Infratil Full Year Results for the year ended 31 March 2024
Infratil Limited 5 Market Lane, PO Box 320, Wellington, New Zealand Tel +64-4-473 3663 www.infratil.com
21 May 2024
Infratil exceeds guidance with strong FY2024 result and outlines substantial
investment for future growth
Infratil today announced a strong result for the year ended 31 March 2024, with Proportionate
EBITDAF exceeding guidance. Alongside the result Infratil has provided an update on the
significant investment in growth underway across the portfolio and accelerating into the next
financial year.
Infratil CEO Jason Boyes said, “we are pleased to report that as we celebrate 30-years of
Infratil we continued to build on our legacy of success, delivering a strong financial result and
making significant strides in growing our portfolio. While we celebrate these achievements,
we recognise that our approach is designed for sustainable, long-term growth, not overnight
success, and therefore this year’s result is the culmination of many years work.”
Proportionate EBITDAF was $864.1 million – a 63% increase on the $531.5 million from the
same period the previous year. “While a substantial portion of this increase can be attributed
to the higher ownership stake in One NZ since June 2023, even after adjusting for this change,
growth stood at an impressive 15.5%. This earnings expansion underscores the strong
performance across the portfolio's operational businesses,” Mr. Boyes said.
The net parent surplus from continuing operations was $854.0 million, up from $643.1 million
in the prior year. The result included a $1,075 million revaluation of Infratil’s initial 49.95%
stake in One NZ, following the acquisition of a further 49.95% stake in June this year.
Mr. Boyes said earnings growth in all our key operating businesses was accompanied by
significant progress in a number of key areas.
“CDC reinforced its position as a leading owner, operator, and developer of highly secure,
sovereign, and connected large-scale data centres in Australia and New Zealand. Responding
to a surge in demand for data centre capacity, CDC delivered a record 200MW
1
in new
contracted capacity, the largest ever addition in 12 months, while also achieving over 25%
earnings growth.”
“With eight data centres under construction across Sydney, Canberra, Melbourne, and
Auckland, accelerating development activity is a major priority. The transformative shift in
customer demand has expanded CDC’s development pipeline by over 400MW in FY2024, a
significant increase from a year ago,” Mr. Boyes said.
One NZ’s normalised EBITDAF of NZ$600 million was a 13.7% increase from the prior year
and at the mid-point of guidance, reflected a strong performance despite challenging
economic conditions. Growth was driven through Consumer Mobile and Wholesale, alongside
careful cost management. The Enterprise side of the business has been challenging with
downward pressure on connections and revenue, as both public and private sector Enterprise
customers downsize and look for cost savings in the current economic environment.
“Pleasingly, one year after its launch, the One NZ brand continues to be well-received, with
key metrics surpassing those of the former Vodafone New Zealand brand. Metrics such as
1
Including reservations and rights of first refusal
Infratil Limited 5 Market Lane, PO Box 320, Wellington, New Zealand Tel +64-4-473 3663 www.infratil.com
brand awareness and non-customer consideration are tracking ahead of expectations,
indicating strong public reception and confidence in the rebranding strategy,” Mr. Boyes said.
Longroad Energy delivered EBITDAF of US$56 million, up US$24 million from the prior period,
supported by 209MW
2
of projects commencing operations and the completion of restoration
works at Prospero 1 and 2 in Texas.
Longroad also reached financial close and began construction on two of its largest projects:
Sun Streams 4, a 377MW solar and 300MW/1200MWh battery storage project, and Serrano,
a 220MW solar and 214MW/855MWh battery storage project, both in Arizona.
Mr Boyes highlighted that “these projects will power over 180,000 North American homes,
with their output purchased by Arizona Public Service via 20-year power purchase
agreements, helping to support system reliability during Arizona’s hot summer months. To
illustrate the scale of just one of these projects, the Sun Streams 4 project will house almost
800,000 solar panels covering over 3,100 acres."
Gurīn Energy received conditional approval to import 300MW of non-intermittent, low-carbon
power into Singapore, one of five approvals by the Indonesian and Singapore governments to
establish a green electricity trading corridor. The Vanda project, planned on the Riau Islands,
will feature 2,000MW of solar photovoltaic capacity and 4,400MWh of battery storage, making
it one of the world's largest planned projects.
In the Philippines, construction is underway on Gurīn’s 76MW Palauig Solar Power Plant in
Zambales Province. This 80-hectare solar farm will deploy up to 136,000 energy-efficient solar
panels and will be Gurīn’s first project to reach commercial operations. A second 38MW
project in the Philippines reached its final investment decision in April 2024 and is expected
to begin construction shortly.
Galileo has successfully sold its first projects, including a pipeline of 800MW of projects from
a joint venture in Northern Europe and 140MW of projects in Italy from its own pipeline.
Separately, Galileo has signed an agreement to sell its shareholding in Enviria, a leading solar
PV rooftop business in the industrial and commercial market in Germany. All three
transactions were undertaken with major international investors active in the energy transition
sector.
Manawa Energy’s financial results released reflect a year of solid performance. Total
generation of 1,901GWh was broadly consistent with the previous year's 1,917GWh, despite
a larger planned outage programme. EBITDAF from continuing operations stood at $145
million, up from $137 million in the prior year. These results demonstrate an impressive ability
to maintain operational efficiency and reliability while supporting a robust asset investment
programme.
The Healthcare sector, a relatively new area for Infratil, is growing within the portfolio. RHCNZ
Medical Imaging in New Zealand delivered a strong financial result with scan volumes up 3.7%
to over 1 million and revenue up 10.4% to $340.6 million.
“One of RHCNZ’s key strategic priorities is to be the first choice for referrers and patients in
New Zealand, while enhancing medical imaging access to all New Zealanders. RHCNZ’s
commitment to this strategy was enhanced during the year as a result of ongoing geographic
2
Excludes 307MW from repowering Milford 1 & 2
Infratil Limited 5 Market Lane, PO Box 320, Wellington, New Zealand Tel +64-4-473 3663 www.infratil.com
expansion - with new clinics opening in Papamoa and Whangarei, and with expansions to
existing services in Invercargill and Paraparaumu,” Mr. Boyes said.
Our Australian diagnostic imaging business, Qscan, showed solid improvement in both
financial and operational performance driven by operational efficiencies, new technological
initiatives, and alongside a recovery in the radiology market. 2024 saw the opening of three
greenfield sites in Maroochydore, Newstead and Tweed as well as multiple brownfield
expansions.
RetireAustralia had a record year with 408 resale settlements generating cash flows of A$78
million combined with 146 new unit settlements, with first sale proceeds of A$124 million.
Strong demand is being experienced across the portfolio with waitlists in place for 24 of 29
villages and occupancy remaining high at over 96%, compared to the industry benchmark of
89%.
Over the year Wellington Airport hosted 5.5 million passengers, nearly 200,000 more than the
previous year. This rebound reflects a broader trend of renewed interest in travel and a signal
that the aviation industry is steadily moving beyond the disruptions caused by the Covid-19
pandemic. This momentum has also translated into a significant increase in earnings, with
EBITDAF reaching $107 million, a 19.5% increase from the previous year.
Committed to integrating sustainability
Infratil was proud to be the first financial institution in New Zealand to achieve SBTi (Science
Based Targets initiative) validation for our climate targets. This achievement signifies our
credible commitment to climate action.
During the year, we published our inaugural sustainability report, a comprehensive document
outlining our refreshed sustainability strategy, key environmental, social, and corporate
governance issues, emissions footprint, and illustrative case studies from our portfolio.
Additionally, we released our inaugural Climate-Related Disclosures (‘CRD’), aligning these
voluntary disclosures as closely as possible with the mandatory Aotearoa New Zealand
Climate Standards.
Looking ahead, Infratil will publish its FY2024 climate-related disclosures by 31 July, in
compliance with the mandatory Aotearoa New Zealand Climate Standards, along with our
2024 Sustainability Report.
Mr. Boyes highlighted that beyond our reporting, the sector diversity of our portfolio contributes
positively to various aspects of sustainability, from producing renewable energy generation to
the provision of healthcare services and the facilitation of connectivity.
Capital deployment
During the year direct investment by Infratil in its portfolio companies totalled $2,225 million,
primarily driven by the significant investment in One NZ.
The agreement with Brookfield in June to acquire their 49.95% stake in One NZ was a major
highlight, culminating a six-year journey that began before our initial investment in May 2019.
Infratil Limited 5 Market Lane, PO Box 320, Wellington, New Zealand Tel +64-4-473 3663 www.infratil.com
Increasing our ownership in One NZ enhances our flexibility and focus on long-term value
creation.
To support this acquisition, we completed our largest equity raise, securing $935 million at
$9.20 per share. Since the raise, Infratil’s shares have performed strongly, closing at $11.25
yesterday.
As Infratil’s digital infrastructure platform grows globally we have also increased our stake in
UK data centre platform, Kao Data, to a majority holding of 53%. This streamlined ownership
will better support Kao Data’s continued growth.
“Beyond its existing operational sites, Kao Data is targeting further expansion with the
announcement of a new data centre campus in Manchester. Kao Data was recently granted
planning permission for the £350 million facility which when complete will create a leading
infrastructure hub to support Greater Manchester’s fast-growing and diverse technology
ecosystem,” Mr. Boyes said.
In addition to the $2.2 billion of direct investment, Infratil’s share of the capital expenditure
undertaken by its portfolio companies was $1.7 billion. Strong thematic tailwinds continue to
provide valuable opportunities for growth across the portfolio, which has seen significant
growth capex across all key sectors – Digital, Renewables, Healthcare and Airports.
Shareholder returns, final dividend and dividend reinvestment plan
“In terms of our returns to shareholders, we will pay a partially imputed final dividend of 13.0
cents per share, to go with the 7.0 cents per share interim dividend, a 4% increase from the
prior year. Infratil’s share price also rose from $9.20 to $10.89 during the year to 31 March,
with an after-tax return to shareholders over the year of 21.7%, and a return over the last ten
years of 22.0% per annum,” Mr Boyes said.
The dividend reinvestment plan (‘DRP’) will operate for the final dividend, with a 2% discount
applied to the DRP strike price. A copy of the DRP Offer Document is attached.
The timetable for the DRP is:
Event Date
FY2024 Full Year Results release Today
Ex-Date for Dividend 5 June
Record Date
6 June
Last Date to submit a participation notice
7 June
Start date for determining market price for DRP 10 June
End date for determining market price for DRP 21 June
Strike Date 24 June
Share Issue Date/Dividend Payment Date 25 June
Allotment announcement 25 June
In addition to this, Infratil has elected to pay $50.0 million of the third tranche of the FY2022
Infratil Limited 5 Market Lane, PO Box 320, Wellington, New Zealand Tel +64-4-473 3663 www.infratil.com
Annual Incentive Fee by way of issue of shares on 28 May 2024. In accordance with the
Management Agreement, the share issue price will be set at 98 per cent of the weighted
average sale price of all trades of Infratil’s ordinary shares on the NZX on the 5 business days
immediately prior to the issue date of 28 May 2024.
Outlook
“Infratil's current portfolio is heavily weighted towards high-growth digital infrastructure and
renewable energy businesses, with a specific focus on developing these critical assets. Over
80% of our portfolio is invested in these two sectors, which are central to understanding our
outlook,” Mr Boyes said.
“These platforms represent two of the most sought-after asset classes, converging to address
the growing demand for AI and data centres with the essential need for sustainable energy
solutions. As AI development accelerates, the need for robust, scalable data centres powered
by renewable energy becomes increasingly critical. This combination not only enhances
operational efficiency and sustainability but also underscores our commitment to meeting the
evolving demands of this global market.”
“To date, few if any listed investment entities are exposed to both asset classes quite the way
that Infratil is today.”
Mr Boyes highlighted that Infratil retains significant liquidity to support further internal and
external investment opportunities with $820 million of available capacity to fund growth,
including significant undrawn corporate facilities. At 31 March, gearing was 20.0%, up from
9.8% at the prior year.
“As we navigate a period where we are likely to see continued macroeconomic uncertainty,
we remain excited about the investment opportunities within our existing portfolio – which has
long been a feature of Infratil’s investment approach. These opportunities are expected to
surpass our available capital, enabling us to focus on the highest value investments for our
shareholders.”
“As we celebrate 30 years of Infratil it is also timely to thank our shareholders, who in many
cases have been with us for 30 years. Your support, trust, and commitment have been
instrumental in our success. It is because of you that we've been able to continue to invest for
the long-term with confidence. On behalf of the entire Infratil team, thank you for being with
us on this journey. We look forward to a bright future together.”
FY2025 Guidance
FY2025 Proportionate Operational EBITDAF guidance has been set at $980 million to $1,030
million, reflecting the momentum that has been building across the portfolio. This is up 11%
at the midpoint on a strong FY2024 result.
Separately, for FY2025 we have separated out the guidance component for our early-stage
renewables development platforms (Gurīn Energy, Galileo, Mint Renewables), which are
forecasting EBITDAF spend of $80 million to 90 million as they invest in growth over the year.
Infratil Limited 5 Market Lane, PO Box 320, Wellington, New Zealand Tel +64-4-473 3663 www.infratil.com
FY2025 Proportionate capital expenditure guidance has been set at $2.7 billion to $3.1 billion,
up 70% at the midpoint on significant FY2024 investment. This includes Infratil's share of the
capital expenditure of its portfolio companies.
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 on the below link.
https://edge.media-server.com/mmc/p/s5ph9mw4
Enquiries should be directed to:
Mark Flesher
Investor Relations
Email: mark.flesher@infratil.com
About Infratil:
Launched in 1994, Infratil Limited is a New Zealand headquartered, global infrastructure
investment company (NZX: IFT, ASX: IFT). Infratil’s purpose is to invest wisely in ideas that
matter and, in doing so, create long-term value for shareholders. It invests in renewables,
digital infrastructure, healthcare and airports, with operations in New Zealand, Australia,
Europe, Asia and the United States. With group assets currently in excess of NZ$14 billion,
Infratil targets returns to shareholders of 11-15% p.a. over the long-term.
For more information, visit www.infratil.com and LinkedIn.
---
1994
2024
For the year ended 31 March 2024
Infratil Annual Results Announcement
1
Disclaimer
This presentation has been prepared by Infratil Limited (NZ company number 597366, NZX:IFT; ASX:IFT) (the ‘Company’)
To the maximum extent permitted by law, the Company, its affiliates and each of their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents will not be liable (whether in tort
(including negligence) or otherwise) to you or any other person in relation to this presentation.
Information
This presentation contains summary information about the Company and its activities which is current as at the date of this presentation. The information in this presentation is of a general nature and does not purport to
be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in the Company or that would be required in a product disclosure statement under the
Financial Markets Conduct Act 2013 or the Australian Corporations Act 2001 (Cth).
This presentation should be read in conjunction with the Company’s Annual Report for the period ended 31 March 2024, market releases and other periodic and continuous disclosure announcements, which are available
at www.nzx.com, www.asx.com.au or infratil.com/for-investors/.
Not financial product advice
This presentation is for information purposes only and is not financial, legal, tax, investment or other advice or a recommendation to acquire the Company’s securities and has been prepared without taking into account
the objectives, financial situation or needs of prospective investors.
Future Performance
This presentation may contain certain “forward-looking statements” about the Company and the environment in which the Company operates, such as indications of, and guidance on, future earnings, financial position
and performance. Forward-looking information is inherently uncertain and subject to contingencies outside of the Company’s control, and the Company gives no representation, warranty or assurance that actual
outcomes or performance will not materially differ from the forward-looking statements.
Non-GAAP Financial Information
This presentation contains certain financial information and measures that are “non-GAAP financial information” under the FMA Guidance Note on disclosing non-GAAP financial information, "non‐IFRS financial
information" under Regulatory Guide 230: ‘Disclosing non‐IFRS financial information’ published by the Australian Securities and Investments Commission (ASIC) and are not recognised under New Zealand equivalents to
International Financial Reporting Standards (NZ IFRS), Australian Accounting Standards (AAS) or International Financial Reportin g Standards (IFRS). The non-IFRS/GAAP financial information and financial measures
include Proportionate EBITDAF, EBITDAF and EBITDA. The non-IFRS/GAAP financial information and financial measures do not have a standardised meaning prescribed by the NZ IFRS, AAS or IFRS, should not be
viewed in isolation and should not be construed as an alternative to other financial measures determined in accordance with NZ IFRS, AAS or IFRS, and therefore, may not be comparable to similarly titled measures
presented by other entities. Although Infratil believes the non-IFRS/GAAP financial information and financial measures provide useful information to users in measuring the financial performance and condition of Infratil,
you are cautioned not to place undue reliance on any non-IFRS/GAAP financial information or financial measures included in this presentation.
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 acquisition and sale related transaction costs and International Portfolio Incentive Fees. Further information on how Infratil calculates Proportionate EBITDAF can be found in the Appendix.
No part of this presentation may be reproduced or provided to any person or used for any other purpose without express permission.
2
Presenters
PROGRAMME
Full year results announcement
Jason Boyes - Infratil CEOAndrew Carroll - Infratil CFO
PORTFOLIO OVERVIEW & FULL
YEAR HIGHLIGHTS
GROUP FINANCIAL PERFORMANCE
01
02
PORTFOLIO COMPANY UPDATES
03
GUIDANCE & LIQUIDITY
CLOSING REMARKS
04
05
QUESTIONS
06
Section 1
Portfolio overview and full year highlights
4
Infrastructure investment company, focused on investments across digital,
renewables, healthcare and airports
Key assets are CDC, One NZ, Longroad Energy and Wellington Airport, which
make up ~75% of the portfolio based on current independent valuations
CDC and Longroad Energy are key drivers of growth and value creation,
developing new data centres and solar farms at attractive returns
One NZ and Wellington Airport play important roles in our core portfolio,
generating cashflow to support the existing debt and reinvestment into growth
options
A number of other smaller or earlier stage investments, intended to develop
into growth or cashflow generators of the future
Our goal is to achieve shareholder returns of 11–15% per annum on a rolling
10-year basis
Our unique management partnership with Morrison, enables our shareholders
to benefit from Morrison’s extensive global capabilities and networks
We are an infrastructure investment company that actively invests in ideas that matter
Infratil overview – who we are
ENERGY TRANSITION
AGEING POPULATIONGLOBAL MOBILITY
DIGITISATION & CONNECTIVITY
The methods by which we produce,
transport, store and use energy are
undergoing a dramatic, systemic
change
Rising life expectancies and declining
fertility rates have caused an ageing
population in virtually all developed and
most developing societies
Powerful and enduring economic logic
drives interconnectedness in
economies, companies, societies, and
labour forces
Ubiquitous, high-speed, reliable
connectivity underpins almost every
aspect of society
DigitalRenewables
Healthcare
Airports
Our key platforms invest behind major global thematics
5
74%
7%
12%
8%
DigitalRenewablesHealthcareAirports
37.0%
41.0%
15.0%
6.0%
2.0%
AustraliaNew ZealandUnited StatesEuropeAsia
FY24 Proportionate EBITDAF by segment
1
(NZ$m)
Portfolio asset value
2
by geography (NZ$m)
Focus on four high-conviction platforms, across a geographically diverse portfolio of companies
Portfolio composition
AirportsDigital
Renewables
Healthcare
~4% portfolio
~62% portfolio
~22% portfolio~11% portfolio
Stake:Stake:Stake:
Stake:
51.1%
37.3%
95%
40%
73%
57.6%
50.0%
50.3%
66%48.2%
20.0%
52.8%
99.9%
NZ$14.2b
NZ$864m
Notes:
1.Excludes Corporate costs
2.Portfolio asset value represents the independent valuation of Infratil’s equity ownership or book value of its portfolio companies
6
Strong FY24 result despite global and local economic uncertainty, strong thematic tailwinds continue to drive investment across the portfolio
FY24 investment highlights
Acquired Brookfield's 49.9% shareholding in One NZ to take full ownership in NZ$1.8 billion deal, including
successfully completing a NZ$935 million equity raise
Our renewables platform grew its development pipeline by 20GW
CDC signed significant new customer contracts supporting the expansion of existing and development of
new data centres
$2.2 billion was deployed across the portfolio, including $1.8 billion for the One NZ stake. The remainder
was primarily deployed across existing digital and renewable businesses, with demand for digital
infrastructure globally experiencing an unprecedented surge driven by developments in AI
Increased our shareholding in the UK data centre platform, Kao Data and reached a conditional agreement
to acquire Console Connect which remains subject to regulatory conditions
Continued substantial investment across our portfolio companies is laying the groundwork for future growth.
Our proportionate share of capital expenditure amounted to NZ$1.7 billion
NZ$820m
Available capital
NZ$2,225m
Up 263% from FY23
Infratil investment
22.0% (10-year annual return)
18.7% (30-year annual return)
Total shareholder return
7
We are committed to integrating ESG principles across our portfolio to drive sustainable growth and long-term value
Sustainability in practice
of portfolio companies
measuring carbon footprint
Catalyse a rapid and efficient transition to a low-carbon, resilient
future, while protecting and restoring nature
Support our people and communities to thrive
Published our inaugural
climate disclosures
of portfolio company
participation in GRESB
infrastructure assessments
Published our inaugural
sustainability report
$3.3M
Portfolio weighted
community investment
43%
Infratil female board
composition (43% in FY23)
ZERO
Reported workplace fatalities
in FY24
0.57
Lost Time Injury Frequency
Rate (LTIFR)
1.23
Total Recordable Incident
Frequency Rate (TRIFR)
of portfolio companies
have a diversity policy
Infratil becomes the first NZ financial institution to have its science-based
emissions reduction targets validated by the Science Based Targets initiative
83
100
GRESB score
Up from 77 in 2023
0.5 in FY23
1.23 in FY23
Zero in FY23
8.6
Negligible risk
Section 2
Group financial performance
9
Strong FY24 result delivering proportionate EBITDAF of NZ$864 million
Full year result came in above the top end of our revised guidance range
Earnings growth reflects strong performances from CDC, Wellington Airport and One
NZ. The result also reflects 10 months’ earnings contribution from One NZ under full
ownership. On a like for like basis, EBITDAF increased 15%
1
on FY23
Proportionate capex increased to NZ$1.7 billion, up from NZ$1.1 billion in FY23, as we
continue to invest in growth initiatives
Looking ahead, we maintain a positive outlook, with good earnings momentum
observed across a number of our key assets
Proportionate EBITDAF (NZ$m)
Delivered a strong FY24 performance, slightly above EBITDAF guidance, while continuing to invest for future growth
Summary of key financial performance
532
864
FY23AFY24 revised guidanceFY24A
$864m
Up 63% from FY23
Proportionate EBITDAF
13.0 cps
Up 4% from FY23
Final dividend
21.7%
12-month total shareholder return
Shareholder return
$1,713m
Up 61% from FY23
Proportionate capex
820 - 850
Notes:
1.FY23 and FY24 EBITDAF’s are normalised to assume a full year of ownership of One NZ. FY23 normalised EBITDAF is $795 million and FY24 normalised EBITDAF is $918 million
10
Final FY24 dividend of 13 cents per share
Final dividend of 13 cps cents per share is partially imputed at 1.75 cps
Record date of 6 June 2024 (ex-dividend date of 5 June 2024)
Payment date of 25 June 2024
The NZD/AUD exchange rate used for the payment of Australian dollar dividends will
be set on 6 June 2024
Dividend reinvestment plan (DRP)
There will be a 2% discount offered for the FY24 final dividend
Dividend reinvestment plan application forms must be in by 7 June 2024
Trading period for setting price for DRP is 10 June 2024 to 21 June 2024. DRP strike
price will be announced on 24 June 2024
Ordinary dividends (CPS)
Partially-imputed final dividend of 13 cps bring the total FY24 dividend to 20 cps, up 3.9% from FY23
Dividend for FY24
6.256.25
6.50
6.75
7.00
11.00
11.50
12.00
12.50
13.00
17.25
17.75
18.50
19.25
20.00
FY20AFY21AFY22AFY23AFY24A
Interim dividendFinal dividend
Section 3 - Portfolio company updates
CDC (48.2%)
12
164
268268
1,220
416
536
FY22AFY23AFY24AUnder
construction
Future buildTotal capacity
Year in review
EBITDAF for the year reached A$271 million, up 26% up from the prior year (A$215 million) and
exceeding the top end of guidance range (A$262-$266 million)
Contracted over 200MW in new capacity
1
, the largest addition within a 12-month period
CDC has accelerated construction and development across all regions due to a transformative shift in
customer demand, driven by AI advancements and the needs of Hyperscale customers
The surge in demand has nearly doubled CDC’s development pipeline
2
to 952MW in FY24 (over
400MW of new projects added), a significant scale-up in development efforts
New data centres at Eastern Creek (Sydney) will bring total campus capacity to over 280MW
Additionally, expansion is planned for the Melbourne campus to reach 200MW, complemented by new
developments in Hobsonville and Canberra to meet sustained high demand
Extended WALE to over 30 years
3
, providing long-term visibility of future cashflow
Successfully upskilled its workforce through initiatives like the CDC Academy and investing in internal
systems to support future growth
Successfully grew and diversified its client base across Government, NCI and Hyperscale
Increased debt facilities by A$1.6 billion to support growth (weighted average tenor ~5 years), with
ongoing plans to diversify and optimise capital structure in FY25
Outlook
Prioritising the rapid acceleration of its development activities with eight data centres under construction
(representing 416MW of capacity) across Sydney, Canberra, Melbourne, and Auckland
Current landbank supports significant additional future capacity (above what is included in the 5-year
development pipeline), with ongoing land acquisitions to support future growth
Demand across all customer segments remains strong, and CDC is well positioned to secure new deals.
