX market value at period end.
The decline in Trustpower’s share price
over the half year (reducing the market
cap by $290 million) seems to indicate
that other shareholders are not as
confident about the benefits of
divestment as Infratil and TECT. However,
the electricity sector of the NZX also
delivered poor returns over the period,
reflecting a number of uncertainties
facing investors.
Globally, energy prices have been in the
news. Gas shortages and price spikes
have fed through to electricity markets.
These events are linked to poorly
managed transition away from thermal
generation (coal, gas and oil) to lower
emission forms of generation. Steps to
reduce availability of hydrocarbon fuels
have not been balanced by increasing the
supply of alternatives.
To an extent this also occurred with
New Zealand’s gas supply, but the
availability of generation from the
coal-fired Huntly power station and the
structure of the retail market meant the
lights (mostly) stayed on and few retail
electricity customers would have noticed
elevated wholesale prices.
Nevertheless, the track record of
Government intervention in energy
markets is discouraging, and
initiatives in train in New Zealand at
present could be very destabilising.
This includes a complete restructure
of the wholesale electricity market,
the multi-billion-dollar Lake Onslow
“dry year battery” and policies to
further limit the availability of
reliable gas.
More positively, wholesale electricity
prices are at levels which if sustained
will encourage investment in generation
and Trustpower is testing the feasibility
of a number of projects. This is in
addition to its announced plans to
invest $83 million increasing generation
from existing hydro schemes by 68GWh
within the next five years.
Since it came into effect about three
decades ago, the New Zealand electricity
market has delivered on the trifecta of
affordable, reliable, sustainable energy.
Rising carbon prices will increase the
incentives to invest in renewable
generation, if other policies don’t get
in the way.
Even for a company which
can trace its roots back to
September 1923, this half year
was one of the more eventful.
Trustpower was originally established
as an Electric Power Board; effectively
an ownership cooperative. The current
representative of those original customers
and owners is the Tauranga Energy
Consumer Trust (‘TECT’). Now, the
relationship between consumers and
owners is a step further removed with
Trustpower’s conditional sale of its
energy and telecommunications retailing
activities to Mercury Energy for
$441 million. TECT, which continues
to own 26.8% of Trustpower supports
the sale as being in the best interest
of Trustpower and the best interests
of the Trust’s beneficiaries.
The transaction is also supported by
Infratil. Utility retailing (Trustpower sells
electricity, gas and telecommunications
services) profitability is a function of
efficiency and cost minimisation, which in
turn are functions of scale and investment
in technology. This made the retailing
activities worth more when added to
Mercury’s than if retained by Trustpower.
The other, more important, reason Infratil
supports the sale is because retailing is no
longer a necessary adjunct of generation.
In the late 1990s generators acquired and
built up their retailing activities to reduce
earnings risk. When wholesale electricity
prices were low (wet warm years) retail
margins were wide, and vice versa. The
wholesale market did exist, but a
generator seeking to sell the majority of its
output several years in advance would
have struggled.
As the wholesale market for electricity has
matured, a retail customer base has
become less necessary as a “hedge”.
Although Trustpower is selling its retail
activities, it has retained its commercial
and industrial electricity trading
operations and is confident it can
manage price risk through these channels.
25
Society & Environment
1,000GWh of emission free
generation during the period.
Establishment of Community Funds
in Tauranga and Oamaru.
Manawa Energy name gifted to
Trustpower by Ngāti Hangarau hapū,
who hold mana whenua over
the area where their Kaimai scheme
is located.
Waipori power station.
26
Longroad
Energy
Renewables
Infratil 40%
New Zealand Superannuation Fund 40%
Management 20%
Longroad has continued
to demonstrate its capability
with the commissioning of
530MW of solar generation
in the last six months.
When Infratil first invested in Longroad
Energy in 2016, the focus was “primarily
in the development of utility-scale wind
and solar generation throughout North
America.” In practice this meant building
generation facilities and selling them. This
created recurring development margins
and avoided the need to invest large sums
in relatively low-yielding de-risked projects.
Longroad’s business has evolved. It has
built-up a portfolio of generation assets
with relatively little capital and grew its
team that manages the day-to-day
operations of the generation that it has
built and sold, for itself, and for third parties.
High-quality development platforms that
develop, manage, and own renewable
generation are becoming more attractive
from both strategic and value perspectives.
The core of the business is still
development. Longroad’s capability is
illustrated by its track record over the last
five years. Longroad has developed 2.3GW
of renewable generation over that period,
including 550MW of wind and 1,730MW of
solar. A further 2GW is targeted for the
following three years.
Early in 2021, Longroad acquired the
rights to develop 900MW of solar
generation and over 1,000MWh of battery
storage in Arizona. Stage one of this,
199MW Sun Streams 2, was commissioned
in July with a 20-year revenue agreement
with Microsoft for the energy and
renewables credits to power their new
sustainable data centre region.
In August, Longroad completed
construction and commenced commercial
operation of its 331MW Prospero 2 Solar
Project, with a total development cost of
US$320 million. Longroad has retained full
ownership of the project and has two
Year ended 31 March
Six months ended 30 September
30 September
2021
30 September
2020
31 March
2021
Owned operating generation1,583MW824MW1,053MW
Generation managed for others1,873MW1,473MW1,873MW
Total generation developed 2,281MW1,171MW1,750MW
Under construction26MW910MW530MW
Employees 134118128
Infratil aggregate investment NZ$255.8mNZ$189.1mNZ$220.8m
Aggregate capital returnedNZ$269.0mNZ$203.8mNZ$224.2m
Infratil cash income (NZ$)NZ$1.5mNZ$8.0mNZ$28.2m
Infratil’s book value (NZ$)NZ$51.4m-NZ$44.9m
Fair value of Infratil’s investment (NZ$)
1
NZ$156.6mNZ$154.9mNZ$136.2m
1. Based on the most recent independent valuation performed and adjusted for movements in FX rates, and any
capital movements from the last valuation date.
15-year power purchase agreements in
place. The Prospero 2 project covers
more than 1,000 hectares in Andrews
County, Texas.
Notwithstanding pandemic related
restrictions and supply constraints, both
Prospero 2 and Sun Streams 2 were
completed on time and on budget, a
testament to Longroad’s development
capability. However, supply chain
disruptions add uncertainty and are
increasing component costs and delivery
times which could slow construction in
2022 and beyond.
Over the last six months, Longroad was
active in the most northeast of the U.S.
states, Maine, where it began construction
of four distributed solar projects. The Maine
project has been under development by
Longroad since 2019 and commissioning is
expected before the end of March 2022.
The U.S. Congress is currently considering
several Biden Administration initiatives
which, if passed, would stimulate
investment in renewable generation
through restoring tax credits available to
renewable developers. As currently under
negotiation, the credits could be either
used to encourage third party investors or
redeemed for cash.
Either way, if these initiatives are supported
Longroad is well positioned to capitalise
given its high-quality development
pipeline, strong supplier relationships, and
proven track record with power purchasers.
In addition to the Federal initiatives to
support renewable development and
investment, many states and municipalities
are taking their own steps in the same
direction. In September, Los Angeles City
Council voted to transition to 100% clean
energy by 2035, replacing natural gas
electricity generation with wind, solar and
battery storage, and improving energy
efficiency and transmission.
With exponential growth in renewables
build out required to satisfy mandated net
zero targets and an increasing push to
deliver on ESG by corporates, the ability for
high-quality development platforms such
as Longroad to deliver long-term returns is
now beginning to be reflected in the
valuation of those businesses.
At present the independent valuation of
Longroad only includes projects that are
currently operational, under construction,
or those that will be operational or under
construction within the next 12 months.
Little value is placed on Longroad’s 6GW+
pipeline or its proven ability to undertake
profitable development projects.
27
Society & Environment
2,051GWh of emission free
generation during the period.
2,281MW of emission free generation
capacity developed to date.
Distributed generation portfolio
currently under construction to
generate enough renewable
energy to power 5,200 Maine
homes annually.
Sun Streams 2 solar farm Arizona, USA.
28
Gurīn
Energy
Renewables
Infratil 95%
Management 5%
Asia represents an exciting,
growing renewable energy
market, characterised by both
an expanding demand for
electricity and increasing
national commitments to
decarbonisation.
In September, Infratil announced it had
established Gurīn Energy, headquartered
in Singapore, to develop renewable
generation projects across Asia. Infratil
has committed US$233 million.
Decarbonisation is essential to combat
climate change and renewables are
one of the single largest investment
opportunities in history. The International
Energy Agency estimates that getting
the world on track for a 1.5°C stabilisation
in rising global temperatures requires
a surge in annual investment in clean
energy projects and infrastructure to
nearly US$4 trillion by 2030.
Asia presents a huge opportunity for Infratil
to enter markets which are following a
transition to renewables roadmap laid out
in Europe and North America with a
tailwind of demand growth.
Across the region there is a growing
commitment to decarbonisation, a desire
to reduce dependency on imported fuels
and to build self-sufficiency and security
of supply, and a recognition of the need
to create a policy environment that
encourages investment.
The Asia and Pacific region accounts
for more than half of global energy
consumption, with 85% of that regional
consumption coming from fossil fuels.
Yet, one tenth of the over 4 billion people
in the region, lack access to electricity,
and many more rely on traditional biomass
use (such as wood combustion) for cooking
and heating.
Rising demand for energy is being driven by
rapid urbanisation and industrialisation,
and considerable opportunities exist to
avoid long-term lock-in with carbon-
based energy technologies.
The investment in Gurīn Energy enables
Infratil to further diversify its risk profile, both
from geographic and technology
perspectives. Together with Infratil’s U.S.,
European and Australasian platforms, the
investment in Gurīn Energy demonstrates a
global commitment to renewables. As
experienced in Australasia and the USA,
there is strong investor demand for
renewable generation assets, and relatively
less development capability.
Gurīn Energy will invest in the development
of wind and solar energy generation and
storage across Asia, including Southeast
Asia, North Asia and India. Gurīn Energy is
rapidly progressing an initial pipeline of
500MW at various stages of development
in the Philippines, Vietnam, Thailand,
Indonesia, South Korea and Japan.
It is estimated that the Southeast Asia
region alone needs US$2,000 billion worth
of investment over the next decade to
build renewable generation, transmission
and sustainable infrastructure to reduce
greenhouse gas emissions in line with
Paris-accord commitments.
Gurīn Energy’s first seed assets are
expected to be in the Southeast Asia
region (Philippines, Vietnam, Indonesia and
Thailand) where both growth and market
transformation will provide greenfield and
M&A opportunities.
Gurīn Energy expects the business will
utilise an extensive network of small local
developers to enter co-development
agreements, enabling the business to
maximise reach across multiple
geographies, while also minimising
overheads.
The closest of these seed assets are
those in the Philippines, where Gurīn Energy
has a strong local team working on three
solar PV projects totalling 180MW, of
which one is operating, one is about to
start construction and one is in the late
stages of development. The team has
been working on these quality assets
for a number of years and hopes to
bring them into the platform by the end
of the year.
Gurīn Energy is led by Assaad Razzouk, a
recognised leader in the Asian renewable
energy market with a long-standing track
record. He brings a well-established team
which he has led for over a decade, during
which they have developed over 5,000MW
of renewable generation across Asia.
In undertaking this investment, Infratil was
conscious of its ESG commitments and the
need to ensure that these would apply in
jurisdictions very different to New Zealand
and Australia. The social and environmental
impacts of Gurīn were addressed through
Infratil’s due diligence of the investment,
and an ESG director is shortly to be
appointed to join Gurīn’s Investment
Committee reporting directly to the Chair.
Looking forward, Infratil is committed to
ensuring its standards are maintained
and Gurīn’s activities are clearly and
accurately reported.
29
Society & Environment
Gurīn Energy’s ambition is to build
enough solar, wind and storage to
power 10 million homes.
Gurīn Energy is committed to ensuring
that Infratil’s projects meet the highest
social, environmental and governance
criteria wherever it operates.
ESG director reporting directly to
the Chair and sitting on the
Investment Committee.
30
Wellington
Airport
Airports
Infratil 66%
Wellington City Council 34%
Wellington Airport is navigating
the awkward seas caused by
Government restricting travel
to reduce Covid-19 infections.
In July, with Covid-19 in abeyance, the
Airport hosted 424,000 people travelling
domestically (93% of the same month in
2019). With no international visitors
travelling within New Zealand this was
a full recovery of domestic air travel. It
is an important signal of how fast and
completely travel recovers as restrictions
are removed.
May was Wellington’s best international
month when 20,000 people travelled to
and from Australia – 28% of the
international level of two years before.
In September, with restrictions back in
place, the Airport had 145,000 domestic
and no international passengers. The
graph (following page) of the first halves of
FY2021 and FY2022 shows how traffic has
rebuilt and been disrupted over those
periods.
Against this backdrop, management’s
priority is to ensure the business will be
in good shape once permanent recovery
is possible.
Keeping staff engaged is crucial. With
only 105 employees, Wellington Airport
relies on its experienced team.
Planning and undertaking capital works is
also critical. Wellington Airport is in a tough
marine environment with earthquake risks
and looming threats from climate change.
It is also on a very constrained site where
expansion necessitates long-term planning
and commitment.
Debt servicing that was comfortable with
earnings of over $100 million a year, can
be onerous with rising interest rates and
lower earnings.
Relationships with both the community and
airlines must be maintained and serviced.
The priorities are being well managed. Over
the last three years the Airport had a once
in a generation opportunity to purchase
approximately 15 hectares of adjacent
land for future expansion. Consents are
now being sought so that the land can be
used for airport activities, including the
construction of ground source heating to
reduce the reliance on natural gas.
The board approved a $22 million rebuild of
the taxiway nearest the terminal, the first
time this has been done since the Airport’s
construction in the late 1950s.
The Airport issued $125 million of 10 year
bonds at a yield of 3.3% per annum to
entirely repay bank debt. Signalling the
Airport’s good management of recent
challenges, and the anticipated recovery
of traffic, credit agency S&P affirmed the
Airport’s Investment Grade rating.
It is worth noting an additional and
unnecessary challenge coming from several
government agencies proposing
substantial increases to charges which
shows a startling indifference at a time
when all sector participants are under
stress.
However, one justified higher charge relates
to carbon pricing. Infratil supports the use
of market carbon pricing to discourage
emissions. These charges now amount to
about $9 on a Wellington-Auckland round
trip. That is tough, but this cost will
incentivise change and investment to
reduce emissions.
The Airport’s commitment in this area was
reflected in its latest GRESB score of 95 out
of 100. An outstanding result.
In October Wellington City Councillors
debated whether they should open public
consultation about Council’s 34% interest in
the Airport. The key point in favour of
divestment is it would enable the Council
to diversify its investments. At least for now,
Councillors have decided to stick with the
status quo. As one Councillor put it during
the debate, the Airport is well managed, it
is a good investment for the City, and it is
uncertain that alternative investments
would be as good.
Year ended 31 March
Six months ended 30 September
30 September
2021
30 September
2020
31 March
2021
Passengers2,030,104961,2532,969,122
Scope1&2 emissions CO
2
-e tonnes638581989
Aeronautical income $27.4m $11.3m $34.0m
Passenger Services income $13.2m $6.6m $18.2m
Property & other income $7.0m $6.5m $12.7m
Operating costs($16.2m)($13.6m)($28.9m)
EBITDAF $31.5m $10.9m $36.0m
Capital expenditure $7.2m $11.5m $35.0m
Net debt $580.4m $585.8m $595.9m
Infratil book value $558.9m $456.7m $511.2m
Society & Environment
On 1 November the Airport welcomed
the world’s longest flight over water
by a pure electric plane.
Wellington Airport is working closely
with Sounds Air to facilitate the
airline’s first electric fleet from 2026.
Wellington was ranked number two
for airports in Australasia in the 2021
ESG GRESB assessment.
Domestic Passengers
2020 & 2021
0
AprMayJunJulAugSep
00
% of 2019Pax
80
60
40
20
0
500,000
400,000
300,000
200,000
00,000
202 Pax%2020Pax%
31
The first electric flight across Cook Strait landed at Wellington Airport on 1 November.
32
Qscan
Social Infrastructure
Infratil 56.3%
Doctors and Management 29.7%
Morrison & Co Growth Infrastructure Fund 14.0%
Priority on providing patient
services and keeping staff safe
while navigating the current
Covid-19 outbreaks.
During the prior period Infratil acquired
56.25% of Australian based Qscan for
A$289.6 million (NZ$309.6 million). Qscan’s
forecast EBITDAF for the year ended
31 March 2022 is between A$65 million
and A$70 million.
At the end of the first quarter Qscan had
exceeded the investment case for the six
months since acquisition from an earnings
perspective and has tracked in line with
the investment case in the recent
September quarter. However, Qscan is
tracking below its FY2022 budget,
predominantly driven by Covid-19
restrictions impacting both patient
volumes across the group, and
construction and opening of new clinics.
As an essential healthcare service provider
Qscan has been able to continue
operating throughout the various State
lockdown restrictions across the regions it
operates, however these restrictions have
caused patients to delay or cancel
appointments due to confusion and
concern. With high vaccination rates
across Australian States and easing of
restrictions, patient volumes are expected
to recover to, or near to, normal levels over
the coming months.
The year-to-date impact of the lockdown
restrictions on EBITDA is currently
estimated at A$5 million mainly due to
patient volumes falling as a result of
lockdowns.
Covid-19 restrictions have also resulted in
delays opening two new clinics, QSRC
Midland PET-CT (delayed from July 2021
until December 2021) and QSRC
Kingswood PET-CT (delayed from August
2021 until November 2021). Midland is a
brand-new clinic in Perth, Western
Australia, while Kingswood is a brand-new
clinic in western Sydney. Recruitment and
completion of the Kingswood build have
been challenging in western Sydney during
Covid-19 lockdowns, however the recent
“opening of NSW” will assist.
Despite these challenges the overall
execution of the PET-CT rollout strategy
remains on track with three new PET-CT
clinics due to open in FY2022, including
Midland, Kingswood and Westmead. The
Westmead Clinic will open in February
2022, opposite the Westmead Private
Hospital in Sydney’s inner west and will
have space for the full suite of modalities.
A specialist Nuclear Medicine/PET
radiologist has been secured to lead this
site.
Qscan continues to explore options to
expand with the roll out of PET-CT across
existing clinics and multiple acquisition
targets identified through the continuation
of Qscan’s roll-up strategy across metro
and regional Australia.
In addition, doctor recruitment has
remained a key priority for Qscan and
successful doctor recruitment strategies
have resulted in total engagement of 20
additional radiologists (12 male and eight
female: equivalent to approximately eight
FTE in total) in the calendar year to date.
Diagnostic imaging continues to perform
strongly in Australia, in particular, PET-CT
which has experienced strong growth due
to increased oncology demand and
utilisation rates. Diagnostic imaging was
one of the most resilient healthcare
sub-sectors during Covid-19 in 2020, with
volumes largely returning back to pre-
Covid-19 levels by June 2020 after the
initial lockdowns. The first half of 2021 has
seen strong growth for PET-CT in Australia,
driven by increased demand for oncology
services and higher incidences of cancer,
resulting in an increased utilisation of PET
services. Total PET services performed in
Australia are expected to grow over 6% to
135,000 services performed in 2021.
Qscan Group is always looking for ways
to pioneer in innovative solutions and has
recently taken a proactive step to ensure
patient information is kept secure by
adopting Foxo as its clinical
communication tool. Foxo is a tool that
means Qscan’s teams can communicate
with each other and referral networks via
a purpose-built healthcare tool that
meets privacy regulations and doesn't
store clinical information, files or photos
on anyone's personal device.
Another example of Qscan’s
organisational performance was
achieving ISO9001:2015 Quality
Management System certification in June.
This recognises organisational excellence
built around patient care, continuous
improvement, and risk management.
Whilst still nascent, collaboration across
the broader Australasian diagnostic
imaging platform in conjunction with
Pacific Radiology has commenced. An
example that is value accretive to the
platform is the ability to load-share using
Pacific Radiology's Anytime teleradiology
service offering, which includes volume
that would have otherwise been
outsourced to an alternative provider.
Other examples of collaboration involve
the businesses working together to gain
equipment procurement efficiencies,
information technology road mapping
and clinical governance.
33
Society & Environment
Over 600,000 scans undertaken in
the 6 months to 30 September.
Commitment to the reduction of
hazardous waste through a 75%
reduction in the use of X-ray film.
Commitment to the reduction in
carbon emissions through the
commencement of a transition to
renewable energy providers.
34
Pacific
Radiology
Social Infrastructure
Infratil 51%
1
Doctors and Management 49%
Providing our communities with
access to the most advanced
medical imaging technology
and exceptional patient care is
the number one priority.
During the period Infratil acquired
Pacific Radiology, a comprehensive
diagnostic imaging business in
New Zealand, for $313.6 million. Pacific
Radiology is the largest private diagnostic
imaging service provider in New Zealand,
operating 46 clinics in the South Island
and lower North Island and employing
90 radiologists throughout New Zealand.
The equity commitment of $313.6 million
was based on an acquisition enterprise
value of $867 million. In the year to
31 March 2022, Pacific Radiology is
forecasting EBITDAF of between
$70 million and $75 million.
Similar to Infratil’s investment in Qscan,
Infratil is investing alongside Doctor and
Management shareholders who hold the
remaining equity in of the Company. The
investment also provides immediate scale
to Infratil’s investment in Qscan Group,
creating a meaningful Australasian
healthcare platform.
New Zealand has a unique healthcare
system with a diversified range of funding
sources that Pacific Radiology is party
to, including ACC (for accident-related
injuries), District Health Boards, Ministry
of Health (cancer screening), private
healthcare insurance and direct patient
fees. This funding environment is expected
to remain stable given broad acceptance
of private clinics, capacity constraints in
District Health Boards, and diagnostic
imaging’s critical role in preventative
health and informing clinical decision-
making.
New Zealand’s public healthcare
expenditure, which incorporates ACC,
District Health Boards and the Ministry of
Health, has increased at 6.3% over
the last five years, driven largely by
population growth and an ageing
population – contributing to higher
healthcare expenditure per capita. This
growth rate is expected to taper with
expenditure forecast to increase to
$23 billion by FY2025 (representing a
10-year increase of 4.3% per annum) and
then continuing to be broadly in line with
historical increases. Total public
healthcare expenditure is forecast to
peak in FY2021 and FY2022 largely due to
the Government’s response to Covid-19
(including vaccination costs, the national
health response, and managed isolation
and quarantine costs).
The majority of Pacific Radiology’s patient
exam fee revenue comes from complex
modalities (CT, MRI and PET), which are
expected to grow at a faster rate than
total public healthcare expenditure.
Pacific Radiology introduced PET to the
New Zealand market and it currently
operates two of the five PET-CT machines
in New Zealand, including the only two
south of Hamilton.
As an essential Healthcare Provider Pacific
Radiology was able to continue to provide
essential imaging services during Alert
Level 4, and at Alert Level 2 and 3, was
able to accept most patient referrals
including vulnerable patients. However,
the year-to-date impact of the lockdowns
is estimated at $5 million mainly due
to three weeks of Level 3 lockdowns
throughout the country. In August, two
weeks of the lockdown impacted revenue
by 57%. It is anticipated that there will be
some catch-up on lost revenue.
Pacific Radiology continued to grow
during the period with the opening of two
new clinics in Rolleston and Wellington,
with a new purpose-built imaging facility
currently under construction at Kawarau
Park along Frankton’s Five Mile Highway in
Queenstown.
Located next door to the new Southern
Cross surgical hospital, the Pacific
Radiology facility will offer local patients,
doctors, physiotherapists, midwives,
chiropractors, hospital specialists and all
leading health referrers, with local access
to the very latest in high-tech imaging,
diagnostic and interventional procedures.
Shortly after 30 September, Pacific
Radiology and Infratil executed an
agreement to partner with Auckland
Radiology, creating a national diagnostic
imaging business. Auckland Radiology is
the largest private radiology provider in
Auckland, operating 15 strategically
located clinics in the greater Auckland
area, and employing 32 radiologists.
Auckland Radiology doctors have rolled
approximately one third of their sales
proceeds into the equity of the combined
entity, similar to the process followed by
the doctors in the Pacific Radiology
transaction earlier in the year.
Importantly, Auckland Radiology is a
strong cultural and clinical fit with Pacific
Radiology, with both cohorts of Doctors
excited by the opportunity to work
together to continue delivering high-
quality services to patients, referrers and
funders across New Zealand. The
partnership will, over time, translate into
enhanced offerings to patients and
referrers across New Zealand, including
access to a larger pool of sub-specialty
radiologists, potential for improved
after-hours services, and the introduction
of new services.
The acquisition completed on 31 October
2021, which saw Infratil contribute an
additional $62.7 million to the joint
platform.
1. Target Shareholding.
35
Society & Environment
Over 230,000 scans during the
4 months up to 30 September.
New high-tech CT cardiac capable
scanners installed in Hamilton, Nelson,
Dunedin, Canterbury and Wellington.
100+ annual research projects on the
go, including a research partnership
aimed at improving outcomes for
patients with prostate cancer that
is attracting global attention.
36
RetireAustralia
Social Infrastructure
Infratil 50%
New Zealand Superannuation Fund 50%
Over the half-year, RetireAustralia
launched a five-year strategic
plan to clearly articulate the
company’s growth agenda.
However, the immediate priority continues
to be the health and wellbeing of
residents and staff, so it is gratifying to be
able to report no Covid-19 cases in either
group, and 91% of employees being fully
or partially vaccinated by the end of
September 2021.
While looking after residents and staff,
RetireAustralia’s goal is to create value for
shareholders by providing homes and care
that meet the needs of the growing
population of elderly people who want to
live independently.
Value creating growth will come from
understanding and meeting the needs
of residents and potential residents;
robust commercial performance
management of all villages; and the
development of new villages in Sydney,
the New South Wales Central Coast
and South East Queensland.
In the first half of the year, RetireAustralia
achieved 296 sales of villas and
apartments, including 255 in existing
communities and 41 in new developments.
A significant improvement on the budget
for the period of 222 sales.
This strong performance resulted in 15 of
RetireAustralia’s 28 villages now operating
waiting lists. Overall village occupancy
increased to 91%, against the Australian
industry average of 87%.
A buoyant property market and ongoing
positive sentiment towards retirement
villages contributed to the company’s
positive first half of the year. On the flip
side, RetireAustralia’s refurbishment and
construction activities have been
hampered by the ongoing implications of
Covid-19. More than half of the company’s
villages are in New South Wales and were
Year ended 31 March
Six months ended 30 September
All A$ (unless noted)
30 September
2021
30 September
2020
31 March
2021
Residents 5,209 4,933 5,041
Serviced apartments535 535 535
Independent Living Units3,584 3,544 3,584
Unit resales 255 138 323
Resale gain per unit$129,545 $141,945 $147,704
New unit sales 41 7 20
New unit average value$732,256 $502,143 $645,850
Occupancy receivable/unit$121,879 $116,449 $125,807
Embedded resale gain/unit$38,106 $35,004 $38,229
Underlying profit$22.8m $13.3m $30.2m
Net profit after tax$54.2m$9.3m $55.6m
Capital expenditure$13.1m$28.8m $55.6m
Net external debt$153.4m $181.8m $187.2m
Infratil’s book value NZ$355.9m NZ$313.3m NZ$340.9m
Fair value of Infratil’s investment NZ$392.7mNZ$314.5mNZ$361.0m
in lockdown for 14 weeks, and villages in
South Australia and Queensland were also
subjected to periods of lockdown.
After slowing development last year,
RetireAustralia is now preparing to
accelerate construction, which is
underway at four sites. 34 apartments will
be added at The Rise at Wood Glen, and
22 units at Forresters Beach - both are
premium villages on the NSW Central
Coast. In South East Queensland,
construction of 66 apartments is
underway at The Verge, and at the new
94 apartment village, The Green.
When complete, The Green will surround
the rejuvenated Tarragindi Bowls Club,
which is being brought back to life as a
championship-quality bowling green. This
much-loved local facility will be the heart
of this retirement community which is
nestled in a leafy and family-friendly
suburb close to Brisbane’s CBD.
With Home Care services on site, The
Green will offer residents an exceptional
independent lifestyle, with back-up
supports. It is an exemplar of
RetireAustralia’s vision for the retirement
communities which it is planning to build.
RetireAustralia is now focused on building
up its development pipeline for the next
five years and beyond. Several projects
are at the feasibility stage or have
development applications underway.
Given the strong performance in the first
half of the year, RetireAustralia is
forecasting total sales for FY2022 of
480-500 units compared to last year’s
343 and the original budget of 442.
37
Society & Environment
Member of the Green Building Council
of Australia.
Developments designed to Liveable
Housing Australia’s Gold Standard.
Green Star Design accreditation for
The Verge.
The Verge retirement village overlooking Burleigh Golf Course on the Gold Coast.
38
Other Investments
Galileo Green Energy
Renewables
Galileo continues to build out its team
with high quality recruits, with new team
members supporting accelerated business
development activities, resulting in a
pipeline expansion over the half year to
2.1GW of dedicated projects.
The business has now originated
development agreements across six of
its target markets. Six joint development
agreements have been signed in Italy with
a combined wind and solar pipeline target
of 1.5GW, and three joint development
agreements have been closed in Spain
targeting 1GW, with grid bonds for over
500MW of dedicated solar pipeline
projects having been submitted. The
target for the German market is 0.5GW,
and a 50MW market entry solar project
has been secured near Berlin, achieving
a foothold in a mature and flourishing
market.
The EMPower joint venture has continued
the development of its 350MW seven wind
projects in Ireland, whilst GGE Nordics is
assessing sites for wind projects in
Scotland, Wales and Sweden, with a
target of 1.5GW across the three markets.
A further joint development agreement in
the UK is looking into early-stage offshore
wind development opportunities, whilst
also assessing combinations of solar
and battery projects, targeting a total
of 1.5GW.
The European renewable energy market
remains bullish, backed by spiking power
prices, concerns over strategic security
of supply and ongoing pressure to
decarbonise. Recent transactions have
resulted in very high prices being paid
for both late stage and development
pipelines, validating the strategy of
creating a diverse portfolio of greenfield
projects.
Infratil Infrastructure Property
Social Infrastructure
Infratil Infrastructure Property holds a
17,142m
2
perpetual leasehold site in
Wynyard Quarter with a current book
value of $92 million. The site is home to the
Wynyard 100 development, consisting of
a 154 room Travelodge hotel, 380 space
carpark, ground level retail and offices,
and depot space leased to NZ Bus.
Hotel operations commenced on
1 November 2020, although these have
been significantly impacted by the closure
of international borders and reduced
domestic travel as a result of Covid-19.
Many workplaces also transitioned to
flexible ways of working, resulting in lower
demand for both carparking and office
space in Auckland, and impacting on the
take up of retail leases which were not
secured prior to the commencement of
Covid-19 restrictions.
Prior to the most recent Covid-19
restrictions, hotel operations were gaining
momentum, carparking had ramped up
significantly and was approaching full
occupancy, and enquiry for retail leases
had recently picked up.
The Wynyard Quarter is now established
as a New Zealand tech hub, with the
sector continuing to perform well and likely
to see the highest level of growth within
the office market for the next ten years.
Hotel demand will benefit from returning
international tourists and business
travellers from the growing office
community in the Viaduct Wynyard
Quarter. Carpark income is supported by
these dynamics, with limited supply in
Wynyard Quarter and growing demand
from nearby commercial developments.
Despite these positive tailwinds, the
development is no longer aligned to
Infratil’s current portfolio strategy
and a sales process is likely to commence
in 2022.
Clearvision Ventures
Digital Infrastructure
The strategic objective of Infratil’s
investment in Clearvision Ventures is to
help Infratil's businesses identify and
engage with technology changes that
will impact their activities. Clearvision
is currently focused on investing in
companies that can apply innovations in
IoT, Big Data, and Security technology, to
drive meaningful disruptions in energy and
infrastructure sustainability, and establish
clear category dominance and leadership.
In total Infratil has made a commitment
of US$50 million to Clearvision, with
contributions of US$28.1 million
(NZ$40.9 million) made to 30 September
2021. The current carrying value of Infratil’s
investment in Clearvision is NZ$76.4 million.
Clearvision’s investments are unlisted, with
the exception of ChargePoint (NYSE:CHPT)
which went public on the New York Stock
Exchange on 26 February 2021 through
a special-purpose acquisition company
reverse merger.
ChargePoint is now one of the largest
charging networks in North America and
Europe with more than 150,000 charging
ports accessible on its own network. Three
billion electric miles have been driven on
ChargePoint’s network and drivers have
avoided more than 120 million gallons
of gas, avoiding over 450,000 tonnes of
greenhouse gas emissions.
39
Infratil Dividend
Investment Plan
39
This is an important document. You should read the whole
document before making any decisions. If you have any doubts
as to what you should do, please consult your broker, financial,
investment or other professional advisor.
Infratil Limited (Infratil) has established a Dividend Reinvestment
Plan (DRP) which offers you the opportunity to reinvest dividends
received on some or all of your existing Shares into Additional
Shares free of brokerage charges. DRPs are fairly common across
listed companies and provide an opportunity for shareholders to
grow their investment in a company. Participation in this Plan is
completely optional.
This Offer Document explains how the Plan works.
Capitalised terms used in this Offer Document have the meaning
set out in the Definitions on page 44.
KEY FEATURES
Shares instead of Dividends
The Plan gives you the opportunity to reinvest the net proceeds
of cash dividends payable or credited on your Shares in
Additional Shares. This provides an opportunity for you to
increase your investment in Infratil free of brokerage charges.
Eligibility
You are eligible to participate in the Plan if, as at 5:00pm on the
Record Date:
• you hold Shares; and
• you are resident in New Zealand or Australia; and
• you either hold your Shares directly or hold your Shares
indirectly through a nominee whose address is recorded in
Infratil’s share register as being in New Zealand or Australia.
If you do not satisfy the criteria above Infratil reserves the right to
otherwise determine, in its absolute discretion, that you are
eligible to participate.
Full or Partial Participation
You can choose to participate in the Plan in respect of some or
all of your Shares. Your participation in the Plan will apply from
the first Record Date which occurs after your Participation
Election is received or, if your Participation Election is received
after a Record Date but before 5:00pm on an Election Date
(being the first trading day after that Record Date or such later
date as may be set by the Board and advised to NZX and ASX),
from the Record Date immediately preceding that Election Date.
Participation in the Plan is optional. If you do not wish to
participate in the Plan, you do not need to do anything. If you do
not participate in the Plan you will continue to receive cash
dividends paid on all of your Shares.
If you change your mind at a later date and wish to participate in
the Plan, you can do so by:
• making your Participation Election online at:
- https://investorcentre.linkmarketservices.co.nz (for holders
on the New Zealand register); or
- https://investorcentre.linkmarketservices.com.au (for
holders on the Australian register); or
• completing a Participation Notice and returning it to the Share
Registrar.
Joining, Variation and Withdrawal Arrangements
You can choose to participate in the Plan, vary your
participation, or withdraw from the Plan at any time. Any
variation or withdrawal will take effect on the first Record Date
after receipt of your new Participation Election or written
termination notice or, if your new Participation Election or written
termination notice is received after a Record Date but before
5:00pm on an Election Date (being the first trading day after that
Record Date or such later date as may be set by the Board and
advised to NZX and ASX), from the Record Date immediately
preceding that Election Date.
Application of the Plan
The Board retains a discretion to determine that the Plan will not
apply to a particular dividend, or will not apply to some of a
particular dividend (rather than all), with the result being that all
or the relevant proportion (and also taking into account any
partial participation in the Plan) of that dividend will be paid in
cash instead of the Plan applying.
Issue Price
Additional Shares will be issued or transferred under the Plan at
the Strike Price. The Strike Price will be calculated as the volume
weighted average sale price for a Share based on all trades of
Shares on the NZX Main Board over a period of 10 trading days
commencing on and including the first trading day after the
Election Date, subject to adjustment to the Strike Price by Infratil
for any exceptional or unusual circumstances and less any
discount determined by the Board. Any discount will be
announced by Infratil no later than 10 trading days prior to the
relevant Record Date. The Board may adjust the period over
which the Strike Price is calculated in its discretion (and any such
adjustment will be advised to NZX and ASX no later than 10
trading days prior to the relevant Record Date).
Infratil has amended the Plan so that the Strike Price is calculated over a period of 10 trading days commencing on and including
the first trading day after the Election Date. A copy of the updated Offer Document incorporating these amendments follows.
40
Shares Rank Equally
Additional Shares issued or transferred under the Plan will rank
equally in all respects with each other and with all other Shares
on issue at that date.
Financial Markets Conduct Act
The offer of Additional Shares under the Plan is being made in
reliance on clause 10 of Schedule 1 of the Financial Markets
Conduct Act 2013.
Terms and conditions
1 Introduction
This Offer Document contains the terms and conditions of
the Infratil Dividend Reinvestment Plan.
The Plan is available to you (“you”) if, subject to clauses 3
and 5, you are the holder of Shares.
Under the Plan, you may elect to reinvest the net proceeds
of cash dividends payable or credited on all or some of your
fully paid Shares by acquiring Additional Shares.
The Record Date for determining your entitlement to
Additional Shares under the Plan is 5:00pm on the date
fixed by Infratil for determining entitlements to dividends
payable or credited on Shares.
This Offer Document has been prepared as at
11 November 2021.
2 Available Options
You may elect to participate in the Plan by exercising one of
the following options:
(a) Full Participation - If you choose full participation, the
Plan will apply to the cash dividends payable or
credited from time to time in respect of all Shares
registered in your name on the Record Date.
(b) Partial Participation – If you choose partial
participation, the Plan will only apply to the cash
dividends payable or credited from time to time in
respect of your nominated percentage (%) of Shares
registered in your name on the Record Date.
If you do not wish to participate in the Plan and instead
wish to receive any dividends payable or credited in respect
of your Shares from time to time in cash, you do not need to
do anything.
3 Overseas Shareholders
3.1 Subject to clause 3.2, as at the date of this Offer Document,
you are eligible to participate in the Plan if, as at 5:00pm on
the Record Date:
(a) you hold Shares; and
(b) you are resident in New Zealand or Australia; and
(c) you either hold your Shares directly or hold your Shares
indirectly through a nominee whose address is recorded
in Infratil’s share register as being in New Zealand or
Australia.
If you do not satisfy the criteria above Infratil reserves the
right to otherwise determine, in its sole discretion, that you
are eligible to participate.
However, the Board may amend this policy at any time, in its
sole discretion.
3.2 Infratil may, in its absolute discretion, elect not to offer
participation in the Plan to shareholders who are outside
New Zealand if Infratil considers that to do so would risk
breaching the laws of any other jurisdiction and it would be
unduly onerous to ensure that the laws of those jurisdictions
are complied with.
3.3 If you are outside of New Zealand or any other jurisdiction in
respect of which the Plan is made available and you
participate in the Plan through a nominee that is resident in
New Zealand and has a registered address in New Zealand
or any other such jurisdiction, you will be deemed to
represent and warrant to Infratil that you can lawfully
participate through your nominee. Infratil accepts no
responsibility for determining whether any person is able to
participate in the Plan under laws applicable outside of
New Zealand or any other jurisdiction in respect of which the
Plan is made available.
4 Death of Participant
4.1 If a Participant dies, participation by that Participant will
cease upon receipt by Infratil’s Share Registrar of a notice of
death in a form acceptable to Infratil.
4.2 Death of one of two or more joint participants will not
automatically terminate participation by the remaining joint
participant(s).
5 Exclusion where Liens or Charges over Shares
If you hold any Shares over which Infratil has a lien or
charge, those Shares will not be eligible to participate in the
Plan.
6 Participation Election
6.1 To participate in the Plan you must make a Participation
Election in one of the following ways:
(a) Online Election – By visiting the website of Infratil’s Share
Registrar, Link Market Services:
Holders on the New Zealand Register: https://
investorcentre.linkmarketservices.co.nz.
Select “IFT – INFRATIL LIMITED” as the issuer from the
dropdown box on the page. You will be required to enter
your CSN/Holder Number and FIN before you can make
40
41
your Participation Election. Once you have entered
these details, you should click “Payment and Tax”, then
“Reinvestment Plans”, and tick the applicable box to
participate in the Plan. If you make an online election,
you will be required to confirm that you have read,
understood and complied with the terms and conditions
of the Plan. Joint and corporate shareholders will need
to register a portfolio to update their participation
election.
Holders on the Australian Register: https://
investorcentre.linkmarketservices.com.au
Select “IFT – INFRATIL LIMITED” as the issuer from the
dropdown box on the page. You will be required to enter
your Holder Number and postcode before you can make
your Participation Election. Once you have entered
these details, you should click “Payment and Tax”, then
“Reinvestment Plans”, and tick the applicable box to
participate in the Plan. If you make an online election,
you will be required to confirm that you have read,
understood and complied with the terms and conditions
of the Plan. Joint and corporate shareholders will need
to register a portfolio to update their participation
election;
OR
(b) Participation Notice – By completing the enclosed
Participation Notice which accompanies this Offer
Document and returning it to Infratil’s Share Registrar in
one of the following manners:
Mail
Link Market Services Limited
PO Box 91976
Auckland 1142
New Zealand
Scan and email
operations@linkmarketservices.co.nz
Fax
+64 9 375 5990
or such other person or address as Infratil may
determine from time to time.
6.2 You can make your Participation Election at any time while
this Plan is in effect by following one of the steps in clause
6.1. Participation Notices can be obtained from Infratil’s
Share Registrar at any time.
6.3 If your Participation Election does not specify your degree of
participation in the Plan, you will be deemed to have
chosen full participation (if your Participation Election is
otherwise correctly completed and signed).
7 Participation Applies from First Election Date
Net proceeds of cash dividends payable or credited on your
Participating Shares will be reinvested in Additional Shares
from the first Record Date which occurs after receipt by
Infratil of a properly completed Participation Election or, if
your Participation Election is received after a Record Date
but before 5:00pm on an Election Date, from the Record
Date immediately preceding that Election Date.
8 Formula for Calculation of Additional Shares and
Strike Price
8.1 If you choose to participate in the Plan, the number of
Additional Shares you will be allotted or transferred will be
calculated in accordance with the following formula:
N =
PS x D
Strike Price
Where:
N is the number of Additional Shares you will receive;
PS is the number of your Participating Shares;
D is the net proceeds of cash dividends paid or credited per
Share by Infratil (expressed in cents and fractions of cents,
including any applicable supplementary dividends in
respect of Participating Shares payable to non-resident
shareholders but excluding any tax credits and after
deduction of any withholding or other taxes, if any); and
Strike Price is the volume weighted average sale price in
New Zealand dollars (expressed in cents and fractions of
cents) for a Share calculated on all trades of Shares which
took place through the NZX Main Board over a period of 10
trading days commencing on and including the first trading
day after the relevant Election Date, less any percentage
discount determined by the Board in its absolute discretion.