Discussions are progressing towards significant capacity commitments in FY25, which could further
accelerate capex and funding needs
Forecast FY25 EBITDAF of A$320-$330m, up 20% at the midpoint from FY24
Existing capacity and future growth (MW)
CDC continues to deliver on its development commitments, making significant progress in its construction activities over the last 12 months across both Australia
and New Zealand
CDC highlights (48.2%)
Operating capacity
200MW+ of additional
capacity contracted
1
400MW+ development
pipeline increase
2
Notes:
1.200MW+ of new capacity contracted includes reservations and rights of first refusal
2.Development pipeline includes under construction and future build
3.Weighted Average Lease Expiry including options
•Melbourne – 151MW
•Sydney – 158MW
•Canberra – 39MW
•New Zealand – 68MW
13
147
161
215
271
79%
75%
77%
76%
FY21AFY22AFY23AFY24AFY25 Guidance
EBITDAEBITDA Margin %
188
215
280
356
FY21AFY22AFY23AFY24A
Revenue (A$m)
EBITDAF and margin % (A$m)
Rack utilisation
2
Profitable growth to continue as customers are onboarded into facilities and increased capacity under construction is delivered to meet increasing customer
demand
CDC financial and operating performance
WALE – evolution over time (yrs)
3
Capex guidance(FY25)
~A$2.35 - $2.65 billion
Moving towards net zero
carbon by 2030 in
Australia
4
1st certified net carbon
zero hyperscale data
centre provider in NZ
A$2.0m+ EBITDA
per MW (blended)
1
Notes:
1.CDC currently generates a blended EBITDAF per ICT MW across all sites and customer segments of over A$2.0m
2.Including white space and reserved
3.Including options
4.For scope 1, 2 and defined scope 3
~20% growth
from FY24
75%
66%
83%
FY22AFY23AFY24A
21.6
24.0
31.6
FY22AFY23AFY24A
320 - 330
Section 3 - Portfolio company updates
One NZ (99.9%)
15
Year in review
Acquired Brookfield's 49.9% shareholding to take full ownership of One NZ in June 2023
EBITDAF of NZ$600 million
1
, a 13.7% increase from the prior year and mid-point of our FY24
guidance range, reflecting a strong performance despite challenging economic conditions
Strongest growth in mobile, withfurther transition from prepaid to postpaidaccounts, higher
adoption of unlimited data plans, annual pricing adjustments and continued recovery in
roaming revenues
The enterprise segment remains challenging as customers in both enterprise and public sector
seek cost reductions and transition from legacy calling services
Fixed broadband remains highly competitive, but price increases are driving increased ARPU
Careful cost managementthrough the period yielded improved cost outcomes, despitea
number of line items growing at CPI-like rates
One NZ brand is exceeding expectations in brand awareness and customer consideration
Invested in 346 additional 4G and 5G sites, with plans to replace 3G by March 2025
Outlook
Forecast FY25 EBITDAF of $580-620 million reflects continuation of current market trends
Establishing a separate fibre entity to enhance usage and valueof One NZ’s fibre assets
Partnership with SpaceX will provide unprecedented mobile coverage across NZ
Targeting mid-30s EBITDA margins in the medium term, driven by ARPU uplifts across all
products, operational efficiencies through simplification of business processes and systems,
increased digital adoption, AI implementation, and a continued focus on enhancing customer
service
Capital expenditure expected to remain at similar levels in the medium term to enhance the
value of the fibre business, simplify IT infrastructure, enhance network capability, coverage
and reliability, before reducing closer to 11% of revenue in the longer term
EBITDAF (NZ$m) and margin %
In its first year as One NZ, the company underwent significant transformation, simplifying products and services, enhancing network infrastructure across
the country and successfully establishing its new brand in the market
One NZ highlights (99.9%)
5G rolled out to 45% of
population
New Zealand’s ‘Best in
Test’ mobile network for
three years running
2
5G
Notes:
1.FY24 EBITDA has been normalised for the impact of restructuring and other one-off items
2.Independently tested by global leader in mobile benchmarking, umlaut
437
481
528
600
22%
24%
27%
30%
FY21AFY22AFY23AFY24AFY25 Guidance
EBITDAFMargin %
580 - 620
16
Revenue (NZ$m)Mobile ARPU (NZ$)
Focused execution delivered a pleasing result despite challenging economic environment
One NZ - financial and operating performance
Consumer & SME - Fixed ARPU (NZ$)
FY25 capex guidance
$240m-$270m
Achieved 30% target
EBITDAF margin
FY24 operating
free cash flow
1
$220m
29.0
31.3
32.4
FY22AFY23AFY24A
72.8
70.5
74.0
FY22AFY23AFY24A
Notes:
1.EBITDA less lease payments and accounting capex (excluding spectrum)
73/100
GRESB Score
670
663
731
779
398
376
336
332
234
229
258
249
183
199
209
212
468
500
451
425
1,954
1,968
1,984
1,997
FY21AFY22AFY23AFY24A
MobileConsumer FixedEnterpriseWholesaleProcurement & Other
Section 3 - Portfolio company updates
Longroad Energy (37.3%)
18
1.6GW
1.6GW
1.8GW
9.5GW
1.8GW
6.0GW
Mar-22Mar-23Mar-24Under
Construction
CY24 - CY27
Target
development
Dec-27
operating
capacity target
Year in review
EBITDAF reached US$56 million, up US$24 million (78%) from the prior year, bolstered by 209MW
1
of
projects commencing operations and the completion of restoration works at Prospero 1 and 2 following
hail damage in Texas in 2022
Executing the largest construction programme in the company’s history, with ~2.4GW of assets under
construction during the year across nine projects in five states
This includes 1.1GW across two major new projects that reached financial closeduring the year, Sun
Streams 4 and Serrano in Arizona
Despite challenges from inflation and high interest rates, market conditions are stabilising with costs
normalising and PPA prices remaining responsive to market conditions
The Inflation Reduction Act faces potential uncertainties with the 2024 U.S. election, especially if the
Republicans gain control of the presidency, House and Senate. While Republicans did not support the
IRA passing, it’s extremely rare for retrospective changes or repeals of tax credits
The Biden Administration recently announced increased tariffs on Chinese imports, and released
updated guidance on the IRA, both of which strongly reinforce Longroad’s strategy of forming strategic,
long-term relationships to procure US-made panels and batteries
Outlook
Forecast FY25 EBITDAF of US$60-70 million, up 17% at the midpoint from FY24, as 650MW of projects
complete construction H1 FY25
Advancing 1.6GW across five projects across diverse markets to achieve financial close in FY25, with
off-take agreements significantly progressed
Targeting development of 1.5GW of operating assets annually, aiming for 9.5GW in total by the end of
2027 – anticipate equity commitments of ~US$300 million from shareholders in FY25
28GW+ development pipeline (up ~10GW from last year) with ~70 active projects
Recent investments in platforms similar to Longroad underscore Longroad’s strategy to scale and stay
competitive in development, and the sector's ongoing attractiveness. Attractive M&A opportunities
continue to emerge, potentially accelerating its development business and capital needs
Longroad continues to make good progress towards its ambition of developing and owning a 9.5GW portfolio of operating assets and achieving run-rate operating
company EBITDAF of over US$600 million by the end of calendar year 2027
Longroad Energy highlights (37.3%)
Existing capacity and future growth (GW)
Operating assets
209MW
1
of new generation
developed in FY24
Development pipeline
28GW+
(up ~10GW from FY23)
1.5GW avg. yearly
target
Backed by a >28GW
development pipeline
Notes:
1.Excludes 306MW from repowering Milford 1 & 2
19
60
50
82
94
99
CY20ACY21ACY22ACY23ACY23RR
83%
12%
5%
PV+BESSBESSWind
OpCo EBITDAF
1
(US$m)
DevCo investment
2
(US$m)
PPAs average remaining life (years)
3
A year of significant investment for Longroad, with the largest construction programme in its history, positioning the company for future earnings growth as
projects come online
Longroad Energy - financial and operating performance
Development pipeline by type
~US$1.0 to $1.3 billion
FY25 capex guidance
Progressing ~70 active
projects
182
Headcount
Up from 16% FY24
Notes:
1.Excludes operating expenses relating to advancing the development pipeline, for the purposes of this analysis General and Administrative expenses have been split evenly across OpCo and DevCo
2.Capital expenditure and operating expenses related advancing the development pipeline, for the purposes of this analysis General and Administrative expenses have been split evenly across OpCo and DevCo
3.Average remaining life on a weighted basis
28GW
14.4
13.7
15.9
CY21ACY22ACY23A
73/100
GRESB Score
711
451
318
1,297
41
30
44
39
752
482
362
1,336
CY20ACY21ACY22ACY23A
Capital expenditureDevCo Opex
Section 3 - Portfolio company updates
Wellington Airport (66.0%)
21
Year in review
EBITDAF reached $107.1 million, up 19.5% from the previous year ($89.6 million), driven by
higher passenger volumes, strong commercial performance and continued cost discipline
Post-Covid recovery sees passenger numbers hitting 5.5 million for the year (despite ongoing
airline capacity constraints), with domestic and international passengers at 90% and 80% of
pre-pandemic levels, respectively
Qantas has emerged as Wellington's largest international airline, adding significant capacity
and new routes such as Wellington-Brisbane
The Commerce Commission’s Input Methodologies review has concluded, resulting in a
significant uplift in aeronautical pricing from earlier draft decision
Wellington will host New Zealand’s first commercial electric aircraft by 2026, a major step in
sustainable aviation
2040 Masterplan continues to guide development, focusing on maximising space
facilitatinggrowth, and enhancing resilience with projects like sea defences and
earthquakestrengthening
Outlook
With aeronautical pricing adjustments in place, the focus shifts to a comprehensive capital
works program and enhancing terminal experience
Forecast FY25 EBITDAF of between $125-135 million, up 21% at the midpoint from FY24
Our long-time co-shareholder Wellington City Council will vote in June 2024 on whether to
proceed with a potential divestment of its shareholding – we will continue to watch this with
interest
Passenger numbers (000s)
Wellington Airport experienced a year of robust growth and sustained recovery, with passenger numbers recovering well and earnings surpassing pre-Covid
levels
Wellington Airport highlights (66.0%)
89% passenger recovery
(% pre-covid)
~NZ$600m of investment
(planned over next 5 years)
5,226
2,969
3,481
4,690
4,712
920
49
563
737
6,146
2,969
3,529
5,253
5,449
FY20AFY21AFY22AFY23AFY24A
Passengers DomesticPassengers International
22
34
54
77
86
31
36
54
64
65
90
131
150
FY21AFY22AFY23AFY24A
Aeronautical RevenueCommercial Revenue
Revenue (NZ$m)
EBITDAF (NZ$m) and margin %
Capital expenditure (NZ$m)
A strong lift in earnings to above pre-covid levels reflecting the ongoing recovery in post-pandemic travel and continued cost discipline
Wellington Airport - financial and operating performance
Aircraft movements
NZ$130m - $160m
FY25 capex guidance
96/100
GRESB Score
5
th
amongst airports worldwide
Selected as home base for Air NZ’s first electric air service
planned for 2026
18
70
64
FY22AFY23AFY24A
75,007
84,152
83,597
FY22AFY23AFY24A
36
56
90
107
56%
62%
68%
71%
FY21AFY22AFY23AFY24AFY25 Guidance
EBITDAMargin %
125 - 135
21% growth from
FY24
~3% above pre-
covid levels
Section 3
Other portfolio companies
24
133
170
189
30%
28%
29%
FY22AFY23AFY24AFY25 Guidance
Year in review
EBITDAF for the year was NZ$189 million, an increase of $19 million (11%) from the prior year,
driven by increased scan volumes and pricing, an enhanced modality mix, the opening of new
clinics, and improved operational efficiencies
Despite the earnings growth, substantial inflationary pressures and a radiologist shortage have
continued to challenge margins
The platform consists of 149 clinics, employing 298 radiologists, and collectively performed
~2.5 million scans
Scan volumes rose by 4.9% from the prior year, with Qscan experiencing a 5.8% increase and
RHCNZ a 3.7% increase
Revenues grew 10.4% from the prior year, with over $35 million of growth capex deployed
Five new clinics were opened, and numerous expansions completed, enhancing service capacity
and accessibility – including the first provincial PET-CT in New Zealand located in Whangarei
Investments in AI, online booking systems, and other technologies across the platform have driven
efficiencies and improved diagnostic accuracy
Outlook
Forecast FY25 EBITDAF of between NZ$210-$230 million, up 16% at the midpoint from FY24
reflecting continued momentum and margin expansion as benefits from optimisation initiatives
continue to materialise
Expansion plans include newly opened clinics in Waikato and upcoming flagship sites in Dunedin,
Auckland, and Tauranga, are expected to double RHCNZ’s PET-CT capacity and further enhance
patient access
Qscan continues to proactively identify attractive development opportunities in its core regions
As the only nationwide provider of significant scale, RHCNZ is uniquely positioned to become a
national partner to the public health system and Health New Zealand Te Whatu Ora
Teleradiology remains a strategic focus, enhancing the platform's service offerings and reach
EBITDAF (NZ$m) and margin %
A solid financial and operational performance achieved through focused execution of strategic initiatives, aided by ongoing recovery and growth in the radiology
market
Diagnostic Imaging highlights
~2.5 million scans
performed
(up 4.9% since FY23)
149 clinics with 5 new
opening during the year
298 Radiologists
(up 5% since FY23)
210 - 230
GRESB Scores
RHCNZ - 76/100
Qscan - 78/100
25
Year in review
Underlying profit
1
reached A$79 million, reflecting a significant increase of A$48 million on the
prior year, driven by robust resales, strong capital gains and development margin
Achieved a record year with 554 total settlements, comprising 408 resales and 146 new ILUs
The average resale DMF/gain per unit rose to A$191k, up from A$154k last year, due to
strategic price increases and a favourable mix of units available
High demand across the portfolio is evidenced by waitlists at over 80% of villages and a
96.6% occupancy rate, well above the industry average
High satisfaction levels reported with 85% of residents and 86% of home care customers
satisfied with village life and home care services respectively
Successfully completed construction of 230 units at The Verge and The Green, with ongoing
work on 42 units at Tarragal Glen, showcasing a strong year in development
Launched a new care hub model at The Verge (opening in May) to provide comprehensive,
nurse-led care, enhancing the living options for residents
Acquired a premium development site at Graceville, introducing 111 new independent living
apartments (including care hub) into the development pipeline
Outlook
Continued growth with an expected 500-550 total settlements in FY25, including 90-110 new
developments supported by strong pre-sales
Set to complete 42 units at Tarragal Glen during FY25, with new projects beginning at Carlyle
Gardens (32 ILUs) and Arcadia (177 ILAs)
Targeting to commence development of ~600 new units across the next three financial years
2
,
leveraging a substantial development pipeline to meet strategic growth targets
Underlying profit (A$m)
Record profitability driven by high demand for new and existing villages, with ongoing development across multiple sites to fuel future growth
RetireAustralia highlights (50.0%)
29 Villages
(up from 28 villages in FY23)
96.6% Occupancy
146 New units sold
(up from 32 in FY23)
~$191k Resale DMF/gain
per unit
(up from A$154k in FY23)
Notes:
1.Underlying Profit is an unaudited non-GAAP measure used by RetireAustralia which removes the impact of unrealised fair value movements on investment properties, impairment of property, plant and equipment, one-off gains
and deferred taxation, while adding back realised resale gains and realised development margins
2.Subject to feasibility review and Board approval
30
56
30
79
FY21AFY22AFY23AFY24A
26
Advanced data centre portfolio now exceeds 95MW of capacity across operational, under-
development, and planned future builds
Continued growth investment aimed at expanding capacity at existing operational sites and
new locations
Completed second phase of expansion at the Harlow campus with the second of four data
centre buildings offering up to 10MW capacity each
Announced expansion into Manchester through a 40MW data centre development with power
and planning secured
Experiencing strong demand from new and existing customers and successfully secured
several high-profile additions
Successfully refinanced its debt facilities providing £206 million of committed capital and an
additional £150 million of capacity to support Kao Data’s ambitious expansion
Strengthened the senior management team and board with new CEO and Chairman
appointments to drive the company's next phase of growth
Positioned for continued growth with strategic expansions, capitalising on sector tailwinds from
significant government investment in computing and AI
Successfully transitioned from being part of One NZ to a becoming a fully independent digital
infrastructure provider
Assembled a high-quality team of 30 employees, ahead of schedule
EBITDAF was NZ$57.6 million for the year, in line with expectations, underpinned by a long-
term anchor tenancy contract with One NZ
Successful delivery of 47 new towers and 247 upgrades during the year, bringing the total
tower count to 1,578
No refinancing exposure until 2027
Looking ahead, Fortysouth will continue to focus on expanding its tower portfolio, operational
efficiency, identifying and unlocking co-location opportunities, and maximising asset utilisation
Kao Data continues to execute on its growth ambitions while Fortysouth successfully transitioned from being part of One NZ to a becoming a fully independent
digital infrastructure provider
Kao Data (52.8%) and Fortysouth (20%)
8.7MW under construction
22.8MW operating
capacity
1,578 towers
(47 added since FY23)
247 towers upgraded
during FY24
5G
27
510
2,265
375
880
500
Exisiting
operating assets
Solar pipelineWind pipelineEarly stage
pipeline
Total Portfolio
Year in review
EBITDAF
1
for the period is $145 million, up $8.3 million (6.1%) on the prior period driven by
solid energy margins and operational efficiencies offset by the loss of ACoT revenue
Generation production volumes were 1,901GWh, maintaining levels close to the prior year’s
1,917GWh despite a larger outage programme
Renewed focus on operating existing assets efficiently, investing in a significant refurbishment
and upgrade programme and laying the foundations for future growth
A review of the capital expenditure programmes has led to significant savings in future
spending
Enhancements and maintenance programmes at Branch (completed) and Matahina (first of
two turbines nearing commissioning) hydro schemes are expected to boost generation
capacity by over 22GWh annually
As contracted volumes with Mercury Energy start to step down from October 2024,
discussions have begun with various parties for long-term offtake agreements
Continued to expand the development pipeline, moving projects like the Argyle Solar Farm
and two large-scale wind farms towards ‘investment ready’ status
Outlook
Forecast FY25 EBITDAF of between $130-150 million with lower than normal volumes
expected due to Highbank scheme outage
As a scale-independent power producer with significant development experience, Manawa is
well-positioned to benefit from the ongoing electrification of New Zealand
Argyle Solar Farm project is expected to be ready for final investment decision in FY25
EBITDAF (NZ$m)
157
160
137
145
FY21AFY22AFY23AFY24AFY25 Guidance
Diverse and growing development pipeline (MW)
Manawa’s financial results for FY2024 reflect a year of solid performance
Manawa Energy highlights (51.1%)
Notes:
1.Excludes discontinued operations -$0.6 million
130 - 150
28
Galileo expanded its core platform team to 62 (up from 46) and increased its project pipeline
by 3GW, reaching a total of 12.5GW dedicated projects across 10 markets
Successfully sold 800MW from a Northern European JV to a major European utility, 140MW
from its Italian pipeline to GreenIT, and the minority shareholding in the German solar rooftop
business of Enviria to BlackRock
Established a significant partnership in Italy with Hope Group on two offshore wind projects
totalling 1.6GW in the Adriatic Sea
Strengthened offshore wind initiatives through the Source Galileo joint venture in Ireland,
Norway, and the UK, partnering with notable entities like Ingka, Kansai and Odfjell
Secured PPAs with two major corporates for about 140GWh annually from Italian solar plants,
reflecting strong corporate demand for decarbonised energy
Growth in the European energy market continues to be driven by a strong need to decarbonise
against a backdrop of ongoing energy security, affordability and net zero concerns
Galileo aims to significantly expand its team and project pipeline in FY25, with an increased
focus on co-located battery storage developments while maintaining a core emphasis on a
balanced technology portfolio
Mint Renewables established in late 2022 to invest in the development of wind, solar and
storage solutions across Australia
Successfully assembled a small but high-quality team with all key hires now filled
(15 employees)
Diversified pipeline has grown to over 3GW across 4 Australian States, providing high
optionality to respond quickly to emerging opportunities in the dynamic Australian market
With a quality pipeline in place, the focus moves to progressing projects to higher maturity
levels
Growing policy momentum, Capacity Investment Scheme expanded to 32GW, incorporates
renewables
Significant progress and momentum continues at both Galileo and Mint, as each company expands its team and capabilities in line with the growth of their
respective substantial development pipelines
Renewable development platforms
12.5GW development
pipeline
(3GW added since FY23)
940MW of projects sold
in FY24
Successfully assembled a
small but high-quality team
3GW+ development
pipeline
29
Year in review
Successfully expanded the development pipeline to 6.7GW, with a team that now spans over
60 members across seven markets
Gurīn received conditional approval to import 300MW of non-intermittent, low-carbon power
into Singapore by 2027, also known as the Vanda project
The ambitious Vanda project, encompassing 2,000MW of solar capacity and 4,400 MWh of
battery storage on Indonesia's Riau Islands, is set to enhance the regional energy mix and,
alongside our consortium partners, to become one of the largest renewable energy
installations of its type globally
Progressing significant projects including entering Japan's storage market with a 500MW
facility and constructing the 76MW solar farm in the Philippines
Outlook
Continue to see strong support for the transition agenda in target markets
Opportunities to expand the pipeline are significant in every one of Gurīn Energy’s markets,
particularly in Japan, South Korea and the Philippines
Achieved final investment decision for a second 38MW project in the Philippines in April 2024,
with construction expected to start soon
Targeting to advance approximately ~200MW of projects to final investment decision in 2025
Development pipeline across 6 markets
Gurīn has experienced rapid growth in both size and capability, concluding the year with a robust development pipeline of 6.7GW and a dedicated team of over
60 members
Gurīn Energy highlights (95%)
Notes:
1.6,662 MW capacity equates to 4,374 MW net owned by Gurīn, after taking into account our partners’ interests
Advancing ~200MW of
projects to final investment
decision in 2025
76MW solar projects
under construction
3,562MW
6,662MW
1
FY23
FY24
2,280
264
240
128
350
300
SingaporeJapanPhilippinesSouth KoreaThailandIndonesiaIndia
4,780
500
630
325
427
Section 4
Guidance and liquidity
31
464
560
908
452
532
864
FY22AFY23AFY24A
Operational EBITDAFProportionate EBITDAF
Proportionate Operational EBITDAF (NZ$m)
Guidance overview
FY25 Proportionate OperationalEBITDAF guidance range set at NZ$980 – $1,030 million
Key guidance assumptions (at 100%) include:
– CDC EBITDAF of A$320 – A$330 million
– One NZ EBITDAF of NZ$580 – $620 million
– Manawa Energy EBITDAF of NZ$130 – $150 million
– Longroad Energy EBITDAF of US$60 – $70 million
– Wellington Airport EBITDAF of NZ$125 – $135 million
– Diagnostic Imaging EBITDAF of NZ$210 – $230 million
– Corporate costs of NZ$105 – $110 million
Renewable development companies (Gurīn Energy, Galileo, Mint Renewables)
proportionateEBITDAF guidance range - loss of NZ$80- 90 million (Infratil share) as assets
invest in growth
Forecast NZD/AUD 0.9034, NZD/USD 0.6133, NZD/EUR 0.5547, and NZD/GBP 0.4946
Guidance is based on Infratil management’s current expectations and assumptions about
trading performance, is subject to risks and uncertainties, and dependent on prevailing market
conditions continuing throughout the outlook period. Guidance is based on Infratil’s continuing
operations and excludes the impact of the Console Connect transaction which is expected to
close later this year
FY25 Proportionate operational EBITDAF guidance up 11% at the midpoint on a strong FY24 result
FY25 Guidance – operational EBITDAF
980 – 1,030
(11)(29)(44)(80) – (90)
Development EBITDAF
FY25 Guidance
32
282
412
988
316
433
385
181
224
340
779
1,069
1,713
FY22AFY23AFY24AFY25 Guidance
DevelopmentCore +Core
Guidance overview
FY25 Proportionate capital expenditure guidance set at $2.7 billion – $3.1 billion
Key guidance assumptions (at 100%) include:
– CDC capital expenditure of A$2,350 million – A$2,650 million
– One NZ capital expenditure of $240 million – $270 million
– Manawa Energy capital expenditure of $40 million – $50 million
– Wellington Airport capital expenditure of $130 million – $160 million
– Diagnostic Imaging capital expenditure of $90 million – $100 million
– Longroad Energy capex of US$1,000 million – US$1,300 million
– Renewable development companies capital expenditure of $490 million to $540 million (at
100%) as platforms invest in growth
Forecast NZD/AUD 0.9034, NZD/USD 0.6133, NZD/EUR 0.5547, and NZD/GBP 0.4946
Guidance is based on Infratil management’s current expectations and assumptions about
asset investment, is subject to risks and uncertainties, and dependent on prevailing market
conditions continuing throughout the outlook period
Proportionate capital expenditure (NZ$m)
FY25 Proportionate capital expenditure guidance up approximately 70% at the midpoint on significant FY24 spend
FY25 Guidance – capital expenditure
2,700 – 3,100
33
Gearing increased to 20% during the period but remains below our medium-term portfolio
leverage assumption of 30%
Undrawn bank facilities available to support additional growth in FY25
$155.2 million of new bonds raised in FY2024, net of bond maturities
Two bond maturities in FY25, including $56.1 million of IFT230s in June 2024 and $100.0 million
of IFT250s in December 2024
Weighted average cost of debt of 5.96%, with 89% of drawn debt hedged
Proactive management of debt maturity profile to reduce refinancing task in any 12-month period
Net debt and gearing %
Debt Maturity Profile
Significant flexibility to support investment opportunities across the portfolio
Debt capacity & facilities
31 March ($millions)20232024
Net bank debt($593.2)$791.8
Infrastructure bonds$1,085.9$1,241.1
Perpetual bonds$231.9$231.9
Total net debt$724.6$2,264.8
Market value of equity$6,660.6$9,066.7
Total capital$7,385.2
$11,331.5
Gearing
1
9.8%20.0%
Undrawn bank facilities$898.4$800.9
100% subsidiaries cash$593.2$19.2
Liquidity available$1,491.6$820.2
156
164
156
102
146
273
243
232
230
225
356
292
159
350
FY25FY26FY27FY28FY29FY30FY31>FY32
BondsDrawn Bank DebtUndrawn Bank Debt
Notes:
1.Gearing is total net debt over total capital
1,180
1,770
1,720
620
720
2,260
34%
41%
25%
9%
10%
20%
0%
10%
20%
30%
40%
-
1,000
2,000
3,000
4,000
FY19AFY20AFY21AFY22AFY23AFY24A
Net debtGearingPortfolio leverage assumption (30%)
34
Continued substantial investment across our portfolio companies is laying the groundwork for strong future growth
Concluding remarks
All our businesses are performing well, with strong earnings momentum heading into FY25 despite the uncertain macroeconomic backdrop
Looking forward, we are happy with the shape of the portfolio and where it’s heading over the next 12 months and beyond
We are excited about the significant ongoing investment opportunities across our existing portfolio to drive further earnings growth
We have multiple levers to manage capital demands effectively and will maintain discipline to prioritise the highest value opportunities for our shareholders
While we remain open to exploring new opportunities, our primary focus will be prioritising capital to support existing platform opportunities
As we reflect on the past 30 years, we are proud of the robust returns and solid growth we've delivered to our shareholders. Looking forward, we continue to lay the
groundwork for strong future growth
35
Questions
Supporting materials
37
Overview
CDC, One NZ, Kao Data, Longroad Energy, Galileo, Gurīn Energy, Qscan, RHCNZ Medical
Imaging, RetireAustralia, and Wellington Airport reflect the midpoint of 31 March independent
valuations
The fair value of Manawa Energy is shown based on the market price per the NZX
Fortysouth, Mint Renewables, Clearvision and Property reflect their accounting book value as
at 31 March 24
Key valuation methodologies and assumptions underpinning these independent valuations are
summarised on the following pages
The net asset value reflecting the independent valuations of Infratil assets has reached $11.9 billion as at March 2024
Net asset value
Year ended 31 March ($Millions)20232024
CDC$3,678.7$4,419.7
One NZ$1,222.8$3,530.5
FortySouth$207.7$195.2
Kao Data$255.7$556.2
Manawa Energy$795.2$728.0
Longroad Energy$1,583.4$1,952.0
Galileo$72.2$240.7
Gurīn Energy$7.9$237.1
Mint Renewables$3.1$2.0
RHCNZ Medical Imaging$511.6$606.7
Qscan Group$374.3$411.9
RetireAustralia$441.1$464.4
Wellington Airport$512.8$623.7
Clearvision Ventures$125.2$142.6
Property$115.2$98.4
Portfolio asset value$9,906.9$14,209.1
Wholly owned group net debt($724.6)($2,264.8)
Net asset value$9,182.3$11,944.3
Shares on issue (million)724.0 832.6
Net asset value per share$12.68$14.35
38
Primary valuation methodology: DCF using FCFE (with a cross
check to comparable companies and precedent transactions),
surplus and underutilised land at cost
Forecast period: 15 years (2039)
Enterprise value: A$11,118m
Equity value: A$8,412m (IFT share A$4,058m, NZ$4,419.7m)
CDC (48.24%) – A$4,058m (NZ$4,420m)
Kao Data (52.8%) – £264m (NZ$556m)
Primary valuation methodology: DCF using FCFE (with a cross
check to comparable companies and precedent transactions )
Terminal value methodology: Exit multiple
Forecast period: 6.75 years (Dec-2030)
Enterprise value: £572.8m
Equity value: £499.8m (IFT share £263.9m, NZ$556.2m)
One NZ (99.9%) – NZ$3,531m
Primary valuation methodology: DCF using FCFF on a sum of
the parts basis (ServeCo & FibreCo) (with a cross check to
comparable companies and precedent transactions)
Forecast period: 20 years (2044)
Enterprise value: NZ$4,955 (pre IFRS16 - excluding lease
liabilities of ~NZ$910m)
Equity value: NZ$3,533 (IFT share NZ$3,530.5m)
Independent valuation reports are prepared for Infratil’s portfolio companies for the purpose of calculating the international portfolio incentive fee (for the
international for portfolios) and setting management long term incentives for some portfolio companies
Independent valuation summary – Digital
Valuation
methodology
Key valuation assumptions
Risk free rate: 3.90%
Asset beta: 0.55
Cost of equity: 11.25% (blended rate) reflecting the assessed risk
of the spectrum of CDC’s activity, from operating data centres with
contracted revenues through to developing projects without
contracted revenues
Terminal growth rate: 2.5%
Long term EBITDAF margin: 85%
Future capex reflects CDC’s published development pipeline
(valuation assumes no development beyond FY31)
Risk free rate: 4.25%
Asset beta: 0.55
Specific risk premium: 8.0%
Cost of equity: 16.0% reflecting Kao intends to undertake a
number of development projects across its data centre sites
Terminal value multiple: 22.0x (noting the shorter forecast
period)
Capex assumes operating capacity increases 74MW across
existing and new sites with development occurring between FY25-
FY30 (valuation assumes no development beyond FY30)
Risk free rate: 3.47%
Asset beta: 0.60 (ServeCo) & 0.35 (FibreCo)
Weighted average cost of capital: 9.25% (blended rate)
Terminal growth rate: 2.5% (ServeCo) & 2.0% (FibreCo)
Long term capital expenditure: Expected to gradually decrease
to ~11.3% of revenue (incl. spectrum) over the forecast period on a
blended basis for ServeCo and FibreCo. Short-term capital
intensity expected to be elevated driven by investment in FibreCo,
5G rollout and IT simplification
FX Rates: NZD/USD: 0.5991 NZD/EUR: 0.5539 NZD/AUD: 0.9181 NZD/GBP: 0.4745
39
Primary valuation methodology: Sum-of-the-parts reflecting:
– DCF using FCFE for operating assets, under-construction
projects, and near-term development projects (projects that are
expected to achieve FNTP within the next 3 calendar years)
– Multiples approach for long-term development projects
(discounted on FNTP year)
– An element of platform value (goodwill)
Forecast period: ~40 years (2065)
Enterprise value: US$6,200m
Equity value
1
: US$3,149m (IFT share US$1,169m, NZ$1,952m)
Key valuation assumptions
Risk free rate: 4.4%
Asset beta: 0.33 - 0.35
Cost of equity: 8.25 – 8.50% for operating and under-construction
assets with an additional premium risk premium of 0.75% – 1.75%
applied to near-term development assets and 15% for long-term
development pipeline and platform
Terminal value: N/A (finite life assets)
Near-term (3 years) development pipeline: 3,859MW
Long-term development pipeline (5 years): 20,052MW
Multiple for long-term development projects: US$175/kW
Remaining platform value assessed to be around ~8% of total
enterprise value
Longroad (37.3%) – US$1,169m (NZ$1,952m)Gurīn (95%) – US$142m (NZ$237m)
Primary valuation methodology: valuation range based on two
different methodologies:
– Income and cost approach: adopts a DCF using FCFE for
more certain and near-term developments, probability
weighted to account for development and construction risk and
values less certain projects at cost
– Market approach using multiples of comparable
companies/transactions (which includes platform value),
applied to the development pipeline (probability weighted)
Forecast period: ~34 years (2057)
Equity value: US$150m (IFT share US$142m, NZ$237.1m)
Key valuation assumptions
Risk free rate: 2.5%-6.2% based on 10 year govt bond yield of
each country
Asset beta: 0.47
Cost of equity: 10.1% -13.1%
– the discount rates used for each project are calculated with
reference to each project’s location
Terminal value: N/A (finite life assets)
Multiples for development projects: US$0.4-0.9m per MW
Development pipeline for multiples approach: 243MW
Galileo (40%) – €133m (NZ$241m)
Primary valuation methodology: Transaction multiples for
more advanced projects and cost for entry-stage projects
Equity value: €333.3m (IFT share €133.3m, NZ$240.7m)
Key valuation assumptions
Risk free rate: n/a (DCF methodology not adopted)
Asset beta: n/a (DCF methodology not adopted)
Multiples for development projects that are ‘ready to build’ range
from €150-400k/MW depending on country and technology type
(i.e. solar vs wind)
The valuer assigns a discount (~10-95%) to the multiple that it
considers appropriate as the project moves towards ‘ready to
build’ stage. For projects that are early to mid-stage of the
development lifecycle, only a small percentage of the ‘ready to
build’ value is captured with the majority of value being
recognised as projects get close to ‘ready to build’ stage.