If no sales of Shares occur during those 10 trading days,
then the volume weighted average sale price will be
deemed to be the sale price for a Share on the last trade of
Shares which took place prior to such trading days as
determined by NZX. The Strike Price may be reasonably
adjusted by Infratil to allow for any bonus issue or dividend
or other distribution expectation. If, in the opinion of the
Board, any exceptional or unusual circumstances (including
any unusual or irregular trades) have artificially affected the
Strike Price, Infratil may make such adjustment to that price
as it considers reasonable. Any percentage discount
determined by the Board shall be notified to NZX and ASX
not later than 10 trading days prior to the relevant Record
Date. The Board may adjust the period over which the Strike
Price is calculated in its discretion (and any such adjustment
will be advised to NZX and ASX no later than 10 trading
days prior to the relevant Record Date).
41
42
The price at which your Additional Shares will be allotted or
transferred to you will be the Strike Price. The determination
of the Strike Price by the Board, or by some other person
nominated by the Board, will be binding on all participants
in the Plan.
9 Fractional entitlements
9.1 Where the number of Additional Shares you will receive
(calculated in accordance with the formula set out in clause
8.1) is not a whole number, then the number of Additional
Shares you receive will be rounded down to the nearest
whole number of Additional Shares.
9.2 Any net proceeds of cash dividends paid or credited per
Share by Infratil which are not applied to acquire a part of
Additional Shares (due to the operation of clause 9.1) shall
be held to your order and applied under the Plan on your
behalf the next time the Plan operates. You will not accrue
interest on any such amount held to your order in
accordance with this clause 9.2.
9.3 Should you:
(a) terminate your participation in the Plan; or
(b) cease to be a shareholder of Infratil,
any amount above NZ$5.00, which at the time is held to
your order in accordance with clause 9.2, will be paid in cash
to you on the next dividend payment date. You will not be
paid interest on any such payment. Amounts of NZ$5.00 or
less which are held to your order at that time shall be
forfeited.
10 Compliance with Laws, Listing Rules and Constitution
10.1 If Infratil determines that the allotment or transfer of
Additional Shares under the Plan could breach any
applicable law, the Rules or any provision of the
Constitution, Infratil may, in its sole discretion, withdraw the
Plan, or not allot or transfer any Additional Shares under the
Plan to any shareholder(s) eligible to participate.
10.2 If, for any reason, Infratil cannot allot or transfer your
Additional Shares, the relevant dividend on your
Participating Shares will be paid or distributed to you in the
same manner as to shareholders not participating in the
Plan. You will not be paid interest on any such payment.
11 Issue or transfer of Additional Shares
11.1 Infratil will:
(a) allot your Additional Shares to you in accordance with
clauses 8 to 10 on the day that you would otherwise
have been paid a dividend; or
(b) transfer your Additional Shares to you in accordance
with clauses 8 to 10 as soon as reasonably practicable
on or after the day that you would otherwise have been
paid a dividend.
As applicable, depending on the manner in which your
Additional Shares are sourced.
12 Share Price Information Publicly Available
Infratil will ensure that at the time the Strike Price is set
under clause 8.1 it will have no information that is not
publicly available that would, or would be likely to, have a
material adverse effect on the realisable price of the Shares
if the information was publicly available.
13 Terms of Issue and Ranking of Additional Shares
Your Additional Shares will be allotted or transferred to you
on the terms set out in this Plan, subject to the rights of
termination, suspension and modification set out in clause
16. Any new Shares issued or transferred by Infratil for the
purposes of this Plan will, from the date of allotment, rank
equally in all respects with each other and with all other
Shares on issue as at that date.
14 Source of Additional Shares
Your Additional Shares may, at the Board’s discretion, be:
(a) new Shares issued by Infratil;
(b) existing Shares acquired by Infratil or a nominee or
agent of Infratil; or
(c) any combination of (a) and (b) above.
15 Statements
If you choose to participate in the Plan, Infratil will send a
statement to your address or electronic mail address (if you
have elected to receive communications electronically) as
set out in Infratil’s share register within five trading days of
the allotment or transfer of Additional Shares detailing:
(a) the number of your Participating Shares as at the
Record Date;
(b) the amount of your cash dividend reinvested in
Additional Shares and the amount paid in respect of any
of your Shares that are not participating in the Plan (if
applicable);
(c) the Strike Price and number of Additional Shares you
were allotted and/or transferred under the Plan;
(d) any amounts held to your order in accordance with
clause 9.2;
(e) the amount of any tax deductions or withholdings,
imputations or other taxation credits in respect of the
cash dividend; and
(f) such other matters required by law or the Rules with
respect to dividends, reinvestment, the allotment and/or
the transfer of shares.
42
43
16 Termination, Suspension and Modification
The Board may, in its sole discretion, at any time:
(a) terminate, suspend or modify the Plan. If the Plan is
modified, your Participation Election will be deemed to
be a Participation Election under the modified Plan
unless you withdraw or modify your Participation
Election in accordance with clause 18;
(b) resolve that some or all of a dividend will be paid in
cash only instead of the Plan applying;
(c) make a determination in respect of any of the matters
for which the Board is granted discretion under clause
8.1 (which, for the avoidance of doubt, is not a
modification to the Plan which requires notice to be
given to you under clause 17);
(d) resolve that in the event of the subdivision,
consolidation or reclassification of the Shares into one
or more new classes of shares, your Participation
Election will be deemed to be a Participation Election in
respect of the Shares as subdivided, consolidated or
reclassified unless you withdraw or modify your
Participation Election in accordance with clause 18;
(e) resolve that the Plan or any allotment under the Plan
may be underwritten on such terms as may be agreed
between Infratil and an underwriter;
(f) determine that shareholders in specific jurisdictions
outside New Zealand and Australia may participate in
the Plan; or
(g) resolve that your Participation Election will cease to be
of any effect.
17 Prior Notice
You will be sent written notice by Infratil of any modification
or termination to the Plan at your address or electronic mail
address (if you have elected to receive communications
electronically) as set out in Infratil’s share register prior to
the Record Date on which any modification or termination
will take effect, unless Infratil:
(a) modifies or terminates the Plan to comply with any
applicable law, the listing rules of any stock exchange
on which the Shares are quoted or any provision of the
Constitution; or
(b) makes minor amendments to the Plan where such
amendments are of an administrative or procedural
nature,
in which case no notice need be given.
18 Variation or Termination
You may at any time:
(a) increase or decrease the number of your Participating
Shares by making a new Participation Election in
accordance with clause 6.1; or
(b) terminate your participation in the Plan by written
notice to Infratil’s Share Registrar at the address set out
in clause 6.1.
Such variation or termination will take effect on the first
Record Date after receipt by Infratil’s Share Registrar of the
new Participation Election or the written termination notice,
as the case may be or, if your new Participation Election or
written termination notice is received after a Record Date
but before 5:00pm on an Election Date, from the Record
Date immediately preceding that Election Date.
19 Partial Dispositions
If you dispose of any of your Participating Shares, you will
be deemed to have terminated your participation in the
Plan with respect to the Participating Shares you disposed
of from the date Infratil’s Share Registrar registers a transfer
of those Participating Shares.
20 Dispositions of all of your Participating Shares
If you dispose of all of your Participating Shares, you will be
deemed to have terminated your participation in the Plan
from the date Infratil’s Share Registrar registers a transfer of
those Shares.
21 Taxation
For New Zealand tax purposes, if you reinvest the net
proceeds of your cash dividends to acquire Additional
Shares, you should be treated in the same way as if you
had not participated in the Plan. This means that if you
participate in the Plan, you should derive dividend income
of the same amount that you would have derived had you
not participated in the Plan. The taxation summary above
is based on New Zealand taxation laws as at the date of
this Offer Document and is, of necessity, general. It does
not take into account your individual circumstances
and the specific tax consequences of your participation or
non-participation in the Plan, which may vary considerably.
You should not rely on this general summary but should
seek your own tax advice. Infratil does not accept any
responsibility for the financial or taxation effects of your
participation or non-participation in the Plan.
22 Costs
You will not be charged for participation or withdrawal from
the Plan. You will not incur any brokerage charges on the
allotment or transfer of your Additional Shares.
43
44
23 Rules
The Plan is subject to the Rules and in the event of any
inconsistency between the Plan and the Rules, the Rules
will apply.
24 Governing Law
This Offer Document, the Plan and its operation will be
governed by the laws of New Zealand.
25 Other Information
You can download an electronic copy of Infratil’s most
recent Annual Report (which contains Infratil’s most
recent financial statements and the auditor’s report
on those financial statements) from Infratil’s website at
www.infratil.com.
Alternatively, you can request a copy of these documents
free of charge by writing to Infratil’s registered office at:
Infratil Limited
5 Market Lane
Wellington 6011
New Zealand
Definitions
Additional Shares means the Shares to be issued or transferred
to you pursuant to the Plan.
ASX means ASX Limited.
Board means Infratil’s board of directors.
Business Day has the meaning given to that term in the Rules.
Constitution means Infratil’s constitution.
Election Date means, in respect of each Record Date, the first
trading day after that Record Date or such later date as may be
set by the Board and advised to NZX and ASX.
Ex-Date means, in relation to a dividend, the first Business Day
before the relevant Record Date for that dividend, unless NZX
determines otherwise.
Infratil means Infratil Limited.
NZX means NZX Limited.
NZX Main Board means the main board equity security market
operated by NZX.
Offer Document means this booklet which sets out the terms and
conditions of the Plan.
Participating Shares means the Shares held by you on a Record
Date in respect of which you have made a valid Participation
Election.
Participation Election means your chosen participation in the
Plan, made in one of the ways specified in clause 6.1 of this Offer
Document.
Participation Notice means the form of participation notice
accompanying this Offer Document.
Plan means Infratil’s Dividend Reinvestment Plan established by
the Board on the terms and conditions set out in this Offer
Document, as amended from time to time.
Record Date means 5:00pm on the date fixed by Infratil for
determining entitlements to dividends payable or credited on
Shares.
Rules means the NZX Main Board / Debt Market Listing Rules, the
ASX Listing Rules (to the extent they apply to Infratil as an ASX
Foreign Exempt Listing) and to any rules for clearing and/or
settlement which apply to the NZX Main Board or the ASX from
time to time.
Share Registrar means Link Market Services Limited.
Shares means ordinary shares in Infratil.
Strike Price means the price at which Additional Shares will be
issued or transferred to you, calculated in accordance with
clause 8 of this Offer Document.
44
45
Directory
Directors
Mark Tume (Chairman)
Jason Boyes
Alison Gerry
Paul Gough
Kirsty Mactaggart
Catherine Savage
Peter Springford
Company Secretary
Nick Lough
Registered Office - New Zealand
5 Market Lane
PO Box 320
Wellington
Telephone: +64 4 473 3663
Internet address: www.infratil.com
Registered Office - Australia
C/- H.R.L. Morrison & Co Private Markets Pty Ltd
Level 31
60 Martin Place
Sydney NSW 2000
Telephone: +64 4 473 3663
Manager
Morrison & Co Infrastructure Management Limited
5 Market Lane
PO Box 1395
Wellington
Telephone: +64 4 473 2399
Facsimile: +64 4 473 2388
Internet address: www.hrlmorrison.com
Share Registrar - New Zealand
Link Market Services
Level 30, PwC Tower
15 Customs Street West
PO Box 91976
Auckland 1142
Telephone: +64 9 375 5998
Email: enquiries@linkmarketservices.co.nz
Internet address: www.linkmarketservices.co.nz
Share Registrar - Australia
Link Market Services
Level 12
680 George Street
Sydney NSW 2000
Telephone: +61 2 8280 7100
Email: registrars@linkmarketservices.com.au
Internet address: www.linkmarketservices.com.au
Auditor
KPMG
10 Customhouse Quay
PO Box 996
Wellington
Legal Advisors
Chapman Tripp
Level 14
10 Customhouse Quay
Wellington 6011
Phone +64 4 499 5999
Facsimile +64 4 472 7111
46
---
1
Infratil
Interim Financial
Statements
For the 6 months ended
30 September 2021
Consolidated Statement
of Comprehensive Income 02
Consolidated Statement
of Financial Position 03
Consolidated Statement
of Cash Flows 04
Consolidated Statement
of Changes in Equity 05
Notes to the Financial
Statements 08
2
Consolidated Statement
of Comprehensive Income
For the 6 months ended 30 September 2021
The accompanying notes form part of these financial statements.
Notes
6 months ended
30 September 2021
$Millions
Unaudited
6 months ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
Operating revenue9 425.4 160.3 408.2
Dividends1.6 --
Total revenue427.0 160.3 408.2
Share of earnings of associate companies5 114.1 83.8 182.6
Total income541.1 244.1 590.8
Depreciation40.9 22.4 55.2
Amortisation of intangibles2.3 1.8 5.2
Employee benefits64.1 22.7 81.1
Other operating expenses10 235.1 111.7 399.1
Total operating expenditure342.4 158.6 540.6
Operating surplus before financing, derivatives,
realisations and impairments
198.7 85.5 50.2
Net gain/(loss) on foreign exchange and derivatives73.6 (19.1)(56.4)
Net realisations, revaluations and impairments2.2 13.7 31.8
Interest income1.7 0.8 1.6
Interest expense81.7 66.7 138.8
Net financing expense80.0 65.9 137.2
Net surplus before taxation194.5 14.2 (111.6)
Taxation expense/(credit)11 58.1 (9.4)(9.7)
Net surplus for the period from continuing operations136.4 23.6 (101.9)
Net surplus from discontinued operations after tax8 993.9 33.4 85.9
Net surplus for the period1,130.3 5 7. 0 (16.0)
Net surplus attributable to owners of the Company1,080.6 2 7. 8 (49.2)
Net surplus attributable to non-controlling interest4 9. 7 29.2 33.2
Other comprehensive income, after tax
Items that will not be reclassified to profit and loss:
Net change in fair value of property, plant & equipment
recognised in equity
60.6 (1.7)260.9
Share of associates other comprehensive income(3.2)28.9 8.0
Net change in fair value of equity investments at fair value through
other comprehensive income
6.80.7 46.1
Hedges taken to profit and loss---
Income tax effect of the above items(10.9)0.2 (90.4)
Items that may subsequently be reclassified to profit and loss:
Differences arising on translation of foreign operations(59.9)6 7. 5 90.0
Items reclassified to profit and loss on disposal of subsidiary(444.2)--
Effective portion of changes in fair value of cash flow hedges(79.0)43.2 218.5
Income tax effect of the above items20.6 (5.5)(28.1)
Total other comprehensive income after tax(509.2)133.3 505.0
Total comprehensive income for the period621.1190.3 489.0
Total comprehensive income for the period attributable
to owners of the Company
1,010.9 159.1 335.4
Total comprehensive income for the period attributable
to non-controlling interests
(389.8)31.2 153.6
Earnings per share
Basic and diluted (cents per share) from continuing operations12.1 (0.8)(18.6)
Basic and diluted (cents per share) 149.5 4.0 (6.8)
3
Consolidated Statement
of Financial Position
As at 30 September 2021
Approved on behalf of the Board on 11 November 2021
Alison Gerry Mark Tume
Director Director
The accompanying notes form part of these financial statements.
Notes
30 September 2021
$Millions
Unaudited
30 September 2020
$Millions
Unaudited
31 March 2021
$Millions
Audited
Cash and cash equivalents1,213.8435.2133.8
Trade and other accounts receivable and prepayments120.2222.7315.4
Derivative financial instruments11.331.976.2
Inventories2.0-1.9
Income tax receivable10.222.617.6
Assets held for sale8.21 8 7. 934.82,253.4
Current assets1,545.47 4 7. 22,798.3
Trade and other accounts receivable and prepayments-14.413.5
Property, plant and equipment3,335.1 4,271.7 3,238.7
Investment properties262.4 260.1 260.1
Right of use assets1 2 7. 0 171.8 115.5
Derivative financial instruments53.2 163.7 92.0
Intangible assets10.7 34.6 40.6
Goodwill 1,523.3 113.1 770.7
Investments in associates52,233.7 2,082.7 2,126.9
Other investments679.9 78.2 80.9
Non-current assets7,625.3 7,190.3 6,738.8
Total assets9,170.7 7,937.5 9,537.2
Accounts payable, accruals and other liabilities414.8 200.7 305.8
Interest bearing loans and borrowings1292.3 86.3 94.1
Lease liabilities14.4 24.2 20.3
Derivative financial instruments6.1 22.8 89.2
Income tax payable40.6 -4.1
Infrastructure bonds13 93.4 93.7 93.8
Trustpower bonds83.0 -83.0
Wellington International Airport bonds-75.0 75.0
Liabilities directly associated with the assets held for sale8.2 35.0 -906.7
Current liabilities779.6 502.7 1,672.0
Interest bearing loans and borrowings12 697.2 826.4 916.2
Other liabilities88.9 83.3 195.4
Lease liabilities199.0 235.3 182.3
Deferred tax liability248.2 307.7 2 6 9. 4
Derivative financial instruments25.5 199.5 66.9
Infrastructure bonds13 1,062.0 968.6 1,053.2
Perpetual Infratil Infrastructure bonds13 231.9 231.9 231.9
Trustpower bonds350.3 432.5 350.0
Wellington International Airport bonds and senior notes635.4 526.7 510.7
Non-current liabilities3,538.4 3,811.9 3,776.0
Attributable to owners of the Company3,571.9 2,513.0 2,644.0
Non-controlling interest in subsidiaries1,280.8 1,109.9 1,445.2
Total equity4,852.7 3,622.9 4,089.2
Total equity and liabilities9,170.7 7,937.5 9,537.2
Net tangible assets per share ($ per share)3.65 3.15 2.97
4
For the 6 months ended 30 September 2021
The accompanying notes form part of these financial statements.
Consolidated Statement
of Cash Flows
Notes
6 months ended
30 September 2021
$Millions
Unaudited
6 months ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
Cash flows from operating activities
Cash was provided from:
Receipts from customers599.4 551.6 1,175.0
Distributions received from associates31.9 16.7 73.6
Other dividends1.6 --
Interest received2.2 4.3 6.1
635.1 572.6 1,254.7
Cash was disbursed to:
Payments to suppliers and employees(546.8)(495.5)(953.1)
Interest paid(84.5)(77.5)(159.9)
Taxation paid(21.2)(43.9)(50.3)
(652.5)(616.9)(1,163.3)
Net cash inflow/(outflow) from operating activities15 (17.4)(44.3)91.4
Cash flows from investing activities
Cash was provided from:
Capital returned from associates43.3 44.6 78.3
Proceeds from sale of investment property--34.8
Proceeds from sale of subsidiaries, net of cash sold1,654.6 --
Proceeds from sale of investments51.6 -0.7
Return of security deposits82.0 78.3 127.6
1,831.5 122.9 241.4
Cash was disbursed to:
Purchase of investments(119.2)(16.5)(65.0)
Lodgement of security deposits(33.8)(109.0)(219.4)
Purchase of intangible assets(0.5)(5.1)(9.4)
Purchase of shares in subsidiaries, net of cash acquired(824.1)-(821.2)
Purchase of investment properties-(13.9)(16.0)
Purchase of property, plant and equipment(37.7)(342.0)(459.9)
(1,015.3)(486.5)(1,590.9)
Net cash inflow/(outflow) from investing activities816.2 (363.6)(1,349.5)
Cash flows from financing activities
Cash was provided from:
Proceeds from issue of shares-294.2 294.1
Proceeds from issue of shares to non-controlling interest246.3 -241.8
Bank borrowings885.5 404.7 852.9
Issue of bonds227.4 100.0 184.6
1,359.2 798.9 1,573.4
Cash was disbursed to:
Repayment of bank debt(1,091.0)(476.8)(295.0)
Repayment of lease liabilities(5.6)(7.5)(12.9)
Loan establishment costs(15.5)(3.1)(18.4)
Repayment of bonds(168.9)(25.0)(25.0)
Infrastructure bond issue expenses(1.2)(1.3)(2.6)
Share buyback---
Capital return to non-controlling shareholders in subsidiary companies-(94.0)(96.2)
Dividends paid to non-controlling shareholders in subsidiary companies(38.4)(37.4)(65.3)
Dividends paid to owners of the Company3 (83.1)(72.5)(117.7)
(1,403.7)(717.6)(633.1)
Net cash inflow/(outflow) from financing activities(44.5)81.3 940.3
Net increase/(decrease) in cash and cash equivalents754.3 (326.6)(317.8)
Foreign exchange gains/(losses) on cash and cash equivalents(7.6)31.5 36.9
Cash and cash equivalents at beginning of the period133.8 730.3 730.3
Cash balances on acquisition5.2 -26.0
Adjustment for cash classified as assets held for sale328.1 -(341.6)
Cash and cash equivalents at end of the period1,213.8 435.2 133.8
5
The accompanying notes form part of these financial statements.
Consolidated Statement
of Changes in Equity
For the 6 months ended 30 September 2021
Attributable to equity holders of the Company – Unaudited
Capital
$Millions
Revaluation
reserve
$Millions
Foreign
currency
translation
reserve
$Millions
Other
reserves
$Millions
Retained
earnings
$Millions
To ta l
$Millions
Non-
controlling
$Millions
Total equity
$Millions
Balance as at 1 April 20211,049.0 767.3 28.2 64.0 735.5 2,644.0 1,445.2 4,089.2
Total comprehensive income for the period
Net surplus for the period----1,080.6 1,080.6 4 9. 7 1,130.3
Other comprehensive income, after tax
Differences arising on translation of foreign
operations--(65.1)--(65.1)5.2 (59.9)
Items reclassified to profit and loss on disposal
of subsidiary-(232.3)-(14.4)232.3(14.4)(429.8)(444.2)
Net change in fair value of equity investments
at FVOCI---1.5-1.5-1.5
Realisations on disposal of equity investments
at FVOCI---(14.7)20.05.3-5.3
Ineffective portion of hedges taken to
profit and loss--------
Effective portion of changes in fair value of
cash flow hedges---(26.6)-(26.6)(31.8)(58.4)
Fair value change of property, plant and
equipment recognised in equity -32.8 --- 32.8 16.94 9. 7
Share of associates other comprehensive
income---(3.2)-(3.2)-(3.2)
Total other comprehensive income-(199.5)(65.1)(57.4)252.3 (69.7)(439.5)(509.2)
Total comprehensive income for the period-(199.5)(65.1)(57.4)1,332.9 1,010.9 (389.8)621.1
Contributions by and distributions
to non-controlling interests
Non-controlling interests arising on acquisition
of subsidiary------246.8 246.8
Issue of shares to non-controlling interests------17.317.3
Issue/(acquisition) of shares held by outside
equity interests--------
Total contributions by and distributions to
non-controlling interests------264.1264.1
Contributions by and distributions
to owners
Shares issued--------
Share buyback--------
Shares issued under dividend reinvestment plan--------
Conversion of executive redeemable shares
--------
Dividends to equity holders
----(83.1)(83.1)(38.7)(121.8)
Total contributions by and
distributions to owners----(83.1)(83.1)(38.7)(121.8)
Balance as at 30 September 20211,049.0 567.8 (36.9)6.6 1,985.3 3,571.9 1,280.8 4,852.7
6
For the 6 months ended 30 September 2020
The accompanying notes form part of these financial statements.
Attributable to equity holders of the Company – Unaudited
Consolidated Statement
of Changes in Equity
Capital
$Millions
Revaluation
reserve
$Millions
Foreign
currency
translation
reserve
$Millions
Other
reserves
$Millions
Retained
earnings
$Millions
To ta l
$Millions
Non-
controlling
$Millions
Total equity
$Millions
Balance as at 1 April 2020754.9 655.1 (71.8)(108.4)902.4 2,132.2 1,207.7 3,339.9
Total comprehensive income for the period
Net surplus for the period----2 7. 8 2 7. 8 29.2 57.0
Other comprehensive income, after tax
Differences arising on translation of foreign
operations--7 9.9 --7 9.9 (12.3)6 7. 6
Items reclassified to profit and loss on
disposal of subsidiary--------
Net change in fair value of equity
investments at FVOCI---0.7 -0.7 -0.7
Realisations on disposal of equity
investments FVOCI--------
Ineffective portion of hedges taken to
profit and loss--------
Effective portion of changes in fair value
of cash flow hedges---22.8 -22.8 14.8 37.6
Fair value movements in relation to the executive
share scheme--------
Fair value change of property, plant and
equipment recognised in equity -(1.0)---(1.0)(0.5)(1.5)
Share of associates other comprehensive
income---28.9 -28.9 -28.9
Total other comprehensive income-(1.0)7 9.9 52.4 -131.3 2.0 133.3
Total comprehensive income for the period-(1.0)79.9 52.4 27.8 159.1 31.2 190.3
Contributions by and distributions
to non-controlling interests
Non-controlling interests arising on acquisition
of subsidiary--------
Issue of shares to non-controlling interests--------
Issue/(acquisition) of shares held by outside
equity interests------(91.6)(91.6)
Total contributions by and distributions to
non-controlling interests------(91.6)(91.6)
Contributions by and distributions to owners
Shares issued294.2 ----294.2 -294.2
Share buyback--------
Shares issued under dividend reinvestment plan--------
Dividends to equity holders----(72.5)(72.5)(37.4)(109.9)
Total contributions by and distributions to
owners294.2 ---(72.5)221.7 (37.4)184.3
Balance as at 30 September 20201,049.1 654.1 8.1 (56.0)857.7 2,513.0 1,109.9 3,622.9
7
Consolidated Statement
of Changes in Equity
For the year ended 31 March 2021
The accompanying notes form part of these financial statements.
Attributable to equity holders of the Company – Audited
Capital
$Millions
Revaluation
reserve
$Millions
Foreign
currency
translation
reserve
$Millions
Other
reserves
$Millions
Retained
earnings
$Millions
To ta l
$Millions
Non-
controlling
$Millions
Total equity
$Millions
Balance as at 1 April 2020754.9 655.1 (71.8)(108.4)902.4 2,132.2 1,207.7 3,339.9
Total comprehensive income for the year
Net surplus for the year----(49.2)(49.2)33.2 (16.0)
Other comprehensive income, after tax
Differences arising on translation of foreign
operations--100.0 --100.0 (13.5)86.5
Items reclassified to profit and loss on
disposal of subsidiary--------
Net change in fair value of equity
investments at FVOCI---46.1 -46.1 -46.1
Realisations on disposal of equity
investments at FVOCI--------
Ineffective portion of hedges taken to
profit and loss--------
Effective portion of changes in fair value
of cash flow hedges---118.3 -118.3 75.6 193.9
Fair value movements in relation to the executive
share scheme--------
Fair value change of property, plant and
equipment recognised in equity -112.2 ---112.2 58.3 170.5
Share of associates other comprehensive
income---8.0 -8.0 -8.0
Total other comprehensive income-112.2 100.0 172.4 -384.6 120.4 505.0
Total comprehensive income for the year-112.2 100.0 172.4 (49.2)335.4 153.6 489.0
Contributions by and distributions
to non-controlling interests
Non-controlling interests arising on acquisition
of subsidiary------240.9 240.9
Issue of shares to non-controlling interests--------
Issue/(acquisition) of shares held by outside
equity interests------(91.6)(91.6)
Total contributions by and distributions to
non-controlling interests------149.3 149.3
Contributions by and distributions to owners
Shares issued294.1 ----294.1 -294.1
Share buyback--------
Shares issued under dividend reinvestment plan--------
Conversion of executive redeemable shares--------
Dividends to equity holders----(117.7)(117.7)(65.4)(183.1)
Total contributions by and distributions to owners294.1 ---(117.7)176.4 (65.4)111.0
Balance at 31 March 20211,049.0 767.3 28.2 64.0 735.5 2,644.0 1,445.2 4,089.2
8
Notes to the Financial
Statements
For the 6 months ended 30 September 2021
1 Accounting policies
Reporting Entity
Infratil Limited ('the Company') is a company domiciled in New Zealand and registered under the Companies Act 1993. The Company is
listed on the NZX Main Board ('NZX') and Australian Securities Exchange ('ASX'), and is an FMC Reporting Entity in terms of Part 7 of the
Financial Markets Conduct Act 2013.
Basis of preparation
These unaudited condensed consolidated half year financial statements ('half year statements') of Infratil Limited together with its
subsidiaries and associates ('the Group') have been prepared in accordance with NZ IAS 34 Interim Financial Reporting and comply with
IAS 34 Interim Financial Reporting. These half year statements have been prepared in accordance with the accounting policies stated in
the published financial statements for the year ended 31 March 2021 and should be read in conjunction with the previous annual report.
No changes have been made from the accounting policies used in the 31 March 2021 annual report which can be obtained from Infratil's
registered office or www.infratil.com. The presentation currency used in the preparation of these financial statements is New Zealand
dollars, which is also the Company's functional currency. Comparative figures have been restated where appropriate to ensure
consistency with the current period.
Covid-19 pandemic
The Group’s financial statements for the year ended 31 March 2021 included a summary of the primary impacts of Covid-19 on the Group
as at the year ended 31 March 2021. The Group has continued to perform strongly despite the ongoing challenges posed by the
pandemic. Many of Infratil’s portfolio companies provide essential services and continue to demonstrate their resilience. There has been
no material change to those factors outlined as at 31 March 2021, and there are no other known material impacts of Covid-19 on the
Group's financial performance for the period ended 30 September 2021, or balance sheet as at 30 September 2021.
Consideration of the IFRS Interpretations Committee (‘IFRIC’) agenda decision, ‘Configuration or Customisation Costs
in a Cloud Computing Arrangement (IAS 38 Intangible Assets)’
In April 2021, the IFRS Interpretations Committee (‘IFRIC’) issued an agenda decision clarifying its interpretation on how current accounting
standards apply to configuration and customisation costs incurred in implementing Software-as-a-Service (‘SaaS’) cloud computing
arrangements. The decision discusses whether configuration and customisation costs relating to cloud computing arrangements are able
to be recognised as intangible assets, and if not, over what period the expenditure is expensed.
The Group’s current accounting policy is to record these configuration and customisation costs as part of the cost of an intangible asset
and amortise these costs over the useful life of the software assets.
The Group is currently in the process of quantifying the impact of this clarification on the financial statements, however, given the
timeframe and the complexity involved, this has not yet been completed at 30 September 2021. It is likely that the outcome from this
exercise will see a range of expenditure previously capitalised and amortised over the useful life reclassified as operating expenditure.
This quantification will be completed and reported in the 31 March 2022 financial statements.
2 Nature of business
The Group owns and operates infrastructure businesses and investments in New Zealand, Australia, the United States, Europe and Asia.
The Company is a limited liability company incorporated and domiciled in New Zealand. The address of its registered office is 5 Market
Lane, Wellington, New Zealand.
More information on the individual businesses is contained in Note 4 (Operating segments) and Note 5 (Investments in associates)
including the relative contributions to total revenue and expenses of the Group.
9
3 Infratil shares and dividends
Ordinary shares (fully paid)
6 months ended
30 September 2021
Unaudited
6 months ended
30 September 2020
Unaudited
Year ended
31 March 2021
Audited
Total authorised and issued capital shares at the beginning of the period722,952,533659,678,837659,678,837
Movements during the period:
New shares issued-63,273,69663,273,696
New shares issued under dividend reinvestment plan---
Conversion of executive redeemable shares---
Share buyback---
Total authorised and issued capital shares at the end of the period722,952,533722,952,533722,952,533
During the comparative period the Company issued new shares to provide additional balance sheet flexibility and to fund growth
investments across Infratil’s existing portfolio companies, as well as providing the opportunity to take advantage of any new investment
opportunities that may arise. In total, net proceeds after issue costs of $294.2 million were raised via an institutional placement and share
purchase plan for existing shareholders. All fully paid ordinary shares have equal voting rights and share equally in dividends and equity.
At 30 September 2021 the Group held 1,662,617 shares as Treasury Stock (30 September 2020: 1,662,617, 31 March 2021: 1,662,617).
Dividends paid on
ordinary shares
6 months ended
30 September 2021
cps
Unaudited
6 months ended
30 September 2020
cps
Unaudited
Year ended
31 March 2021
cps
Audited
6 months ended
30 September 2021
$Millions
Unaudited
6 months ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
Final dividend prior year
11.50 11.00 11.00 83.1 72.5 72.6
Interim dividend paid
current year
--6.25 --45.2
Dividends paid on
ordinary shares
11.50 11.00 17.25 83.1 72.5 117.8
4 Operating segments
Trustpower and Tilt Renewables are renewable generation investments, Wellington International Airport is an airport investment and
Qscan Group and Pacific Radiology make up the Group's diagnostic imaging platform. Associates comprises Infratil's investments
that are not consolidated for financial reporting purposes, including CDC Data Centres, Vodafone New Zealand, RetireAustralia,
Longroad Energy, Kao Data and Galileo Green Energy. Further information on these investments is outlined in Note 5. The Group's
investment in Tilt Renewables and Trustpower's retail business are classified as Held for Sale and treated as Discontinued Operations
as at 30 September 2021 and 31 March 2021 for the investment in Tilt Renewables. Further information on these investments are outlined
in Note 8.1 and 8.2. All other segments and corporate predominately includes the activities of the Parent Company. The group has
no significant reliance on any one customer. Inter-segment revenue primarily comprises dividends from Trustpower and subvention
income from Wellington International Airport.
Trustpower
New Zealand
$Millions
Unaudited
Tilt
Renewables
Australasia
$Millions
Unaudited
Wellington
International
Airport
New Zealand
$Millions
Unaudited
Diagnostic
Imaging
Australasia
$Millions
Unaudited
Associates
$Millions
Unaudited
All other
segments &
corporate
New Zealand
$Millions
Unaudited
Eliminations &
discontinued
operations
$Millions
Unaudited
Total from
continuing
operations
$Millions
Unaudited
For the period ended
30 September 2021
Total revenue571.860.0 50.7190.1-55.0(444.0)483.6
Share of earnings of associate
companies----114.1--114.1
Inter-segment revenue-----(46.0)(10.6)(56.6)
Total income571.860.0 50.7190.1114.19. 0(454.6)541.1
Operating expenses (excluding
depreciation and amortisation)(449.6)(47.9)(19.2)(157.1)-(52.1)426.7(299.2)
Interest income0.3 0.40.2 --1.3(0.5)1.7
Interest expense(15.3)(6.7)(12.7)(14.9)-(39.5)7. 4(81.7)
Depreciation and amortisation(24.5)(19.5)(14.4)(17.0)--32.2(43.2)
Net gain/(loss) on foreign exchange and
derivatives78.5(12.7)(0.3)1.4-(5.5)12.273.6
Net realisations, revaluations and
impairments--2.4--972.6(972.8)2.2
Taxation expense(46.1)3.7(3.6)(6.8)-(2.3)(3.0)(58.1)
Net surplus/(loss) for the year115.1(22.7)3.1(4.3)114.1883.5(952.4)136.4
Net surplus/(loss) attributable to owners
of the company56.5(14.8)2.0(2.1)114.1883.513.81,053.0
Net surplus/(loss) attributable to
non-controlling interests58.6(7.9)1.1(2.2) - - 7. 056.6
Current assets202.6 -57.0 81.2 -1,128.4 76.2 1,545.4
Non-current assets1,933.1 -1,456.0 1,760.8 2,233.8 336.3 (94.7)7,625.3
Current liabilities283.0 -13.2 87.3 -373.6 22.5 779.6
Non-current liabilities7 6 7. 1 -770.2 672.3 -1,441.3 (112.5)3,538.4
Net assets1,085.6 -729.6 1,082.4 2,233.8 (350.2)71.5 4,852.7
Non-controlling interest percentage 49.0% 34.9% 34.0% 87.7% - ---
Capital expenditure and investments15.3 33.77.2318.7119.72.3(33.7)463.2
10
4 Operating segments (continued)
Trustpower
New Zealand
$Millions
Unaudited
Tilt
Renewables
Australasia
$Millions
Unaudited
Wellington
International
Airport
New Zealand
$Millions
Unaudited
Associates
$Millions
Unaudited
All other
segments &
corporate
New Zealand
$Millions
Unaudited
Eliminations &
discontinued
operations
$Millions
Unaudited
Total from
continuing
operations
$Millions
Unaudited
For the period ended 30 September 2020
Total revenue506.3 60.0 25.8 -66.2 (417.9)240.4
Share of earnings of associate companies---83.8 --83.8
Inter-segment revenue----(62.3)(17.8)(80.1)
Total income506.3 60.0 25.8 83.8 3.9 (435.7)244.1
Operating expenses (excluding depreciation and
amortisation)(395.9)(25.9)(14.9)-(80.9)383.2 (134.4)
Interest income0.3 2.3 0.2 -0.3 (2.3)0.8
Interest expense(15.4)(7.8)(13.1)-(38.9)8.5 (66.7)
Depreciation and amortisation(21.9)(21.8)(13.5)--33.0 (24.2)
Net gain/(loss) on foreign exchange and derivatives(26.5)34.4 0.6 -6.8 (34.4)(19.1)
Net realisations, revaluations and impairments--3.9 -9. 8 -13.7
Taxation expense(13.3)(12.5)8.2 -12.7 14.3 9. 4
Net surplus/(loss) for the year33.6 28.7 (2.8)83.8 (86.3)(33.4)23.6
Net surplus/(loss) attributable to owners of the
company16.9 18.8 (5.4)83.8 (86.3)(21.2)6.6
Net surplus/(loss) attributable to non-controlling
interests16.7 9.9 2.6 --(12.2)1 7. 0
Current assets210.9 377.3 100.5 -58.5 -7 4 7. 2
Non-current assets1,959.8 1,479.1 1,325.4 2,082.7 343.3 -7,190.3
Current liabilities128.4 72.7 127.3 -174.3 -502.7
Non-current liabilities946.3 760.8 713.4 -1,391.4 -3,811.9
Net assets1,096.0 1,022.9 585.2 2,082.7 (1,163.9)-3,622.9
Non-controlling interest percentage 49.0% 34.4% 34.0% - - - -
Capital expenditure and investments15.6 305.7 11.5 15.8 16.4 (305.7)59.3
11
4 Operating segments (continued)
Trustpower
New Zealand
$Millions
Audited
Tilt
Renewables
Australasia
$Millions
Audited
Wellington
International
Airport
New Zealand
$Millions
Audited
Diagnostic
Imaging
Australia
$Millions
Audited
Associates
$Millions
Audited
All other
segments &
corporate
New Zealand
$Millions
Audited
Eliminations &
discontinued
operations
$Millions
Audited
Total from
continuing
operations
$Millions
Audited
For the year ended 31 March 2021
Total revenue
952.8 137.4 68.8 65.5 -100.2 (788.2)536.5
Share of earnings of associate
companies
----182.6 --182.6
Inter-segment revenue
-----(90.0)(38.3)(128.3)
Total income
952.8 137.4 68.8 65.5 182.6 10.2 (826.5)590.8
Operating expenses (excluding
depreciation and amortisation)(752.5)(57.2)(32.8)(62.9)-(187.5)612.7 (480.2)
Interest income
0.5 3.2 0.7 --0.3 (3.1)1.6
Interest expense
(30.8)(15.0)(27.2)(5.1)-(76.9)16.2 (138.8)
Depreciation and amortisation
(45.4)(43.8)(29.6)(7.9)--66.3 (60.4)
Net gain/(loss) on foreign exchange and
derivatives
(83.5)78.5 1.4 --25.6 (78.4)(56.4)
Net realisations, revaluations and
impairments
--8.7 --23.1 -31.8
Taxation expense
(10.3)(31.5)12.4 (2.0)-4.2 36.9 9. 7
Net surplus/(loss) for the year
30.8 71.6 2.4 (12.4)182.6 (201.0)(175.9)(101.9)
Net surplus/(loss) attributable to owners
of the company
17.4 4 7. 1 1.8 (7.0)182.6 (201.0)(54.2)(13.3)
Net surplus/(loss) attributable to
non-controlling interests13.4 24.5 0.6 (5.4)--(31.7)1.4
Current assets340.9 404.6 96.8 43.6 -63.6 1,848.8 2,798.3
Non-current assets2,001.5 1,803.2 1,399.1 897.2 2,126.9 3 5 9. 8 (1,848.8)6,738.9
Current liabilities317.6 65.4 117.9 41.9 -288.0 841.2 1,672.0
Non-current liabilities9 3 7. 9 841.3 705.3 350.7 -1,782.0 (841.2)3,776.0
Net assets
1,086.9 1,301.1 672.7 548.2 2,126.9 (1,646.6) - 4,089.2
Non-controlling interest percentage
49.0% 34.4% 34.0% 43.7% - - - -
Capital expenditure and investments36.4 377.4 35.0 309.6 55.1 23.5 (377.4)459.6
12
Entity wide disclosure – geographical
The Group operates in two principal areas, New Zealand and Australia, as well as having certain investments in the United States,
Asia and Europe. The Group's geographical segments are based on the location of both customers and assets. The Group's investment
in Tilt Renewables and Trustpower's retail business was classified as Held for Sale and treated as Discontinued Operations as at