Independent valuation reports are prepared for Infratil’s portfolio companies for the purpose of calculating the international portfolio incentive fee (for the
international for portfolios) and setting management long term incentives for some portfolio companies
Independent valuation summary - Renewables
FX Rates: NZD/USD: 0.5991 NZD/EUR: 0.5539 NZD/AUD: 0.9181 NZD/GBP: 0.4745
1. Longroad Equity Value adjusted for committed but uncalled capital included in the independent valuation
40
Primary valuation methodology: DCF using
FCFE (with a cross check to comparable
companies and precedent transactions)
Forecast period: 20 years (2044)
Enterprise value: NZ$1,602m
Equity value: NZ$945m (IFT share
NZ$623.7m)
Risk free rate: 4.85%
Asset beta: 0.625
Cost of equity: 11.75%
Terminal growth rate: 2.5%
Wellington Airport (66%) – NZ$624m
RHCNZ (50.3%) – NZ$607m
Primary valuation methodology: DCF using
FCFE (with a cross check to comparable
companies and precedent transactions)
Forecast period: 12 years (2036)
Enterprise value: NZ$1,648m
Equity value: NZ$1,205 (IFT share
NZ$606.7m)
Risk free rate: 4.5%
Asset beta: 0.67
Cost of equity: 11.9%
Terminal growth rate: 3.5%
Qscan (57.6%) – A$378m (NZ$412m)
Primary valuation methodology: DCF using
FCFE (with a cross check to comparable
companies and precedent transactions)
Forecast period: 10 years (2034)
Enterprise value: A$903.4m
Equity value: A$656.3 (IFT share A$378.2m,
NZ$411.9m)
Risk free rate: 3.95%
Asset beta: 0.80
Cost of equity: 13.85%
Terminal growth rate: 3.1%
Independent valuation reports are prepared for Infratil’s portfolio companies for the purpose of calculating the international portfolio incentive fee (for the
international for portfolios) and setting management long term incentives for some portfolio companies
Independent valuation summary – Airports & Healthcare
RetireAustralia (50%) – A$426m
(NZ$464m)
Primary valuation methodology: DCF using
FCFF (with a cross check to comparable
companies and precedent transactions)
Forecast period: 40 years (2064)
Enterprise value: A$1,051.7m
Equity value: A$852.8 (IFT share A$426.4m,
NZ$464.4m)
Risk free rate: 3.95%
Asset beta: 0.89
Weighted average cost of capital: 11.55%
(blended rate)
The valuer adopts different discount rates for
each segment (i.e. existing, brownfield and
greenfield developments) having regard to the
different risk profiles
Terminal growth rate: 2.5%
Valuation
methodology
Key valuation assumptions
FX Rates: NZD/USD: 0.5991 NZD/EUR: 0.5539 NZD/AUD: 0.9181 NZD/GBP: 0.4745
41
Incentive fee overview
The net incentive fee accrual for 31 March 2024 is $129.8 million
Valuations for the purposes of the incentive fee are calculated net of estimated costs of disposal and any potential capital gains taxes
Asset IRR’s are calculated as at 31 March 2024 using NZD cashflows and they are after incentive fees
Strong independent valuation uplifts for CDC and Longroad Energy and initial valuations in Gurīn Energy and Kao Data have result ed in a net incentive fee
accrual of $129.8 million for FY24
Incentive fees
31 March ($millions)FY23 ValuationCapitalFXDistributionsHurdleFY24 ValuationIncentive FeeIRR
1
Annual Incentive Fee
CDC Data Centres
3,660.3 (34.7)- 36.5 (440.1)4,399.3 60.1
31.5%
Longroad Energy
1,185.8 (94.3)2.0 18.2 (147.9)1,503.1 19.1
51.0%
Galileo
71.2 (39.1)- - (11.2)237.1 23.1
47.3%
RetireAustralia
431.8 - - - (52.0)454.1 (5.9)
4.6%
Qscan
370.6 (17.9)- - (44.6)407.8 (5.1)
8.4%
Initial Incentive Fee
Gurīn Energy(104.9)(1.8)0.6 (13.2)233.5 22.8
84.6%
Kao Data(392.8)(0.3)- (79.7)550.7 15.6
20.7%
5,719.6 (683.7)(0.2)55.3 (788.7)7,785.6 129.8
42
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
199519961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024
Accumulated Capital GainAccumulated Dividends
Infratil has delivered a total shareholder return of 21.7% for FY24 and a 18.7% return over 30 years
Total shareholder returns
1994-1999: 20.3%1999-2004: 19.4%2004-2009: 4.5%2009-2014: 14.1%
2014-2019: 20.1%
2019-2024: 24.6%
2014-2024: 22.0%2004-2014: 9.6%1994-2004: 22.4%
PeriodTSR
1 - year21.7%
5 – year
24.6%
10 – year
22.0%
20 – year
16.3%
Since inception (30 years)
18.7%
Notes:
1.The accumulation index assumes that $1000 were invested in Infratil’s IPO and that an investor reinvests all dividends at the time of receipt and participates in any equity raises or rights offerings so that they neither
take any money out or invest any new money into Infratil
2.Accumulated dividends represents the total value of dividends received by the investor
43
Year ended 31 March ($Millions)Share
1
20232024
CDC48.2%
$113.7 $140.8
One NZ99.9%
$263.6 $545.5
Fortysouth20.0%
$4.4 $11.5
Kao Data52.8%
($3.0)($2.3)
Manawa Energy51.1%
$69.9 $74.1
Longroad Energy37.0%
$16.4 $33.4
RHCNZ Medical Imaging 50.3%
$54.4 $58.1
Qscan Group57.6%
$33.8 $40.6
RetireAustralia50.0%
$6.1 $12.1
Wellington Airport66.0%
$59.1 $70.7
Corporate & other
($58.1)($76.5)
Operational EBITDAF
$560.3$908.0
Galileo40.0%
($11.8)($15.2)
Gurīn Energy95.0%
($15.6)($21.9)
Mint Renewables73.0%
($1.4)($6.8)
Development EBITDAF
($28.8)($43.9)
Total continuing operations
$531.5$864.1
Trustpower Retail business51.1%
$1.8 ($0.3)
Total
$533.3 $863.8
Proportionate capital expenditureProportionate EBITDAF
Proportionate capital expenditure and EBITDAF
Year ended 31 March ($Millions)20232024
CDC
$341.9
$291.8
One NZ$151.8 $261.4
Fortysouth$3.3 $3.1
Kao Data$36.0 $58.8
Manawa Energy$22.6 $33.6
Longroad Energy$345.9 $825.5
Gurīn Energy$1.7 $60.0
Galileo$28.8 $42.7
Mint Renewables- $1.1
RHCNZ Medical Imaging$14.7 $26.1
Qscan Group$9.5 $16.0
RetireAustralia$66.6 $50.9
Wellington Airport$46.0 $42.2
Proportionate Capital Expenditure$1,068.8 $1,713.2
44
Investment Overview
Capital invested into CDC is to provide liquidity to the management long term incentive
scheme
Acquisition of Brookfield's 49.95% stake in One NZ in June 23 for $1.8 billion
Further investment into Kao Data to purchase a 12.9% stake from a minority shareholder and
continued support of the business as it invests in its Slough and Harlow data centres
Longroad equity injections have been used to support new projects as they reach full notice to
proceed and begin construction
Investment into Gurīn, Galileo, and Mint Renewables is used to support platform growth and
investment into capital projects and to support the growth of capability within the assets
Qscan investment relates to the purchase of shares from doctors who are retiring
Year ended 31 March ($Millions)20232024
CDC
$14.2 $35.1
One NZ
- $1,800.0
Kao Data
$21.2 $156.2
Fortysouth
$212.1 -
Longroad Energy
$242.2 $96.2
Gurīn Energy
$41.2 $55.8
Galileo
$42.3 $39.6
Mint Renewables
$4.4 $5.7
RHCNZ Medical Imaging
$16.4-
Qscan
- $17.8
Clearvision
$24.2 $18.8
Infratil Investment$618.2$2,225.2
Infratil has undertaken significant reinvestment into portfolio companies in FY24, the most significant of which was the purchase of the remaining stake of One NZ
Infratil investment
45
Overview
Proportionate EBITDAF is an unaudited non-GAAP (‘Generally Accepted Accounting
Principles’) measure of financial performance, presented to provide additional insight into
management’s view of the underlying business performance.
Specifically, in the context of operating businesses, Proportionate EBITDAF provides a metric
that can be used to report on the operations of the business (as distinct from investing and
other valuation movements).
Year ended 31 March ($Millions)
20232024
Net profit after tax (‘NPAT’)891.7845.1
Less: Associates
1
equity accounted earnings(653.4)(247.2)
Plus: Associates
1
proportionate EBITDAF389.4217.7
Less: minority share of subsidiary
2
EBITDAF(177.8)(193.9)
Plus: share of acquisition or sale-related transaction costs-24.6
Plus: one-off restructuring costs (including Fibreco)-13.5
Net loss/(gain) on foreign exchange and derivatives(91.9)56.4
Net realisations, revaluations and impairments17.1(998.7)
Discontinued operations(330.1)0.4
Underlying earnings45.0(282.1)
Plus: Depreciation & amortisation107.6558.6
Plus: Net interest166.8366.7
Plus: Tax42.593.1
Plus: International Portfolio Incentive fee169.6127.8
Proportionate EBITDAF531.5864.1
Earnings reconciliation
46
Gearing and credit metrics are monitored across the portfolio in aggregate and at the
individual portfolio company level
Kao Data and Longroad Energy have secured new debt packages in H2 FY24
EBITDAF based leverage metrics not appropriate for Longroad, RetireAustralia and Kao Data
based on industry segment and current operating models.
In addition to the below metrics, Wellington Airport maintains a BBB S&P credit rating (stable
outlook)
Exposure to interest rates is monitored across each portfolio company and managed within
approved treasury policy limits. 78% of drawn debt was hedged on a fixed rate basis as at 31
March 2024 and expected to remain in compliance with defined hedging policy bands out to 5
years or more across the Infratil portfolio
Portfolio company debt
31 March 2024Gearing
1
Net Debt /
EBITDA
2
% of drawn debt
hedged
CDC
3
24.0%9.483%
One NZ28.7%
2.98
70%
Fortysouth43.1%
12.8
92%
Kao Data13.5%n/a 93%
Manawa Energy24.1%3.187%
Longroad Energy
4
6.9%n/a 92%
Galileo
5
n/a n/a n/a
Gurīn Energy
6
n/a n/a n/a
Mint Renewables
7
n/a n/a n/a
RHCNZ Medical Imaging26.6%
3.8
73%
Qscan Group26.7%
3.9
74%
RetireAustralia19.2%n/a 75%
Wellington Airport40.6%
6.1
86%
Value Weighted Average of
Portfolio Companies
8
23.4%
78%
Notes:
1 Gearing calculated as total net debt / total capital based on most recent independent valuations, listed equity value or book value
at 31 March 2024
2 Unless otherwise stated EBITDAF definitions based on pre IFRS16 and allowable pro forma adjustments under financing
arrangements for each Portfolio Company
3 CDC leverage metric applies March 2024 run rate EBITDA annualised.
4 Longroad % of drawn debt hedged is based on non-recourse term debt but excludes construction and working capital facilities.
5,6,7 Holding company Net Debt position, excludes non-recourse project finance borrowing
8 Calculated based on IFT’s value weighted, proportionate share of Total Net Debt /Total Capital across all portfolio companies
---
1
Annual
Report
2024
1994
2024
12
Infratil today
Digital
62%
48% Infratil
$4.4
billion
99.9% Infratil
$3.5
billion
53% Infratil
$560
million
20% Infratil
$195
million
$145
million
51% Infratil
$730
million
37% Infratil
$2.0
billion
95% Infratil
$235
million
40% Infratil
$240
million
73% Infratil
$2
million
58% Infratil
$410
million
50% Infratil
$465
million
50.3% Infratil
$605
million
66% Infratil
$625
million
Renewables
22%
Healthcare
11%
Airports
4%
As we celebrate 30 years of Infratil's groundbreaking journey
as an infrastructure investor, we reflect on our humble
beginnings and remarkable evolution. Established three
decades ago, Infratil broke new ground as one of the earliest
listed infrastructure funds, reshaping the landscape of
investment possibilities for individual investors.
Our initial focus on New Zealand's infrastructure landscape
saw strategic investments in companies like Trustpower,
Central Power, and the Port of Tauranga lay the groundwork
for an enduring legacy.
Over time as our vision expanded beyond New Zealand,
so did our portfolio, driving diversification and a global
expansion. Yet, amidst our growth, our commitment to
community and long-term asset stewardship has remained.
In nearly every sector that Infratil has invested in, our vision
has seen us lead the way in identifying new forms of
infrastructure, whether in renewables, data centres or
diagnostic imaging.
Looking forward to the next decade we embrace the
challenge of navigating an increasingly dynamic landscape
as we search for the next generation of transformative
infrastructure.
As we embark on this new chapter, we remain dedicated
to delivering value to our shareholders, stakeholders, and
communities alike.
199519961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024
2
0
4
6
8
10
12
14
$ Billions
Ports
Healthcare
Public Transport
Social Infrastructure
Non-Renewable Energy
Data Centres
Utilities
Airports
Renewable Energy
Connectivity
Infratil’s portfolio composition over time
32
30 years of growth
Manawa Energy
Central Power
Powerco
Port of Tauranga
Port of Auckland
Wellington International Airport
Natural Gas Corporation
Tranz Rail
Infratil Airports Europe
Lumo Energy
Energy Developments
NZ Bus
Auckland International Airport
Perth Energy
Snapper
Infratil Property
iSite
Z Energy
Metlifecare
ASIP
RetireAustralia
Clearvision Ventures
ANU Student Accommodation
CDC Data Centres
Longroad Energy
Tilt Renewables
One NZ
Galileo Green Energy
Qscan Group
RHCNZ Medical Imaging
Gurīn Energy
Kao Data
Fortysouth
Mint Renewables
1994199519961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220242023
54
Operating Highlights
291 MW
Data Centre capacity
2,281 MW
Installed renewable generation
6,043 GWh
Renewable energy generated
5,442
Retirement village residents
6,682
Group employees
1,997,000
Mobile connections
2,460,000
Medical scans
5,449,000
Airport passengers
Today, Infratil manages a diversified
portfolio of 15 infrastructure investments
spanning four key sectors: Digital,
Renewables, Healthcare, and Airports.
These sectors, which we refer to as 'ideas that matter,' are
driven by major social and economic trends, fuelling demand
for transformative infrastructure.
Our underlying investments highlight Infratil’s increasingly
global presence, with Infratil businesses operating in 17
countries across Australasia, North America, Asia, Europe
and the United Kingdom.
Our portfolio is anchored by four key assets, CDC, One NZ,
Longroad Energy, and Wellington Airport, which collectively
comprise 75% of our holdings. CDC and Longroad Energy
serve as significant growth catalysts, developing new data
centres and solar farms at attractive returns.
One NZ and Wellington Airport have their own growth
but generate cashflow to support the existing debt and
reinvestment into growth options.
The remainder of our portfolio consists of smaller or earlier
stage investments earmarked for future growth or cash flow
generation. However, all our businesses share a common trait:
they deliver essential services to the communities they serve.
In New Zealand alone, approximately four out of every 10
people over the age of 10 are One NZ customers, while our
radiology clinics saw the equivalent of one in every seven
New Zealanders during the last year.
Manawa Energy generated enough electricity last year to
power over 270,000 New Zealand homes, while 5.5 million
passengers passed through Wellington Airport.
Beyond New Zealand, CDC has emerged as one of
Australasia's largest data centre operators, and Longroad
Energy is poised to have developed an energy capacity
equivalent to New Zealand's total system by 2028.
5
Financial Highlights
Infratil’s net parent surplus reflects the
strong operating performance of the
portfolio as well as the accounting for
the acquisition of the additional stake
in One NZ during the year. This resulted
in a gain being recognised on Infratil’s
existing 49.95% stake.
Proportionate EBITDAF represents Infratil's share of the
EBITDAF generated by its portfolio companies, along with
corporate-level operating costs. Over the past year,
Proportionate EBITDAF experienced significant growth,
increasing by 63% from $532 million in the previous year.
While a substantial portion of this increase can be attributed
to the higher ownership stake in One NZ since June 2023,
even after adjusting for this change, growth stood at an
impressive 15.5%. This earnings expansion underscores
the strong performance across the portfolio's operational
businesses during the year.
In the current year direct investment by Infratil in its portfolio
companies totalled $2,225 million, primarily driven by the
significant investment in One NZ.
Net debt represents Infratil’s corporate borrowings and
comprises $792 million of bank debt and $1,473 million of
retail bonds. The year-on-year increase in debt primarily
stems from financing the additional investment in One NZ,
as well as supporting the growth of our renewable energy
platform. Despite this increase, our corporate gearing of
20% remains below the Group's target range.
1 EBITDAF is an unaudited 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, acquisition or sale-related transaction costs and management incentive fees.
A reconciliation of net profit after tax to Proportionate EBITDAF is provided in the 31 March 2024 annual results presentation.
2 Shareholder returns are 12-month returns assuming that dividends are reinvested on the date of payment.
$854.0 M
Net parent surplus
$864.1 M
Proportionate EBITDAF
1
$2,225 M
Infratil investment
$2,265 M
Net debt
$10.89
Share price
$9,067 B
Market capitalisation
13.00
cps
Cash dividend declared
21.7%
per annum
12 month shareholder return
2
76
Peter Springford
Peter joined the Board as an
independent director in 2016
and was last re-elected in 2023.
He has extensive experience in
managing companies in Australia,
New Zealand and Asia, including
five years based in Hong Kong as
President of International Paper
(Asia) Limited and four years as
Chief Executive Officer and
Managing Director of Carter
Holt Harvey Limited.
Andrew Clark
Andrew joined the Board as
an independent director in 2022.
He is an experienced strategist and
transformation executive with over
30 years of diverse management
consulting experience. During this
time, he held a number of senior
roles within the Boston Consulting
Group (BCG).
Anne Urlwin
Anne joined the Board as an
independent director in 2023.
She is a chartered accountant
and an experienced finance and
governance professional. Her
current governance roles include
Chair of Precinct Properties and a
director of Vector and Ventia. She
has previously been a director
of Summerset Holdings, Tilt
Renewables, Chorus and Meridian
Energy. Anne is Chair of the Audit
and Risk Committee and has a
significant accounting, financial,
risk and sustainability background.
Jason Boyes
Jason is Chief Executive of Infratil
and joined the Board in 2021. Jason
is Chair of Longroad Energy and a
director of CDC Data Centres.
He joined Morrison in 2011 after a
15-year legal career in corporate
finance and M&A in New Zealand
and London. Jason has an interest
in Morrison, which has the
Management Agreement
with Infratil.
Experienced Leadership
Directors
Alison Gerry
Alison has been Chair since
May 2022, an independent director
since 2014 and was last re-elected
in 2022. She is a director of
Air New Zealand, ANZ Bank
New Zealand, and Chair of
Sharesies. Alison has been a
professional director since 2007.
Previously, Alison worked for
both corporates and for financial
institutions in Australia, Asia
and London in trading, finance
and risk roles.
Kirsty Mactaggart
Kirsty joined the Board as an
independent director in 2019, and
was last re-elected in 2022. Kirsty
is a director of Sharesies
Investment Management Limited
and a senior advisor at Montarne.
Prior to her director and advisory
career, she was Head of Equity
Capital Markets and, Corporate
Governance for Fidelity
International in Asia, and was also
a managing director at Citigroup
based in Hong Kong and London.
She has over 25 years of global
equity market experience with a
unique investor perspective and a
focus on governance.
Paul Gough
Paul joined the Board as an
independent director in 2012 and
was last re-elected in 2021. He is
managing partner of the UK private
equity fund STAR Capital. He is a
director of several international
companies in the transport,
logistics, healthcare, infrastructure
and financial services sectors.
Paul previously worked for Credit
Suisse First Boston in New Zealand
and London.
Infratil’s shareholders elect directors for three-year terms to
look after their interests. Directors are expected to:
• Maintain a dialogue with shareholders, to understand
concerns and priorities.
• Participate in the formation and evolution of the Company’s
strategy.
• Ensure effective articulation to external stakeholders of
strategy, goals, risks and performance, including with
regard to environmental, social and governance metrics.
• Monitor strategy implementation, financial performance,
risks and legal compliance.
• Maintain awareness of relevant societal and market
developments and provide diversity of perspective and
knowledge relevant to the Company.
Further commentary on the Board is set out on pages 133
- 140 of this report.
• Monitor the performance of Infratil’s manager Morrison.
Morrison is a specialist manager of infrastructure
investments and performs this role for Infratil under an
investment management agreement which is available on
Infratil's website. Through the management agreement,
Infratil benefits from having a management team with great
breadth and depth of skills, however the Board must be
vigilant about potential conflicts of interest and satisfied
that the cost is reasonable.
98
Kia ora kōutou. I am pleased to report that
Infratil’s 30th year was another remarkable
one for shareholders.
Financially, Infratil exceeded its long-term target returns, delivering a
return to shareholders for the year of 21.7% after tax and fees. This was
achieved through a combination of strategic investment and strong
operational performance, with over $3.6 billion invested by Infratil and
its investee companies.
The Board remains laser-focused on its overriding objective, delivering
target returns of 11-15% per annum (after fees) over a 10-year period for
shareholders. To achieve this, the Board and Infratil’s manager, Morrison,
are relentlessly executing business plans and investment cases within our
portfolio entities.
Strategic Positioning and Portfolio Management
While we look forward to long-term growth, it is important to reflect on
30 years of successful investment and take stock.
There are many valuable and repeatable lessons, and
we continue to benefit from the intellectual property
which comes from 30 years of investing success,
what we often refer to as the ‘Secret Sauce’.
In part, this involves focusing on sectors and businesses with strong defensive
characteristics, which have been foundational to our portfolio over the years.
However, we also look to capitalise on growth driven by industry trends such as
social change and disruption, providing opportunities to create large-scale
proprietary infrastructure platforms.
Another part is using our portfolio approach to blend lower risk cash generating
businesses with higher risk and return growth investments which enables us to
take early positions in emerging infrastructure. We think about our investments
as a mixture of core (8-10%), core plus (10-15%) and development & growth
(15-25%) assets, often with development platforms that will mature into core
assets over our investment horizon.
We were early to the party for renewable energy and data centres but
cannot rest on our laurels. We are constantly on the lookout for emerging
infrastructure. We are excited about our newest investment in Console
Connect, but the work that underpins that investment started more than
five years ago and continues as we work towards settlement.
We continue to spend time on new ideas and based on our track record,
shareholders can have confidence that we are actively exploring ideas which
might lead to investments in the next decade.
A focus around the Board table over the last year has been to ensure we spend
more time focusing on our most material investments – for now this includes
CDC, Longroad and One NZ. However, we also continue to spend a lot of time
discussing portfolio mix and diversification. Given the growth opportunities
within our pipeline, the competition for capital within the portfolio has grown
with even more discipline required to allocate wisely.
Report of the Board Chair
You will also see in this report our focus on ESG is continuing.
Last year we set science-based emission reduction targets
and released our inaugural sustainability report and climate
related disclosures. This year, we will update these reports as
we file our first mandatory climate related disclosures.
Given the global scale of the portfolio, the Board visited a
number of other markets during the financial year. These
visits highlighted the increasingly global experience and
connections of the Morrison team, who manage the
investments we visited. In a world where global reach,
intellectual property, and connections matter more than ever,
the Morrison capabilities are proving invaluable to Infratil.
Relationship with Morrison
Infratil’s relationship with our manager, Morrison, remains
very healthy and it continues to perform strongly for Infratil
shareholders. The Board was pleased to be able to agree
positive changes to the management agreement last year
that helps simplify our long-standing relationship. We have
been pleased to see the continued investment Morrison has
made in its own global team and the increasing alignment
through part of this year’s incentive fees being paid in Infratil
shares.
We also saw the value of synergies and experience within the
portfolio, whether this was our renewable energy experts
working with our data centre businesses, our Australian and
New Zealand radiology platforms exploring ‘follow the sun’
teleradiology opportunities together, or connections made
through our early-stage technology investments providing
tools for the development of our climate disclosures and
emissions reporting.
Shareholders and Investor Relations
This year, we held our first formal governance meetings,
providing large institutional investors the opportunity to
engage directly with our directors. Following the release
of this report and leading up to our annual shareholder
meeting, the Board will conduct a more structured
governance roadshow. This initiative allows us to directly
address shareholder concerns and better understand
your expectations from the Board, ensuring we continue
to meet your needs effectively.
Our equity raise conducted as part of the One NZ transaction
last year, represented not only the largest raise Infratil has
ever undertaken, but also one of the largest in New Zealand's
corporate history, with the total equity raised exceeding
$935 million.
"I take great pride in Infratil’s
ability to continuously
meet the needs of our
shareholders,stakeholders,
and communities. I am
immensely grateful to the
entire Infratil team and our
portfolio companies for
their tireless dedication
and contributions."
It is pleasing to see that shareholders who participated in the
equity raise have achieved a return of 19.1% (including
dividends) on their new shares in the period since.
We continue to attract new investors,
including international institutions, while
remaining committed to our retail
shareholder base.
Supporting this we held our first full Institutional Investor Day
in Sydney in March, while our retail investor roadshow is set to
begin, with 16 events across New Zealand in June.
Looking ahead
Looking ahead we expect the new-normal of turbulence in
financial, political and regulatory systems to continue with
global inflationary pressures being slower to ease and an
uncertain geopolitical outlook. With the New Zealand
domestic economy contracting and inflation lowering relative
to other markets, we can also expect some uncertainty
closer to home. However, we have learned from 30 years
of growth that uncertainty can bring opportunity, and we
are ready to execute.
I take great pride in Infratil’s ability to continuously meet the
needs of our shareholders, stakeholders, and communities.
I am immensely grateful to the entire Infratil team and our
portfolio companies for their tireless dedication and
contributions. I would also like to thank shareholders for the
faith placed in us. That is a trust we do not take lightly and one
we continue to work hard to earn anew each year.
Alison Gerry
Chair
1110
Reflecting on Infratil's remarkable 30-year journey, I'm struck
by the transformative impact we've had in the infrastructure
sector. Over the past three decades, we've witnessed
significant global changes, and Infratil has not only adapted
but often led the way.
I am pleased to report that this year we continued to build on our legacy of success,
delivering a strong financial result and making significant strides in growing our portfolio.
While we celebrate these achievements, we recognise that our approach is designed for
sustainable, long-term growth, not overnight success, and therefore this year’s result is
the culmination of many years work.
Over 30 years, Infratil has grown from a New Zealand-focused infrastructure investment
company into a global player, today owning a diversified portfolio encompassing digital
infrastructure, renewable energy, healthcare, and airport investments. We refer to these
sectors as “ideas that matter”, as they represent the future of infrastructure investment
and are thematics that will continue to have a major influence on the world.
As we move forward, our goal is to continue building on this foundation, leveraging the
lessons learned from our 30-year history while embracing new opportunities that align
with our vision for the future. In this report, we will highlight some of our key achievements
over the past year, but you should also get a strong sense of our strategic outlook for the
path ahead.
Conviction in our Investment Strategy
Infratil's current portfolio is heavily weighted towards high-growth digital infrastructure
and renewable energy businesses, with a specific focus on developing these critical
assets. Over 80% of our portfolio is invested in these two sectors, which are central to
understanding our investment approach.
These platforms represent two of the most sought-after asset classes, converging
to address the growing demand for AI and data centres with the essential need for
sustainable energy solutions. As AI development accelerates, the need for robust,
scalable data centres powered by renewable energy becomes increasingly critical.
This combination not only enhances operational efficiency and sustainability but also
underscores our commitment to meeting the evolving demands of this global market.
To date, few if any listed investment entities are exposed to both asset classes quite
the way that Infratil is today.
Across digital infrastructure and renewable energy, three major assets form the core of
our portfolio, representing 70% of its total value: CDC, One NZ and Longroad Energy.
These high-growth companies, particularly CDC and Longroad, are complemented by
our core cash flow-generating assets, including One NZ, Wellington Airport, Manawa
Energy and RHCNZ Medical Imaging. These core assets play a vital role in maintaining
our credit and liquidity metrics while providing the necessary cashflow to reinvest in our
high-growth platforms.
The remainder of our portfolio consists of smaller or earlier-
stage investments designed to become the scaled core
cashflow-generating or core growth platforms of the future.
Investing in future growth
Longroad Energy is currently embarking on the largest capital works project in its history.
In addition to its operational projects, Longroad has had 2.4GW of assets under
construction during the year across nine projects and in five States, by our estimate
making it one of the top 15 developers in the U.S. Longroad's development pipeline spans
a massive 28.3GW, with wind, solar, and storage projects distributed across more than
20 States in the U.S.
Report of the Chief Executive
Meanwhile, our other renewable energy platforms are making
significant progress as well. Gurīn Energy, our pan-Asian
renewable energy venture, has secured one of the five
conditional approvals to establish a green electricity trading
corridor between Indonesia and Singapore. This ambitious
initiative aims to supply the Singapore market with 300MW of
stable renewable energy by 2027. It involves generating power
on the Riau Islands in Indonesia, with a capacity of 2GW of
solar photovoltaic energy and 4.4GWh of battery storage –
positioning it as one of the largest projects of its kind globally.
One of the most significant milestones from the past year was
our agreement with Brookfield in June to acquire the remaining
49.95% stake in One NZ, which we didn't already own. This
agreement culminated a six-year journey that began even
before our initial investment in May 2019.
One NZ is more than just another asset; it has critical
infrastructure that plays a central role in New Zealand’s
economy. By increasing our stake, Infratil has gained
greater flexibility and will continue to focus on creating
long-term value.
A sustainable journey
Last year we published our first sustainability report, the report
outlined our updated strategy focused on key environmental,
social, and governance issues, as well as our emissions footprint.
A major focus is 'Climate and Nature,' addressing the
increasing impact of climate change. In response, Infratil
became the first New Zealand financial institution with climate
targets validated by the Science Based Targets initiative,
committing to the Paris Agreement's goal of limiting global
warming to 1.5°C. Our validated targets aim to reduce
scope 1 and 2 greenhouse gas emissions to zero and lower
scope 3 emissions from business travel.
We also require our portfolio companies to set their own
validated climate targets, aligning them with our sustainability
objectives, and underscoring our commitment to pursuing a
sustainable portfolio.
Strategic Outlook
We were excited to announce an expansion of our digital
infrastructure portfolio during the year with the announcement
of a conditional investment in Console Connect. Its technology
can automatically switch and route internet traffic, which
makes global connections faster and more secure. Console
Connect's reach extends to over 150 countries, and it
currently manages about 17% of global internet traffic.
The investment remains subject to regulatory approvals, and
we are looking forward to completion towards the end of the
2024 calendar year.
At home, New Zealand faces a significant infrastructure
deficit, with ASB Bank recently estimating that it will take up to
$1 trillion over the next 30 years to bring the country's
infrastructure up to standard. The price of inaction could be
high, threatening not just New Zealand's economic outlook but
also exposing its communities to greater risks from climate
“I want to extend my
sincere gratitude to our
shareholders for their
support and trust. Your
partnership has been
integral to our success, and
we remain committed to
delivering value and driving
innovation through our
investment.”
change. This deficit is already manifesting in everyday life,
from congested roads and unreliable public transport, to
leaking pipes, unplanned power outages, and cell phone black
spots. These issues are all symptoms of an infrastructure
network struggling to keep pace with the demands of a
growing population.
Infratil, as a major investor in infrastructure, is well-positioned
to invest on behalf of, or alongside, local and central
Government to improve New Zealand's infrastructure
landscape.
The private sector’s capacity to address
this infrastructure shortfall is often
overlooked, offering a significant
opportunity to help overcome current
challenges.
It's imperative that New Zealand considers strategic shifts
in thinking to energise the private sector. One example is
adopting a tax credit scheme similar to that of the United
States, which has proven instrumental in accelerating
renewable energy projects and expanding the transmission
grid. The U.S. model's success, driven by the Inflation
Reduction Act, lies in its open-access tax credit system that
facilitates capital flow towards the most cost-effective
projects.
In contrast, New Zealand's unsubsidised approach places
us at a disadvantage in attracting investment capital. By
embracing a more robust incentive framework, we can
accelerate the integration of alternative power sources and
foster investments from smaller distribution companies,
ensuring a more diverse and resilient energy infrastructure.
While we deeply value Wellington City Council's partnership at
Wellington Airport and prefer its continued co-ownership, we
understand the financial pressures prompting its consideration
of divestment.
Infratil, as a long-term investor with access to capital,
expertise, and a commitment to sustainable growth and
community, is well-positioned to engage in these types of
discussions with local governments across New Zealand.
As I conclude, I want to express my deep gratitude to our
loyal shareholders, who in many cases have been with us for
30 years. Your support, trust, and commitment have been
instrumental in our success. It is because of you that we've
been able to continue to invest for the long-term with
confidence. On behalf of the entire Infratil team, thank you
for being with us on this journey. We look forward to a bright
future together.
Jason Boyes
Chief Executive
1312
Infratil’s management team is comprised of individuals employed by Morrison
(including the Chief Executive and Chief Financial Officer), as well as
personnel from Infratil’s portfolio companies.
The day-to-day management of the Company has been entrusted to Morrison
through a management agreement, which sets out Morrison’s duties, powers,
and the management fee payable for its services.
The Board determines and agrees with Morrison specific goals and objectives,
with a view to achieving the strategic goals of Infratil. Morrison is held
accountable to the Board for achieving these strategic objectives.
Morrison, a specialised infrastructure investment manager with a global
presence, also oversees investments on behalf of other clients, such as the
New Zealand Superannuation Fund, the Commonwealth Superannuation
Corporation, and the Australian Future Fund, some of which are partners with
Infratil in various investments.
Infratil benefits from the extensive expertise and broader network that the
Morrison management team brings to the table, surpassing what a company
of Infratil’s size could typically maintain internally. This enables Infratil to
leverage a wealth of experience and global relationships for its advantage.
Jason BoyesAndrew CarrollPhillippa HarfordPaul NewfieldWilliam Smales
Infratil Chief Executive,
Director of Infratil and CDC,
Chair of Longroad Energy,
Morrison Partner
Infratil Chief Financial OfficerChair of One NZ, Director of
RetireAustralia and Manawa
Energy, Morrison Partner
Morrison Partner and Chief
Executive
Director of CDC and Kao Data,
Morrison Partner, CIO and
Global Head of Digital and
Connectivity
Steven FitzgeraldPeter ComanKellee ClarkLouise TongJon Collinge
Morrison Partner and
Global Head of Asset
Management
Chair of RHCNZ Medical
Imaging, Qscan and Infratil
Property, Morrison Partner
and Head of Australia and
New Zealand
Director of Longroad Energy,
Morrison Partner and Head
of Legal
Infratil Director of
Sustainability, Risk & Funding,
Morrison Executive Director
Morrison Executive Director,
Sustainability
Mark FlesherBrendan KevanyNick LoughJillian GardnerAlicia Quirke
Capital Markets & Investor
Relations, Morrison Executive
Director
Infratil Company Secretary Morrison Executive
Director, Legal
Morrison Head of TaxMorrison Regional Tax Director
Matthew RossTom RobertsonSomali YoungJoe BeechThomas Wills
Infratil Deputy CFO, Director
of Wellington Airport,
Morrison Executive Director
Infratil TreasurerInfratil Financial ControllerInfratil Financial ControllerInfratil Financial Performance
and Analysis Manager
Marko BogoievskiVincent GerritsenRalph BrayhamNicole PattersonRohit Rangarajan
Director of One NZ,
Morrison Operating Partner
Director of Galileo and Kao
Data, Morrison Partner and
Head of UK and Europe
Morrison Data Infrastructure
& Technology Specialist
Director of CDC Data Centres
NZ and Fortysouth, Morrison
Investment Director
CDC Asset Manager,
Morrison Investment Director
Lewis BaileyRobert HuangIlaria Di FrescoVimal VallabhDeion Campbell
Morrison Executive Director,
Strategy
Morrison Executive DirectorEnergy EconomistChair of Gurīn Energy and
Galileo, Morrison Partner and
Global Head of Energy
Chair of Manawa Energy and
Mint Renewables,
Morrison Operating Partner
Will McIndoeJonty PalmerRajiv KhakarLauren BeshorePriya Grewal
Director of Mint Renewables,
Morrison Executive Director
Director of Gurīn Energy,
Morrison Director of Energy
Operations
Director of Galileo,
Morrison Executive Director
Longroad Energy Asset
Manager, Morrison Investment
Director
Director of Mint Renewables,
Morrison Investment Director
Michael BrookAlan McCarthyRachel DrewElizabeth AlbergoniPhil Walker
Director of RHCNZ Medical
Imaging and RetireAustralia,
Morrison Executive Director
Director of Qscan and
RHCNZ Medical Imaging
Chair of Wellington Airport,
Director of Qscan and
RHCNZ Medical Imaging,
Morrison Executive Director
Director of Wellington Airport,
Morrison Investment Director
Director of Wellington Airport
Transparent and reliable
Management Team
1514
International
11%
Infratil's large and diverse shareholder base, along
with our ownership of assets deeply embedded in
local communities, underscores our commitment to
a broad set of stakeholders.
We understand that owning such significant assets brings a responsibility
to be transparent and open in our reporting and communication.
Our goal is to continually improve the accountability
of governance and management while increasing
transparency in our operations. This commitment
involves providing regular updates on the progress
of our businesses and the risks associated with each
investment.
To achieve this, we ensure that shareholders have several opportunities
to engage with our management and directors, ask questions, and offer
feedback. Over the last year, we hosted several key meetings with
shareholders and bondholders where they could interact directly with
our leadership. These included:
• The FY2023 annual results announcement on 22 May 2023 and the
interim results announcement on 16 November 2023.
• A series of presentations to retail shareholders and bondholders across
15 centres in New Zealand from 29 May to 29 June 2023.
• The Annual Meeting on 17 August, featuring shareholder resolutions,
a governance and strategy speech by the Chair, and a presentation
by management on business activities and prospects.
• Institutional Investor Days in Phoenix, Arizona (September 2023), and
Sydney (March 2024), showcasing presentations from key portfolio
business management teams and senior Infratil executives.
• An initial series of governance meetings, introducing large institutional
investors to directors.
These meetings provided valuable opportunities for shareholders to raise
questions, voice concerns, and engage with Infratil's leadership.
All related content is readily accessible on our website at www.infratil.com.
Infratil's portfolio is dynamic and constantly evolving. As a result, the
composition of an investor's share today may differ significantly from
when it was initially purchased. This fluidity is why maintaining an ongoing
dialogue with shareholders is helpful.
A decade ago, 89% of Infratil's portfolio was invested in New Zealand;
today, 41% is invested domestically. Similarly, our investments in Digital
Infrastructure have seen dramatic growth – from just 0.1% of the portfolio
ten years ago to 62% today. These changes reflect our ongoing strategy to
expand our investment footprint and diversify geographically. Our consistent
stakeholder engagement plays a key role in keeping our shareholders
informed and engaged as our business continues to evolve.
Stakeholder Engagement
New Zealand
89%
New Zealand
41%
International
59%
Other
1%
Infratil share today - 2024
Renewables
22%
Healthcare
11%
Airports
4%
Infratil share 10 years ago - 2015
Digital
62%
Renewable Energy
44%
Non-Renewable Energy
17%
Social Infrastructure
16%
Airports
12%
Public Transport
11%
15
Geographic split - 2015
Geographic split - 2024
1716
From 31 March 2023 to 31 March 2024, Infratil's share
price increased from $9.20 to $10.89.
During this period, Infratil also paid two dividends totaling 19.50 cents per
share (cps) in cash and 6.00 cps in imputation credits.
Additionally, during the year, retail shareholders had the opportunity to
participate in a retail share offer. Eligible shareholders could acquire 127
shares for every 1,000 shares owned at a price of $9.20 per share.
Institutional shareholders were also offered participation through an
institutional placement at the same price.
The total return to shareholders for the year was 21.7%, consisting of a 2.0%
after-tax dividend return (at a 28% tax rate) and a 19.7% capital gain, inclusive
of the retail share offer. By comparison, the total return of the NZX50 for the
same period was 2.3%. The capital gain calculation assumes that all dividends
were reinvested upon receipt, indicating a scenario where shareholders
neither withdrew nor added additional funds.
Since its listing in March 1994, Infratil has delivered an average
after-tax return of 18.7% per annum. Over the past decade, the average
after-tax return has been 22.0% per annum. To illustrate the benefits of
long-term investing, a shareholder who invested $1,000 in Infratil shares on
31 March 1994, and reinvested all dividends and the value of all rights issues,
would own 16,057 shares worth $171,910 as of 31 March 2024.
Shareholder Returns and Ownership30 Year Track Record
$1,000
19942024
75%
Annual Return
50%
25%
0%
(25%)
(50%)
Dividend Return
Accumulation Index
New Zealand retail investors
Capital Return
New Zealand institutional investors
Accumulation Index
Overseas investors
31 March 2024
31 March 2023
369.4 million
346.7 million
44.4%
4 7. 9 %
26.8%
23.2%
28.8%
28.9%
223.2 million
167.7 million
239.9 million
832.6 million
723.9 million
209.5 million
Ownership
1716
$171,910
$175,000
$150,000
$125,000
$100,000
$75,000
$50,000
$25,000
$0
($25,000)
($50,000)
1918
Sustainability
At Infratil, we are dedicated to not only
generating strong financial returns for
our investors but also contributing to a
sustainable future.
We recognise that our investors seek more than just
financial gains; they want a world with a livable climate,
resilient infrastructure, thriving communities, and a healthy
environment. Sustainability is not just an abstract concept
for us; it's a core principle that guides our long-term
investment strategy.
We understand that sustainability and climate considerations
are integral to our investments, particularly in sectors like
renewable energy, in which we are driving transformative
change. Moreover, prioritising sustainability reinforces our
social licence to operate and enhances our access to capital.
By aligning our investments with these principles, we aim
to create lasting value for our investors and contribute to a
better world for future generations.
We recognise the growing significance
of sustainable investment and the rising
expectations from investors in this
regard. In the current year, we have
made substantial strides forward in
aligning our practices with these
expectations.
Sustainability Report
In August 2023 we unveiled our inaugural Sustainability
Report, a comprehensive overview centered on four pillars:
Governance, Leadership, Climate & Nature, and People.
Within each pillar, we explained the objectives we’re aiming to
achieve, the pathways to achieve them and the outcomes we
are looking to deliver. This analysis is the culmination of a
materiality process to identify the most important ESG issues
for our portfolio, including matters such as resilience, cyber
security, impacts on nature, people and the community, the
regulatory landscape, and the climate transition.
Sustainability Highlights
Measuring Progress
ESG ratings not only provide a useful marker of our progress,
but we know domestic and global investors are increasingly
incorporating ESG ratings into their investment decision
processes. Given this, improved ESG ratings are one aspect that
can support access to attractively priced capital for companies,
including Infratil. Below are some examples of Infratil’s recent
progress.
Forsyth Barr Carbon & ESG Rating
Infratil's Carbon & ESG rating by Forsyth Barr progressed from
C+ in FY2022 to B+ in FY2023, despite more rigorous evaluation
criteria. Recognised as a 'notable improver' in Forsyth Barr's
Charting the Course of Change report, Infratil's upward
trajectory reflects our commitment to measuring and disclosing
our sustainability impacts.
CDP Rating
Our CDP rating, assessing climate disclosure and performance,
has demonstrated improvement, rising from F in FY2021 to D in
FY2022, and further to C in FY2023, aligning with regional and
global averages. Notably, our FY2023 rating preceded the
establishment of Science Based Targets, a milestone that may
further improve future CDP ratings.
GRESB Infrastructure Assessments
For several years now, Infratil and its portfolio companies
have undertaken GRESB Infrastructure Assessments. These
assessments and ratings provide valuable sustainability insights
for Infratil and each portfolio company on opportunities for
improvement, performance against sector peers and an ability
to track and evidence progress.
In FY2023, Infratil itself and its portfolio companies (excluding
the then recently formed Mint Renewables and Fortysouth),
undertook these assessments. Infratil’s overall GRESB rating
(70% of which is the Performance Score, determined from a
weighted average of its portfolio company GRESB scores)
improved from 77 in FY2022 to 83 in FY2023.
100%
of portfolio companies measuring
carbon footprint
1st
New Zealand financial institution
to have a SBTi–validated emissions
reduction target
43%
Females on Infratil’s Board
Zero
Reported workplace fatalities
across the portfolio
0.57
Lost Time Injury Frequency Rate
1.23
Total Recordable Incident
Frequency Rate
$3.3 M
Portfolio weighted community
investment
Setting Science-Based Emissions Reduction Targets
In October we became the first financial institution in
New Zealand to have its science-based emissions reduction
targets validated by the Science Based Targets initiative
(SBTi) under its Financial Institutions framework.
The validation of Infratil’s emissions reduction targets by
SBTi means its stakeholders can be confident that the targets
are credible and align with the science to support meeting
the goals of the Paris Agreement, adopted at the United
Nations Climate Change Conference in 2015.
Our validated emissions reduction targets are as follows:
• Scope 1 and 2: Infratil commits to maintaining zero absolute
scope 1 and 2 GHG emissions through FY2030, based on a
FY2023 baseline.
• Scope 3 Category 1-14: Infratil pledges a 25% reduction in
absolute scope 3 GHG emissions from business travel by
FY2030, relative to a FY2023 baseline.
• Scope 3 Category 15 (Investments): Infratil commits to a
portfolio coverage target of 60% of its portfolio, by fair
value, setting SBTi–validated targets by FY2028 and 100%
by FY2030, from FY2023 base year.
Climate Disclosures
In December we released our inaugural Climate Related
Disclosures (‘CRD’). Where possible, we sought to align
these voluntary CRD with the now mandatory Aotearoa
New Zealand Climate Standards.
As part of analysing our risks and opportunities, we have
undertaken a range of scenario analyses to examine the
impact of climate change on our businesses. To do so, we
have conducted separate analyses of our climate-related
physical risks and our climate-related transition risks and
opportunities.
Infratil will be publishing its FY2024 climate-related
disclosures by 31 July, in line with the requirements of the
mandatory Aotearoa New Zealand Climate Standards,
along with our 2024 Sustainability Report.
2120
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0
1994199519961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024
CO₂ annual increase (parts per million)
In December 2023,
CO₂ concentrations at
Baring Head were
417.8 pats pe million
In January 1994, CO₂
concentrations at
Baring Head were
355.7 pats pe million
Atmospheric CO₂ and a warming climate
Investment thesis
The concentration of carbon dioxide (CO₂) in Earth's
atmosphere has risen dramatically over the past century,
primarily due to human activities. Since the Industrial
Revolution, the burning of fossil fuels such as coal, oil, and
natural gas has released massive amounts of CO₂ into the
atmosphere. In addition, deforestation and land-use
changes have further contributed to this increase by
reducing the Earth's capacity to absorb CO₂.
Atmospheric CO₂ levels have surged from approximately
280 parts per million (ppm) in the pre-industrial era to over
420 ppm in 2023. This sharp rise in CO₂ concentration has
a significant impact on the planet's climate, leading to
global warming and climate change. The greenhouse
effect caused by elevated levels of CO₂ traps heat in the
atmosphere, resulting in rising global temperatures,
shifting weather patterns, and increased frequency of
extreme weather events. Addressing this growing
challenge requires urgent action to reduce carbon
emissions.
Chart data
The Baring Head Atmospheric Research Station, located
near Wellington, has played a pivotal role in advancing
our global understanding of greenhouse gases for nearly
50 years. The station's unique location allows it to measure
air that originates from the Southern Ocean, an area with
minimal human activity, providing an accurate baseline
for greenhouse gas concentrations unaffected by local
emissions. According to the station's data, the
concentration of carbon dioxide has increased by 15%
from 1994 to 2022.
Additionally, temperature data from the Wellington region,
overlaid with the carbon dioxide measurements, provides
compelling evidence of a warming climate. Comparing
the annual average temperature anomaly to a 1961-1990
baseline, the data reveals that 23 of the past 29 years
have been warmer than the average of the preceding
30 years, with all of the last 10 years showing above-
average temperatures. This alignment of increased carbon
dioxide concentrations with a consistent upward trend
in temperature underscores the broader implications of
climate change and the pressing need to address the root
causes of global warming.
1.00 – 2.00 Growth rate (parts per million)
Linear (growth rate)
Temperature variance to
1961-1990 baseline
0.25 – 0.50
0.75 – 1.00
0.00 – 0.25
0.50 – 0.75
0 – - 0.25
-0.25 – -0.50
Source:
National Oceanic and Atmospheric Administration (USA).
National Institute of Water and Atmospheric Research (New Zealand). Statistics New Zealand.
Increase in CO₂
concentrations
Baring Head
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0
1994199519961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024
CO₂ annual increase (parts per million)
In December 2023,
CO₂ concentrations at
Baring Head were
417.8 pats pe million
In January 1994, CO₂
concentrations at
Baring Head were
355.7 pats pe million
2322
Financial Trends
Infratil Funding
Changes to the relative funding of
Infratil and its 100% subsidiaries
occurs as businesses are sold and
acquired, when Infratil receives
funds from, or advances them to
its operating businesses, or if shares
are repurchased or issued.
The use of debt is bound by Infratil’s
policy of maintaining credit metrics
that are broadly consistent with an
Investment Grade Credit Rating
(Infratil is not credit rated) and with
maintaining availability of funds for
investment purposes.
Proportionate EBITDAF
The calculation of Proportionate
EBITDAF is outlined on page 5 of this
report. It is intended to show Infratil’s
share of the operating earnings of
the companies in which it invests.
Proportionate EBITDAF is a non-
GAAP financial measure.
The figures include the contribution
of assets held for sale.
Infratil Assets
The graph shows the fair values
of Infratil’s assets.
As noted on page 27, the fair
values are market values when an
asset is listed, the independent
valuation if one is available, or the
book value for assets which Infratil
does not commission independent
valuations for.
Annual ReturnAccumulation Index
2024202220212020201920182017201620152023
0%
20%
40%
60%
100%10,000
8,000
6,000
4,000
2,000
0
(2,000)
80%
-20%
0%
0
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
2024202320222021202020192018201720162015
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
$Millions
0
2024
201520162017201820192020202220232021
2023202220212020201920182017201620152024
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
-100
100
200
300
400
500
600
700
900
800
$Millions
0
20242015
X
2016
X
2017
X
2018
X
2019
X
2020
X
2021
X
2022
X
2023
X
X
Dividend Return
Capital Return
Accumulation Index
Shareholder Returns
Between 1 April 2014 and
31 March 2024 Infratil provided its
shareholders with an average after
tax return of 22.0% per annum.
$1,000 invested at the start
of the period would have
compounded to $7,322 by
31 March 2024, assuming that
all distributions were reinvested.
Proportionate Capital Expenditure
Over the past decade Infratil’s share
of the capital expenditure of its
portfolio companies was $7.1 billion,
the majority of which has been
undertaken in the past 5 years.
Funding for this investment is
derived from shareholder equity
contributions, free cash flow,
and debt.
Net bank and dated bonds
Perpetual bonds
Equity (market value)
To t a l
X
Longroad EnergyCorporate
Fortysouth
Diagnostic Imaging
Galileo
Other/sold
Kao Data
RetireAustralia
CDC Data CentresGurīn Energy
Manawa Energy
Wellington Airport
Mint RenewablesOne NZ
Longroad EnergyCorporate
Fortysouth
Diagnostic Imaging
Galileo
Sold
Kao Data
RetireAustralia
CDC Data CentresGurīn Energy
Manawa Energy
Wellington Airport
Mint RenewablesOne NZ
Longroad EnergyCorporate
Fortysouth
Diagnostic Imaging
Galileo
Sold
Kao Data
RetireAustralia
CDC Data CentresGurīn Energy
Manawa Energy
Wellington Airport
Mint RenewablesOne NZ
2524
Financial Performance & Position
Year ended 31 March ($Millions) Share20242023
CDC Data Centres 48.2% $140.8 $113.7
One NZ 99.9% $545.5 $263.6
Fortysouth 20.0% $11.5 $4.4
Kao Data 52.8%($2.3)($3.0)
Manawa Energy 51.1% $ 74 .1 $69.9
Longroad Energy 37.0% $33.4 $16.4
Galileo 40.0%($15.2)($11.8)
Gurīn Energy 95.0%($21.9)($15.6)
Mint Renewables 73.0%($6.8)($1.4)
RHCNZ Medical Imaging 50.3% $58.1 $54.4
Qscan Group 57.6% $40.6 $33.8
RetireAustralia 50.0% $12.1 $6.1
Wellington Airport 66.0% $70.7 $59.1
Corporate & other ($76.5)($58.1)
Proportionate EBITDAF $864.1 $531.5
Trustpower Retail business 51.1%($0.3) $1.8
To t a l $863.8 $533.3
Year ended 31 March ($Millions)20242023
Operating revenue $3,242.5 $1,845.1
Operating expenses($2,193.1)($871.8)
International Portfolio Incentive fees ($127.8)($169.6)
Depreciation & amortisation($558.6)($107.6)
Net interest($366.7)($166.8)
Tax expense($93.1)($42.5)
Realisations & revaluations $942.3 $74.8
Discontinued operations($0.4) $330.1
Net surplus after tax $845.1 $891.7
Minority earnings $8.9($248.6)
Net parent surplus $854.0 $643.1
Year ended 31 March 2024 ($Millions)Share
EBITDAF
1
100%D&AInterestTa x
Revaluations
& other
adjustmentsMinorities
Infratil share
of earnings
CDC Data Centres
48.2%
$292.1 - - - ($175.8) - $116.3
One NZ
99.9%
$600.1($446.8)($159.2) $29.5($108.8)($0.8)($86.0)
Fortysouth
20.0%
$57.6 - - - ($66.4) - ($8.8)
Kao Data
52.8%
($5.3) - - - $2.8 - ($2.5)
Manawa Energy
51.1%
$145.0($20.6)($26.2)($25.3)($47.9)($12.7) $12.3
Longroad Energy
37.0%
$91.3 - - - $32.9 - $124.2
Galileo
40.0%
($37.9) - - - $39.4 - $1.5
Gurīn Energy
95.0%
($23.1)($0.7)($1.4) - ($0.4) $2.2($23.4)
Mint Renewables
73.0%
($9.3)($0.2) $0.1 - - $2.6($6.8)
RHCNZ Medical Imaging
50.3%
$115.3($26.2)($35.7)($14.5)($9.8)($14.6) $14.5
Qscan Group
57.6%
$73.3($34.2)($27.7)($4.3)($60.5) $22.5($30.9)
RetireAustralia
50.0%
$24.2 - - - ($5.8) - $18.4
Wellington Airport
66.0%
$83.8($29.9)($32.0)
($49.1)
($1.8) $10.0($19.0)
Corporate & other - ($204.3) - ($84.6)($29.4) $1,063.2($0.2) $ 74 4 . 7
Total (continuing) $1,202.8($558.6)($366.7)($93.1) $661.1 $9.0 $854.5
Trustpower Retail business 51.1%($0.6) - - $0.2 - ($0.1)($0.5)
To t a l $1,202.2($558.6)($366.7)($92.9) $661.1 $8.9 $854.0
Year ended 31 March 2023 ($Millions)Share
EBITDAF
1
100%D&AInterestTa x
Revaluations
& other
adjustmentsMinorities
Infratil share
of earnings
CDC Data Centres
48.1%
$236.4 - - - $175.4 - $411.8
One NZ
50.0%
$527.8 - - - ($323.8) - $204.0
Fortysouth
20.0%
$22.4 - - - ($27.2) - ($4.8)
Kao Data
39.9%
($7.6) - - - $28.1 - $20.5
Manawa Energy
51.1%
$136.7($21.6)($25.1)($39.2) $63.4($58.1) $56.1
Longroad Energy
37.1%
$50.1 - - - ($12.7) - $37.4
Galileo Green Energy
40.0%
($29.5) - - - $18.1 - ($11.4)
Gurīn Energy
95.0%
($16.4)($0.4)($0.1) - $0.1 $0.9($15.9)
Mint Renewables
95.0%
($2.0) - - - - $0.5($1.5)
RHCNZ Medical Imaging
50.1%
$108.6($23.2)($35.6)($12.7) $3.6($20.4) $20.3
Qscan Group
55.2%
$61.3($33.6)($22.5)($1.7) - ($1.5) $2.0
RetireAustralia
50.0%
$12.2 - - - ($16.3) - ($4.1)
Wellington Airport
66.0%
$89.6($28.7)($26.3)
($6.3)
($3.1)($8.6) $16.6
Corporate & other - ($228.1)($0.1)($57.2) $17.4 $11.4 - ($256.6)
Total (continuing) $961.5($107.6)($166.8)($42.5)($83.0)($87.2) $474.4
Trustpower Retail business 51.1% $3.5($1.9)($0.1)($0.4) $328.8($161.4) $168.7
To t a l $965.0($109.5)($166.9)($42.9) $246.0($248.6) $643.1
Breakdown of Consolidated Results
Infratil consolidates a company when it controls it (generally more than 50%). This includes Manawa Energy, Gurīn Energy, Mint Renewables, One NZ,
RHCNZ Medical Imaging, Qscan Group and Wellington Airport. Associates (where Infratil has significant influence, but not control) such as CDC Data
Centres, Fortysouth, Kao Data, Longroad Energy, Galileo Green Energy and RetireAustralia are not consolidated. For those investments, the EBITDAF
column shows 100% of their EBITDAF and the “Revaluations & other adjustments” column includes the adjustment required to reconcile Infratil’s share
of their net surplus after tax.