30 September 2021 and 31 March 2021 for the investment in Tilt Renewables.
New Zealand
$Millions
Unaudited
Australia
$Millions
Unaudited
Asia
$Millions
Unaudited
United States
$Millions
Unaudited
Europe
$Millions
Unaudited
Eliminations
& discontinued
operations
$Millions
Unaudited
Total from
continuing
operations
$Millions
Unaudited
For the period ended
30 September 2021
Total revenue790.6 137.0 ---(444.0)483.6
Share of earnings of associate
companies9. 1 83.4 -24.5 (2.9)-114.1
Inter-segment revenue(46.0)----(10.6)(56.6)
Total income753.7 220.4 -24.5 (2.9)(454.6)541.1
Operating expenses (excluding
depreciation and amortisation)(605.1)(119.8)(1.0)--426.7 (299.2)
Interest income4.1 (1.9)---(0.5)1.7
Interest expense(75.4)(13.7)---7. 4 (81.7)
Depreciation and amortisation(56.8)(18.6)---32.2 (43.2)
Net gain/(loss) on foreign
exchange and derivatives74.8 (13.4)---12.2 73.6
Net realisations, revaluations
and impairments
1,000.9 (25.9)---(972.8)2.2
Taxation expense(65.1)10.0 ---(3.0)(58.1)
Net surplus/(loss) for the year1,031.1 37.1 (1.0)24.5 (2.9)(952.4)136.4
Current assets1,441.4 25.3 2.3 --76.4 1,545.4
Non-current assets5,837.1 1,656.1 0.1127.8 80.6 (76.4)7,625.3
Current liabilities732.4 18.0 3.5 --25.7 779.6
Non-current liabilities3,599.8 51.1 ---(112.5)3,538.4
Net assets2,946.3 1,612.3 (1.1)127.8 80.6 86.8 4,852.7
Capital expenditure and
investments
336.1 49.9 2.3 35.0 73.6 (33.7)463.2
New Zealand
$Millions
Unaudited
Australia
$Millions
Unaudited
United States
$Millions
Unaudited
Europe
$Millions
Unaudited
Eliminations
& discontinued
operations
$Millions
Unaudited
Total from
continuing
operations
$Millions
Unaudited
For the period ended 30 September 2020
Total revenue622.6 35.7 --(417.9)240.4
Share of earnings of associate companies(15.6)114.9 (13.8)(1.7)-83.8
Inter-segment revenue(62.3)---(17.8)(80.1)
Total income544.7 150.6 (13.8)(1.7)(435.7)244.1
Operating expenses (excluding depreciation
and amortisation)(500.9)(16.7)--383.2 (134.4)
Interest income1.3 1.8 --(2.3)0.8
Interest expense(68.5)(6.7)--8.5 (66.7)
Depreciation and amortisation(42.4)(14.8)--33.0 (24.2)
Net gain/(loss) on foreign exchange and
derivatives5.8 9. 5 --(34.4)(19.1)
Net realisations, revaluations and impairments13.7 ----13.7
Taxation expense(2.3)(2.6)--14.3 9. 4
Net surplus/(loss) for the year(48.6)121.1 (13.8)(1.7)(33.4)23.6
Current assets603.2 144.0 ---7 4 7. 2
Non-current assets4,931.9 2,217.9 34.4 6.1 -7,190.3
Current liabilities466.5 36.2 ---502.7
Non-current liabilities3,281.6 530.3 ---3,811.9
Net assets1,787.0 1,795.4 34.4 6.1 -3,622.9
Capital expenditure and investments195.8 158.6 5.6 5.0 (305.7)59.3
13
Entity wide disclosure – geographical (continued)
New Zealand
$Millions
Audited
Australia
$Millions
Audited
United States
$Millions
Audited
Europe
$Millions
Audited
Eliminations
& discontinued
operations
$Millions
Audited
Total from
continuing
operations
$Millions
Audited
For the period ended 31 March 2021
Total revenue
1,169.1 155.6 --(788.2)536.5
Share of earnings of associate companies
(27.2)165.4 4 7. 9 (3.6)-182.6
Inter-segment revenue
(90.0)---(38.3)(128.3)
Total income
1,051.9 321.0 4 7. 9 (3.6)(826.5)590.8
Operating expenses (excluding depreciation
and amortisation)(1,120.3)(62.7)--702.8 (480.2)
Interest income
3.9 0.8 --(3.1)1.6
Interest expense
(137.4)(17.6)--16.2 (138.8)
Depreciation and amortisation
(90.4)(36.3)--66.3 (60.4)
Net gain/(loss) on foreign exchange and
derivatives
(55.8)77.8 --(78.4)(56.4)
Net realisations, revaluations and impairments57.9 (26.1)---31.8
Taxation expense
(3.7)(23.5)--36.9 9. 7
Net surplus/(loss) for the year
(293.9)233.4 4 7. 9 (3.6)(85.8)(101.9)
Current assets522.0 427.5 --1,848.8 2,798.3
Non-current assets5,015.3 3,397.6 118.4 10.8 (1,803.2)6,738.8
Current liabilities
7 4 9. 7 81.1 --841.2 1,672.0
Non-current liabilities
3,775.0 909.2 --(908.2)3,776.0
Net assets
1,012.6 2,834.8 118.4 10.8 112.6 4,089.2
Capital expenditure and investments
238.3 541.2 45.7 11.8 (377.4)459.6
14
5 Investments in associates
Note
6 months ended
30 September 2021
$Millions
Unaudited
6 months ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
Investments in associates are as follows:
Vodafone New Zealand5.1846.7 917.5 857.3
CDC Data Centres5.2899.2 845.8 873.0
RetireAustralia5.3355.9 313.3 3 40.9
Longroad Energy 5.451.4 - 4 4.9
Kao Data5.572.6 - -
Galileo Green Energy7. 9 6.1 10.8
Investments in associates 2,233.7 2,082.7 2,126.9
Equity accounted earnings of associates are as follows:
Vodafone New Zealand5.19.0 (15.6)(27.2)
CDC Data Centres5.255.0 108.5 134.3
RetireAustralia5.328.8 6.4 31.2
Longroad Energy 5.424.5 (13.8)47.9
Kao Data5.5(0.4)--
Galileo Green Energy(2.8)(1.7)(3.6)
Share of earnings of associate companies 114.1 83.8 182.6
15
5.1 Vodafone New Zealand
Vodafone New Zealand ('Vodafone') is one of New Zealand’s leading digital services and connectivity companies. Infratil holds a 49.93%
shareholding (30 September 2020: 49.89%, 31 March 2021: 49.89%) in ICN JV Investments Limited (the ultimate parent company of
Vodafone New Zealand), alongside investment partners Brookfield Asset Management Inc. (49.93%) and Vodafone management (0.14%).
Movement in the carrying amount of the Group's investment in Vodafone:
6 months ended
30 September 2021
$Millions
Unaudited
6 months ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
Carrying value at 1 April857.3 974.0 974.0
Acquisition of shares---
Capitalised transaction costs---
Shareholder loan---
Total capital contributions during the period---
Interest on shareholder loan4.5 5.2 9. 7
Share of associate’s surplus/(loss) before income tax6.1 (27.6)(47.2)
Share of associate’s income tax (expense)(1.6)6.8 10.3
Total share of associate’s earnings during the period9. 0 (15.6)(27.2)
Share of associate's other comprehensive income4.9 1.3 7. 2
less: Distributions received(20.0)-(26.4)
less: Shareholder loan repayments including interest(4.5)(42.2)(70.3)
Carrying value of investment in associate846.7 917.5 857.3
Summary financial information
30 September 2021
$Millions
Unaudited
30 September 2020
$Millions
Unaudited
31 March 2021
$Millions
Audited
Summary information for Vodafone is not adjusted for the percentage ownership
held by the Group (unless stated)
Current assets450.0 540.6 487.7
Non-current assets3,636.0 3,679.0 3,613.4
Total assets4,086.0 4,219.6 4,101.1
Current liabilities990.5 552.0 563.7
Non-current liabilities1,965.7 2,442.2 2,385.2
Total liabilities2,956.2 2,994.2 2,948.9
Net assets (100%)1,129.8 1,225.4 1,152.2
Group's share of net assets564.1 611.4 574.8
Revenues954.4 939.6 1,950.4
Net surplus/(loss) after tax8.2 (37.1)(69.4)
Total other comprehensive income9.8 1.2 6.4
16
5.1 Vodafone New Zealand (continued)
30 September 2021
$Millions
Unaudited
30 September 2020
$Millions
Unaudited
31 March 2021
$Millions
Audited
Reconciliation of the carrying amount of the Group's investment in Vodafone:
Group's share of net assets564.1 611.4 574.8
add: Shareholder loan282.4 305.9 282.3
add: Capitalised transaction costs0.2 0.2 0.2
Carrying value of investment in associate846.7 917.5 857.3
5.2 CDC Data Centres
CDC Data Centres ('CDC') is an owner, operator and developer of data centres, with operations in Canberra, Sydney and Auckland.
Infratil holds a 48.00% shareholding (30 September 2020: 48.08%, 31 March 2021: 48.08%) in CDC Group Holdings Pty Ltd (the ultimate
parent company of CDC Data Centres), alongside investment partners the Commonwealth Superannuation Corporation (24.00%), Future
Fund (24.00%) and CDC Data Centres management (4.00%).
Movement in the carrying amount of the Group's investment in CDC:
6 months ended
30 September 2021
$Millions
Unaudited
6 months ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
Carrying value at 1 April873.0 693.4 693.4
Acquisition of shares11.1 7. 5 8.3
Capitalised transaction costs---
Shareholder loan---
Total capital contributions during the period11.1 7. 5 8.3
Interest on shareholder loan4.3 6.3 10.6
Share of associate’s surplus/(loss) before income tax70.0 147.7 178.6
Share of associate’s income tax (expense)(23.0)(48.6)(58.0)
add: share of associate's share capital issued, net of dilution3.7 3.1 3.1
Total share of associate’s earnings during the period55.0 108.5 134.3
Share of associate's other comprehensive income1.5 (0.4)(0.6)
less: Distributions received(2.0)--
less: Shareholder loan repayments including interest(3.8)-(5.8)
Foreign exchange movements(35.6)36.843.4
Carrying value of investment in associate899.2845.8873.0
17
5.2 CDC Data Centres (continued)
Summary financial information
30 September 2021
A$Millions
Unaudited
30 September 2020
A$Millions
Unaudited
31 March 2021
A$Millions
Audited
Summary information for CDC is not adjusted for the percentage ownership
held by the Group (unless stated)
Current assets79.0 148.3 152.3
Non-current assets3,579.4 3,118.6 3,202.6
Total assets3,658.4 3,266.9 3,354.9
Current liabilities70.3 79.4 72.2
Non-current liabilities2,147.4 1,910.0 1,963.1
Total liabilities2,217.7 1,989.4 2,035.3
Net assets (100%)1,440.7 1,277.5 1,319.6
Group's share of net assets691.5 614.2 634.5
Revenues121.8 114.3 227.2
Net surplus/(loss) after tax92.8 191.7 234.2
Other comprehensive income3.0 (0.8)(1.3)
30 September 2021
$Millions
Unaudited
30 September 2020
$Millions
Unaudited
31 March 2021
$Millions
Audited
Reconciliation of the carrying amount of the Group's investment in CDC:
Group's share of net assets in NZ$723.5 663.8 690.9
add: Shareholder loan175.7 182.0 182.1
Carrying value of investment in associate899.2 845.8 873.0
CDC's functional currency is Australian Dollars (A$) and the summary financial information shown is presented in this currency. The
NZD/AUD exchange rates used to convert the summary financial information to the Group's functional currency (NZ$) were 0.9558
(Spot rate) and 0.9416 (Average rate) (30 September 2020: Spot rate 0.9253, Average rate 0.9329, 31 March 2021: Spot rate 0.9182,
Average rate 0.9338).
18
5.3 RetireAustralia
RetireAustralia is an owner, operator and developer of retirement villages, with villages in New South Wales, Queensland and South
Australia. Infratil holds a 50% shareholding in RA (Holdings) 2014 Pty Limited (the ultimate parent company of RetireAustralia), with
investment partner the New Zealand Superannuation Fund holding the other 50%.
Movement in the carrying amount of the Group's investment in RetireAustralia:
6 months ended
30 September 2021
$Millions
Unaudited
6 months ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
Carrying value at 1 April3 40.9 291.5 291.5
Acquisition of shares---
Total capital contributions during the period---
Share of associate’s surplus/(loss) before income tax28.8 6.4 31.2
Share of associate’s income tax (expense)---
Total share of associate’s earnings during the period28.8 6.4 31.2
Share of associate's other comprehensive income---
less: Distributions received---
Foreign exchange movements(13.8)15.4 18.2
Carrying value of investment in associate355.9 313.3 3 40.9
Summary financial information
30 September 2021
A$Millions
Unaudited
30 September 2020
A$Millions
Unaudited
31 March 2021
A$Millions
Audited
Summary information for RetireAustralia is not adjusted for the percentage
ownership held by the Group (unless stated)
Current assets204.3 216.4 204.6
Non-current assets2,476.5 2,300.9 2,389.3
Total assets2,680.8 2,517.3 2,593.9
Current liabilities1,843.7 1,753.6 1,777.0
Non-current liabilities156.8 183.8 190.7
Total liabilities2,000.5 1,937.4 1,967.7
Net assets (100%)680.3 579.9 626.2
Group's share of net assets340.1 290.0 313.1
Group's share of net assets and carrying value of investment in associate (NZ$)355.9 313.3 3 40.9
Revenues53.2 4 7. 1 99.0
Net surplus/(loss) after tax54.2 9.3 55.6
Other comprehensive income---
RetireAustralia's functional currency is Australian Dollars (A$) and the summary financial information shown is presented in this currency.
The NZD/AUD exchange rates used to convert the summary financial information to the Group's functional currency (NZ$) were 0.9558
(Spot rate) and 0.9416 (Average rate) (30 September 2020: Spot rate 0.9253, Average rate 0.9329, 31 March 2021: Spot rate 0.9182,
Average rate 0.9338).
RetireAustralia’s net current asset deficiency has primarily arisen due to the requirement under Accounting Standards to classify resident
obligations as current liabilities as RetireAustralia does not have the right at the end of the reporting period to defer settlement of the
liability for at least 12 months (residents may give notice of their intention to vacate their unit with immediate effect). In contrast, the
corresponding assets are classified as non-current under Accounting Standards.
19
20
5.4 Longroad Energy
Longroad Energy Holdings, LLC ('Longroad Energy'), is a Boston, MA, headquartered renewable energy developer focused on the
development, ownership, and operation of utility-scale wind and solar energy projects throughout North America. Infratil holds a 40%
shareholding in Longroad Energy, alongside investment partners the New Zealand Superannuation Fund (40%) and Longroad Energy
management (20%).
Movement in the carrying amount of the Group's investment in Longroad Energy:
6 months ended
30 September 2021
$Millions
Unaudited
6 months ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
Carrying value at 1 April4 4.9 --
Capital contributions35.0 3.3 35.0
Shareholder loan---
Total capital contributions during the period35.0 3.3 35.0
Share of associate’s surplus/(loss) before income tax24.5 (13.8)4 7. 9
Share of associate’s income tax (expense)---
Total share of associate’s earnings during the period24.5 (13.8)4 7. 9
Share of associate’s other comprehensive income(9.5)28.0 1.5
less: Distributions received(1.5)(8.0)(28.2)
less: Capital returned(43.3)(11.1)(11.3)
Foreign exchange movements1.3 1.6 -
Carrying value of investment in associate51.4 -4 4.9
An adjustment to the carrying value of the investment in Longroad Energy was recorded at 30 September 2020 as under NZ IAS 28 the
carrying amount of the investment is not permitted to reduce below zero. This adjustment is included in Share of associate's other
comprehensive income.
5.4 Longroad Energy (continued)
Summary financial information
31 December 2020
US$Millions
Unaudited
31 December 2019
US$Millions
Unaudited
Summary information for Longroad Energy is not adjusted for the percentage ownership held by the
Group (unless stated)
Current assets111.0 153.0
Non-current assets1,817.3 1,247.3
Total assets1,928.3 1,400.3
Current liabilities78.2 270.0
Non-current liabilities1,059.6 1,059.8
Total liabilities1,137.8 1,329.8
Net assets (100%)790.5 70.5
Revenues263.4 94.3
Net surplus/(loss) after tax8 9.9 6.8
Other comprehensive income-(10.2)
Longroad's functional currency is United States Dollars ($US) and the summary financial information shown is presented in this currency.
The NZD/USD exchange rates used to convert the summary financial information to the Group's functional currency (NZ$) were 0.6874
(Spot rate) and 0.7076 (Average rate) (30 September 2020: Spot rate 0.6603, Average rate 0.6408, 31 March 2021: Spot rate 0.6989,
Average rate 0.6711).
The summary information provided is taken from the most recent audited annual financial statements of Longroad Energy Holdings, LLC
which have a balance date of 31 December and are reported as at that date.
Letter of credit facility
Longroad has obtained an uncommitted secured letter of credit facility of up to US$150 million (30 September 2020: US$150 million,
31 March 2021: US$150 million) and also has a US$50 million committed facility, of which US$45.0 million was drawn at 30 September
2021. Infratil and the New Zealand Superannuation Fund have collectively agreed to meet up to US$200 million of capital calls (i.e.
subscribe for additional units) equal to Longroad’s reimbursement obligation in the event that a Letter of Credit is called and Longroad
cannot fund the call or the committed facility needs to be repaid, taking into account immediately available working capital. As at
30 September 2021, US$33.4 million (Infratil share: US$16.7 million) (30 September 2020: US$91.8 million, 31 March 2021: US$121.4 million)
in Letters of Credit are on issue under the Longroad Letter of Credit facility.
21
22
5.5 Kao Data
On 20 August 2021 the Group acquired an initial stake in Kao Data from current owners Legal & General Group and Goldacre.
The Group has agreed to an initial commitment of £120-130 million through a target shareholding of 40.0% with the current owners each
retaining a target stake of 30.0%. Kao Data develops and operates advanced data centres in the United Kingdom. At 30 September 2021
Infratil has committed an initial £34.9 million (NZ$68.2 million) of equity investment to acquire a 19.92% shareholding. The Group has
determined that its investment in Kao Data is an investment in associate, and equity accounting has been applied below. The Group’s
share of acquisition costs directly incurred by Infratil were capitalised.
The fair value of assets acquired and liabilities assumed has been measured on a provisional basis. If new information obtained within one
year of the date of acquisition about facts and circumstances that existed at the date of acquisition identifies adjustments to the above
amounts, or any additional provisions that existed at the date of acquisition, then the accounting for the acquisition will be revised. The
total consideration transferred, including completion cash adjustments, exceeded the fair value of the net assets acquired and the
incremental amount paid of $25.2 million has been recognised as goodwill.
Movement in the carrying amount of the Group's investment in Kao Data:
6 months ended
30 September 2021
$Millions
Unaudited
Carrying value at 1 April-
Cost of equity68.2
Capitalised transaction costs5.4
Shareholder loan-
Total capital contributions during the period73.6
Interest on shareholder loan (including accruals)-
Share of associate’s surplus/(loss) before income tax(0.4)
Share of associate’s income tax (expense)-
Total share of associate’s earnings in the period(0.4)
Share of associate’s other comprehensive income-
less: Distributions received-
less: Shareholder loan repayments including interest-
Foreign exchange movements(0.6)
Carrying value of investment in associate72.6
23
5.5 Kao Data (continued)
Summary information for Kao Data is not adjusted for the percentage ownership held by the Group (unless stated)
30 September 2021
£Millions
Unaudited
Current assets33.1
Non-current assets108.2
Total assets141.3
Current liabilities30.4
Non-current liabilities3.1
Total liabilities33.5
Net assets (100%)107.8
Reconciliation of the carrying amount of the Group's investment in Kao Data:
30 September 2021
$Millions
Unaudited
Group's share of net assets in NZ$42.0
Goodwill25.2
add: capitalised transaction costs5.4
Carrying value of investment in associate72.6
Kao Data's functional currency is the Pound Sterling (GB£) and the summary financial information shown is presented in this currency.
The NZD/GBP exchange rates used to convert the summary financial information to the Group's functional currency (NZ$) were 0.5114
(Spot rate) and 0.5098 (Average rate) (30 September 2020: N/A, 31 March 2021: N/A).
24
6 Other investments
30 September 2021
$Millions
Unaudited
30 September 2020
$Millions
Unaudited
31 March 2021
$Millions
Audited
Clearvision Ventures76.4 34.4 73.6
Other3.57.8 7.3
Other investments79.9 78.2 80.9
Clearvision Ventures
In February 2016 Infratil made an initial commitment of US$25 million to the California based Clearvision Ventures. An additional
commitment of US$25 million was made in May 2020 bringing Infratil's total commitment to US$50 million. The strategic objective is to
help Infratil's businesses identify and engage with technology changes that will impact their activities. As at 30 September 2021 Infratil
has made total contributions of US$28.1 million (30 September 2020: US$25.7 million, 31 March 2021: US$28.1 million), with the remaining
US$21.9 million commitment uncalled at that date.
7 Acquisition of subsidiary
7.1 Pacific Radiology
On 31 May 2021, Infratil acquired 56.0% of Pacific Radiology Group Limited, (‘Pacific Radiology Group’), a comprehensive diagnostic
imaging practice in New Zealand, from existing doctor shareholders. Infratil invested in conjunction with existing doctor shareholders and
management (44.0%). Infratil has determined that Pacific Radiology Group is a subsidiary based on its voting equity interest and has
therefore consolidated Pacific Radiology Group from the acquisition date.
The transaction was settled in cash through a combination of equity contributions and external debt funding, inclusive of transaction
costs relating to the acquisition. Infratil’s cash consideration transferred was NZ$313.6 million. The non-controlling interest is determined
by the cash consideration transferred of NZ$246.4 million from doctor and management shareholders.
The nature of the holding structure under which Infratil acquired Pacific Radiology Group meant that RHC Bidco NZ Limited ultimately
acquired 100% of the shares in Pacific Radiology Group. As a result, NZ IFRS 3 Business Combinations ('NZ IFRS 3') is required to be applied
on acquisition. NZ IFRS 3 requires that the identifiable assets and liabilities acquired as part of the business combination are measured at
fair value at the date of acquisition, with any gain recognised through the profit and loss and any deficit recognised as goodwill.
Acquisition related costs are recognised in the consolidated statement of comprehensive income as incurred.
The valuation of any intangible assets identified as part of this process will be finalised post completion of the 30 September 2021 interim
financial statements and therefore any amounts in the interim financial statements will be reported as provisional. If new information
obtained within one year of the date of acquisition, about facts and circumstances that existed at the date of acquisition identify
adjustments to the above amounts, or any additional provisions that existed at the date of acquisition, then the accounting for the
acquisition will be revised.
Goodwill has been provisionally recognised based on the carrying value of the identifiable assets and liabilities acquired, including
intangible assets. The total consideration transferred, including completion cash adjustments, exceeded the carrying values of the net
assets acquired and the incremental amount paid of NZ $776.0 million has been recognised as goodwill. The initial recognition exemption
in NZ IAS 12 has been applied to goodwill and therefore, no deferred tax deduction has been recognised.
25
Consideration Transferred
The following table summarises the acquisition date fair value of each major class of consideration transferred:
Purchase consideration (100%)
31 May
2021
NZ$Millions
Cash consideration paid817.2
Completion cash adjustment4.0
Total Consideration821.2
The following table summarises the recognised amounts of assets acquired, and liabilities assumed at the date
of acquisition:
Assets (100%)
Fair Value
(Provisional)
NZ$Millions
Cash and cash equivalents5.2
Trade and other accounts receivable and prepayments2 7. 6
Right of use assets51.8
Intangible assets and investments10.8
Property, plant and equipment56.5
Deferred tax asset2.3
Total assets at fair value154.2
Liabilities (100%)
Accounts payable, accruals and other liabilities37.7
Lease liabilities54.3
Interest bearing loans and borrowings1 7. 0
Total liabilities at fair value109.0
Total identifiable assets at fair value (100%)45.2
Goodwill arising on acquisition (provisional)776.0
Infratil cash consideration313.6
External debt funding257.2
Non-controlling interest246.4
Completion cash adjustment4.0
Total cash consideration821.2
7.2 Gurīn Energy
On 21 July 2021, Infratil acquired 95% of a newly formed entity, Gurīn Energy Pte Limited, a renewable energy development platform
headquartered in Singapore which will focus on greenfield renewable projects across Asia. Infratil has committed US$233 million through
equity of US$133 million (NZ$189 million) and US $100 million (NZ $142 million) in the form of support for letters of credit provided by third
party banks. The balance of the shares (5%) is reserved for Management (US$7 million, NZ$10 million), financed by a loan from Infratil. At
30 September 2021 funding of $2.8 million has been called.
Infratil has determined that Gurīn is a subsidiary based on its voting equity interest and has therefore consolidated Gurīn from the
acquisition date.
As the newly formed entity has no material assets on establishment, no fair value exercise was performed.
26
8 Discontinued operations and assets held for sale
Summary of results of discontinued operations
6 months ended
30 September 2021
$Millions
6 months ended
30 September 2020
$Millions
Year ended
31 March 2021
$Millions
Tilt Renewables8.1992.0 28.7 71.6
Trustpower Retail Business8.2 1.9 4.7 14.3
Net surplus from discontinued operations after tax993.9 33.4 85.9
8.1 Tilt Renewables
On 3 August 2021, the Group completed the sale of its 65.15% stake in Tilt Renewables for gross proceeds of $1,984.1 million to a
consortium comprising Powering Australian Renewables and Mercury NZ Limited. After sales costs, the proceeds from the sale of Infratil's
65.15% interest were $1,837.1 million, resulting in a gain on sale of the 65.15% interest of $1,014.7 million.
As the carrying amount of the Group’s investment in Tilt Renewables has been recovered through the sale transaction, the investment in
Tilt Renewableshas been classified as a discontinued operation at 30 September 2021 and 31 March 2021. The comparative
consolidated statement of comprehensive income and respective notes have been re-presented to show the discontinued operation
separately from continuing operations. The results from discontinued operations are presented separately below.
Results of discontinued operation
6 months ended
30 September 2021
$Millions
6 months ended
30 September 2020
$Millions
Year ended 31
March 2021
$Millions
Revenue60.0 60.0 137.4
Operating expenses4 7. 9 25.9 57.3
Results from operating activities12.1 34.1 80.1
Depreciation(19.5)(21.8)(43.9)
Net realisations, revaluations, impairments(12.7)34.4 78.5
Net financing expense(6.3)(5.5)(12.0)
Net surplus/(loss) before tax(26.3)41.2 102.7
Taxation (expense)/credit3.7 (12.5)(31.1)
Net surplus/(loss) from discontinued operation after tax(22.7)28.7 71.6
Basic and diluted earnings per share (cents per share)(6.0) 7. 6 1 7. 9
The net gain on the sale is calculated as follows:
Gross sale proceeds1,984.1 - -
Less: Carrying amount of net assets sold(822.4) - -
Gain on sale1,161.7 - -
Less: Transaction costs(24.9) - -
Less: Incentive fee paid to MCIM(122.1) - -
Net gain on sale1,014.7 - -
Net surplus from discontinued operation after tax992.0 28.7 71.6
The net surplus/(loss) from the discontinued operation is 65.15% attributable to the
owners of the Company in line with Infratil's ownership percentage of Tilt Renewables.
The gain on sale is entirely attributable to owners of the company.
Cash flows from/(used in) discontinued operation
Net cash from/(used in) operating activities26.9 (7.4)34.8
Net cash from/(used in) investing activities(338.5)(319.7)(391.3)
Net cash from/(used in) financing activities(26.2)(80.9)(34.9)
Net cash flows for the year(337.8)(408.0)(391.4)
27
There was ($3.5 million) of cumulative income/(loss) recognised in other comprehensive income relating to Tilt Renewables at
30 September 2021 (30 September 2020: $38.4 million loss, 31 March 2021: $129.4 million).
8.2 Trustpower Retail Business
On 21 June 2021, Trustpower, in which Infratil has a stake of 51.04%, announced the sale of its gas, telecommunications and retail
electricity supply business (excluding the supply of electricity to commercial and industrial customers) to Mercury NZ Limited for
$441.0 million. Trustpower's retail business has been classified as an asset held for sale and a discontinued operation at 30 September
2021. The comparative consolidated statement of comprehensive income and respective notes have been re-presented to show the
discontinued operation separately from continuing operations. As at 30 September 2021 the expected sales proceeds less costs to sell
are higher than the carrying amount and as a result no adjustment has been made to the carrying value of Infratil's investment.
Results of discontinued operation
6 months ended
30 September 2021
$Millions
6 months ended
30 September 2020
$Millions
Year ended 31
March 2021
$Millions
Revenue384.0 357.9 650.8
Operating expenses368.2 339.5 607.3
Results from operating activities15.8 18.4 43.5
Depreciation and amortisation(12.6)(11.2)(22.4)
Net realisations, revaluations, impairments - - -
Net financing expense(0.6)(0.7)(1.3)
Net surplus/(loss) before tax2.6 6.5 19.8
Taxation (expense)/credit(0.7)(1.8)(5.5)
Net surplus/(loss) from discontinued operation after tax1.9 4.714.3
Assets held for sale187.9
Liabilities directly associated with assets held for sale35.0
Net assets of discontinued operation152.9
Effect of reclassification of the disposal group on the financial position of the Group
Property, plant and equipment17.5
Intangible assets2 7. 9
Capitalised customer acquisition costs4 9. 4
Right of use assets31.0
Accounts receivable and prepayment62.1
Accounts payable and accruals(2.7)
Lease liabilities(32.3)
Net reclassification of assets and (liabilities)152.9
Cash flows from/(used in) discounted operations
Net cash from/(used in) operating activities3.75.8
Net cash from/(used in) investing activities(12.8)(10.7)
Net cash from/(used in) financing activities(4.4)(4.3)
Net cash flows for the year(13.5)(9.2)
28
8.3 Australian Social Infrastructure Partners
As at 31 March 2021, Infratil owned 56.5% of Australian Social Infrastructure Partners ('ASIP'), which in turn held a 9.95% share of the equity
in the New Royal Adelaide Hospital public-private partnership (‘PPP’). On 23 July 2021, the 9.95% share of equity in the New Royal Adelaide
Hospital public-private partnership was sold for A$41.8 million.
9 Revenue
6 months ended
30 September 2021
$Millions
Unaudited
6 months ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
Electricity167.2 125.9 245.2
Revenue allocated to customer incentives--0.7
Aircraft movement and terminal charges2 7. 4 11.3 34.0
Transport, hotel and other trading activities17.0 14.5 20.9
Radiology practice services70.9 -36.5
Radiology services118.2 -28.6
Other24.7 8.6 42.3
Total operating revenue425.4 160.3 408.2
10 Other operating expenses
Note
6 months ended
30 September 2021
$Millions
Unaudited
6 months ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
Trading operations
Energy and wholesale costs2.0 2.6 2.2
Line, distribution and network costs26.8 6.3 41.7
Generation production & development costs12.4 4.3 21.8
Other energy business costs11.2 6.2 1.9
Telecommunications cost of sales---
Radiology business costs115.8 -29.3
Airport business costs13.9 10.0 21.4
Other operating business costs0.8 -0.7
Bad debts written off---
Increase/(Decrease) in provision for expected credit loss0.4 --
Directors’ fees1.6 1.0 2.2
Administration and other corporate costs12.7 3.2 7.8
Management fee (to related party Morrison & Co Infrastructure
Management)
17 27.9 19.6 45.7
International Portfolio Incentive fee17 9.3 57.7 223.1
Donations0.3 0.8 1.3
Total other operating expenses235.1 111.7 399.1
29
11 Taxation
6 months ended
30 September 2021
$Millions
Unaudited
6 monthded ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
Net surplus before taxation from continuing operations194.5 14.2 (111.6)
Taxation on the surplus for the period @ 28%54.5 4.0 (31.2)
Plus/(less) taxation adjustments:
Effect of tax rates in foreign jurisdictions(1.5)0.9 (3.7)
Net benefit of imputation credits---
Timing differences not recognised0.8 --
Tax losses not recognised/(utilised)(2.1)(11.0)-
Effect of equity accounted earnings of associates(22.5)(24.7)(33.0)
Recognition of previously unrecognised deferred tax---
(Over)/under provision in prior periods(9.5)(6.5)(6.9)
Net investment realisations--5.1
Other permanent differences38.4 27.9 60.0
Taxation expense58.1 (9.4)(9.7)
Current taxation 47.2 6.7 (0.6)
Deferred taxation 10.9 (16.1)(9.1)
Tax on discontinued operations(3.0)14.2 36.9
30
12 Loans and borrowings
This note provides information about the contractual terms of the Group's interest bearing loans and borrowings.
30 September 2021
$Millions
Unaudited
30 September 2020
$Millions
Unaudited
31 March 2021
$Millions
Audited
Current liabilities
Unsecured bank loans90.2 57.0 95.1
Secured bank facilities5.8 32.4 -
less: Loan establishment costs capitalised and amortised over term(3.7)(3.1)(1.0)
92.3 86.3 94.1
Non-current liabilities
Unsecured bank loans155.0 328.9 650.2
Secured bank facilities561.6 506.4 278.2
less: Loan establishment costs capitalised and amortised over term(19.4)(8.9)(12.2)
697.2 826.4 916.2
Facilities utilised at reporting date
Unsecured bank loans245.2 385.9 745.3
Unsecured guarantees---
Secured bank loans567.4 538.8 278.2
Secured guarantees4.2 128.1 3.0
Facilities not utilised at reporting date
Unsecured bank loans1,035.0 759.1 554.8
Unsecured guarantees---
Secured bank loans158.0 174.9 86.2
Secured guarantees-58.3 -
Interest bearing loans and borrowings –
current92.3 86.3 94.1
Interest bearing loans and borrowings –
non-current697.2 826.4 916.2
Total interest bearing loans and borrowings789.5 912.7 1,010.3
30 September 2021
$Millions
Unaudited
30 September 2020
$Millions
Unaudited
31 March 2021
$Millions
Audited
Maturity profile for bank facilities (excluding secured guarantees):
Between 0 to 1 year383.1 179.9 175.1
Between 1 to 2 years600.0 532.2 596.9
Between 2 to 5 years922.5 926.3 892.5
Over 5 years100.0 220.3 -
Total bank facilities2,005.6 1,858.7 1,664.5
Financing arrangements
Infratil Finance Limited, a wholly owned subsidiary of the Company, has entered into bank facility arrangements with a negative pledge
agreement, which, with limited exceptions does not permit the Infratil Guaranteeing Group (‘IGG’) to grant any security over its assets. The
IGG comprises entities subject to a cross guarantee and comprises Infratil Limited, Infratil Finance Limited and certain other wholly owned
subsidiaries. The IGG does not incorporate the underlying assets of the Company’s non-wholly owned subsidiaries and associates. The
IGG bank facilities also include restrictions over the sale or disposal of certain assets without bank agreement. Liability under the cross
guarantee is limited to the amount of debt drawn under the IGG facilities, plus any unpaid interest and costs of recovery. At 30 September
2021 drawn debt and accrued interest under the IGG facilities was nil (30 September 2020: $52.0 million, 31 March 2021: $217.3 million)
and undrawn IGG facilities totalled $570.0 million (30 September 2020: $518.0 million, 31 March 2021: $353.0 million).
Infratil Energy New Zealand Limited (‘IENZ’), a wholly owned subsidiary of the Company, is not a member of the IGG and has granted
a security interest over assets with a carrying amount of $354.3 million (30 September 2020: $346.6 million, 31 March 2021: $342.3 million)
as part of its bank facility arrangements. IENZ has total facilities of $125.0 million, of which none was drawn as at 30 September 2021
(30 September 2020: $50.0 million, 31 March 2021: $125.0 million).
The Group’s non-wholly owned subsidiaries also enter into bank facilities arrangements. Amounts outstanding under these facilities are
included within loans and borrowings in the table above. Wellington International Airport and Trustpower facilities are both subject to
negative pledge arrangements, which with limited exceptions does not permit those entities to grant security over their respective assets.
Qscan Group and Pacific Radiology borrow under syndicated bank debt facilities and has granted security over their assets. All non-
wholly owned subsidiary facilities are subject to restrictions over the sale or disposal of certain assets without bank agreement. The
various bank facilities across the Group require the relevant borrowing group to maintain certain levels of shareholder funds and operate
within defined performance and gearing ratios. Throughout the period the Group has complied with all debt covenant requirements as
imposed by the respective lenders. WIAL has secured a temporary waiver of certain covenants with its banking group and USPP lender
until the first compliance date which is no later than 31 March 2022.
Interest rates payable on bank loan facilities are floating rate determined by reference to prevailing money market rates at the time
of draw-down plus a margin. Interest rates paid during the period ranged from 0.75% to 4.32% (30 September 2020: 0.62% to 2.93%,
31 March 2021: 0.57% to 4.32%).
31
32
13 Infrastructure bonds
30 September 2021
$Millions
Unaudited
30 September 2020
$Millions
Unaudited
31 March 2021
$Millions
Audited
Balance at the beginning of the period1,378.9 1,293.2 1,293.2
Issued during the period102.4 -84.7
Exchanged during the period(54.8)--
Matured during the period(39.1)--
Bond issue costs capitalised during the period(1.2)-(1.0)
Bond issue costs amortised during the period1.1 1.0 2.0
Balance at the end of the period1,387.3 1,294.2 1,378.9
Current93.4 93.7 93.8
Non-current fixed coupon 940.1 846.9 931.4
Non-current variable coupon121.9 121.7 121.8
Non-current perpetual variable coupon231.9 231.9 231.9
Balance at the end of the period1,387.3 1,294.2 1,378.9
Repayment terms and interest rates:
IFT220 maturing in June 2021, 4.90% p.a. fixed coupon rate-93.9 93.9
IFT190 maturing in June 2022, 6.85% p.a. fixed coupon rate93.7 93.7 93.7
IFT240 maturing in December 2022, 5.65% p.a. fixed coupon rate100.0 100.0 100.0
IFT210 maturing in September 2023, 5.25% p.a. fixed coupon rate122.1 122.1 122.1
IFT230 maturing in June 2024, 5.50% p.a. fixed coupon rate56.1 56.1 56.1
IFT260 maturing in December 2024, 4.75% p.a. fixed coupon rate100.0 100.0 100.0
IFT250 maturing in June 2025, 6.15% p.a. fixed coupon rate43.4 43.4 43.4
IFT300 maturing in March 2026, 3.35% p.a. fixed coupon rate120.3 37.0 120.3
IFT280 maturing in December 2026, 3.35% p.a. fixed coupon rate156.3 156.3 156.3
IFT270 maturing in December 2028, 4.85% p.a. fixed coupon rate until
15 December 2023
146.2 146.2 146.2
IFT310 maturing in December 2027, 3.60% p.a. fixed coupon rate102.4 --
IFTHC maturing in December 2029, 2.75% p.a. variable coupon rate123.2 123.2 123.2
IFTHA Perpetual Infratil infrastructure bonds231.9 231.9 231.9
less: issue costs capitalised and amortised over term(9.6)(9.6)(9.5)
add: issue premium capitalised and amortised over term1.3 -1.3
Balance at the end of the period1,387.3 1,294.2 1,378.9
Fixed coupon
The fixed coupon bonds the Company has on issue are at a face value of $1.00 per bond. Interest is payable quarterly on the bonds.
IFTHC bonds
The IFTHC bonds the Company has on issue are at a face value of $1.00 per bond. Interest is payable quarterly on the bonds. For the
period to 15 December 2021 the coupon is fixed at 2.75% per annum (for the period to 15 December 2020 the coupon was 3.50%).
Thereafter the rate will be reset annually at 2.50% per annum over the then one year swap rate for quarterly payments.
33
IFT270 bonds
The interest rate of the IFT270 bonds is fixed for the first five years and then will reset on 15 December 2023 for a further five years. The
interest rate for the IFT270 bonds for the period from (but excluding) 15 December 2023 until the maturity date will be the sum of the five
year swap rate on 15 December 2023 plus a margin of 2.50% per annum.
Perpetual Infratil infrastructure bonds ('PIIBs')
The Company has 231,916,000 (30 September 2020: 231,916,000, 31 March 2021: 231,916,000) PIIBs on issue at a face value of $1.00 per
bond. Interest is payable quarterly on the bonds. On 15 November 2020 the coupon was set at 1.71% per annum until the next reset date,
being 15 November 2021 (September 2020: 2.67%, March 2021: 1.71%). Thereafter the rate will be reset annually at 1.50% per annum over
the then one year swap rate for quarterly payments, unless Infratil's gearing ratio exceeds certain thresholds, in which case the margin
increases. These infrastructure bonds have no fixed maturity date. No PIIBs (September 2020: nil, March 2021: nil) were repurchased by
Infratil Limited during the period.
Throughout the period the Company complied with all debt covenants relating to its bonds on issue.
At 30 September 2021 Infratil Infrastructure bonds (including PIIBs) had a fair value of $1,378.3 million (30 September 2020: $1,250.2 million,
31 March 2021: $1,336.5 million).
14 Financial instruments
14.1 Fair values
Financial assets and financial liabilities are measured at their fair value, with the exception of bond debt and senior notes which are
measured at amortised cost. The bond debt and senior notes have a fair value at 30 September 2021 of $2,438.5 million (30 September
2020: $2,355.1 million, 31 March 2021: $2,382.7 million) compared to an amortised cost value of $2,456.0 million (30 September 2020:
$2,328.4 million, 31 March 2021: $2,397.6 million).
14.2 Estimation of fair values
The fair values of financial assets and financial liabilities are determined as follows:
• The fair value of financial assets and liabilities with standard terms and conditions and traded on active liquid markets are determined
with reference to quoted market prices.
• The fair value of other financial assets and liabilities are calculated using market-quoted rates based on discounted cash flow analysis.
• The fair value of derivative financial instruments are calculated using quoted prices. Where such prices are not available, use is made of
discounted cash flow analysis using the applicable yield curve or available forward price data for the duration of the instruments.
Where the fair value of a derivative is calculated as the present value of the estimated future cash flows of the instrument, the two key
types of variables used in the valuation techniques are:
• forward price curve (for the relevant underlying interest rates, foreign exchange rates or commodity prices); and
• discount rates.
Valuation inputSource
Interest rate forward price curve
Published market swap rates
Foreign exchange forward prices
Published spot foreign exchange rates
Electricity forward price curve
Market quoted prices where available and management's best
estimate based on its view of the long run marginal cost of new
generation where no market quoted prices are available
Discount rate for valuing interest rate derivatives
Published market interest rates as applicable to the remaining life of
the instrument
Discount rate for valuing forward foreign exchange contracts
Published market rates as applicable to the remaining life of the
instrument
Discount rate for valuing electricity price derivatives
Assumed counterparty cost of funds ranging from 3.3% to 3.5%
(30 September 2020: 3.3% to 3.5%, 31 March 2021: 3.1% to 3.8%)
The selection of variables requires significant judgement and therefore there is a range of reasonably possible assumptions in respect of
these variables that could be used in estimating the fair value of these derivatives. Maximum use is made of observable market data
when selecting variables and developing assumptions for the valuation techniques.
34
14.3 Fair value hierarchy
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as
follows:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
• Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices)
or indirectly (that is, derived from prices) (Level 2)
• Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3)
The following tables present the Group's financial assets and liabilities that are measured at fair value.
30 September 2021
Level 1
$Millions
Unaudited
Level 2
$Millions
Unaudited
Level 3
$Millions
Unaudited
Total
$Millions
Unaudited
Assets per the statement of financial position
Derivative financial instruments – energy--40.9 40.9
Derivative financial instruments – cross currency
interest rate swaps
-9. 6 -9.6
Derivative financial instruments – foreign exchange----
Derivative financial instruments – interest rate-14.0 -14.0
To ta l-23.6 40.9 64.5
Liabilities per the statement of financial position
Derivative financial instruments – energy--9.7 9.7
Derivative financial instruments – cross currency
interest rate swaps
----
Derivative financial instruments – foreign exchange-0.2 -0.2
Derivative financial instruments – interest rate-21.7 -21.7
To ta l-21.9 9.7 31.6
30 September 2020
Assets per the statement of financial position
Derivative financial instruments – energy-2.0 155.3 157.3
Derivative financial instruments – cross currency
interest rate swaps
- 21.2 -21.2
Derivative financial instruments – foreign exchange- 0.1 -0.1
Derivative financial instruments – interest rate- 1 7. 0 -17.0
To ta l- 40.3 155.3 195.6
Liabilities per the statement of financial position
Derivative financial instruments – energy- - 91.1 91.1
Derivative financial instruments – cross currency
interest rate swaps
- - --
Derivative financial instruments – foreign exchange- - --
Derivative financial instruments – interest rate- 130.1 1.1 131.2
To ta l- 130.1 92.2 222.3
35
31 March 2021
Level 1
$Millions
Audited
Level 2
$Millions
Audited
Level 3
$Millions
Audited
Total
$Millions
Audited
Assets per the statement of financial position
Derivative financial instruments – energy-- 145.6 145.6
Derivative financial instruments – cross currency
interest rate swaps
- 7. 1 -7.1
Derivative financial instruments – foreign exchange- 0.2 -0.2
Derivative financial instruments – interest rate- 15.3 -15.3
To ta l- 22.6 145.6 168.2
Liabilities per the statement of financial position
Derivative financial instruments – energy- - 121.7 121.7
Derivative financial instruments – cross currency
interest rate swaps
- - --
Derivative financial instruments – foreign exchange- 0.2 -0.2
Derivative financial instruments – interest rate- 34.2 -34.2
To ta l- 34.4 121.7 156.1
There were no transfers between derivative financial instrument assets or liabilities classified as Level 1 or Level 2, and Level 3 of the fair
value hierarchy during the period ended 30 September 2021 (30 September 2020: none, 31 March 2021: none).