Proportionate EBITDAF
Proportionate EBITDAF is intended to
show Infratil’s share of the operating
earnings of the companies in which it
invests.
Proportionate EBITDAF is shown from
continuing operations and includes
corporate and management costs,
however, excludes international
portfolio incentive fees, acquisition or
sale-related transaction costs and
contributions from businesses sold,
or held for sale.
A reconciliation of Proportionate
EBITDAF to net surplus after tax is
presented in Infratil’s annual results
presentation.
Consolidated Results
This table shows a summary of
Infratil’s reported result for the period.
For the year ended 31 March 2024 the
net parent surplus was $854.0 million,
up from $643.1 million the prior year.
The main source of the uplift was
the $1,075.0 million revaluation of
Infratil’s stake in One NZ following the
acquisition of Brookfield's share.
Revenue and expenses have increased
year on year due to the consolidation of
One NZ into the Infratil accounts.
2726
Year ended 31 March ($Millions)20242023
CDC Data Centres $35.1 $14.2
One NZ
$1,800.0 -
Kao Data $156.2 $21.2
Fortysouth - $212.1
Longroad Energy $96.2 $242.2
Gurīn Energy $55.8 $41.2
Galileo $39.6 $42.3
Mint Renewables $5.7 $4.4
RHCNZ Medical Imaging - $16.4
Qscan $17.8 -
Clearvision $18.8 $24.2
Infratil Investments $2,225.2 $618.2
Year ended 31 March ($Millions)20242023
CDC Data Centres $36.0 $37.1
One NZ $81.9 $871.3
Manawa Energy $26.4 $93.6
Longroad Energy $18.4 $8.4
RHCNZ Medical Imaging $11.1 $30.3
Wellington Airport $47.4 -
Qscan Group - $2.3
Fortysouth $3.7 -
Net interest($96.7)($48.0)
Corporate & other($100.9)($61.3)
Operating Cashflow $27.3 $933.7
International Portfolio Incentive fees($102.2)($270.8)
Operating Cashflow (after incentive fees)($75.0) $662.9
Year ended 31 March ($Millions)20242023
CDC Data Centres $1,537.0 $1,403.4
One NZ $91.7 $171.7
Kao Data $431.8 $255.7
Fortysouth $195.2 $207.7
Manawa Energy $684.4 $710.5
Longroad Energy $476.6 $315.8
Galileo $99.1 $53.3
Gurīn Energy $32.0 $ 7. 9
Mint Renewables $2.0 $3.1
RHCNZ Medical Imaging $425.1 $418.3
Qscan Group $296.6 $303.7
RetireAustralia $436.6 $410.9
Wellington Airport $690.9 $667.4
Parent & other $241.0 $240.4
To t a l $5,640.0 $5,169.8
Year ended 31 March ($Millions)20242023
CDC Data Centres $4,419.7 $3,678.7
One NZ $3,530.5 $1,222.8
Fortysouth $195.2 $207.7
Kao Data $556.2 $255.7
Manawa Energy $728.0 $795.2
Longroad Energy $1,952.0 $1,583.4
Galileo $240.7 $72.2
Gurīn Energy
$237.1 $ 7. 9
Mint Renewables $2.0 $3.1
RHCNZ Medical Imaging $606.7 $511.6
Qscan Group $411.9 $374.3
RetireAustralia $464.4 $441.1
Wellington Airport $623.7 $512.8
Parent & other $241.0 $240.4
$14,209.1 $9,906.9
Per share$17.07$13.68
Year ended 31 March ($Millions)20242023
Net bank debt/(cash) $791.8 ($593.2)
Intratil Infrastructure bonds $1,241.1 $1,085.9
Infratil Perpetual bonds $231.9 $231.9
Total net debt $2,264.8 $724.6
Market value of equity $9,066.7 $6,660.6
Total Capital $11,331.5 $7,385.2
Total debt/total capital 20.0% 9.8%
Undrawn bank facilities $800.9 $898.4
100% subsidiaries cash $19.2 $593.2
Liquidity available $820.2 $1,491.6
Infratil Investment
This table shows Infratil’s direct
investment in its portfolio
companies.
This investment is either used to
acquire new assets, increase holdings
in existing assets, or invested into
portfolio companies to fund their
operational and capital expenditure.
For example, the $1,800 million
invested into One NZ in the period
was used to acquire Brookfield’s
49.95% stake of One NZ whereas
the $55.8 million invested into Gurin
Energy was used on a combination
of capital projects and operational
expenses.
Capital of Infratil and 100%
Subsidiaries
This table shows the mix of debt
and equity funding at Infratil’s
Corporate level.
During the year Infratil issued
$150 million of new IFT330 bonds
and refinanced $122.1 million of
maturing IFT210 bonds through the
issuance of $127.2 million IFT340
bonds (maturing in June 2030). In
total this resulted in a net increase
of $155.1 million bonds on issue.
As of 31 March 2024 Infratil has
$800.9 million of undrawn bank
facilities.
Book Value of Infratil’s Assets,
This table shows the accounting book
value of Infratil’s assets.
These are prepared in accordance with
NZ IFRS, and are the amounts reflected
in Infratil’s consolidated financial
statements.
This generally reflects Infratil’s share
of the net assets of its investee
companies, and includes any goodwill
at the consolidated level.
A separate adjustment has also been
made to the Wellington Airport book
value which also excludes deferred tax.
Other includes Infratil Infrastructure
Property and Clearvision Ventures, and
excludes cash balances and other
working capital balances at the
Corporate level.
Fair Value of Infratil’s Assets
This table shows the independent
valuations of Infratil’s assets.
The fair value of Infratil’s investments
in CDC, One NZ, Kao Data, Longroad
Energy, Galileo, Gurīn Energy, Qscan
Group, RetireAustralia, RHCNZ Medical
Imaging and Wellington Airport reflects
independent valuations prepared for
Infratil.
The fair value of Manawa Energy is
shown based on the market price per
the NZX.
Infratil does not commission
independent valuations for its other
assets and these are presented at
book value.
Infratil and Wholly Owned
Subsidiaries Operating
Cashflows
Cash inflows reflect the dividends,
distributions, interest and capital
returns received from portfolio
companies.
Cash outflows reflect net interest
payments and corporate operating
expenses.
International Portfolio Incentive
fees paid during the period include
Tranche 1 of the FY2023 incentive fee
($30.3 million), Tranche 2 of the
FY2022 incentive fee ($33.2 million),
Tranche 3 of the FY2021 incentive fee
($74.4 million), $60 million of which
were paid in shares to Infratil’s
Manager.
Financial Performance & Position
Year ended 31 March ($Millions)20242023
CDC Data Centres $291.8 $341.9
One NZ $261.4 $151.8
Fortysouth
$3.1 $3.3
Kao Data $58.8 $36.0
Manawa Energy $33.6 $22.6
Longroad Energy $825.5 $345.9
Gurīn Energy $60.0 $1.7
Galileo $42.7 $28.8
Mint Renewables $1.1 -
RHCNZ Medical Imaging $26.1 $14.7
Qscan Group $16.0 $9.5
RetireAustralia $50.9 $66.6
Wellington Airport $42.2 $46.0
Other - -
Capital Expenditure $1,713.2 $1,068.8
Proportionate Capital
Expenditure
This table shows Infratil's share of the
capital expenditure of its portfolio
companies.
Infratil’s share of investment
undertaken by investee companies
in the period is $1,713.2 million
To illustrate the calculation of
Proportionate capital expenditure,
Infratil owns 48.24% of CDC, CDC’s
capital expenditure for the period was
A$560.8 million, and 48.24% of that
is A$270.5 million (NZ$291.8 million).
2928
Infratil is committed to the New Zealand
domestic bond market and has established
itself as one of the largest and longest-
standing issuers. Since our first issue in
1999, our infrastructure bond programme
has played a pivotal role in supporting the
Group’s long-term capital structure.
Following the acquisition of an additional 49.95% stake in One
NZ, Infratil was active in the New Zealand Retail Bond market
in Q2 FY2024 raising additional funds to support our capital
structure. In July 2023, Infratil successfully raised $150 million
of new IFT330 bonds maturing in July 2029 with a coupon rate
of 6.90%. The credit spread applied above the 6-year swap
rate at the time was 2.25% per annum.
Shortly afterward, Infratil re-entered the market to refinance
$122.1 million of maturing IFT210s by issuing $127.3 million of
IFT340s, maturing in March 2031 with a coupon rate of 7.08%.
The credit spread for these bonds was 2.40% above the
7.5-year swap rate. Across both transactions, Infratil raised
$155.2 million of new bonds in 2023.
The New Zealand bond market continued to provide
favourable conditions for corporate issuers throughout 2023
and into early 2024. Although wholesale interest rates
remained volatile, with the 5-year swap rate trading within an
approximate 130 basis point range during FY2024, swap
rates have remained at historically elevated levels. This
Infratil’s investment portfolio continues
to grow and evolve, and as a greater
proportion of offshore assets are added,
the Group’s exposure to foreign exchange
(‘FX’) risk increases.
This risk principally arises in two forms; FX transaction risk,
which affects cash flows denominated in foreign currencies,
and FX translation risk, which impacts the value of Infratil's
offshore investments when converted to New Zealand
dollars (‘NZD’).
FX transaction risk comes from cash flows to and from
existing offshore assets, such as capital investments,
distributions, and the cash flows associated with acquiring
or divesting foreign investments. To manage this risk, Infratil
aims to ensure cash flow certainty by hedging once foreign
currency cash flows are sufficiently certain, and by seeking
to offset exposures whenever possible.
Infratil’s FX translation risk relates to the Group's exposure to
currency rate movements, creating unrealised gains or losses
when assets and liabilities denominated in foreign currencies
are converted into New Zealand dollars. Although this risk
doesn't have an immediate cash impact, it's the most
significant currency exposure for Infratil due to the value of
the underlying assets. The primary exposure to a cash impact
would arise if Infratil were to divest a material offshore asset.
Bondholders
Infratil Issuance activity & market summary
Foreign Currency Exposures
As previously communicated, Infratil chooses not to hedge its
FX translation risk. The benefits of hedging translation risk are
unclear and difficult to quantify in shareholder value terms,
while the costs to implement hedging are material, primarily
due to the additional liquidity that would be required to fund
any potential future FX losses and the cost (both financial and
opportunity cost) of those facilities.
Translation Impact
Over the past 12 months, the acquisition of the additional
49.95% of One NZ drove an increase in NZD gross assets,
increasing to 40.8% (from 36.9%), which had the effect of
reducing the proportion of Australian dollar (‘AUD’) and US
dollar (‘USD’) assets at a portfolio level. Notwithstanding this,
both asset classes saw absolute increases in value, and
therefore currency rate exposure.
Despite AUD investments representing 37.5% of portfolio
value relative to the significantly lower contribution of USD
investments (16.1%), Infratil's USD investments, primarily
Longroad Energy, varied significantly more in NZD value due
to greater FX volatility of the NZD/USD pair compared to
NZD/AUD.
The USD carrying value as of 31 March 2023 was
US$1.17 billion, or NZ$1.86 billion when translated at the
FY2023 year-end rate of 0.6275. Holding the opening
investment value constant the NZD value of these
investments fluctuated between NZ$1.83 billion
(down NZ$28.7 million; 1.5%) and $2.02 billion
(up NZ$158.3 million; 8.5%) with the total opening
investment position ending the year up NZ$88.1 million,
a 4.74% unrealised gain over the 12 months.
This compares to an unrealised gain over the 12 months on
AUD investments of NZ$79.0 million or 1.73%. This highlights
the size of Infratil’s two largest foreign currency exposures and
the level of volatility in the relevant currency pairs, which both
contribute separately to Infratil’s FX translation risk exposure.
Infratil expects its currency exposures to continue evolving,
driven by internal and external investment opportunities.
Infratil retains the flexibility to use foreign currency debt or
FX swaps to fund incremental investment (creating natural
hedges) or hedge if deemed beneficial to shareholder value
or necessary from a risk management perspective.
Given Infratil's unhedged portfolio position, the Company
encourages investors to be aware of these FX risks and
manage them according to their individual portfolios, risk
appetites, and investment objectives. International investors,
who comprise a significant portion of Infratil's share register,
may have a different perspective on FX risks compared to
New Zealand-based investors.
environment has supported strong investor demand while
enabling cost-effective funding for corporate borrowers
through attractive credit spreads.
As interest rates appear to be reaching or nearing their peak,
bond investors have found opportunities to lock in appealing
yields, leading to increased demand in 2024 for longer-tenor
bonds with maturities of seven years or more. This trend offers
corporate issuers, like Infratil, the opportunity to extend
funding tenors and reduce refinancing risk, which aligns with
our long-standing funding strategy.
Infratil has two bond maturities coming up in FY2025,
$56.1 million of IFT230s in June 2024 and $100 million of
IFT260s in December 2024. These upcoming maturities
suggest that Infratil will likely remain active in the New Zealand
debt market, seeking to maintain a balanced and diversified
funding profile.
Funding Maturity Profile
Infratil proactively manages its mix of bank and bond debt to
mitigate refinancing risk and achieve an even spread of debt
maturities. Our strategy aims to minimise refinancing
pressure in any given year, providing flexibility and stability in
our capital structure. Bank debt offers flexible and attractively
priced funding, typically across 1 to 5-year maturities, while
the bond programme provides longer-dated debt from
5 to 8 years, with certain conditions allowing for up to 10-year
maturities. This approach ensures a well-diversified funding
base and a balanced maturity profile.
800
700
600
500
400
300
200
100
0
FY25FY26FY27FY28FY29FY30FY31>FY32
Infratil proactively manages its mix
of bank and bond debt to mitigate
refinancing risk and achieve an even
spread of debt maturities.
Our strategy aims to minimise
refinancing pressure in any given
year, providing flexibility and
stability in our capital structure
Undrawn Bank DebtNZD/USD (5-year average as at 31 March 2024)
BondsUnhedged USD Investments
Drawn Bank DebtNZD/USD
2,050.00.7100
0.6800
0.6500
0.6200
0.5900
0.5600
0.5300
2,000.0
1,950.0
1,900.0
1,850.0
1,800.0
1,750.0
Mar 2023May 2023Jul 2023Sep 2023Nov 2023Jan 2024Mar 2024
NZD Movement in unhedged USD InvestmentsMaturity Profile
3130
19942024
7.9 Billion
Mobile Phone Subscriptions
67% Online
5.4 Billion
People connected to
the internet globally
1.3 Billion
Broadband Internet Subscriptions
Investment thesis
The rapid increase in data consumption, the proliferation of connected
devices, and the widespread adoption of cloud-based services have
made digital infrastructure a fundamental pillar of the global economy.
This infrastructure supports a vast array of applications that are integral
to daily life and business operations, from high-speed communication
networks to complex data analysis systems.
The demand for secure digital infrastructure continues to grow at an
unprecedented pace, driven by technological advancements such as
artificial intelligence and automation. These innovations are fostering
a dynamic digital ecosystem that includes fibre networks, wireless
technology, ubiquitous high-speed connectivity, and data centres.
This thriving ecosystem not only supports the growing needs of
businesses and individuals but will also facilitate further technological
advancement.
30 years of growth
Thirty years ago, fewer than 10 million people worldwide had access to
the internet. Fast forward to today, and around 5.4 billion people have
gone online in the last three months, representing approximately 67%
of the global population.
Although data on the volume of information transferred via the internet
in 1994 is scarce, the growth in data creation is staggering. It's now
estimated that 120 zettabytes of data are produced annually. This
represents a remarkable 60-fold increase from the 2 zettabytes
generated in 2010. Incredibly, experts believe that 90% of all data in
existence was created in the last two years alone.
Source: International Telecommunication Union (via World Bank).
Exploding Topics, Amount of Data Created Daily (2024).
Digital Infrastructure
3332
Demand for data centres globally is surging at an
unprecedented rate. Facilities considered large
12-24 months ago are now overshadowed by the
development of 200MW+ campuses, which are
quickly becoming the new standard.
The rise of artificial intelligence (‘AI’) is driving this change, impacting not
only the data centre landscape, but also influencing daily life and business
operations. As a result, data centres are becoming even more crucial for
providing secure information storage and the high-speed connectivity
needed in our digital age.
During the 2024 financial year, CDC continued to reinforce its position as the
pre-eminent owner, operator and developer of highly secure, sovereign and
connected large-scale data centres across Australia and New Zealand. In
addition to responding to the significant acceleration in demand for data centre
capacity, CDC continued to deliver critical digital infrastructure to meet the
highest needs of its hyperscale, government and enterprise customer base.
Performance highlights include delivering a record 200MW in new contracted
capacity (includes reservations and rights of first refusal), its largest ever
addition in 12 months; a significant acceleration in construction and
development activity across all regions; the integration and expansion of
the CDC Academy, and a strong focus on the Company’s ESG and energy
initiatives. Despite the cost pressures of an inflationary environment, CDC
has also achieved 25%+ earnings growth over the period.
While the adoption of cloud computing and SaaS
initially drove structural changes in data centre
demand, the rapid adoption of AI is emerging as an
inflection point to supercharge further growth.
These tailwinds, including generative AI, alongside other trends such as
automation and robotics, will continue to shape demand going forward.
However, the fast pace of change introduces challenges for many data centre
operators. New workloads require higher power densities and ability to flexibly
accommodate different cooling architectures, including air, liquid and
immersion cooling for generative AI. CDC is well versed in handling these
requirements due to its modular approach and flexibility in meeting the strictest
customer requirements.
This is testament to the strong foundation of the company’s beginnings in
Canberra, serving government customers with the most stringent and highly
sensitive security requirements, resulting in the implementation of innovative
architecture and best-in-class security standards from day one. CDC maintains
this philosophy in all of its data centre developments, acting as one of its key
market differentiators.
All customer segments have contributed to the growth CDC has experienced in
FY2024. Demand from hyperscale customers has led to a step change in the
development pipeline, while demand from government and enterprise clients
drives diversification and deepens the powerful ecosystem within CDC’s data
centres. The size, tenor and quality of demand from CDC’s customers support
its unique approach to delivering capacity at scale and underpin the long-term
visibility of CDC’s contracted pipeline, extending CDC’s weighted average lease
expiry to over 30 years (incl. options). Contract options continue to be
converted as they occur as a result of CDC’s relentless focus on customers,
quality and security.
CDC
Infratil
48%
Commonwealth Superannuation Corporation 24%
Future Fund 24%
Management 4%
Brooklyn 1 under construction in Melbourne
The transformative shift in customer demand has also translated to CDC’s
development pipeline, which has increased by over 400MW in FY2024, a
significant step up in the identified development pipeline compared with
12 months ago.
The growing scale, complexity and speed of data centre builds is something
the company is well prepared for, leveraging its differentiated development
approach coupled with a strong execution capability.
With eight data centres under construction across four different regions
(Sydney, Canberra, Melbourne and Auckland), the rapid acceleration of
development activity is a major priority for the business going forward.
In its home region of Canberra, CDC has commenced construction of its third
campus, adding 39MW to continue to serve a range of Government, NCI and
Hyperscale clients.
Eastern Creek, located in Sydney, is CDC’s largest campus with four operating
data centres and a further two under construction. Eastern Creek 5 and 6 will
be the largest development undertaken by CDC to date, delivering nearly
160MW once fully developed, bringing total capacity at the campus to over
280MW. As with all developments, CDC closely manages and stages the
build and fit out of each data centre to align with future customer contracting
and specifications.
The first phase of the Melbourne campus is nearly complete and early work on
the second phase is progressing well. The campus will establish CDC as a
scaled data centre operator in the region, with over 200MW of capacity
underpinned by long-term customer contracts.
268MW
Operating capacity
416MW
Under construction
536MW
Development pipeline
3534
On the back of significant demand in New Zealand, CDC accelerated the
expansion of its two flagship Auckland facilities, located in Silverdale and
Hobsonville. The developments will add a further 16MW of capacity to this
region. On top of this, spurred by demand signals from all customer segments,
CDC has started construction on a second, larger data centre in Hobsonville,
adding 52MW capacity. While the cost to build in New Zealand remains
elevated, CDC has managed its construction processes effectively, with
current development projects progressing on time and to budget.
Key to CDC’s long-term growth is the ability to continue to secure land and
power for future developments. While its current landbank can support
significant additional future capacity (above what is included in the 5-year
development pipeline), the company has continued to progress additional
land purchases over the course of 2024 to extend this runway further.
The rapid scaling of the business is both exciting
and challenging, and CDC will require significant
additional resource to meet the future needs of
its customers.
Leveraging its success in building a high performing team to manage its
growth to date, CDC continues to organise, expand and upskill its workforce
to successfully manage its growing scale. Initiatives such as the CDC
Academy have proven invaluable to date and will continue to drive the
company forward in a positive and sustainable way. CDC is also continuing to
scale its internal systems and processes for its forecast growth and is
commencing a multi-year investment in its capabilities in FY2025.
The combination of high credit quality clients, substantial long-term contracts
and high-quality data centres continues to be a globally attractive proposition
to lenders. To support CDC’s continuing growth, the company undertook a
debt capital raise in late 2023, increasing its debt facilities by A$1.4 billion. In
FY2025, the company expects to invest over A$2.3 billion in developments to
meet customer demand. Given the size and scale of its development pipeline,
CDC will continue to add to and diversify its capital structure over the course
of FY2025.
CDC is committed to growing and operating sustainably, as reflected in its
ESG strategy – Stable Planet, Thriving People and Trusted Company. The
business is moving towards net zero carbon by 2030 in Australia. In New
Zealand, CDC has received and maintained Toitū net carbon zero certification
since its first year of operation, making it the first certified net carbon zero
hyperscale data centre provider in the country. CDC offers industry leading
technology solutions in its data centres, which contribute to significantly
reducing the company’s environmental footprint. One example of this is
CDC’s innovative closed-loop cooling system, which eliminates water waste
that occurs in many traditional data centres and ensures it remains one of the
most water efficient data centre providers in Australia and New Zealand.
Infratil’s investment in CDC is now valued between A$3.8 billion to
A$4.4 billion, up from A$3.1 billion to A$3.7 billion 12 months earlier. This
valuation increase reflects the significant additional demand and future
development pipeline added over the course of the year, somewhat offset by
an increase in the required return to take account of the increased risk profile
associated with developing at scale. The independent valuation assumes
1,220MW of total built capacity, up from 585MW 12 months earlier. This
consists of 268MW operating capacity, 416MW under construction and
536MW classified as future builds.
This acceleration in demand for data centre space
combined with scarcity of suitable land and power in
established tier-1 data centre markets is increasingly
driving operators and customers to look at alternative
secondary locations with robust power supply.
In his 2023 Spring Budget speech, UK Chancellor Jeremy Hunt announced a
raft of measures to boost the high-performance computing, artificial
intelligence, and supercomputing sectors, including billions of pounds of
investment aimed at making the UK a world-leading, quantum-enabled
economy within a decade.
Kao Data is well positioned to seize this market opportunity and benefit from
significant sector tailwinds. The company has seen a notable expansion in its
sales pipeline through both existing and new customers and has secured
several high-profile additions at its Harlow and Slough sites.
Kao Data is at the forefront of artificial intelligence
and high-performance computing, with a proven
track record of hosting some of the UK's most
advanced and demanding high-performance
computing infrastructure.
To leverage its position as a market leader in high-performance computing,
Kao Data is continuously investing in new capacity through expansion at its
operational sites and new locations.
In November 2023, Kao Data commissioned the second phase of its
expansion at its Harlow campus, with space for four Data Halls and up to
10MW of capacity. KLON-02, designed according to Kao Data’s NVIDIA
DGX-Ready infrastructure platform, is engineered for AI workloads. This is the
second of four planned expansion phases at Harlow, totalling a capacity of
40MW. Additionally, Kao Data has secured an extra 68MWh of power for its
Harlow campus, raising the site's maximum capacity to up to 100MW.
Beyond its existing operational sites, Kao Data is targeting further national
expansion. In May 2023, the company announced the development of a new
data centre campus in Manchester.
The Kenwood Point development in Stockport would provide 40MW of
capacity across nine Data Halls, making it the largest and most advanced data
centre in the North of England upon completion.
In March 2024, Kao was granted planning permission for the £350 million
facility which when complete will create a leading infrastructure hub to
support Greater Manchester’s fast-growing and diverse technology
ecosystem - positioning the region as one of the UK’s largest high-
performance computing and artificial intelligence clusters outside of London
and the Oxford-Cambridge arc, and as a focal point in the Government’s
technological and economic ambitions.
To fuel this growth, Kao Data completed a £206 million refinancing with
Deutsche Bank in January 2024. This new facility includes an accordion
feature, allowing for potential expansion to £356 million. This provides
significant funding for Kao Data's ambitious expansion plans.
Looking ahead, Kao Data’s advanced data centre portfolio now includes more
than 95MW of capacity, either currently operational, under development or
planned – all of which is underpinned by what are some of the highest energy
efficiency and sustainability credentials in market.
Infratil
53%
Legal & General Capital 32%
Goldacre 15%
KLON-01 and KLON-02 at the Harlow Campus
22.8MW
Operating capacity
8.7MW
Under construction
63.5MW
Development pipeline
CDCKao Data
3736
One New Zealand serves two million mobile and close
to four hundred thousand broadband connections with
a network of 58 consumer retail stores. In addition to
consumer services, it provides fixed-line and ICT services
to more than 110,000 corporate, government, and
small-to-medium businesses.
These customers are served by a passionate team, achieving international
top-quartile scores for both capability and culture, backed by an experienced
and highly skilled management team.
In its first year as One NZ and under full Infratil
ownership, the company underwent significant
transformation, simplifying products and services,
enhancing network infrastructure across the country,
establishing its new brand in the market, and
achieving substantial labour efficiencies.
This transformation resulted in a leaner and more efficient workforce, poised
to deliver against key market priorities as it enters FY2025. The company's
rationalisation efforts involved streamlining processes, reducing organisational
layers and hierarchy, centralising functions to eliminate duplication, and
outsourcing some back-office operations.
One year after its launch, the One NZ brand has been well received by customers,
with key success metrics surpassing those of the previous 'Vodafone
New Zealand' brand. Metrics such as brand awareness and non-customer
consideration are tracking ahead of expectations, indicating strong public
reception and confidence in the rebranding strategy.
EBITDAF for the year was $600.1 million, up 13.7% from $527.8 million in the prior
year. This was a pleasing result against guidance of $580 million to $620 million.
FY2024 growth was driven through strong performance in Consumer Mobile and
Wholesale alongside prudent cost management. The Enterprise side of the
business has been challenging with downward pressure on connections and
revenue, as both public and private sector Enterprise customers downsize and
look for cost savings in the current economic environment.
Monthly mobile data consumption grew by 23% year-on-year, fuelled by
increased streaming, gaming, remote work, and a return of travel. To
accommodate this rising demand, One NZ invested $70 million to build and
upgrade 346 additional 4G and 5G mobile sites nationwide in FY2024. The
company plans to extend 4G and 5G coverage to all areas currently served by
3G, aiming to decommission the 3G network by March 2025. This transition is
expected to reduce energy consumption and free up valuable radio spectrum
for 5G services.
Alongside these network investments, One NZ continued to increase network
utilisation through its wholesale mobile virtual network operator (‘MVNO’)
platform, which now serves over 30,000 additional mobile and fixed wireless
access customers on the One NZ network.
Considerable focus continues to be given to One NZ’s extensive fibre assets.
With over 11,000 kilometres of fibre in the ground, including a core fibre network
running the length of New Zealand, a number of metro fibre rings in main centres,
and exchange nodes to business premises and selected mobile towers, One NZ
remains the second largest fibre infrastructure owner in New Zealand.
Infratil
99.9%
Management 0.1%
2.3 million
Customers
58
Consumer retail stores
18 million
Mobile voice minutes a day
To accommodate the growing demand for its fibre
assets, One NZ will establish a separate fibre entity
in FY2025 to maximise both the usage and value of
these assets.
One NZ's average monthly revenue per user in consumer mobile increased
from $31.50 in FY2023 to $33.50, thanks to improved customer service, a
shift from prepaid to postpaid accounts, higher adoption of unlimited data
plans, the return of roaming revenues, and annual pricing adjustments. The
One Plan, New Zealand’s first unlimited max-speed data plan, has attracted
~220,000 customers. Additionally, new propositions like One Upgrade,
allowing customers to upgrade their phone at any time, and One Number,
which enables mobile number sharing with Samsung and Apple watches,
have further driven revenue growth.
More recently, One NZ launched One Wallet, a digital wallet for its customers.
One Wallet enables customers to redeem One Wallet Dollars to reduce the
cost of their next new phone on an interest free term. Customers can build a
balance of One Wallet Dollars in a number of ways – it could be as simple as
trading in their old phone, adding a new One NZ mobile or broadband plan to
their account or setting up their payment method as direct debit.
Fixed broadband remains a fiercely competitive market, with many
participants creating pricing pressure.
One NZ
3938
Demand for mobile connectivity continues to grow
rapidly, with New Zealand’s 5.8 million mobile
connections generating 47.5 million mobile voice
minutes and 30 million text messages daily. This
equates to 88 petabytes of mobile data and
450 petabytes of fixed data per month.
This high demand is driving the need for twice as many cell sites within the
next decade, translating to 300 new cell sites across New Zealand every
year. Through its relationship with One NZ and strategic partnerships with
all three mobile network operators, fixed wireless providers, and critical
communications services, Fortysouth is helping to build the infrastructure
for New Zealand’s digital future.