14.4 Energy derivatives
Energy Price Risk is the risk that financial performance will be impacted by fluctuations in spot energy prices. The Group meets its energy
sales demand by purchasing energy on spot markets, physical deliveries and financial derivative contracts. This exposes the Group to
fluctuations in the spot and forward price of energy. The Group has entered into a number of energy hedge contracts to reduce the
energy price risk from price fluctuations. These hedge contracts establish the price at which future specified quantities of energy are
purchased and settled. Any resulting differential to be paid or received is recognised as a component of energy costs through the term of
the contract. The Group has elected to apply cash flow hedge accounting to those instruments it deems material and which qualify as
cash flow hedges.
Disclosures at 30 September 2021 exclude amounts relating to Tilt Renewables as it is an asset held for sale.
Energy price sensitivity analysis
The following table shows the impact on post-tax profit and equity of an increase/decrease in the relevant forward electricity prices with
all other variables held constant:
6 months ended
30 September 2021
$Millions
Unaudited
6 months ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
Profit and loss
10% increase in energy forward prices(0.6)(4.7)(7.3)
10% decrease in energy forward prices0.6 4.7 7.5
Other comprehensive income
10% increase in energy forward prices(9.7)(59.4)(12.3)
10% decrease in energy forward prices9.7 56.1 14.2
36
The following table reconciles the movements in Level 3 Electricity price derivatives that are classified within Level 3 of the fair value
hierarchy because the assumed location factors which are used to adjust the forward price path are unobservable.
6 months ended
30 September 2021
$Millions
Unaudited
6 months ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
Assets per the statement of financial position
Opening balance
145.6 32.6 32.6
Foreign exchange movement on opening balance
-1.1 4.1
Acquired as part of business combination
---
Gains and (losses) recognised in profit or loss
9. 2 (21.9)341.9
Gains and (losses) recognised in other comprehensive income
(113.9)143.5 -
Transfer to assets held for sale
--(233.0)
Closing balance
40.9 155.3 145.6
Total gains or (losses) for the period included in profit or loss
for assets held at the end of the reporting period
(58.4)61.1 131.5
Liabilities per the statement of financial position
Opening balance
121.7 14.9 14.9
Foreign exchange movement on opening balance
-1.0 1.0
Acquired as part of business combination
---
(Gains) and losses recognised in profit or loss
(111.8)(13.8)134.7
(Gains) and losses recognised in other comprehensive income
(0.2)89.0 -
Transfer to liabilities held for sale
--(28.9)
Closing balance
9.7 91.1 121.7
Total gains or (losses) for the period included in profit or loss
for liabilities held at the end of the reporting period
(13.5)(30.3)92.2
Settlements during the period
(17.6)(3.8)(18.8)
37
15 Reconciliation of net surplus with cash flow from operating activities
6 months ended
30 September 2021
$Millions
Unaudited
6 months ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
Net surplus for the period1,130.3 57.0 (16.0)
Items classified as investing activity:
(Gain)/Loss on investment realisations, impairments and disposals
of discontinued operations
(1,014.5)0.8 (46.5)
Transaction costs payable relating to investing activities2.8 --
Items not involving cash flows:
Movement in financial derivatives taken to the profit or loss(67.7)8.7 4.1
Decrease in deferred tax liability excluding transfers to reserves15.0 10.1 6.1
Changes in fair value of investment properties(2.5)(14.5)(12.0)
Equity accounted earnings of associate net of distributions received(82.5)(67.1)(109.0)
Depreciation67.7 51.6 114.0
Movement in provision for bad debts0.2 0.1 -
Amortisation of intangibles7.9 5.6 13.2
Other0.7 (6.1)31.0
Movements in working capital:
Change in receivables64.4 (20.1)(64.5)
Change in inventories---
Change in trade payables(27.6)(0.8)(1.3)
Change in accruals and other liabilities(135.1)(39.4)208.4
Change in current and deferred taxation23.5 (30.2)(36.1)
Net cash flow from operating activities(17.4)(44.3)91.4
16 Capital commitments
30 September 2021
$Millions
Unaudited
30 September 2020
$Millions
Unaudited
31 March 2021
$Millions
Audited
Committed but not contracted for 46.2 3.6 -
Contracted but not provided for38.5 198.2 51.3
Capital commitments84.7 201.8 51.3
There were no individually material commitments as at 30 September 2021. As at 30 September 2020 capital commitments are primarily
associated with the Dundonnell and Waipipi Wind Farms which total A$159.7 million. See Note 6 for Infratil's commitments to
Clearvision Ventures.
38
17 Related parties
Certain Infratil Directors have relevant interests in a number of companies with which Infratil has transactions in the normal course of
business. A number of key management personnel are also Directors of Group subsidiary companies and associates.
Morrison & Co Infrastructure Management Limited ('MCIM') is the management company for the Company and receives management
fees in accordance with the applicable management agreement. MCIM is owned by H.R.L. Morrison & Co Group Limited Partnership
('MCO'). Mr Bogoievski was a director of Infratil until 31 March 2021 and is a director and Chief Executive Officer of MCO. Mr Boyes
assumed the role of Infratil Chief Executive Officer from 1 April 2021. Entities associated with Mr Bogoievski and Mr Boyes also have a
beneficial interest in MCO.
Management and other fees paid by the Group (including
associates) to MCIM, MCO or its related parties during the
period were:
Note
6 months ended
30 September 2021
$Millions
Unaudited
6 months ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
Management fees27.9 19.6 45.7
International Portfolio incentive fee18 131.4 57.7 223.1
Executive secondment and consulting-0.1 9. 8
Directors’ fees0.9 1.0 1.8
Financial management, accounting, treasury, compliance
and administrative services
0.8 0.8 1.6
Risk management reporting-0.3 -
Total management and other fees161.0 79.5 282.0
The above table includes the accural for the realised incentive fee in relation to discontinued operations in the period ended 30
September 2021 (30 September 2020: none, 31 March 2021: $0.4 million).
At 30 September 2021 amounts owing to MCIM of $6.0 million (excluding GST) are included in trade creditors (30 September 2020:
$3.3 million, 31 March 2021: $4.5 million).
39
18 International Portfolio Incentive Fee
International Investments are eligible for International Portfolio incentive fees (‘Incentive Fees’) under the Management Agreement
between MCIM and Infratil. The Agreement allows for incentives to be payable for performance in excess of a minimum hurdle of
12% per annum in three separate categories:
• Initial Incentive Fees;
• Annual Incentive Fees; and,
• Realised Incentive Fees.
To the extent that there are assets that meet these criterion, independent valuations are performed on the respective International
Investments to determine whether any Incentive Fees are payable.
International Portfolio Initial Incentive Fee
International Investments become eligible for the Initial Incentive Fee assessment on the third balance date (31 March) that they have
been held continuously by the Company. All International Investments that are acquired in any one financial year are grouped together
for the purposes of the Initial Incentive Fee, and an Initial Incentive Fee is payable at 20% of the outperformance of those assets
against a benchmark of 12% per annum after tax, compounding.
International Portfolio Annual Incentive Fee
Thereafter International Investments are grouped together, and an Annual Incentive Fee is payable at 20% of the outperformance of
those assets against the higher of, a benchmark of 12% per annum after tax, relative to the most recent 31 March valuation, or cost.
The Company’s investments in CDC Data Centres, Longroad Energy and RetireAustralia are eligible for the International Portfolio Annual
Incentive fee assessment as at 31 March 2022 (31 March 2021: CDC Data Centres, Longroad Energy, RetireAustralia, Tilt Renewables
and ASIP).
As at 30 September 2021, it is probable that Infratil will have an International Portfolio Annual Incentive Fee (for the year to 31 March
2022) due to MCIM based on the performance of the above portfolio of assets, and as a result an amount of $9.3 million has been
provided for as at 30 September 2021 (30 September 2020: $57.7 million, 31 March 2021: $223.1 million).
International Portfolio Realised Incentive Fee
Realised Incentive Fees are payable on the realised gains from the sale or other realisation of International Investments at 20% of the
outperformance (since the last valuation date) against the higher of, a benchmark of 12% p.a. after tax, relative to the most recent
31 March valuation, or cost. A Realised Incentive Fee of $122.1 million in relation to the sale of Tilt Renewables is expected to be
payable at 31 March 2022 (30 September 2020: nil, 31 March 2021: nil).
6 months ended
30 September 2021
$Millions
Unaudited
6 months ended
30 September 2020
$Millions
Unaudited
Year ended
31 March 2021
$Millions
Audited
International Portfolio Incentive Fees
ASIP(0.7)-1.6
CDC Data Centres3.5 43.5 140.2
Longroad Energy4.5 -(8.0)
RetireAustralia2.0 (2.5)3.2
Tilt Renewables122.1 16.7 86.1
131.4 57.7 223.1
All Incentive Fees accrued at 30 September 2021 relate to the Annual and Realised Incentive Fee assessment.
Payment of Annual Incentive Fees
Any Annual Incentive Fee calculated in respect of a Financial Year is earned and paid in three annual instalments, with the second and
third instalments only being earned and payable if, at each relevant assessment date, the fair value of the relevant assets (including
distributions, if any) exceeds or is equal to the fair value as at the date for which the Incentive Fee was first calculated.
40
19 Contingent liabilities and legal matters
The Company and certain wholly owned subsidiaries are guarantors of the bank debt facilities of Infratil Finance Limited under a Deed
of Negative Pledge, Guarantee and Subordination and the Company is a guarantor to certain obligations of subsidiary companies.
Shareholder support for Wellington International Airport
On 20 May 2020 Infratil and Wellington City Council entered into a shareholder support agreement with Wellington International Airport
to enable the airport to access to up to $75.0 million of additional funding by way of non-participating redeemable preference shares,
if required. Infratil's contribution to this funding is proportional to its 66% ownership interest.
Shareholder support for RetireAustralia
On 12 May 2020 Infratil and consortium partner the New Zealand Superannuation Fund entered into a shareholder support agreement
with RetireAustralia to enable RetireAustralia to access to up to A$20.0 million of additional equity funding, if required. Infratil's
contribution to this funding is proportional to its 50% ownership interest.
20 Events after balance date
Acquisition of Auckland Radiology Group
On 4 October 2021 Infratil and Pacific Radiology executed an agreement to partner with Auckland Radiology Group. Following the
acquisition Infratil will own at least 50.1% of the combined entity which owns both Pacific Radiology and Auckland Radiology Group.
The transaction was completed on 30 October 2021 and involved an equity contribution from Infratil of $62.7 million.
Dividend
On 11 November 2021, the Directors approved a partially imputed interim dividend of 6.50 cents per share to holders of fully paid
ordinary shares to be paid on 23 December 2021.
© 2021 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,
a private English company limited by guarantee. All rights reserved.
Independent Review Report
To the shareholders of Infratil Limited
Report on the condensed consolidated half year financial statements
Conclusion
Based on our review, nothing has come to our
attention that causes us to believe that the
condensed consolidated half year financial
statements on pages 2 to 40 do not:
i. present fairly in all material respects the
Group’s financial position as at 30
September 2021 and its financial
performance and cash flows for the six-
month period ended on that date; and
ii. comply with NZ IAS 34 Interim Financial
Reporting.
We have completed a review of the accompanying
condensed consolidated half year financial
statements which comprise:
— the consolidated statement of financial position
as at 30 September 2021;
— the consolidated statements of comprehensive
income, changes in equity and cash flows for the
six-month period then ended; and
— notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for conclusion
A review of condensed consolidated half year financial statements in accordance with NZ SRE 2410 Review of
Financial Statements Performed by the Independent Auditor of the Entity (“NZ SRE 2410”) is a limited assurance
engagement. The auditor performs procedures, consisting of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures.
As the auditor of Infratil Limited, NZ SRE 2410 requires that we comply with the ethical requirements relevant to
the audit of the annual financial statements.
Our firm has also provided other services to the group in relation to taxation services, audit of regulatory
disclosures and other assurance engagements. Subject to certain restrictions, partners and employees of our firm
may also deal with the group on normal terms within the ordinary course of trading activities of the business of
the group. These matters have not impaired our independence as reviewer of the group. The firm has no other
relationship with, or interest in, the group.
Use of this Independent Review Report
This report is made solely to the shareholders as a body. Our review work has been undertaken so that we might
state to the shareholders those matters we are required to state to them in the Independent Review Report and
for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the shareholders as a body for our review work, this report, or any of the opinions we have formed.
41
42
2
Responsibilities of the Directors for the condensed consolidated half
year financial statements
The Directors, on behalf of the group, are responsible for:
— the preparation and fair presentation of the condensed consolidated half year financial statements in
accordance with NZ IAS 34 Interim Financial Reporting;
— implementing necessary internal control to enable the preparation of condensed consolidated half year
financial statements that are fairly presented and free from material misstatement, whether due to fraud or
error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the condensed consolidated
half year financial statements
Our responsibility is to express a conclusion on the condensed consolidated half year financial statements based
on our review. We conducted our review in accordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude
whether anything has come to our attention that causes us to believe that the condensed consolidated half year
financial statements are not prepared, in all material respects, in accordance with NZ IAS 34 Interim Financial
Reporting.
The procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand). Accordingly we do not express an audit
opinion on these condensed consolidated half year financial statements.
This description forms part of our Independent Review Report.
KPMG
Wellington
11 November 2021
43
Directors
Mark Tume (Chairman)
Jason Boyes
Alison Gerry
Paul Gough
Kirsty Mactaggart
Catherine Savage
Peter Springford
Company Secretary
Nick Lough
Registered Office - New Zealand
5 Market Lane
PO Box 320
Wellington
Telephone: +64 4 473 3663
Internet address: www.infratil.com
Registered Office - Australia
C/- H.R.L. Morrison & Co Private Markets Pty Ltd
Level 31
60 Martin Place
Sydney NSW 2000
Telephone: +64 4 473 3663
Manager
Morrison & Co Infrastructure Management Limited
5 Market Lane
PO Box 1395
Wellington
Telephone: +64 4 473 2399
Facsimile: +64 4 473 2388
Internet address: www.hrlmorrison.com
Share Registrar - New Zealand
Link Market Services
Level 30, PwC Tower
15 Customs Street West
PO Box 91976
Auckland
Telephone: +64 9 375 5998
Email: enquiries@linkmarketservices.co.nz
Internet address: www.linkmarketservices.co.nz
Share Registrar - Australia
Link Market Services
Level 12
680 George Street
Sydney NSW 2000
Telephone: +61 2 8280 7100
Email: registrars@linkmarketservices.com.au
Internet address: www.linkmarketservices.com.au
Auditor
KPMG
10 Customhouse Quay
PO Box 996
Wellington
Directory
---
6 months
ended
30 September
2021
6 months
ended
30 September
2020
Year
ended
31 March
2021
Notes
$000 $000 $000
Unaudited Unaudited Audited
Dividends received from subsidiary companies-- 115,000
Subvention income---
Operating revenue162,365 79,904 274,267
Total revenue162,365 79,904 389,267
Directors' fees 4570 492 1,012
Management and other fees 12 159,867 77,829 269,786
Other operating expenses 48,198 2,670 3,957
Total operating expenditure168,635 80,991 274,755
Operating surplus/(loss) before financing, derivatives, realisations and impairments(6,270)(1,087) 114,512
Net gain/(loss) on foreign exchange and derivatives 1,477 1,070 2,633
Net realisations, revaluations and (impairments)---
Interest income59,155 60,398 124,257
Interest expense(30,749)(31,118) (61,520)
Net financing expense28,406 29,280 62,737
Net surplus/(loss) before taxation 23,613 29,263 179,882
Taxation credit/(expense) 6(3,945)(1,631)(5,484)
Net surplus/(loss) for the period 19,668 27,632 174,398
Total comprehensive income for the period 19,668 27,632 174,398
The accompanying notes form part of these financial statements.
Infratil Limited
Statement of Comprehensive Income
For the 6 months ended 30 September 2021
Page 1 of 11
DocuSign Envelope ID: 4BA36531-ADBC-4954-A452-F1E672152B68
Capital Other reserves Retained
earnings
Total
Notes
$000 $000 $000 $000
For the 6 months ended 30 September 2021
Unaudited Unaudited Unaudited Unaudited
Balance as at 1 April 2021
1,041,742-99,1851,140,927
Total comprehensive income for the period
Net surplus for the period
--19,66819,668
Total other comprehensive income
----
Total comprehensive income for the period
--19,66819,668
Contributions by and distributions to owners
Shares issued
----
Dividends to equity holders
3
-- (83,097)(83,097)
Total contributions by and distributions to owners
-- (83,097)(83,097)
1,041,742-35,7561,077,498
Balance at 30 September 2021
1,041,742-35,756 1,077,498
For the 6 months ended 30 September 2020
Unaudited Unaudited Unaudited Unaudited
Balance as at 1 April 2020
747,615-42,481790,096
Total comprehensive income for the period
Net surplus for the period
--27,63227,632
Total other comprehensive income
----
Total comprehensive income for the period
--27,63227,632
Contributions by and distributions to owners
Shares issued
294,213--294,213
Dividends to equity holders
3
-- (72,497)(72,497)
Total contributions by and distributions to owners
294,213- (72,497)221,716
Balance at 30 September 2020
1,041,828-(2,384) 1,039,444
For the year ended 31 March 2021
Audited Audited Audited Audited
Balance as at 1 April 2020
747,615-42,481790,096
Total comprehensive income for the year
Net surplus for the year
-- 174,398174,398
Total other comprehensive income
----
Total comprehensive income for the year
-- 174,398174,398
Contributions by and distributions to owners
Shares issued
294,127--294,127
Dividends to equity holders
3
-- (117,694)(117,694)
Total contributions by and distributions to owners
294,127- (117,694)176,433
Balance at 31 March 2021
1,041,742-99,185 1,140,927
The accompanying notes form part of these financial statements.
Infratil Limited
Statement of Changes in Equity
Page 2 of 11
DocuSign Envelope ID: 4BA36531-ADBC-4954-A452-F1E672152B68
30 September
2021
30 September
2020
31 March
2021
Notes
$000 $000 $000
Unaudited Unaudited Audited
Cash and cash equivalents---
Prepayments and sundry receivables1,4282,2144,987
Income tax receivable---
Advances to subsidiary companies 122,033,6171,893,644 2,081,057
Current assets2,035,0451,895,858 2,086,044
Deferred tax14,96819,09516,537
Investments 12585,529585,529 585,529
Non-current assets600,497604,624 602,066
Total assets2,635,5422,500,482 2,688,110
Bond interest payable3,8624,0764,043
Accounts payable6,0503,9275,050
Accruals and other liabilities6,2671,1603,086
Infrastructure bonds 793,36693,72193,842
Derivative financial instruments 8683-2,158
Loans from Group companies 12153,897153,897 153,897
Total current liabilities264,125256,781 262,076
Deferred tax 6---
Infrastructure bonds 71,062,002968,619 1,053,190
Perpetual Infratil Infrastructure bonds 7231,917231,917 231,917
Derivative financial instruments 8-3,721-
Non-current liabilities1,293,9191,204,257 1,285,107
Attributable to shareholders of the Company1,077,4981,039,444 1,140,927
Total equity1,077,4981,039,444 1,140,927
Total equity and liabilities2,635,5422,500,482 2,688,110
Approved on behalf of the Board on 11 November 2021
Director Director
The accompanying notes form part of these financial statements.
As at 30 September 2021
Infratil Limited
Statement of Financial Position
Page 3 of 11
DocuSign Envelope ID: 4BA36531-ADBC-4954-A452-F1E672152B68
6 months
ended
30 September
2021
6 months
ended
30 September
2020
Year
ended
31 March
2021
Notes
$000 $000 $000
Unaudited Unaudited Audited
Cash flows from operating activities
Cash was provided from:
Dividends received from subsidiary companies
-- 115,000
Subvention receipt
---
Interest received
59,15660,398 124,257
Operating revenue receipts
162,36579,905 274,238
221,521140,303 513,495
Cash was dispersed to:
Interest paid
(29,898)(30,529) (59,918)
Payments to suppliers
(160,894)(81,268) (274,727)
Taxation paid
(2,375)(1,678)(2,974)
(193,167)(113,475) (337,619)
Net cash flows from operating activities
9
28,35426,828 175,876
Cash flows from investing activities
Cash was provided from:
Net movement in subsidiary company loan
47,439--
47,439--
Cash was dispersed to:
Net movement in subsidiary company loan
-(248,543) (435,956)
-(248,543) (435,956)
Net cash flows from investing activities
47,439(248,543) (435,956)
Cash flows from financing activities
Cash was provided from:
Proceeds from issue of shares
-294,212 294,127
Issue of bonds
102,403-84,678
102,403294,212 378,805
Cash was dispersed to:
Repayment of bonds
(93,883)--
Infrastructure bond issue expenses(1,216)-(1,031)
Repurchase of shares
---
Dividends paid
3
(83,097)(72,497) (117,694)
(178,196)(72,497) (118,725)
Net cash flows from financing activities
(75,793)221,715 260,080
Net cash movement
---
Cash balances at beginning of period
---
Cash balances at period end
---
The accompanying notes form part of these financial statements.