Fortysouth’s tower portfolio, comprising 1,580 towers, covers 98% of the
areas where New Zealanders live, work and play. The portfolio includes over
945 large macro and monopole towers across more than 800 sites in urban
areas and key growth corridors, with 660 sites in rural and provincial areas.
Fortysouth owns and maintains the passive infrastructure for cell sites, while
the mobile network operators own and maintain active equipment, backhaul,
and are responsible for power and energy supply.
Over the past 12 months, Fortysouth has
successfully transitioned from being part of
One NZ to a becoming a fully independent
digital infrastructure provider.
This process involved several key milestones, such as assuming operational
ownership of infrastructure builds and upgrades, implementing site design
improvements, and establishing an independent operational platform.
Throughout the year, Fortysouth has contributed its part in delivering the
fastest mobile network in New Zealand and the ongoing upgrade of One NZ’s
4G/5G network, successfully achieving its FY2024 build targets.
Performance highlights include the successful delivery of 48 new towers
and 247 upgrades during the year, bringing the total tower count to 1,580.
The business has also delivered consistent EBITDA performance in line
with expectations.
Key focus areas over the past year included optimising operational
efficiency across the tower portfolio, identifying and unlocking co-location
opportunities and maximising asset utilisation to reduce costs and minimise
the environmental impact of new tower construction.
Looking ahead, operational efficiency, co-location and asset utilisation will
remain primary areas focus as Fortysouth continues on its journey to be the
leading, independent tower company in New Zealand. The strong foundation
established in FY2024 has positioned Fortysouth for continued growth and
deployment momentum in FY2025, solidifying its role as a trusted partner in
the delivery of advanced connectivity, resilience and transformative
technologies.
The ever-growing demand for data necessitates a future-proofed network.
Fortysouth is at the forefront of this transition through its investment in building
new cell towers and upgrading existing ones to lay the groundwork for the
increased capacity and network ready to unlock the full potential of 5G.
Fortysouth
While annual increases in wholesale input prices further challenge revenue and
margins One NZ has been and will continue to look to offset these with price
increases.
Enterprise revenue declined slightly compared to the previous year due to declines
in calling and fixed services, strong competition, and broader economic conditions.
Despite short-term headwinds in the enterprise segment, the company remains
focused on mitigating these pressures through innovative services, strong sales
capability and in targeted technology investments.
Operating expenditure declined year-on-year, primarily due to a reduction in one-off
rebranding costs. One NZ’s underlying cost base reduced in the second half of the
year, with reduced ongoing brand fees and continued focus on cost control and
simplification driving sustainable labour efficiencies.
Enhancing customer service remains a key focus for
One NZ, with 100% of its business call centres now
based in New Zealand, focusing on reducing call wait
times and transfers while aiming to resolve customer
issues on the first interaction.
Through technology and training improvements, service metrics are now at their
best level in years, with service interactions reduced by one million over the past two
years. To demonstrate its increasing confidence in its service and technology
improvement, One NZ now publishes daily customer service metrics to its website.
One NZ continues to migrate customers onto its best on-market propositions,
removing legacy products and platforms while also cleaning and simplifying its
customer data environments. As digital first service adoption increases, the benefits
of on-going artificial intelligence and data use-case deployments are anticipated to
drive further reduction in service interactions. One example is the use of generative
artificial intelligence capabilities from Amazon Web Services to help contact centre
agents better understand why customers call, and how to proactively support call
resolution.
Since going live in July 2023, the new solution helped One NZ achieve a 43%
reduction in wait times, a 9% decrease in call handling time and an overall 18%
reduction in inbound calls.
One of the key rationales for the company’s rebrand was to invest more in
New Zealand. A key demonstration is the announcement of a collaboration with
SpaceX to provide unprecedented mobile coverage across New Zealand. Plans for
the collaboration are progressing well with text service expected by late CY2024
and voice and data services in CY2025. One NZ’s mobile network will work in
conjunction with SpaceX’s constellation of Starlink satellites in low Earth orbit to
deliver mobile coverage to One NZ customers across the entire country where
they have a line of sight to the sky.
One NZ is taking significant steps to advance sustainability across its business and
reduce its environmental impact. The company launched a new sustainability
framework in August 2023, aimed at achieving substantial reductions in carbon
emissions and promoting more sustainable business practices.
In the past year, One NZ reduced its carbon footprint
by 24%, largely due to reductions in scope 2 emissions
and through efforts to drive more energy-efficient
technologies across its operations.
One NZ is on track to reduce these even further with a commitment to purchase
100% renewable energy for all its electricity contracts in FY2025.
Infratil
20%
InfraRed Capital Partners 40%
Northleaf Capital Partners 40%
1,580
Towers
98%
Population coverage
One NZ
4140
35%
Global electricity production by source
Levelized cost of energy
(US$ per kWh)
30%
25%
20%
15%
10%
5%
0%
19942024
0.50
0.45
0.40
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
Wind
8.1%
Hydro
14.7%
Solar
5.6%
Bio
Energy
2.4%
Investment thesis
The transition to clean energy is essential for addressing climate
change, ensuring energy security, and fostering sustainable economic
growth. Global accords like the Paris Agreement and national policies
to reduce carbon emissions require a significant decarbonisation of
the energy sector.
In parallel, the renewable energy sector is benefiting from ongoing
technological advancements, leading to greater efficiency and lower
costs. These factors have combined to create one of the most
significant and impactful investment opportunities in recent history
30 years of growth
Over the past 30 years, the share of renewable energy in the global
energy mix has grown from 18.5% to 31.1%, equating to around
9,100 terawatt-hours (TWh) of generation. However, in absolute
terms, the use of coal and gas has also increased by 150%, reaching
approximately 16,800TWh. This underscores the persistent reliance
on fossil fuels despite the steady rise in renewable energy generation.
The past decade, however, has been marked by an acceleration in
renewable energy deployment, largely driven by the significant
reduction in the cost of wind and solar technologies. This progress
has managed to meet the overall growth in energy demand, but to
truly begin replacing fossil fuels, a further acceleration is needed.
Source:
Ember - Yearly Electricity Data (2023), Ember - European Electricity Review (2022) –
with major processing by Our World in Data. International Renewable Energy Agency (2023)
Renewables
Onshore wind levelised cost of energy
Solar photovoltaic levelised cost of energy
Hydropower levelised cost of energy
4342
Longroad continues to make good progress towards
its ambition of developing and owning a 9.5GW
operating portfolio of assets and achieving run-rate
operating company EBITDA of US$600 million by
2027. In the current year this has seen the business
add over 1GW of capacity to its operating and under-
construction fleet.
The thesis for Longroad’s strategic shift towards the accumulation of operating
assets and building scale continues to hold. Benefits include improved
purchasing power and capacity for solar panels, battery cells, and other long
lead time items such as main power transformers; the ability to originate and
maintain a larger development pipeline, which provides valuable optionality;
the ability to execute on attractive acquisition opportunities, strategically
supplementing its portfolio; and an enhanced ability to raise financing on
favourable terms, such as the US$600 million debt facility it raised this year
that will be used to further expand Longroad’s asset base.
Leveraging its strong relationships with tier 1 contractors, Longroad is
executing the largest construction programme in the company’s history, with
2.4GW of assets under construction during the year across nine projects and
five States. Longroad achieved commercial operation on 515MW of projects
and completed restoration works at Prospero 1 and Prospero 2 following the
damage caused by hail events in Texas during 2022.
Longroad also achieved financial close and began construction on two of
its largest projects ever – Sun Streams 4, a 377MW solar and 300MW/
1200MWh storage project located in Maricopa County, Arizona; and Serrano,
a 220MW solar and 214MW/855MWh storage project in Pinal and Pimal
Counties, Arizona. These two projects are estimated to produce enough
energy to power over 180,000 North American homes, with their outputs
purchased by Arizona Public Service via 20-year power purchase
agreements. Both projects will help to support system reliability in Arizona,
particularly during Arizona’s hot summer months.
To provide a sense of the magnitude of these
projects, when complete, the Sun Streams 4 project
will house almost 800,000 solar panels covering
over 3,100 acres.
In a North American context this is approximately 3.6 times the size of Central
Park, or closer to home, approximately 1,000 rugby fields.
Longroad ended its financial year 5% ahead of plan, which was led by
outperformance at Prospero 1 and 2 due to the projects’ merchant revenue
exposure (which is energy sold on-market, as opposed to being sold under a
Power Purchase Agreement (‘PPA’)). The projects experienced favourable
merchant pricing due to the Texas summer heatwaves driving an increased
energy demand. Longroad’s success to date has been underpinned by a
disciplined focus on building a targeted pipeline of quality projects and more
recently growing operating capacity. The company thoughtfully selects
projects from the pipeline as market conditions and demand dictates, an
approach which has been rewarded by the financing markets with continued
access to capital on favourable terms.
Longroad Energy
Infratil
3 7. 3 %
New Zealand Superannuation Fund 37.3%
Longroad Energy Management 14.0%
MEAG 11.4%
The switchyard and battery installation
at the Sun Streams 4 solar farm, Arizona
28.2GW
Development pipeline
3.5GW
Owned generation
1.8GW
Under construction
Longroad has over 17GW of projects under active development to reach
financial close over the next four years, providing 2.8x coverage over its
1.5GW per annum target, with another 11.5GW in the pipeline for subsequent
years. In order to achieve its target, Longroad is estimated to require
US$8 billion of capital (US$2 billion each year to construct 1.5GW per annum)
through 2027, including tax equity, project finance, and US$1 billion of equity
from shareholders. With US$600 million of new debt facilities and the recent
equity commitment from existing investors (including US$65 million from
Infratil), the business is expected to have sufficient capital to fund the equity
need until mid-2025.
In a challenging market environment (with inflationary pressures, high interest
rates, a tight engineering, procurement and construction market, and
uncertain political outlook)
Longroad remains optimally positioned as a highly
experienced, well-capitalised, and scaled developer
to continue executing on its growth plan.
4544
Galileo continues to build-out a high-quality team while
extending its project pipeline, which increased by 3GW
during the year, reaching 12.5GW of dedicated projects.
During the year Galileo has successfully sold its first projects, a pipeline of
800MW of projects from a joint venture in Northern Europe and 140MW
of projects in Italy from its own pipeline. Separately, Galileo has signed an
agreement to sell its shareholding in Enviria, a leading solar PV rooftop
business in the Industrial and Commercial market in Germany. All three
transactions were undertaken with major international investors active in
the energy transition sector.
Growth in the European energy market continues to be driven by a strong need
to decarbonise against a backdrop of the recent energy crisis and lasting energy
security concerns. Under its Renewable Energy Directive, the European Union
(‘EU’) has set critical 2030 decarbonisation targets, including a 42.5% share of
renewable power in the energy mix and a 55% reduction in total emissions.
To achieve these targets, the EU will require a
growth rate of capacity additions for wind and
solar PV in the order of 100GW per year.
There is strong political and regulatory support across Europe to meet these
ambitious targets, and demand for green energy solutions from customers is
increasing in parallel.
Galileo’s origination expertise as well as development and delivery capabilities
in this dynamic European energy market are highlighted by a number of notable
achievements over the last 12 months.
In Italy, Galileo signed an agreement with GreenIT, the joint venture between
Plenitude, and the governmental equity investor CDP, providing access to a
well-diversified solar PV pipeline of 140MW. Separately, Galileo and its Italian
wind development partner, Hope, continued to progress two advanced floating
offshore wind projects in the Adriatic Sea with a combined capacity of 1.6GW.
In the joint venture Source Galileo, the focus on offshore wind development
has been underpinned by the entry of new partners supporting an increasing
pipeline of project initiatives in Ireland, Norway and the United Kingdom.
Partnerships have been developed across each of these markets with leading
players, including; Odfjell, a Norwegian offshore specialist, Kansai, a leading
Japanese utility and Ingka, the global financial investment arm of IKEA.
In Germany, Galileo signed an agreement with Blackrock, for the sale of its
shareholding in Enviria, the most advanced developer and operator in the
solar PV rooftop market for Industrial and Commercial businesses. Enviria
and Galileo will continue to build out their partnership concentrating on
ground-mounted utility-scale projects for solar PV and storage solutions.
The joint venture Galileo Empower has made substantial progress in terms of
market coverage, reaching six European markets for onshore wind, solar PV
and storage projects. The pipeline of projects in an advanced permitting phase
rose to 4GW and the headcount of the JV was increased to over 50 people.
In the corporate power purchase agreement (‘PPA’) market, Galileo has
recently signed separate PPAs with two blue-chip corporates, covering a total
of approximately 140GWh of annual production from solar PV plants in Italy.
Both agreements testify the growing interest and demand for decarbonised
energy solutions by large corporates.
Galileo Green Energy
12.5GW
Development pipeline
940MW
Projects sold
Some of those pressures are already starting to ease, with inflation and the
cost of key materials starting to normalise to pre-Covid levels, PPA prices
remaining elastic, and Internal Revenue Service (‘IRS’) draft guidance being
issued on several Inflation Reduction Act (‘IRA’) provisions, including on energy
communities and transferability.
There is some risk to the IRA from the upcoming 2024 U.S. Presidential
Election, in particular if Republicans were to win a trifecta of the presidency,
House and Senate. However, while Republicans did not support the IRA
passing, there is no history of retrospective change or repeal of tax credits in
the United States. Reversing the IRA would also disrupt tangible investments
in communities by companies that constituents can see.
More than 80% of the investment in large-scale
clean energy and semiconductor manufacturing
pledged since the passage of the IRA and the Chips
and Science Act will go to Republican congressional
districts. Even if Republicans controlled the Federal
government, many in the party may view reversing
the IRA as too politically risky.
There is risk that a new Administration could impact the implementation of the
IRA, for example, by changing IRS guidance related to IRA provisions such as
the additional 10% domestic content tax credit, especially to the extent that
this has not yet been finalised. However, we see this risk as limited, given it
would directly oppose growth in domestic manufacturing, which has
historically garnered strong Republican support.
Regardless of what the election outcome is, base level of Federal tax
incentives (i.e., 30% Investment Tax Credits) that existed before the IRA and
State-level programmes such as Renewable Portfolio Standards and Clean
Energy Standards are expected to remain. Additionally, with demand for
electricity on the rise in the United States, including growing demand for
renewable energy from corporates with sustainability goals, higher PPA
prices are emerging, which could mitigate any adverse impact to tax credit
economics under a new Administration.
Infratil
40%
New Zealand Superannuation Fund 20%
Commonwealth Superannuation Corporation 20%
Morrison Growth Infrastructure Fund 20%
Longroad Energy
The 243MW El Campo wind farm, Texas
4746
As custodians of multi-generational renewable energy
infrastructure across 25 hydro power schemes,
Manawa Energy has a unique connection to the
communities it serves. This year, its focus has been
on operating these assets efficiently, investing in a
significant refurbishment and upgrade programme
and laying the foundations for future growth.
Manawa’s financial results for FY2024 reflect a year of solid performance.
Total generation of 1,901GWh was broadly consistent with the previous year's
1,917GWh, despite a larger planned outage programme. EBITDAF from
continuing operations stood at $145 million, up from $137 million in the prior
year. These results demonstrate an impressive ability to maintain operational
efficiency and reliability while supporting a robust asset investment
programme.
Following the sale of the Trustpower retail business
the strategic shift to operating as an Independent
Power Producer has provided a clear focus, enabling
Manawa to concentrate its efforts on the goal of
supporting and enhancing New Zealand’s energy
system.
During the year Manawa revised its ten-year asset management plan, helping
to prioritise where to focus its effort for the greatest impact across such a
diverse portfolio of assets.
The revised plan will see $250 million invested across a 10-year period from
FY2023 to FY2032. This includes significant refurbishments and upgrades
that will provide revenue protection, increased reliability, greater resilience
and production uplifts.
At the Branch hydroelectric scheme, the completion of the intake
enhancement project during the year has led to a 10GWh annual uplift in
power generation. Meanwhile, significant maintenance work at the Waipori
hydroelectric scheme, including the replacement of the generator at
3 Station, has bolstered operational efficiency. The first of two turbine
replacements at the Matahina hydroelectric scheme is also nearing
completion, with commissioning scheduled for Q1 FY2025, providing an
additional 12GWh annual generation capacity.
Manawa Energy's role in the energy market extends beyond generation. The
majority of its production volume is currently contracted to Mercury Energy,
with these commitments stepping down from October 2024. This provides an
opportunity to carefully consider its future energy contracting strategy, and
during the year, discussions have commenced with several parties interested
in long-term offtake from both the existing and future portfolios.
In addition to maximising the value of its existing assets, Manawa is continuing
to expand its development pipeline. During the year, Manawa made significant
strides in securing additional development options, moving them toward
'investment ready' status. This included obtaining a resource consent for the
Southern area of the Argyle Solar Farm project, located near the Branch River
hydro scheme, and progressing two large-scale wind farm developments
toward resource consent lodgment in the upcoming financial year.
The Argyle Solar Farm in Marlborough’s Wairau Valley is designed to leverage
Manawa’s existing infrastructure at the Branch River hydroelectric power
scheme. The proposed project covers 174 hectares with 135,000 solar
panels. Consent for the southern area was granted in December 2023,
allowing for 28MWac from approximately 60,000 solar panels located
adjacent to the Argyle Power Station. The northern area, expected to
generate about 37MWac from 75,000 solar panels, is next to the Wairau
Power Station, with consent lodged in April 2024.
This project benefits from the natural synergies between hydro and solar
assets, enabling flexible responses to demand through intra-day hydro
peaking capabilities and offering operational efficiencies and cost savings due
to shared infrastructure. A final investment decision is expected in FY2025.
The Kaihiku Wind Farm project is a planned 300MW development in
partnership with Alexandra-based Pioneer Energy, a community energy
company owned by the Central Lakes Trust. The partnership combines
Pioneer's extensive local knowledge with Manawa Energy's large-scale wind
development expertise to deliver a project with strong community ties and
local support.
Spanning approximately 2,000 hectares within the Balclutha District, Kaihiku
is positioned in a prime location for wind energy generation, benefiting from a
robust wind resource and convenient access to the national grid, with lines
running through the heart of the site. It is estimated to generate enough
electricity to power about 135,000 homes each year. The projected capital
cost for the build ranges between $750 million and $1 billion, reflecting the
scale of this ambitious project.
These projects are just two of nine solar and wind
initiatives in Manawa's development pipeline,
totaling 1,255MW of capacity. Furthermore,
more than 500MW of additional wind and solar
opportunities are currently in advanced stages
of negotiation.
The energy transition is one of the most significant challenges facing the
sector globally, necessitating careful planning across the energy sector to
ensure the best outcomes. It involves a concerted effort to invest in core
infrastructure throughout the supply chain—from generation and
transmission to distribution networks—to ensure a resilient, secure, and
affordable energy system.
In a New Zealand context, it is crucial that the policy environment
acknowledges the value of existing assets and eliminates barriers to efficient
development and deployment of new projects. If implemented effectively, the
proposed resource management reforms offer a positive outlook, with the
potential to protect the value of hydro assets and streamline the consenting
process for new renewable energy projects.
Infratil
51%
Tauranga Energy Consumer Trust 27%
Public 22%
Cobb Power Station, Nelson
1,255MW
Development pipeline
510MW
Owned generation
1,950GWh
Average annual generation
Manawa Energy
4948
Mint has made an impressive start in its first full year of
operations, assembling a team of highly experienced
and respected development professionals and
expanding its project pipeline at a rapid pace.
In its home market, the Australian Government is committed to accelerating
the transition to net zero, having enacted legislation to reduce greenhouse gas
emissions by 43% from 2005 levels by 2030 and to achieve net zero by 2050.
Despite this strong political commitment, replacing an aging coal fleet, which
still accounts for over 60% of Australia's energy generation, with renewable
sources is a monumental challenge. This transition requires significant growth
in transmission infrastructure, as well as new technologies such as battery
storage and hydrogen.
The team at Mint is actively contributing to this significant task, with their
greenfield-sourced pipeline now exceeding 2.25GW – an impressive feat
considering this is only their first full year of operations.
While Australia has a clear agenda to decarbonise, complexities in building
large-scale projects, particularly related to grid infrastructure and access,
remain a significant obstacle.
The Australian renewables market is characterised
by strong demand for assets at all maturity levels,
attracting investors eager to contribute to Australia’s
transition to clean energy.
This robust demand can make growth through mergers and acquisitions
challenging for a disciplined team like Mint's, but it also creates opportunities
for building a highly desirable pipeline with options for future growth. Mint’s
focus on greenfield opportunities is proving effective, with development
projects pursued both directly and through Joint Development Agreements
with well-respected third parties.
Mint's pipeline now spans Victoria, New South Wales, Queensland, and
Western Australia, providing high optionality and enabling the team to
respond quickly to emerging opportunities in the dynamic Australian market.
As the pipeline has matured into concrete opportunities, Mint has begun
consulting with local stakeholders about the projects their communities
might host and the role these projects could play in advancing Australia’s
decarbonisation. Community concerns are common in all forms of
development, including renewable and battery storage projects. Handling
these concerns with empathy and open communication is crucial. Mint’s
team actively engages in extensive consultations, providing community
members with opportunities to understand potential impacts and how their
community can contribute to Australia’s sustainability goals.
One such project is the development of a Battery Energy Storage System
(‘BESS’) adjacent to the existing Dederang Terminal Station in Victoria.
Targeting a nominal installed capacity of 400MWh with an indicative
development footprint of approximately 4 hectares, the final size of the
project will be highly dependent on the environmental constraints of the
site (as well as the final selected BESS model).
Throughout the year, Mint's team has grown from seven to fifteen as activity
has increased. As the pipeline matures, the demand for specialised skills
continues to grow, and the team has been successful in attracting top talent
from the Australian market.
Infratil
73%
Commonwealth Superannuation Corporation 27%
Infratil
95%
Management 5%
2.25GW
Development pipeline
6.7GW
Development pipeline
114MW
Under construction
The Asia Pacific region is vulnerable to the impacts
of climate change due to its exposed and densely
populated coastal areas as well as its heavy
dependence on agriculture for food sources.
Accelerating the energy transition then becomes more crucial each year, and
it is estimated that an annual investment into clean energy of US$150 billion is
needed in the next six years for the countries in ASEAN to be on track to meet
their targets. The transition to renewable energy is challenging, especially
for emerging economies like the Philippines, Indonesia, and Thailand, who
are still highly dependent on fossil fuels. Governments cannot afford the
infrastructure required for a rapid and responsible transition without cutting
their fossil fuel subsidies.
Private investments will be invaluable, and there continues to be a rally for
foreign investment through policy advocacy, sectoral reform, new technologies,
and green financing. However, loss of revenue from curtailment and grid
congestion remain pressing concerns for investors into the region. Nevertheless,
climate change knows no borders, and so collaboration is required from better-
adapted and developed countries in and around the region to deliver the desired
outcomes.
Gurīn sits at the heart of this drive. After an intense period of growth, Gurīn
ended the year with 6.7GW of pipeline projects under development, and
over 60 people in its team.
In September 2023, Gurīn received conditional
approval on its bid to import 300MW of non-
intermittent, low-carbon power into Singapore.
The conditional approval was one of five announced jointly by the Indonesian and
Singapore governments to establish a green electricity trading corridor between
the two countries.
The groundbreaking project referred to as Vanda is planned on the Riau Islands,
a province of Indonesia, and will be underpinned by 2,000MW of solar
photovoltaic installed capacity and 4,400MWh of battery storage, one of the
largest such planned projects in the world.
The next steps involve completing marine surveys on the proposed routes for
the subsea power cables and supporting the efforts of the relevant suppliers on
their development of photovoltaic and energy storage manufacturing plants in
Indonesia.
Gurīn announced its entry into the Japanese storage market in December 2023,
unveiling plans to build a site with an output of 500MW and a storage capacity of
2GW hours. A Japanese subsidiary has been established to support Gurīn’s
growth ambitions in the country, and a team on the ground is being built up.
In the Philippines, construction is underway on the 75MW Palauig Solar Power
Plant in Zambales Province. The 80-hectare solar farm will deploy up to 136,363
ground-mounted, energy efficient solar photovoltaic panels and will be the first
project to reach commercial operations for Gurīn. A second 39MW project in the
Philippines reached final investment decision in April 2024, and is expected to
commence construction shortly.
Project development continues at pace in Japan, South Korea and Thailand, and
opportunities to expand the pipeline are significant in all of Gurīn Energy’s
markets.
The 75MW Palauig Solar Power Plant
under construction in the Philippines
Gurīn EnergyMint Renewables
5150
5,000
10,000
15,000
20,000
25,000
30,000
2024
1994
Diagnostic
Radiology
3,772%
Magnetic Resonance
Imaging
56,117%
Nuclear Medicine
Imaging
6,694%
Computerised
Tomography
10,516%
Ultrasound
987,133%
Investment thesis
Healthcare is a critical service globally, and diagnostic imaging
is playing an increasingly important role in preventative care.
Enabling early diagnosis reduces the dependence on expensive
acute care, leading to a more efficient healthcare system. This
shift towards value-based care benefits both patients and
healthcare providers by improving health outcomes while
simultaneously lowering overall costs.
The demand for diagnostic imaging is also being driven by
demographic changes, particularly as the population ages.
This underscores the growing need for early detection and
preventative healthcare, reinforcing the importance of
diagnostic imaging as an idea that matters
30 years of growth
Over the past 30 years, the proportion of Australians aged
65 and older has risen from 11.8% to 16.6%, representing
4.5 million Australians. This demographic shift is expected to
continue, with projections indicating that by 2040, nearly 19%
of Australians will be over the age of 65, necessitating a greater
demand for age-specific services.
During the same period, the annual number of medical imaging
scans has soared from fewer than 10 million in 1994, primarily
x-rays, to over 30 million last year. While traditional forms of
imaging have remained relatively stable, much of this growth
has come from increased use of ultrasound, and more recently,
advanced high-modality techniques focused on preventative
care. This trend underscores the changing landscape of
healthcare, with greater emphasis on early diagnosis and
proactive management of health conditions.
Source:
Australian Institute of Health and Welfare.
Australian Medicare Group Reports
Healthcare
5352
With Covid disruptions, lockdowns, and mandatory
isolation periods now largely behind us, New Zealand’s
healthcare system and referral pathways are showing
clear signs of recovery. Supported by strong industry
fundamentals and new clinic openings, RHCNZ has
delivered a strong financial result for the year with
underlying scan volumes up 3.7% to over 1 million, and
revenue up 10.4% to $340.6 million.
One of the Group’s key strategic priorities is being the first choice for referrers
and patients and enhancing medical imaging access to all New Zealanders.
RHCNZ’s commitment to this strategy was enhanced further during the year
as a result of ongoing geographic expansion - with new clinics opening in
Papamoa, offering both high-tech (MRI and CT) and low-tech modalities
(X-ray and ultrasound); and Whangarei, offering a full suite of modalities; and
with expansions to existing services in Invercargill and Paraparaumu to add
new state-of-the-art high-tech machines and modalities.
The new Whangarei clinic (ARG Te Tai Tokerau Radiology) was officially opened
by Hon. Dr Shane Reti, Minister of Health in March and is notable for
introducing the first provincial PET-CT machine in New Zealand, revolutionising
cancer diagnosis and therapeutics access for Northland communities and
saving patients from having to travel to Auckland to receive this essential
service. In addition to the added convenience for patients, they will also have
the benefit of lower wait-times for scans and faster diagnostic results, which in
turn helps their leading care specialist to provide more timely and accurate
treatment plans.
With the new clinic additions and expansions, RHCNZ now has a presence
across the entire length of the country. Under three well-recognised brands –
Auckland Radiology, Bay Radiology, and Pacific Radiology – the Group
operates with a network of 72 clinics, a specialist team of 163 radiologists,
over 1,300 staff, a full suite of diagnostic imaging modalities, and a 24/7
teleradiology service offering.
RHCNZ also has significant future capability planned in strategic locations –
including Waikato (with two new clinics opening in April 2024), Whanganui,
and new flagship sites currently under development in Dunedin, Auckland,
and Tauranga.
These new flagship sites will all include PET-CT
machines, doubling the Group’s PET-CT capacity
across the country and further improving patient
access to this life-saving technology.
Scale also allows the RHCNZ Group to meaningfully invest in new cutting-
edge technologies, such as streamlined online booking systems, workflow
automation tools to improve clinical and diagnostic efficiency, and AI modules
– a few of which the Group is trialling now; as well as research and innovation
to ensure New Zealanders will continue to receive globally leading imaging
services.
RHCNZ Medical Imaging
These initiatives, in addition to offering market-leading learning and
development opportunities, and fostering a diverse and inclusive culture,
enhance the employee value proposition and make RHCNZ a great place
for employees to work and grow their careers.
As the new national healthcare system is rolled out,
and the regional District Health Boards have been
disestablished, we have seen more centralisation
of functions and standardisation of agreements and
relationships across the country. As the only truly
nationwide player of significant scale, RHCNZ
is well placed to become a national partner to the
public health system and Health New Zealand
Te Whatu Ora, as well as forming strategic
relationships with other key funders.
72
Clinics
1.0
Million scans performed
787,000
Patients seen
ARG Te Tai Tokerau Radiology,
Whangarei, opened in January 2024
Infratil
50.3%
Doctors and Management 49.7%
5554
Qscan has experienced solid improvement in both
financial and operating performance in 2024, driven
by a focus on operational efficiencies and
technological initiatives, and aided by a continued
recovery in radiology market growth. Key strategic
priorities introduced throughout the year have put
Qscan on a stronger operational footing than it was
12 months ago.
Qscan has continued to deliver exceptional services to patients and referrers
across Australia. It’s comprehensive suite of diagnostic imaging and
interventional practices are offered through its expanding network of 77
clinics, 135 radiologists and over 1,357 employees. It has a diversified cohort
of radiologists with a reputation for clinical excellence and deep sub-specialty
expertise and utilises the latest information technology and state of the art
medical imaging equipment.
As well as the appointment of Dr Gary Shepherd as Qscan’s CEO in 2023,
(previously Qscan’s Chief Medical Officer), key initiatives throughout the year
included the introduction of a locally led, centrally supported organisational
structure. Under this structure Qscan regionalises responsibility for driving
operating performance to the local level. This included the appointment of
regional managing radiologists, regional operations managers and the
development of detailed training guides and performance scorecards to
monitor lead indicators of operational performance in each region. Another
initiative included the establishment and initial rollout of a new Practitioner
contract for engaging radiologists, ensuring incentives of doctors,
management and shareholders are closely aligned.
Another key strategic initiative has been the
development of a proprietary AI enabled radiologist
reporting platform that is now operating across 85%
of the group.
The Intelligent Worklist Orchestrator platform has already demonstrated
significant improvements in radiologist productivity at initial rollout sites and
is capable of facilitating the integration of further innovative IT applications
going forward.
The diagnostic imaging market as a whole has seen a recovery in scan
volumes over FY2024 with Qscan once again outperforming the market,
reading a total of 1.46 million scans in FY2024, 5.8% growth on FY2023.
Of these, 32% of scans were performed using high-modality imaging
techniques (CT, MRI and PET).
While volume growth has experienced some recovery, substantial inflationary
pressures and a shortage of radiologists has led to downward pressure on
margins across the industry. While this has been slightly offset by an increase
in Medicare indexation of 4.1%, the industry has seen a number of diagnostic
imaging providers underperforming expectations. Despite the difficult
environment, Qscan has achieved growth above or in line with the market
over the course of FY2024.
Qscan Group
A focus on high value modalities, combined with
investment in operational and technological
initiatives has enabled continued growth in margins
throughout 2024.
Qscan currently offers radiology and teleradiology capability across
Queensland, New South Wales, South Australia, ACT, Tasmania and Western
Australia. The business continues to assess new opportunities to drive
growth, with increasing prioritisation towards brownfield and bespoke
greenfield clinic development opportunities. 2024 saw the opening of three
greenfield sites in Maroochydore, Newstead and Tweed as well as multiple
brownfield expansions. Qscan is continuing to proactively identify attractive
development opportunities in its core regions. Teleradiology also continues
to represent an area of strategic focus, with the renegotiation and renewal
of multiple hospital contracts contributing to increasing contribution from
the teleradiology business in 2024.
While the current economic conditions still remain challenging, Qscan’s
strategic and operational initiatives implemented over the last year will set up
the business to deliver on its growth ambitions and remains a leading provider
of healthcare services nationally.
Qscan Tweed City, opened in
November 2023
77
Clinics
1.5
Million scans performed
713,000
Patients seen
Infratil
5 7. 6 %
Doctors and Management 28.0%
Morrison Growth Infrastructure Fund 14.4%
5756
RetireAustralia had a record year in FY2024 with
408 resale settlements generating cash flows of
A$78 million combined with 146 new unit settlements,
with first sale proceeds of A$124 million.
The average resale value per unit increased to $191k compared to $154k in
the prior year. This increase was reflective of a measured approach to price
increases since FY2021, as well as benefiting from a positive location-based
mix of units available to settle. This unit pricing growth is expected to continue
into FY2025.
Strong demand is being experienced across the portfolio with waitlists in
place for 24 of 29 villages and occupancy remaining high at 96.6%, compared
to the industry benchmark of 89%.
Importantly, resident and home care customer satisfaction was extremely
positive with 85% of residents saying they are satisfied or very satisfied with
life in their village and 86% of home care customers saying they are satisfied
or very satisfied with the Home Care Services they receive from
RetireAustralia. Employee satisfaction remained stable and positive with
81% of employees saying they were satisfied or very satisfied with working
at RetireAustralia. The strong satisfaction results are indicative of the
shared vision and purpose, depth of expertise and resilience within the
RetireAustralia team.
As a human services business, RetireAustralia firmly believes that a strong
corporate culture and resident experience go hand in hand with financial
excellence.
These sustained positive results are borne out
of a deliberate approach to building culture and
putting residents at the heart of decision
making at RetireAustralia.
From a development perspective, 230 independent living apartments (ILAs)
were completed across two projects - The Verge, Burleigh, Gold Coast and
The Green, Tarragindi, Brisbane. Construction continues on 42 ILAs at Tarragal
Glen on the New South Wales Central Coast.
The first 10 suite care hub at The Verge, Burleigh achieved practical
completion in March 2024 and is due to open in May 2024. Care hubs are an
innovative response to Australia’s aging population offering higher acuity care
from a 24/7 nurse-led team in a boutique homelike environment within the
village. This means residents can stay within their community if their care
needs advance beyond what can be offered in their homes.
RetireAustralia continued to extend its development pipeline during the year
with a premium development site at Graceville in Brisbane, adding 101 ILAs
and a 10-suite care hub to the pipeline.
Construction is due to complete on the 42 ILAs at Tarragal Glen on the New
South Wales Central Coast in FY2025, with construction due to commence,
subject to final feasability approval, on two additional projects at Carlyle
Gardens, Bargara in Queensland (32 ILUs) and Arcadia, Yeronga in Brisbane
(177 ILAs).
RetireAustralia
The outlook for FY2025 is for continued growth
with total settlements of 500 - 550 forecast,
including 90 - 110 new developments with
strong levels of deposits on hand.
In the current landscape, the gearing and elevated levels of debt at some of
RetireAustralia's peers have been a concern for investors. By comparison,
RetireAustralia maintains a relatively low level of debt and a gearing ratio of
just under 20%. This approach positions RetireAustralia favorably when
assessing the cadence of its own development plans, while also reducing its
interest rate exposure at a time of elevated interest rates.
Looking ahead the nationwide focus on the impacts of Australia’s aging
population bodes well for the retirement living sector. For operators like
RetireAustralia that are leading the way in finding commercially viable
solutions to offer Australian seniors’ choice in quality independent living
with a continuum of care.
The Green, Tarragindi Retirement Village
in Brisbane, opened in November 2023
29
Villages
5,442
Residents
Infratil
50%
New Zealand Superannuation Fund 50%
5958
2024
1994
6 Million
7 Million
1 Million
2 Million
3 Million
4 Million
5 Million
GDP 2.8% p.a.
Total passengers 3.0% p.a.
Investment thesis
Airports play a critical role in global transportation, serving as gateways
for travel, trade, and economic activity. Demand for air travel is driven
by a range of factors such as population growth, rising disposable
incomes, globalisation, and the increasing integration of international
markets.
As economies continue to expand, airports are uniquely positioned to
benefit from these trends while providing essential services to local
communities. Airports are also uniquely positioned to help drive the
decarbonisation of air travel, a sector that continues to be a major
source of climate change emissions.
30 years of growth
Over the past 30 years, Wellington Airport's passenger numbers have
steadily risen, largely in step with GDP growth, as economic expansion
has driven increased demand for air travel. However, like many other
industries, the aviation sector faced an unprecedented shock due to
Covid-19, which eclipsed earlier disruptions like the 9/11 terrorist
attacks, the 2008 global financial crisis, or the 2002 SARS outbreak in
terms of severity and impact.
Source:
Wellington Airport. Statistics New Zealand
Airports
6160
Wellington Airport experienced a year of robust
growth and sustained recovery, with passenger
numbers recovering well and earnings surpassing
pre-Covid levels.
Over the year the airport hosted 5.5 million passengers, nearly 200,000
more than the previous year. This rebound reflects a broader trend of
renewed interest in travel and a signal that the aviation industry is steadily
moving beyond the disruptions caused by the Covid-19 pandemic. This
momentum has also translated into a significant increase in earnings, with
EBITDAF reaching $107.1 million, a 19.5% increase from the previous year
($89.6 million) and back above pre-Covid levels (FY2020: $103.2 million).
One of the key drivers of growth has been the
resurgence in international travel, with passenger
numbers increasing by 31% year-on-year.
All pre-Covid route pairs have been restored, with domestic passenger numbers
at 90% of pre-Covid levels and international numbers at 80%. These figures are
particularly encouraging, given the headwinds of high airfares, a slowing
economy, and airline capacity constraints, in particular the Pratt and Whitney
engine maintenance issues affecting Air New Zealand’s A320/A321 fleet.
Qantas has emerged as Wellington's largest international airline, with a
significant expansion in operations. The introduction of the Wellington-Brisbane
route in October 2023 has been a success, prompting Qantas to upgrade to a
larger B738 aircraft for the 2024/25 summer season. By the end of 2024,
Qantas will offer 40% more seats than before the pandemic. Other airlines, such
as Fiji Airways and Jetstar, have also expanded their seat offerings, with 81%
more and 13% more seats flown, respectively, compared to pre-Covid levels.
The 2040 Masterplan continues to be the blueprint for the future development
required to meet the expected increase in travel demand. The Airport's strategic
location near Wellington's CBD requires efficient land use, prompting several
projects to maximise space and expand where possible. Recent developments
include the removal of the grassy hillock at the southern end of Stewart Duff
Drive, creating an additional 10,000 square metres for a new ground services
equipment workshop. The completion of the electric bus depot on the former
Miramar South School site and the relocation of car parks to land acquired from
Miramar Golf Club are also part of these ongoing initiatives.
Additionally, critical projects to enhance the Airport's resilience continue to
progress, with a focus on sea defences and earthquake strengthening. The
Southern Seawall project, designed to protect the runway from erosion and
inundation, is central to the Airport's climate resilience strategy, especially given
rising sea levels and increased storm frequency.
Wellington Airport has made notable strides in sustainability, aiming for net-zero
emissions by 2030. The Airport is well on track to achieve this target by 2028,
thanks to measures such as improving energy efficiency, transitioning to 100%
renewable energy sources, and replacing its vehicle fleet with electric vehicles.
The Airport has achieved Level 2 Certification from the Airport Carbon
Accreditation programme, with comprehensive emissions mapping and
reduction strategies in place. Its high ranking in a global sustainability
assessment by GRESB, placed fifth among participating airports worldwide,
underscores its commitment to environmental, social, and governance
principles.
Wellington Airport
Infratil
66%
Wellington City Council 34%
5.5 million
Passengers
41,606
Aircraft landings
24
Departure destinations
Beyond its own emissions, Wellington Airport is actively involved in
decarbonising air travel. The Airport has recently hosted a hydrogen trial
and has been selected as the home base for Air New Zealand's electric
demonstrator aircraft service, set to launch in 2026. These initiatives
demonstrate the Airport's leadership in promoting a sustainable future
for the aviation industry.
Our co-shareholder, the Wellington City Council (‘WCC’) recently concluded
its public consultation on its proposal to sell its 34% shareholding in Wellington
Airport. A final decision is expected by the end of June 2024 as part of the
Council's Long-Term Plan. This development could impact the Airport's future
direction, making it a process we are closely monitoring.
Having owned a majority stake in the Airport alongside WCC since 1998 we
value their contribution and co-ownership extremely highly, and while our
preference is that they remain a co-shareholder, their rationale for divesting
their airport stake is sensible and considered given the challenges they
currently face.
Irrespective of this, we remain dedicated to investing in and enhancing the
Airport to best serve Wellington and central New Zealand, ensuring continued
success and development for the region.
6362
Financial Statements
Contents
Consolidated Statement
of Comprehensive Income
64
Consolidated Statement
of Financial Position
65
Consolidated Statement
of Cash Flows
66
Consolidated Statement
of Changes in Equity
67
Notes to the Financial
Statements
69
Corporate Governance
133
Directory 147
6362
64
Notes
2024
$Millions
2023
$Millions
Operating revenue10 2,995.2 1,191.7
Dividends
0.1
-
Total revenue2,995.3 1,191.7
Share of earnings of associate companies6 2 4 7. 2 653.4
Total income3,242.5 1,845.1
Depreciation13, 15405.7 102.5
Amortisation of intangibles17152.9 5.1
Employee benefits588.2 374.9
Operating expenses111,732.7 666.5
Total operating expenditure2,879.5 1,149.0
Operating surplus before financing, derivatives, realisations and impairments363.0 696.1
Net gain/(loss) on foreign exchange and derivatives(56.4)91.9
Revaluation adjustments of equity-accounted investment to fair value8.11,075.0-
Net realisations, revaluations and impairments
(76.3)
( 1 7. 1 )
Interest income4 7. 8 22.0
Interest expense414.5 188.8
Net financing expense366.7 166.8
Net surplus before taxation938.6 604.1
Ta xati o n ex p e n s e1293.1 42.5
Net surplus for the year from continuing operations845.5 561.6
Net surplus/(loss) from discontinued operations after tax9(0.4)330.1
Net surplus for the year845.1 891.7
Net surplus attributable to owners of the Company85 4.0 643.1
Net surplus attributable to non-controlling interests (8.9)248.6
Other comprehensive income, after tax
Items that will not be reclassified to profit and loss:
Fair value change of property, plant & equipment 70.9 65.4
Share of associates other comprehensive income4.1 2 7. 7
Fair value change of equity investments ( 7. 5 )(2.3)
Income tax effect of the above items(12.7)(5.3)
Items that may subsequently be reclassified to profit and loss:
Differences arising on translation of foreign operations73.6 (3.6)
Effective portion of changes in fair value of cash flow hedges(4 3.4)6.8
Income tax effect of the above items8.7 (1.9)
Total other comprehensive income after tax93.7 86.8
Total comprehensive income for the year938.8 978.5
Total comprehensive income for the year attributable to owners of the Company
938.9710.1
Total comprehensive income for the year attributable to non-controlling interests(0.1)268.4
Earnings per share
Basic and diluted (cents per share) from continuing operations4 102.6 43.2
Basic and diluted (cents per share) 4 102.688.8
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2024
The accompanying notes form part of these consolidated financial statements.
65
Alison Gerry Anne Urlwin
Director Director
Notes
2024
$Millions
2023
$Millions
Cash and cash equivalents22.1 236.2 7 74.5
Trade and other accounts receivable and prepayments22.1472.6 148.9
Electricity market security deposits30.0 45.8
Derivative financial instruments22.4116.3 25.3
Inventories46.2 2.3
Income tax receivable10.7 9.1
Assets held for sale9167.9 169.8
Current assets1,079.9 1,175.7
Trade and other accounts receivable and prepayments22.1 7 7. 5 16.3
Property, plant and equipment13 4,763.8 3,560.1
Investment properties14 125.2 132.2
Right of use assets15.1 1,094.9 161.2
Derivative financial instruments22.4 7 7. 4 206.9
Intangible assets17 84 4.9 128.7
Goodwill 16 4 , 6 7 7. 0 1,846.1
Investments in associates6 2,905.0 2,388.9
Shareholder loans to associates6 271.4 429.6
Other investments7 192.9 142.6
Non-current assets15,030.0 9,012.6
Total assets16,109.9 10,188.3
Accounts payable, accruals and other liabilities890.3 361.9
Interest bearing loans and borrowings18 269.6 494.6
Lease liabilities15.2 81.4 19.0
Derivative financial instruments22.4 90.2 3 7. 0
Income tax payable2.1 5.7
Infratil Infrastructure bonds19 156.1 122.0
Manawa Energy bonds20 - -
Wellington International Airport bonds21 60.0 75.0
Liabilities directly associated with the assets held for sale9 69.3 70.1
Current liabilities1,619.0 1,185.3
Interest bearing loans and borrowings18 2,869.3 305.3
Accounts payable, accruals and other liabilities241.4 177.9
Lease liabilities15.2 1,068.0 189.2
Deferred tax liability12.3 4 32.0 253.7
Derivative financial instruments22.4 59.4 79.5
Infratil Infrastructure bonds19 1,076.9 9 5 7. 4
Perpetual Infratil Infrastructure bonds19 231.9 231.9
Manawa Energy bonds20 372.7 372.0
Wellington International Airport bonds and senior notes21 671.9 625.4
Non-current liabilities7, 0 2 3 . 5 3,192.3
Attributable to owners of the Company5,919.0 4,208.1
Non-controlling interest in subsidiaries1,548.4 1,602.6
Total equity7, 4 6 7. 45,810.7
Total equity and liabilities16,109.9 10,188.3
Approved on behalf of the Board on 20 May 2024
Consolidated Statement of Financial Position
As at 31 March 2024
The accompanying notes form part of these consolidated financial statements.
66
Notes
2024
$Millions
2023
$Millions
Cash flows from operating activities
Cash was provided from:
Receipts from customers3,086.2 1,180.1
Distributions received from associates43.2 1 6 7. 7
Other dividends0.5 0.6
Interest received14.9 21.7
3,14 4.8 1,370.1
Cash was disbursed to:
Payments to suppliers and employees(2,215.4)(1,173.5)
Interest paid(42 2.0)(163.6)
Taxation paid(49.6)( 4 7. 4 )
( 2 , 6 8 7. 0 )(1,38 4.5)
Net cash inflow / (outflow) from operating activities24 4 5 7. 8 (14.4)
Cash flows from investing activities
Cash was provided from:
Capital returned from associates 15.3 74 8.4
Proceeds of shareholder (loan)0.2 0.8
Proceeds from sale of subsidiaries (net of cash sold)- -
Proceeds from the sale of the Trustpower Retail business - 462.5
Proceeds from sale of property, plant and equipment13.3 0.8
Proceeds from sale of investment property4.5 0.2
Proceeds from sale of investments - 0.2
Return of security deposits58.1 158.6
91.4 1,371.5
Cash was disbursed to:
Purchase of investments(3 4 6.4)(566.4)
Issue of loans(2.4) -
Lodgement of security deposits(42.5)(141.4)
Purchase of intangible assets(80.1)(2.7)
Purchase of other investments( 7. 3 ) -
Purchase of shares in subsidiaries, net of cash acquired(1,823.1)(39.2)
Purchase of property, plant and equipment(4 36.5)( 1 3 7. 4 )
(2,738.3)(887.1)
Net cash inflow / (outflow) from investing activities(2,6 46.9)484.4
Cash flows from financing activities
Cash was provided from:
Proceeds from issue of shares926.7 -
Proceeds from issue of shares to non-controlling interests6.6 10.4
Bank borrowings1,104.4 88.6
Issue of bonds3 7 7. 2 290.9
2,415.0 389.9
Cash was disbursed to:
Repayment of bank debt(271.3)(359.5)
Repayment of lease liabilities(81.8)(26.9)
Loan establishment costs(14.6)(8.6)
Repayment of bonds( 1 9 7. 1 )(271.5)
Infrastructure bond issue expenses(3.6)(1.9)
Share buyback(0.6) -
Shares acquired from non-controlling shareholders in subsidiary companies(8.0)(10.0)
Dividends paid to non-controlling shareholders in subsidiary companies(58.7)(1 2 2.4)
Dividends paid to owners of the Company3 (149.5)(135.7)
(785.3)(936.5)
Net cash inflow / (outflow) from financing activities1,629.7 (5 46.6)
Net increase / (decrease) in cash and cash equivalents(559.4)(76.6)
Foreign exchange gains / (losses) on cash and cash equivalents(3.8) -
Cash and cash equivalents at beginning of the year7 74.5 851.0
Cash balances on acquisition24.9 0.1
Cash and cash equivalents at end of the year236.2 7 74.5
Consolidated Statement of Cash Flows
For the year ended 31 March 2024
The accompanying notes form part of these consolidated financial statements.
67
Capital
$Millions
Revaluation
reserve
$Millions
Foreign
currency
translation
reserve
$Millions
Other
reserves
$Millions
Retained
earnings
$Millions
To t a l
$Millions
Non-
controlling
$Millions
Total
equity
$Millions
Balance as at 1 April 20231 , 0 5 7. 3 622.0 (8.1)2.3 2,53 4.6 4,208.1 1,602.6 5,810.7
Net surplus/(deficit) for the year - - - - 85 4.085 4.0(8.9)845.1
Other comprehensive income, after tax
Fair value change of property, plant & equipment - 38.4 - - - 38.4 19.8 58.2
Share of associates other comprehensive income - - - 4.1 - 4.1 - 4.1
Fair value change of equity investments - - - ( 7. 5 ) - ( 7. 5 ) - ( 7. 5 )
Differences arising on translation of foreign operations - - 73.6 - - 73.6 - 73.6
Effective portion of changes in fair value of cash flow
hedges
- - - (23.7) - (23.7)(11.0)(3 4.7)
Total other comprehensive income - 38.4 73.6( 2 7. 1 ) - 84.98.8 93.7
Total comprehensive income for the year - 38.4 73.6 ( 2 7. 1 ) 85 4.0938.9 (0.1)938.8
Contributions by and distributions to
non-controlling interest
Distributions to outside equity interest in associates - - - (65.2) - (65.2) - (65.2)
Non-controlling interest arising on acquisition
of subsidiary
- - - - - - 4.5 4.5
Issue of shares to non-controlling interests - - - - - - 7. 2 7. 2
Issue/(acquisition) of shares held by outside equity
interest - - - - - - (6.8)(6.8)
Total contributions by and distributions to
non-controlling interest - - - (65.2) - (65.2)4.9 (60.3)
Contributions by and distributions to owners
Shares issued979.9 - - - - 979.9 - 979.9
Share buybacks - - - - - - - -
Shares issued under dividend reinvestment plan6.7 - - - - 6.7 - 6.7
Dividends to equity holders - - - - (149.5)(149.5)(59.0)(208.5)
Total contributions by and distributions to owners986.6 - - - (149.5)8 3 7. 1 (59.0)778.1
Balance at 31 March 20242,043.9 660.4 65.5 (90.0)3,239.1 5,919.0 1,548.4 7, 4 6 7. 4
Consolidated Statement of Changes in Equity
For the year ended 31 March 2024
The accompanying notes form part of these consolidated financial statements.
68
The accompanying notes form part of these consolidated financial statements.
Capital
$Millions
Revaluation
reserve
$Millions
Foreign
currency
translation
reserve
$Millions
Other
reserves
$Millions
Retained
earnings
$Millions
To t a l
$Millions
Non-
controlling
$Millions
Total
equity
$Millions
Balance as at 1 April 20221 , 0 5 7. 3 576.9 (1.3)53.8 2 , 0 2 7. 2 3,713.9 1,426.8 5,140.7
Net surplus for the year - - - - 643.1 643.1 248.6 891.7
Other comprehensive income, after tax
Fair value change of property, plant & equipment - 45.1 - - - 45.1 15.0 60.1
Share of associates other comprehensive income - - - 2 7. 7 - 2 7. 7 - 2 7. 7
Fair value change of equity investments - - - (2.3) - (2.3) - (2.3)
Differences arising on translation of foreign operations
- - (6.8) - - (6.8)3.0 (3.8)
Effective portion of changes in fair value of cash flow
hedges
- - - 3.3 - 3.3 1.8 5.1
Total other comprehensive income - 45.1 (6.8)28.7 - 6 7. 0 19.8 86.8
Total comprehensive income for the year - 45.1 (6.8)28.7 643.1 710.1 268.4 978.5
Contributions by and distributions to
non-controlling interest
Distributions to outside equity interest in associates - - - ( 74.6) - ( 74.6) - ( 74.6)
Non-controlling interest arising on acquisition
of subsidiary - - - - - - 13.5 13.5
Issue of shares to non-controlling interests - - - (4.5) - (4.5)1 7. 3 12.8
Issue/(acquisition) of shares held by outside equity
interest - - - (1.1) - (1.1)(1.0)(2.1)
Total contributions by and distributions to
non-controlling interest - - - (80.2) - (80.2)29.8 (50.4)
Contributions by and distributions to owners
Shares issued
- - - - - - - -
Share buybacks
- - - - - - - -
Shares issued under dividend reinvestment plan
- - - - - - - -
Dividends to equity holders
- - - - (135.7)(135.7)(1 2 2.4)(258.1)
Total contributions by and distributions to owners- - - - (135.7)(135.7)(122.4)(258.1)
Balance at 31 March 20231,057.3 622.0 (8.1)2.3 2,534.6 4,208.1 1,602.6 5,810.7
Consolidated Statement of Changes in Equity
For the year ended 31 March 2023
69
Notes to the Consolidated Financial Statements
For the year ended 31 March 2024
(1) Accounting policies
(A) 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.
(B) Basis of preparation
The consolidated financial statements have been prepared in accordance
with New Zealand Generally Accepted Accounting Principles (‘NZ GAAP’)
and comply with New Zealand equivalents to International Financial
Reporting Standards ('NZ IFRS') and other applicable financial reporting
standards as appropriate for profit-oriented entities. The consolidated
financial statements comprise the Company, its subsidiaries and
associates ('the Group'). The presentation currency used in the
preparation of these consolidated financial statements is New Zealand
dollars, which is also the Group's functional currency, and is presented in
$Millions unless otherwise stated. The principal accounting policies
adopted in the preparation of these consolidated financial statements are
set out below. These policies have been consistently applied to all the
periods presented, unless otherwise stated. Comparative figures have
been restated where appropriate to ensure consistency with the current
period.
The consolidated financial statements comprise statements of the
following: comprehensive income; financial position; changes in equity;
cash flows; significant accounting policies; and the notes to those
statements. The consolidated financial statements are prepared on the
basis of historical cost, except certain property, plant and equipment
which is valued in accordance with accounting policy (D), investment
property valued in accordance with accounting policy (E), financial
derivatives valued in accordance with accounting policy (K) and financial
assets valued in accordance with accounting policy (R).
The Group owns and operates infrastructure businesses and investments
in New Zealand, Australia, the United States, Asia, United Kingdom and
Europe. Below is the basis of preparation for its investments across the
portfolio.
2024
Holding
2023
Holding Basis of preparationPrincipal activity
New Zealand
ICN JV Investments Limited (One NZ)99.9% 49.9% Subsidiary - IFRS 10*Telecommunications
Infratil Finance Limited 100% 100% Subsidiary - IFRS 10Financing company for the Group
Infratil Infrastructure Property Limited100%100%Subsidiary - IFRS 10Property
Mahi Tahi Towers Limited (Fortysouth)20.0% 20.0% Associate - IAS 28Mobile Towers
Manawa Energy Limited51.1% 51.1% Subsidiary - IFRS 10Renewable Energy
RHCNZ Group Limited50.3% 50.1% Subsidiary - IFRS 10Diagnostic Imaging
Wellington International Airport Limited66.0% 66.0% Subsidiary - IFRS 10Airport
Australia
CDC Group Holdings Pty Ltd (CDC Data Centres)48.2%48.1%Associate - IAS 28Data Centres
Mint Renewables Limited73.0% 73.0% Subsidiary - IFRS 10Renewable Energy
Qscan Group Holdings Newco Pty (Qscan Group)5 7. 6 % 55.2% Subsidiary - IFRS 10Diagnostic Imaging
R A (Holdings) 2014 Pty Limited (RetireAustralia)50.0% 50.0% Associate - IAS 28Retirement Living
Asia
Gurīn Energy Pte. Limited95.0% 95.0% Subsidiary - IFRS 10Renewable Energy
United States
Clearvision Ventures Fair Value - IFRS 9Venture Capital
Longroad Energy Holdings, LLC 3 7. 0 % 3 7. 1 % Associate - IAS 28Renewable Energy
Europe
Galileo Green Energy, GmbH40.0% 40.0% Associate - IAS 28Renewable Energy
United Kingdom
Kao Data Limited52.8%39.9%Associate - IAS 28Data Centres
* In the prior year, One NZ was equity-accounted for under IAS 28
70
Accounting estimates and judgements
The preparation of consolidated financial statements in conformity with
NZ IFRS requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
consolidated financial statements and the reported amounts of revenues
and expenses during the reporting period. Future outcomes could differ
from those estimates. The principal areas of judgement in preparing these
consolidated financial statements are set out below.
Valuation of property, plant and equipment
Property, plant and equipment is recorded at cost less accumulated
depreciation and impairment losses, or at fair value less accumulated
depreciation and impairment losses. Where property, plant and
equipment is recorded at fair value, valuations can include an assessment
of the net present value of the future earnings of the assets, the
depreciated replacement cost, and other market-based information in
accordance with asset valuation standards. The key inputs and
assumptions that are used in valuations, that require judgement, can
include projections of future revenues, volumes, operational and capital
expenditure profiles, capacity, terminal values, the application of discount
rates and replacement values. Key inputs and assumptions are
reassessed at each balance date to ensure there has been no material
change that may impact the valuation.
With respect to assets held at cost, judgements are made about whether
costs incurred relate to bringing an asset to its working condition for its
intended use, and therefore are appropriate for capitalisation as part of
the cost of the asset. The determination of the appropriate life for a
particular asset requires judgements about, among other factors, the
expected future economic benefits of the asset and the likelihood of
obsolescence.
Assessing whether an asset is impaired involves estimating the future
cash flows that the asset is expected to generate. This will, in turn, involve
a number of assumptions, including the assessment of the key inputs that
impact the valuation.