Infratil Limited
Statement of Cash Flows
Note some cash flows above are directed through an intercompany account. The cash flow statement above has been prepared on the assumption that these
transactions are equivalent to cash in order to present the total cash flows of the entity.
For the 6 months ended 30 September 2021
Page 4 of 11
DocuSign Envelope ID: 4BA36531-ADBC-4954-A452-F1E672152B68
(1) Accounting policies
Reporting entity
Basis of preparation
(2) Nature of business
(3) Infratil shares and dividends
6 months
ended
30 September
2021
6 months
ended
30 September
2020
Year
ended
31 March
2021
UnauditedUnaudited Audited
Total issued capital at the beginning of the period722,952,533659,678,837 659,678,837
Movements in issued and fully paid ordinary shares during the period:
New shares issued-63,273,696 63,273,696
New shares issued under dividend reinvestment plan---
Treasury Stock reissued under dividend reinvestment plan---
Conversion of executive redeemable shares---
Share buyback---
Total issued capital at the end of the period
722,952,533722,952,533 722,952,533
Dividends paid on ordinary shares
Dividends declared and paid by the Company for the period
were as follows:
6 months
ended
30 September
2021
6 months
ended
30 September
2020
Year
ended
31 March
2021
6 months
ended
30 September
2021
6 months
ended
30 September
2020
Year
ended
31 March
2021
Unaudited Unaudited
Audited
Unaudited Unaudited
Audited
cpscpscps
$000
$000$000
Final dividend prior year11.50 11.00 11.00 83,097 72,497 72,565
Interim dividend paid current year
-
-6.25 --45,185
Dividends paid on ordinary shares11.50 11.00 17.25 83,097 72,497 117,750
The Company is the ultimate parent company of the Infratil Group, owning infrastructure and utility businesses and investments in New Zealand, Australia, the United
States, the United Kingdom, Europe and Asia. The Company is a limited liability company incorporated and domiciled in New Zealand. The address of its registered
office is 5 Market Lane, Wellington, New Zealand.
Infratil Limited
These unaudited condensed half year financial statements ('half year statements') of Infratil Limited have been prepared in accordance with NZ IAS 34 Interim
Financial Reporting and comply with IAS 34 Interim Financial Reporting. The half year statements have been prepared in accordance with the accounting policies
stated in the published financial statements for the year ended 31 March 2021 and should be read in conjunction with the previous annual report. No changes have
been made from the accounting policies used in the 31 March 2021 annual report which can be obtained from Infratil's registered office or www.infratil.com. The
presentation currency used in the preparation of these financial statements is New Zealand dollars, which is also the Company's functional currency. Comparative
figures have been restated where appropriate to ensure consistency with the current period.
During the comparative period the Company issued new shares to provide additional balance sheet flexibility and to fund growth investments across Infratil’s existing
portfolio companies, as well as providing the opportunity to take advantage of any new investment opportunities that may arise. In total, net proceeds after issue
costs of $294.2 million were raised via an institutional placement and share purchase plan for existing shareholders. All fully paid ordinary shares have equal voting
rights and share equally in dividends and equity. At 30 September 2021 the Group held 1,662,617 shares as Treasury Stock (30 September 2020: 1,662,617, 31 March
2021: 1,662,617).
Infratil Limited ('the Company') is a company domiciled in New Zealand and registered under the Companies Act 1993. The Company is listed on the NZX Main Board
('NZX') and Australian Securities Exchange ('ASX'), and is an FMC Reporting Entity in terms of Part 7 of the Financial Markets Conduct Act 2013.
Notes to the Financial Statements
For the 6 months ended 30 September 2021
Page 5 of 11
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(4) Other operating expenses
6 months
ended
30 September
2021
6 months
ended
30 September
2020
Year
ended
31 March
2021
UnauditedUnaudited
Audited
$000$000
$000
Fees paid to the Company auditor161 266 256
Directors’ fees
570 492 1,012
Administration and other corporate costs
8,037 2,404 3,701
Total other operating expenses
8,768 3,162 4,969
(5) Net investment realisations and (impairments)
(6) Taxation
6 months
ended
30 September
2021
6 months
ended
30 September
2020
Year
ended
31 March
2021
UnauditedUnaudited
Audited
$000$000
$000
Surplus/(loss) before taxation
23,61329,263 179,882
Taxation on the surplus/(loss) for the period @ 28% tax rate
6,6128,19450,367
Plus/(less) taxation adjustments:
Exempt dividends
-- (32,200)
Tax losses not recognised/(utilised)
(4,330)--
Subvention payment
---
Losses offset within Group
-(8,166) (17,540)
Timing differences not recognised
---
(Under)/over provision in prior periods
1,6651,5904,741
Other permanent differences
(2)13116
Taxation expense/(credit)
3,9451,6315,484
Current taxation
--2,973
Deferred taxation
3,9451,6312,511
3,9451,6315,484
There was no income tax recognised in other comprehensive income during the period (30 September 2020: nil, 31 March 2021: nil)
At 30 September 2021 the Company reviewed the carrying amounts of loans to Infratil Group companies to determine whether there is any indication that those
assets have suffered an impairment loss. The recoverable amount of the asset was estimated by reference to the counterparties' net asset position and ability to repay
loans out of operating cash flows in order to determine the extent of any impairment loss. Management also considered the impact of the COVID-19 pandemic and
forecasts for deteriorating global macroeconomic conditions as part of this assessment. As a result the Company did not impair any loans to Infratil Group companies
in the period (30 September 2020: nil, 31 March 2021: nil). These balances are within the Infratil Wholly Owned Group to entities also controlled either directly or
indirectly by Infratil Limited.
Page 6 of 11
DocuSign Envelope ID: 4BA36531-ADBC-4954-A452-F1E672152B68
(7) Infrastructure bonds
6 months
ended
30 September
2021
6 months
ended
30 September
2020
Year
ended
31 March
2021
UnauditedUnaudited
Audited
$000$000
$000
Balance at the beginning of the period
1,378,949 1,293,188 1,293,188
Issued during the period102,403-84,678
Exchanged during the period(54,799)--
Matured during the period(39,084)--
Purchased by Infratil during the period---
Bond issue costs capitalised during the period(1,216)-(1,031)
Bond issue costs amortised during the period1,1571,0692,163
Issue premium amortised during the year(125)-(49)
Balance at the end of the period1,387,2851,294,2571,378,949
Current93,36693,72193,842
Non-current fixed coupon 940,126846,904931,395
Non-current variable coupon121,876121,715121,795
Non-current perpetual variable coupon231,917231,917231,917
Balance at the end of the period1,387,2851,294,2571,378,949
Repayment terms and interest rates:
IFT220 maturing in June 2021, 4.90% p.a. fixed coupon rate-93,88393,883
IFT190 maturing in June 2022, 6.85% p.a. fixed coupon rate93,69693,69693,696
IFT240 maturing in December 2022, 5.65% p.a. fixed coupon rate100,000100,000100,000
IFT210 maturing in September 2023, 5.25% p.a. fixed coupon rate122,104122,104122,104
IFT230 maturing in June 2024, 5.50% p.a. fixed coupon rate56,11756,11756,117
IFT260 maturing in December 2024, 4.75% p.a. fixed coupon rate100,000100,000100,000
IFT250 maturing in June 2025, 6.15% p.a. fixed coupon rate43,41343,41343,413
IFT300 maturing in March 2026, 3.35% p.a. fixed coupon rate120,26936,976120,269
IFT280 maturing in December 2026, 3.35% p.a. fixed coupon rate156,279156,279156,279
IFT310 Maturing in December 2027, 3.60% p.a fixed coupon rate102,403--
IFT270 maturing in December 2028, 4.85% p.a. fixed coupon rate until 15 December 2023146,249146,249146,249
IFTHC maturing in December 2029, 2.75% p.a. variable coupon rate reset annually from December 2020123,186123,186123,186
IFTHA Perpetual Infratil infrastructure bonds231,917231,917231,917
less: Bond issue costs capitalised and amortised over term(9,559)(9,563)(9,500)
add: issue premium capitalised and amortised over term1,211-1,336
Balance at the end of the period1,387,2851,294,2571,378,949
Fixed coupon
Perpetual Infratil infrastructure bonds ('PIIBs')
IFTHC bonds
IFT270 bonds
The interest rate of the IFT270 bonds is fixed for the first five years and then reset on 15 December 2023 for a further five years. The interest rate for the IFT270 bonds
for the period from (but excluding) 15 December 2023 until the maturity date will be the sum of the five year swap rate on 15 December 2023 plus a margin of 2.50%
per annum.
Throughout the period the Company complied with all debt covenant requirements as imposed by the bond Supervisor.
At 30 September 2021 the infrastructure bonds (including PIIBs) had a fair value of $1,378.3 million (30 September 2020: $1,250.2 million, 31 March 2021: $1,336.5
million).
The fixed coupon bonds the Company has on issue are at a face value of $1.00 per bond. Interest is payable quarterly on the bonds.
The Company has 231,916,600 (30 September 2020: 231,916,600, 31 March 2021: 231,916,600) PIIBs on issue at a face value of $1.00 per bond. Interest is payable
quarterly on the bonds. For the period to 15 November 2021 the coupon will be fixed at 1.71% per annum (September 2020: 2.67%, March 2021: 1.71%). Thereafter
the rate will be reset annually at 1.5% per annum over the then one year swap rate for quarterly payments, unless Infratil's gearing ratio exceeds certain thresholds, in
which case the margin increases. These infrastructure bonds have no fixed maturity date. No PIIBs (September 2020: nil, March 2021: nil) were repurchased by Infratil
Limited during the period.
The Company has 123,186,000 (30 September 2020: 123,186,000, 31 March 2021: 123,186,000) IFTHCs on issue at a face value of $1.00 per bond. Interest is payable
quarterly on the bonds. For the period to 15 December 2021 the coupon is fixed at 2.75% per annum (September 2020: 3.50%, March 2021: 2.75%). Thereafter the
rate will be reset annually at 2.5% per annum over the then one year swap rate for quarterly payments.
Page 7 of 11
DocuSign Envelope ID: 4BA36531-ADBC-4954-A452-F1E672152B68
(8) Financial instruments
Interest rates
Fair value hierarchy
(9) Reconciliation of net surplus with cash flow from operating activities
6 months
ended
30 September
2021
6 months
ended
30 September
2020
Year
ended
31 March
2021
UnauditedUnaudited
Audited
$000$000$000
Net surplus/(loss)
19,66827,632 174,398
Add items not involving cash flows
(1,477)(1,070)(2,633)
Amortisation of deferred bond issue costs
1,0321,0732,114
Movements in working capital
Change in receivables and prepayments
3,559(1,046)(3,815)
Change in trade payables
1,000(122)1,001
Change in accruals and other liabilities
3,0024072,300
Change in taxation and deferred tax
1,570(46)2,511
Net cash inflow/(outflow) from operating activities
28,35426,828 175,876
(10) Commitments
There are no outstanding commitments (30 September 2020: nil, 31 March 2021: nil).
(11) Contingent liabilities
Interest rate risk is the risk of interest rate volatility negatively affecting the Company's interest expense cash flow and earnings. The Company mitigates this risk by
issuing borrowings at fixed interest rates or entering into Interest Rate Swaps to convert floating rate exposures to fixed rate exposure. Borrowings issued at fixed
rates expose the Company to fair value interest rate risk which is managed by the interest rate profile and hedging.
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
The Company has interest rate swap derivatives that are classified as Level 2 and have a fair value liability of $0.7 million at 30 September 2021 (30 September 2020:
$3.7 million, 31 March 2021: $2.2 million).
The Company and certain wholly owned subsidiaries are guarantors of the bank debt facilities of Infratil Finance Limited under a Deed of Negative Pledge, Guarantee
and Subordination and the Company is a guarantor to certain obligations of subsidiary companies.
• Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).
Movement in financial derivatives taken to the profit or loss
• Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or
indirectly (that is, derived from prices) (level 2)
The analyses of financial instruments carried at fair value, by valuation method is below. The different levels have been defined as follows:
The Company has a contingent liability under the international fund management agreement with Morrison & Co International Limited in the event that the Group
sells its international assets, or valuation of the assets exceeds the performance thresholds set out in the international fund management agreement.
Page 8 of 11
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(12) Related parties
The Company has the following significant loans and investments to/(from)/in its subsidiaries:
6 months
ended
30 September
2021
6 months
ended
30 September
2020
Year
ended
31 March
2021
30 September
2021
30 September
2020
31 March
2021
Related party
UnauditedUnaudited
Audited
UnauditedUnaudited
Audited
$000$000$000$000$000$000
Advances
Infratil Finance
59,15460,397 124,2562,033,6171,893,644 2,081,057
Aotea Energy Holdings Limited
---(153,897)(153,897) (153,897)
Investments in
Infratil Investments Limited
87,66587,66587,665
Infratil 1998 Limited
12,00012,00012,000
Infratil Finance Limited
153,897153,897 153,897
Infratil No. 1 Limited
78,02478,02478,024
Infratil PPP Limited
5,9425,9425,942
Infratil No. 5 Limited
248,001248,001 248,001
6 months
ended
30 September
2021
6 months
ended
30 September
2020
Year
ended
31 March
2021
UnauditedUnaudited
Audited
$000$000$000
Management fees
27,58419,32345,074
International Portfolio Incentive fees
131,47757,700 223,100
8068061,612
Total management and other fees
159,86777,829 269,786
Morrison & Co Infrastructure Management Limited ('MCIM') is the management company for the Company and receives management fees in accordance with the
applicable management agreement. MCIM is owned by H.R.L. Morrison & Co Group Limited Partnership ('MCO'). Mr Bogoievski was a director of Infratil until 31
March 2021 and is a director and Chief Executive Officer of MCO. Mr Boyes assumed the role of Infratil Chief Executive Officer from 1 April 2021. Entities associated
with Mr Bogoievski and Mr Boyes also have a beneficial interest in MCO.
Interest income
Intercompany (loan)/advance/investment at
carrying value
Certain Infratil Directors have relevant interests in a number of companies with which Infratil has transactions in the normal course of business. A number of key
management personnel are also Directors of Group subsidiary companies and associates.
Management and other fees paid by the Company to MCIM, MCO or its related parties during the year were:
Financial management, accounting, treasury, compliance and administrative services
Page 9 of 11
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(13) Events after balance date
Acquisition of Auckland Radiology Group
Dividend
On 11 November 2021, the Directors approved a partially imputed interim dividend of 6.50 cents per share to holders of fully paid ordinary shares to be paid on 23
December 2021.
On 4 October 2021 Infratil and Pacific Radiology executed an agreement to partner with Auckland Radiology Group. Following the acquisition Infratil will own at least
50.1% of the combined entity which owns both Pacific Radiology and Auckland Radiology Group. The transaction was completed on 30 October 2021 and involved an
equity contribution from Infratil of $62.7 million.
Page 10 of 11
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© 2021 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a
private English company limited by guarantee. All rights reserved.
Independent Review Report
To the shareholders of Infratil Limited
Report on the condensed half year financial statements
Conclusion
Based on our review, nothing has come to our
attention that causes us to believe that the
condensed half year financial statements on pages 1
to 10 do not:
i. present fairly in all material respects the
company’s financial position as at 30 September
2021 and its financial performance and cash
flows for the six-month period ended on that
date; and
ii. comply with NZ IAS 34 Interim Financial
Reporting.
We have completed a review of the accompanying
condensed half year financial statements which
comprise:
— the statement of financial position as at 30
September 2021;
— the statements of comprehensive income,
changes in equity and cash flows for the six-
month period then ended; and
— notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for conclusion
A review of condensed half year financial statements in accordance with NZ SRE 2410 Review of Financial
Statements Performed by the Independent Auditor of the Entity (“NZ SRE 2410”) is a limited assurance
engagement. The auditor performs procedures, consisting of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures.
As the auditor of Infratil Limited, NZ SRE 2410 requires that we comply with the ethical requirements relevant to
the audit of the annual financial statements.
Other than in our capacity as auditor we have no relationship with, or interests in, the company.
Use of this Independent Review Report
This report is made solely to the shareholders as a body. Our review work has been undertaken so that we might
state to the shareholders those matters we are required to state to them in the Independent Review Report and
for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the shareholders as a body for our review work, this report, or any of the opinions we have formed.
Responsibilities of the Directors for the condensed half year financial
statements
The Directors, on behalf of the company, are responsible for:
— the preparation and fair presentation of the condensed half year financial statements in accordance with NZ
IAS 34 Interim Financial Reporting;
DocuSign Envelope ID: 4BA36531-ADBC-4954-A452-F1E672152B68
2
— implementing necessary internal control to enable the preparation of condensed half year financial statements
that are fairly presented and free from material misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the condensed half year
financial statements
Our responsibility is to express a conclusion on the condensed half year financial statements based on our review.
We conducted our review in accordance with NZ SRE 2410. NZ SRE 2410 requires us to conclude whether
anything has come to our attention that causes us to believe that the condensed half year financial statements
are not prepared, in all material respects, in accordance with NZ IAS 34 Interim Financial Reporting.
The procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand). Accordingly we do not express an audit
opinion on these condensed half year financial statements.
This description forms part of our Independent Review Report.
KPMG
Wellington
11 November 2021
DocuSign Envelope ID: 4BA36531-ADBC-4954-A452-F1E672152B68
Directors
Mark Tume (Chairman)
Jason Boyes
Alison Gerry
Paul Gough
Kirsty Mactaggart
Catherine Savage
Peter Springford
Company Secretary
Nick Lough
Registered Office - New ZealandRegistered Office - Australia
5 Market LaneC/- H.R.L. Morrison & Co Private Markets Pty Ltd
PO Box 320 Level 31
Wellington60 Martin Place
Telephone: +64 4 473 3663Sydney NSW 200
Internet address: www.infratil.comTelephone: +64 4 473 3663
Manager
Morrison & Co Infrastructure Management
5 Market Lane
PO Box 1395
Wellington
Telephone: +64 4 473 2399
Facsimile: +64 4 473 2388
Internet address: www.hrlmorrison.com
Share Registrar - New ZealandShare Registrar - Australia
Link Market ServicesLink Market Services
Level 11, Deloitte HouseLevel 12
80 Queen Street680 George Street
PO Box 91976Sydney NSW 2000
AucklandTelephone: +61 2 8280 7100
Telephone: +64 9 375 5998E-mail: registrars@linkmarketservices.com.au
E-mail: enquiries@linkmarketservices.co.nzInternet address: www.linkmarketservices.com.au
Internet address: www.linkmarketservices.co.nz
Auditor
KPMG
10 Customhouse Quay
PO Box 996
Wellington
Directory
Page 11 of 11
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---
Results announcement
Results for announcement to the market
Name of issuer Infratil Limited
Reporting Period 6 months to 30 September 2021
Previous Reporting Period 6 months to 30 September 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing operations $541,100 121.7%
Total Revenue $985,000 48.8%
Net profit/(loss) from continuing operations $136,400 478.0%
Total net profit/(loss) $1,130,337 1,883.0%
Interim/Final Dividend
Amount per Quoted Equity Security $0.06500000
Imputed amount per Quoted Equity Security $0.02527850
Record Date 6 December 2021
Dividend Payment Date 23 December 2021
Current period Prior comparable
period
Net tangible assets per Quoted Equity
Security
$3.65 $3.15
A brief explanation of any of the figures
above necessary to enable the figures to be
understood
This Results announcement should be read in
conjunction with the attached unaudited
condensed consolidated half year financial
statements for the 6 months ended 30 September
2021 (“Interim Financial Statements”). More
detailed commentary on the operations of the
Group over the period has been provided in the
form of the Infratil Interim Results Presentation
and Interim Report, which have been released
alongside the Interim Financial Statements.
Authority for this announcement
Name of person
authorised to make this
announcement
Phillippa Harford, Chief Financial Officer
Contact person for this announcement Phillippa Harford, Chief Financial Officer
Contact phone number 64 4 473 3663
Contact email address Phillippa.Harford@hrlmorrison.com
Date of release through MAP
12 November 2021
Unaudited financial statements accompany this announcement.
---
Distribution Notice
.
Section 1: Issuer information
Name of issuer Infratil Limited
Financial product name/description Ordinary Shares
NZX ticker code IFT
ISIN (If unknown, check on NZX
website)
NZIFTE0003S3 / ASX IFT
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies
Record date 6 December 2021
Ex-Date (one business day before the
Record Date)
3 December 2021
Payment date (and allotment date for
DRP)
23 December 2021
Total monies associated with the
distribution
1
$46,991,915
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.09027850
Total cash distribution
3
$0.06500000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount $0.01147092
Section 3: Imputation credits and Resident Withholding Tax
4
Is the distribution imputed Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
28%
Imputation tax credits per financial
product
$0.02527850
Resident Withholding Tax per
financial product
$0.00451341
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT. This
should include any excluded amounts, where applicable to listed PIEs.
4
The imputation credits plus the RWT amount is 33% of the gross distribution for the purposes of this form. If the distribution is fully
imputed the imputation credits will be 28% of the gross distribution with remaining 5% being RWT. This does not constitute advice as
to whether or not RWT needs to be withheld.
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
Nil
Start date and end date for
determining market price for DRP
8 December 2021 21 December 2021
Date strike price to be announced (if
not available at this time)
22 December 2021
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
Bought on market and/or new issue
DRP strike price per financial product
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
7 December 2021
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
Phillippa Harford, Chief Financial Officer
Contact person for this
announcement
Phillippa Harford, Chief Financial Officer
Contact phone number 64 4 473 3663
Contact email address Phillippa.Harford@hrlmorrison.com
Date of release through MAP
12 November 2021
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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