Valuation of investments including Associates
Infratil completes an assessment of the carrying value of investments at
least annually and considers objective evidence for impairment on each
investment, taking into account observable data on the investment, the
status or context of markets, its own view of fair value, and its long term
investment intentions. Infratil notes the following matters which are
specifically considered in terms of objective evidence of impairment of its
investments, and whether there is a significant or prolonged decline from
cost, which should be recorded as an impairment, and taken to profit and
loss: any known loss events that have occurred since the initial recognition
date of the investments, including its investment performance, its long
term investment horizon, specific initiatives which reflect the strategic or
influential nature of its existing investment position and internal
valuations; and the state of markets. The assessment also requires
judgements about the expected future performance and cash flows of
the investment.
Derivatives
Certain derivatives are classified as financial assets or financial liabilities
at fair value through profit or loss. The key assumptions and risk factors
for these derivatives relate to energy price hedges and their valuation.
Energy price hedges are valued with reference to financial models of
future energy prices or market values for the relevant derivative.
Accounting judgements have been made in determining hedge
designation for the different types of derivatives employed by the
Group to hedge risk exposures. Other derivatives including, interest
rate instruments and foreign exchange contracts, are valued based on
market information and prices.
(C) Basis of preparing consolidated financial statements
Principles of consolidation
The consolidated financial statements are prepared by combining the
financial statements of all the entities that comprise the consolidated
Group. A list of significant subsidiaries and associates is shown in Note 1.
Consistent accounting policies are employed in the preparation and
presentation of the Group consolidated financial statements.
(D) Property, plant and equipment
Property, plant and equipment (‘PPE’) is recorded at cost less
accumulated depreciation and impairment losses, or at fair value less
accumulated depreciation and impairment losses. Where property, plant
and equipment is recorded at fair value, valuations are undertaken on a
systematic basis. No individual asset is included at an independent
external valuation undertaken more than five years previously. PPE that is
revalued, is revalued to its fair value determined by an independent valuer
or by the Directors with reference to independent experts, in accordance
with NZ IAS 16 Property, Plant and Equipment. Where the assets are of a
specialised nature and do not have observable market values in their
existing use, depreciated replacement cost is used as the basis of the
valuation. Depreciated replacement cost measures net current value as
the most efficient, lowest cost which would replace existing assets and
offer the same amount of utility in their present use. For non-specialised
assets where there is no observable market an income-based approach is
used.
Land, buildings, vehicles, plant and equipment, leasehold improvements
and civil works are measured at fair value or cost.
Renewable generation assets are shown at fair value, based on periodic
valuations by independent external valuers or by Directors with reference
to independent experts, less subsequent depreciation.
Depreciation is provided on a straight line basis and the major
depreciation periods (in years) are:
Buildings and civil works2-120
Vehicles and plant and equipment1-40
Renewable generation12-200
Office and IT equipment2-5
Leasehold improvements4-40
Land not depreciated
Capital work in progress not depreciated until
asset in use
Communication and network equipment1-35
(E) Investment properties
Investment properties are property (either owned or leased) held to earn
rental income. Investment properties are measured at fair value with any
change therein recognised in profit or loss. Property that is being
constructed for future use as investment property is measured at fair
value and classified as investment properties. Where a leased property is
held to earn rental income, the right of use asset is included within
Investment properties.
(F) Receivables
Receivables are initially recognised at fair value and subsequently
measured at amortised cost, less any provision for expected credit
losses. The Group applies the simplified approach to measuring expected
credit losses using a lifetime expected loss allowance for all trade
receivables and contract assets. These provisions take into account
known commercial factors impacting specific customer accounts, as well
as the overall profile of the debtor portfolio. In assessing the provision,
factors such as past collection history, the age of receivable balances, the
level of activity in customer accounts, as well as general macro-economic
trends, are also taken into account.
71
(G) Investments in associates
Associates are those entities in which the Group has significant influence,
but not control, over the financial and operating policies. Investments in
associates are accounted for using the equity method. Under the equity
method, the investment in the associate is carried at cost plus the Group’s
share of post-acquisition changes in the net assets of the associate and
any impairment losses. The Group's share of the associates’ post-
acquisition profits or losses is recognised in profit or loss, and the Group’s
share of post-acquisition movements in reserves is recognised in other
comprehensive income.
(H) Goodwill and intangible assets
Goodwill
The carrying value of goodwill is subject to an annual impairment test to
ensure the carrying value does not exceed the recoverable amount at
balance date. For the purpose of impairment testing, goodwill is allocated
to the individual cash-generating units to which it relates. Any impairment
losses are recognised in the statement of comprehensive income. In
determining the recoverable amount of goodwill, fair value is assessed,
including the use of valuation models to calculate the present value of
expected future cash flows of the cash-generating units, and where
available with reference to listed prices.
Intangible assets
Intangible assets include software, customer contracts, radio spectrum
licences, fibre capacity agreements and brands.
Amortisation is calculated to write off the cost of intangible assets less
their estimated residual values using the straight-line method over their
estimated useful lives, and is generally recognised in profit or loss.
The estimated useful lives for current and comparative periods are as
follows:
• Software: 3 - 7 years
• Customer contracts: 1-10 years
• Radio spectrum licences: 15 - 20 years
• Fibre capacity agreements: 15 - 20 years
• Indefeasible rights of use: 25 years
Amortisation methods, useful lives and residual values are reviewed at
each reporting date and adjusted if appropriate.
Brand names
Brand names that are acquired as part of a business combination are
recognised separately from goodwill and included in intangible assets.
These assets are carried at their fair value at the date of acquisition less
impairment losses. Brand names are valued using the relief from royalty
method. Brand names are determined to have indefinite useful lives and
therefore do not attract amortisation. Key factors taken into account in
concluding this was the ongoing strong recognition of the brands, and the
absence of any legal, technical or commercial factors indicating that a
finite life would be more appropriate. However, some brands have definite
useful lives and are amortised accordingly to their estimated useful life.
The carrying value of a brand is subject to an annual impairment test (with
goodwill) to ensure the carrying value does not exceed the recoverable
amount at balance date.
(I) Assets and disposal groups held for sale
Assets and disposal groups classified as held for sale are measured at the
lower of carrying amount or fair value less costs to sell. Assets and
disposal groups are classified as held for sale if their carrying amount will
be recovered through a sale transaction rather than through continuing
use. This condition is regarded as met only when the sale is highly
probable and the asset (or disposal group) is available for immediate sale
in its present condition and the sale of the asset (or disposal group) is
expected to be completed within one year from the date of classification.
(J) Taxation
Income tax comprises both current and deferred tax. Current tax is
the expected tax payable on the taxable income for the year, using tax
rates enacted or substantively enacted at the balance date, and any
adjustment to tax payable in respect of previous years. Deferred tax is
recognised in respect of the differences between the carrying amounts
of assets and liabilities for financial reporting purposes and the carrying
amounts used for taxation purposes.
The amount of deferred tax provided is based on the expected manner of
realisation or settlement of the carrying amount of assets and liabilities,
using tax rates enacted or substantively enacted at the balance sheet
date. A deferred tax asset is recognised only to the extent that it is
probable that future taxable profits will be available against which the
asset can be utilised, or there are deferred tax liabilities to offset it.
Preparation of the consolidated financial statements requires estimates
of the amount of tax that will ultimately be payable, the availability and
recognition of losses to be carried forward and the amount of foreign tax
credits that will be received.
(K) Derivative financial instruments
When appropriate, the Group enters into agreements to manage its
interest rate, foreign exchange, operating and investment risks.
In accordance with the Group's risk management policies, the Group
does not hold or issue derivative financial instruments for speculative
purposes. However, certain derivatives do not qualify for hedge
accounting and are required to be accounted for at fair value through
profit or loss. Derivative financial instruments are recognised initially at fair
value at the date they are entered into. Subsequent to initial recognition,
derivative financial instruments are stated at fair value at each balance
sheet date. The resulting gain or loss is recognised in the profit or loss
immediately unless the derivative is designated effective as a hedging
instrument, in which event, recognition of any resultant gain or loss
depends on the nature of the hedging relationship. The Group identifies
certain derivatives as hedges of highly probable forecast transactions to
the extent the hedge meets the hedge designation tests.
Hedge accounting
The Group designates certain hedging instruments as either cash flow
hedges or hedges of net investments in equity. At the inception of the
hedge relationship the Group documents the relationship between the
hedging instrument and hedged item, along with its risk management
objectives and its strategy for undertaking various hedge transactions.
Furthermore, at the inception of the hedge and on an on-going basis, the
Group documents whether the hedging instrument that is used in the
hedging relationship is highly effective in offsetting changes in fair values
or cash flows of the hedged item.
The effective portion of changes in the fair value of derivatives that are
designated and qualify as cash flow hedges are recognised in other
comprehensive income and presented in equity. The gain or loss relating
to the ineffective portion is recognised in profit or loss. The amounts
presented in equity are recognised in profit or loss in the periods when the
hedged item is recognised in profit or loss.
Hedge accounting is discontinued when the Group revokes the hedging
relationship, the hedging instrument expires or is sold, terminated, or
exercised, or no longer qualifies for hedge accounting. Any cumulative
gain or loss recognised in equity at that time remains in equity and is
recognised when the forecast transaction is ultimately recognised in
profit or loss. When a forecast transaction is no longer expected to occur,
the cumulative gain or loss that was recognised in equity is recognised in
profit or loss.
72
Foreign currency differences arising on the retranslation of a financial
liability designated as a hedge of a net investment in a foreign operation
are recognised directly in equity, in the foreign currency translation
reserve, to the extent that the hedge is effective. To the extent that the
hedge is ineffective, such differences are recognised in profit or loss.
When the hedged net investment is disposed of, the cumulative amount
in equity is transferred to profit or loss as an adjustment to the profit or
loss on disposal.
(L) Foreign currency transactions
Transactions in foreign currencies are translated to the respective
functional currencies of Group entities at exchange rates at the dates of
the transactions. Monetary assets and liabilities denominated in foreign
currencies at the reporting date are translated to the functional currency
at the exchange rate at that date. The foreign currency gain or loss on
monetary items is the difference between amortised cost in the
functional currency at the beginning of the period, adjusted for interest
and payments during the period, and the amortised cost in foreign
currency translated at the exchange rate at the end of the period.
Non-monetary assets and liabilities denominated in foreign currencies
that are measured at fair value are translated to the functional currency at
the exchange rate at the date that the fair value was determined. Foreign
currency differences arising on translation are recognised in profit or loss,
except for differences arising on the translation of the net investment in a
foreign operation.
Foreign operations
The assets and liabilities of foreign operations including goodwill and fair
value adjustments arising on acquisition, are translated to New Zealand
dollars at exchange rates at the reporting date. The income and expenses
of foreign operations are translated to New Zealand dollars at the average
rate for the reporting period.
(M) Impairment of assets
At each reporting date, the Group reviews the carrying amounts of its
assets to determine whether there is any indication that those assets
have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss (if any). Where the asset does not generate
cash flows that are independent from other assets, the Group estimates
the recoverable amount of the cash-generating unit to which the asset
belongs. Goodwill, intangible assets with indefinite useful lives and
intangible assets not yet available for use are tested for impairment
annually and whenever there is an indication that the asset may be
impaired.
(N) Revenue recognition
Revenue is measured based on the consideration specified in a contract
with a customer. A description of the nature and timing of the various
performance obligations in the Group’s contracts with customers and
when revenue is recognised is outlined at Note 10 (Revenue).
Interest revenues are recognised as accrued, taking into account the
effective yield of the financial asset. Revenue from services is recognised
in the profit or loss over the period of service. Dividend income is
recognised when the right to receive the payment is established.
(O) Borrowings
Borrowings are recorded initially at fair value, net of transaction costs.
Subsequent to initial recognition, borrowings are measured at amortised
cost with any difference between the initial recognised amount and the
redemption value being recognised in profit or loss over the period of the
borrowing using the effective interest rate. Bond and bank debt issue
expenses, fees and other costs incurred in arranging finance are
capitalised and amortised over the term of the relevant debt instrument
or debt facility.
(P) Discontinued operations
Classification as a discontinued operation occurs on disposal, or when
the operation meets the criteria to be classified as a non-current asset
or disposal group held for sale (see paragraph (I)), and represents a
separate major line of business or geographical area of operations. When
an operation is classified as a discontinued operation, the comparative
statement of comprehensive income is re-presented as if the operation
had been discontinued from the start of the comparative year.
(Q) Segment reporting
An operating segment is a component of the Group that engages in
business activities from which it may earn revenues and incur expenses,
including revenues and expenses that relate to transactions with any of
the Group's other components. All operating segments' operating results
are reviewed regularly by the Group's Board of Directors to make
decisions about resources to be allocated to the segment and assess its
performance, and for which discrete financial information is available.
The Group is organised into nine main business segments, Manawa
Energy, Mint Renewables, Wellington International Airport, Qscan Group,
RHCNZ Medical Imaging, Gurīn Energy, One NZ, Associate Companies
and Other. Other comprises investment activity not included in the
specific categories.
(R) Financial assets - available for sale
These assets are subsequently measured at fair value. Dividends are
recognised as income in profit or loss unless the dividend clearly
represents a recovery of part of the cost of the investment. Other net
gains and losses are recognised in OCI and are never reclassified to profit
or loss.
(S) New standards, amendments and pronouncements not
yet adopted by the Group
Pillar Two Model Rules initial assessment
The Group has adopted International Tax Reform – Pillar Two Model Rules
– Amendments to IAS 12 that were approved by the New Zealand
Accounting Standards in July 2023 and became effective 10 August
2023. The amendments provide a temporary mandatory exception from
deferred tax accounting and requires new disclosures in the annual
financial statements relating to the Pillar Two Model Rules. Infratil has
applied the exception to recognising and disclosing information about
deferred tax assets and liabilities related to Pillar Two income taxes, as
provided in the amendments to IAS 12 with immediate effect. As no
legislation to implement the Pillar Two Model Rules had been enacted or
substantively enacted at 31 March 2023 in any jurisdiction in which the
Group operates and, as such, no related deferred taxes were recognised
at that date, the application of the exception has no impact on the
Group's financial statements. Further information on the 31 March 2024
position is provided in note 12.
(2) Nature of business
The Group owns and operates infrastructure businesses and investments
in New Zealand, Australia, the United States, Asia, United Kingdom and
Europe. 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 5
(Operating segments) and Note 6 (Investments in associates) including
the relative contributions to total revenue and expenses of the Group.
73
(3) Infratil shares and dividends
Ordinary shares (fully paid)20242023
Total authorised and issued shares at the beginning of the year723,983,582 723,983,582
Movements during the year:
New shares issued107,906,405 -
New shares issued under dividend reinvestment plan6 7 7, 6 4 4 -
Treasury stock reissued under dividend reinvestment plan - -
Share buyback - -
Total authorised and issued shares at the beginning of the year 8 3 2 , 5 6 7, 6 3 1 723,983,582
During the period, the company issued 101.6 million new shares as part of an equity raise undertaken to partially fund the acquisition of 49.95% of
One NZ (Note 8.1). Net proceeds from the raise (after transaction costs and foreign exchange movements of $18.8 million) were $916.1 million.
Additionally, 6.3 million new shares were issued to pay $60.0 million of incentive fees to Morrison as consideration for management services, as
announced on 22 May 2023. All fully paid ordinary shares have equal voting rights and share equally in dividends and equity. At 31 March 2024 the
Group held 1,662,617 shares as Treasury Stock (31 March 2023: 1,662,617).
Dividends paid on ordinary shares
2024
cents per share
2023
cents per share
2024
$Millions
2023
$Millions
Final dividend prior year
12.50 12.00 91.3 86.8
Interim dividend current year
7. 0 0 6.75 58.2 48.9
Dividends paid on ordinary shares19.50 18.75 149.5 135.7
(4) Earnings per share
2024
$Millions
2023
$Millions
Net surplus from continuing operations attributable to ordinary shareholders
854.4 313.0
Basic and diluted earnings per share (cps) from continuing operations
105.6 43.2
Net surplus attributable to ordinary shareholders
85 4.0 643.1
Basic and diluted earnings per share (cps)
105.6 88.8
Weighted average number of ordinary shares
Issued ordinary shares at 1 April
724.0 724.0
Effect of new shares issued
8 4.7 -
Effect of new shares issued under dividend reinvestment plan
0.2 -
Effect of Treasury stock reissued under dividend reinvestment plan
- -
Effect of shares bought back - -
Weighted average number of ordinary shares at end of year 808.9 724.0
(5) Operating segments
Gurīn Energy, Manawa Energy and Mint Renewables are renewable generation investments, Wellington International Airport is an airport investment, Qscan Group and RHCNZ Medical Imaging are diagnostic imaging
investments and One NZ is a digital infrastructure investment. Infratil accounts for these companies as subsidiaries. Associates comprises Infratil's investments that are not consolidated for financial reporting purposes including
CDC Data Centres, Fortysouth, Galileo, Kao Data, Longroad Energy and RetireAustralia. Further information on these investments is outlined in Note 6. During the period, Infratil increased its ownership in One NZ and the
company is now consolidated for financial reporting purposes (Note 8.1). The Group's investment in the Trustpower Retail business, which was previously part of Manawa Energy, was treated as discontinued operations at
31 March 2023. 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 portfolio companies to the Parent Company.
For the year ended 31 March 2024
Gurīn
Energy
Asia
$Millions
Manawa
Energy
New Zealand
$Millions
Mint
Renewables
Australia
$Millions
Wellington
International
Airport
New Zealand
$Millions
Qscan
Group
Australia
$Millions
RHCNZ
Medical
Imaging
New Zealand
$Millions
One NZ
New Zealand
$Millions
Associates
$Millions
All other
segments and
corporate New
Zealand
$Millions
Eliminations &
discontinued
operations
$Millions
To t a l
$Millions
Total revenue0.1 472.7 0.1 159.2 3 1 7. 8 3 40.6 1,681.6 - 138.6 (30.5)3,080.2
Equity accounted earnings of associates - - - - - - - 2 4 7. 2 - - 2 4 7. 2
Inter-segment revenue - - - - - - - - (8 4.9) - (8 4.9)
Total income0.1 472.7 0.1 159.2 3 1 7. 8 340.6 1,681.6 2 4 7. 253.7 (30.5)3,242.5
Depreciation(0.7)(19.5)(0.2)(29.9)(33.6)(23.9)( 2 9 7. 9 ) - - - (405.7)
Amortisation of intangibles - (1.1) - - (0.6)(2.3)(14 8.9) - - - (152.9)
Employee benefits(13.8)(3 4.2)(3.5)(16.0)(172.0)(168.6)(179.7) - (0.4) - (588.2)
Other operating expenses(9.4)(294.1)(5.9)(59.4)(72.5)(56.7)(1,003.9) - (169.4)(61.4)(1,732.7)
Total operating expenditure(23.9)(3 48.9)(9.6)(105.3)(278.7)(251.5)(1,630.4) - (169.8)(61.4)(2,879.5)
Operating surplus before financing, derivatives, realisations and impairments(23.8)123.8 (9.5)53.9 39.1 89.1 51.2 2 4 7. 2(116.1)(91.9)363.0
Net gain/(loss) on foreign exchange and derivatives(0.4)(46.1) - 0.2 1.4 (9.5) - - (2.1)0.1 (56.4)
Revaluation adjustments of equity-accounted investment to fair value--------1,075.0- 1,075.0
Net realisations, revaluations and impairments - (1.6) - (2.0)(61.9)(0.3)(4.8) - (5.7) - (76.3)
Interest income0.3 - 0.1 1.8 0.8 1.2 35.0 - 9.6(1.0)4 7. 8
Interest expense(1.7)(26.2) - (33.8)(28.5)(36.9)(194.2) - (1 24.8)31.6 (414.5)
Net financing expense(1.4)(26.2)0.1 (32.0)( 2 7. 7 )(35.7)(159.2) - (115.2)30.6 (366.7)
Net surplus/(loss) before taxation(25.6)49.9 (9.4)20.1 (49.1)43.6 (112.8)2 4 7. 2835.9(61.2)938.6
Ta xati o n ex p e n s e - (25.3) - (49.1)(4.3)(14.5)29.5 - (29.4)-(93.1)
Net surplus/(loss) for the year(25.6)24.6 (9.4)(29.0)(53.4)29.1 (83.3)2 4 7. 2806.5(61.2)845.5
Net surplus/(loss) attributable to owners of the company(23.4)11.8 (6.8)(19.0)(30.9)14.5 (8 4.1)2 4 7. 2806.7(61.5)854.5
Net surplus/(loss) attributable to non-controlling interests(2.2)12.8 (2.6)(10.0)(22.5)14.6 0.8 - (0.2)0.4 (8.9)
Current assets58.0 224.7 2.5 110.2 6 7. 8 36.7 378.1 - 3 7. 7164.2 1,079.9
Non-current assets76.6 1,886.0 (6.8)1,76 4.1 913.0 1,411.1 5,450.3 3,176.3 974.5(615.1)15,030.0
Current liabilities45.3 201.2 2.7 119.1 78.2 66.2 524.2 - 559.4 22.71,619.0
Non-current liabilities63.0 691.6 0.4 899.9 387.9 545.4 2,815.9 - 2,171.4(552.0)7, 0 2 3 . 5
Net assets26.3 1 , 2 1 7. 9 ( 7. 4 )855.3 514.7 836.2 2,488.3 3,176.3 (1,718.6) 78.4 7, 4 6 7. 4
Net debt7. 8 452.0 (1.9)6 4 7. 0 255.6 4 36.7 1,421.5 - 2,253.5 - 5,472.2
Non-controlling interest percentage 5.0% 48.9% 2 7. 0 % 3 4.0% 42.4% 49.7% 0.1%
Capital expenditure and investments63.1 65.7 1.5 6 4.0 28.1 51.8 2 6 7. 6 311.4 18.8 - 872.0
74
For the year ended 31 March 2023
Gurīn
Energy
Asia
$Millions
Manawa
Energy
New Zealand
$Millions
Mint
Renewables
Australia
$Millions
Wellington
International
Airport
New Zealand
$Millions
Qscan
Group
Australia
$Millions
RHCNZ
Medical
Imaging
New Zealand
$Millions
One NZ
New Zealand
$Millions
Associates
$Millions
All other
segments and
corporate New
Zealand
$Millions
Eliminations &
discontinued
operations
$Millions
To t a l
$Millions
Total revenue 0.7 482.2 - 139.8 292.6 308.6 - - 1 4 7. 8(5 4.0)1 , 3 1 7. 7
Equity accounted earnings of associates - - - - - - - 653.4 - - 653.4
Inter-segment revenue - - - - - - - - (1 26.0) - (1 26.0)
Total income0.7 482.2 - 139.8 292.6 308.6 - 653.4 21.8(5 4.0)1,845.1
Depreciation(0.4)(20.9) - (28.8)(32.8)(21.1) - - -1.5 (102.5)
Amortisation of intangibles - (2.6) - - (1.0)(1.9) - - -0.4 (5.1)
Employee benefits (8.7)(37.6)(1.1)(15.6)( 1 6 7. 4 )(147.5) - - (0.4)3.4 (3 74.9)
Other operating expenses(8.4)(304.4)(0.9)(3 4.6)(63.9)(52.5) - - (1 2 2.9)(78.9)(666.5)
Total operating expenditure( 1 7. 5 )(365.5)(2.0)(79.0)(265.1)(223.0) - - (123.3)(73.6)(1,149.0)
Operating surplus before financing, derivatives, realisations and impairments(16.8)116.7 (2.0)60.8 2 7. 5 85.6 - 653.4 (101.5)( 1 2 7. 6 )696.1
Net gain/(loss) on foreign exchange and derivatives 0.1 62.9 - - - 3.3 - - 25.7(0.1)91.9
Net realisations, revaluations and impairments - 329.3 - (3.1) - 0.3 - - (14.4)(329.2)( 1 7. 1 )
Interest income - 0.7 - 2.0 0.3 0.5 - - 18.5 - 22.0
Interest expense(0.1)(25.7) - (28.3)(2 2.9)(36.0) - - (75.6)(0.2)(188.8)
Net financing expense(0.1)(25.0)-(26.3)(2 2.6)(35.5)--( 5 7. 1 )(0.2)(166.8)
Net surplus before taxation(16.8)483.9 (2.0)31.4 4.9 53.7 -653.4 ( 1 4 7. 3 )( 4 5 7. 1 )604.1
Ta xati o n ex p e n s e - (39.6) - (6.3)(1.7)(12.7) - - 17.40.4 (42.5)
Net surplus/(loss) for the year(16.8)444.3 (2.0)25.1 3.2 41.0 - 653.4 (129.9)(456.7)561.6
Net surplus/(loss) attributable to owners of the company(15.9)224.8 (1.5)16.6 1.7 20.6 - 653.4 (1 29.9)(295.4)474.4
Net surplus/(loss) attributable to non-controlling interests(0.9)219.5 (0.5)8.6 1.5 20.4 - - -(161.4)8 7. 2
Current assets 26.7 1 3 7. 6 4.2 14 4.8 43.5 41.5 - - 6 0 7. 7169.7 1,175.7
Non-current assets 2.8 1,965.3 0.4 1,660.0 94 4.5 1,390.1 - 2,818.4 504.9(273.8)9,012.6
Current liabilities 26.0 156.4 0.4 108.1 69.4 484.8 - - 2 9 7. 742.5 1,185.3
Non-current liabilities 0.3 6 7 7. 6 - 823.3 367.9 111.8 - - 1 , 4 2 7. 7(216.3)3,192.3
Net assets3.2 1,268.9 4.2 873.4 550.7 835.0 - 2,818.4 (612.8)69.7 5,810.7
Net debt(23.7)4 43.8 (4.0)5 7 7. 7 266.2 432.3 - - 716.9 - 2,409.1
Non-controlling interest percentage 5.0% 48.9% 2 7. 0 % 3 4.0% 4 4.9% 49.9% -
Capital expenditure and investments 2.94 4.2 - 69.7 33.4 29.4 - 532.5 - - 736.3
75
76
Entity wide disclosure - geographical
The Group operates in two principal areas, New Zealand and Australia, as well as having investments in the United States, the United Kingdom,
Asia and Europe. The Group's geographical segments are based on the location of both customers and assets.
New Zealand
$Millions
Australia
$Millions
Asia
$Millions
United States
$Millions
United
Kingdom &
Europe
$Millions
Eliminations &
discontinued
operations
$Millions
To t a l
$Millions
For the year ended 31 March 2024
Total revenue2,792.8 317.9 0.1 - - (30.6)3,080.2
Equity accounted earnings of associates(10.7)13 4.7 - 124.2(1.0) - 2 4 7. 2
Inter-segment revenue(8 4.9) - - - - - (8 4.9)
Total income2,697.2 452.6 0.1 124.2(1.0)(30.6)3,242.5
Depreciation(371.2)(33.8)(0.7) - - - (405.7)
Amortisation of intangibles(152.3)(0.6) - - - - (152.9)
Employee benefits(398.9)(175.5)(13.8) - - - (588.2)
Other operating expenses
(1,583.5)(78.4)(9.4) - - (61.4)(1,732.7)
Total operating expenditure(2,505.9)(288.3)(23.9) - - (61.4)(2,879.5)
Operating surplus before financing,
derivatives, realisations and impairments191.3 164.3 (23.8)124.2(1.0)(92.0)363.0
Net gain/(loss) on foreign exchange and
derivatives( 5 7. 5 )1.4 (0.4) - - 0.1 (56.4)
Revaluation adjustments of equity-
accounted investment to fair value1,075.0-----1,075.0
Net realisations, revaluations and
impairments(14.4)(61.9) - - - - (76.3)
Interest income4 7. 70.9 0.3 - - (1.1)4 7. 8
Interest expense(415.9)(28.5)(1.7) - - 31.6 (414.5)
Net financing expense(368.2)( 2 7. 6 )(1.4) - - 30.5 (366.7)
Net surplus/(loss) before taxation826.2 76.2 (25.6)124.2(1.0)(61.4)938.6
Ta xati o n ex p e n s e
(88.8)(4.3) - - - -(93.1)
Net surplus/(loss) for the year7 3 7. 4 71.9 (25.6)124.2(1.0)(61.4)845.5
Current assets7 8 7. 370.3 58.0 - - 164.3 1,079.9
Non-current assets
1 1 , 0 8 7. 8 2,879.8 76.6 619.3530.8 (16 4.3)15,030.0
Current liabilities
1,423.5 80.9 45.3 - - 69.3 1,619.0
Non-current liabilities6,641.5 388.3 63.0 - - (69.3)7, 0 2 3 . 5
Net assets3,810.1 2,480.9 26.3 619.3530.8 - 7, 4 6 7. 4
Net debt
5,208.6 253.7 7. 8 - - - 5,470.1
Capital expenditure and investments
4 49.1 49.1 63.1 115.0 195.7 - 872.0
77
New Zealand
$Millions
Australia
$Millions
Asia
$Millions
United States
$Millions
United
Kingdom &
Europe
$Millions
Eliminations &
discontinued
operations
$Millions
To t a l
$Millions
For the year ended 31 March 2023
Total revenue1,078.5 292.5 0.7 - - (5 4.0)1 , 3 1 7. 7
Share of earnings of associate companies199.1 4 0 7. 7 - 3 7. 5 9.1 - 653.4
Inter-segment revenue(1 26.0) - - - - - (1 26.0)
Total income1,151.6 700.2 0.7 3 7. 5 9.1 (5 4.0)1,845.1
Depreciation(71.0)(32.6)(0.4) - - 1.5 (102.5)
Amortisation of intangibles(4.5)(1.0) - - - 0.4 (5.1)
Employee benefits(201.2)(168.5)(8.7) - - 3.4 (3 74.9)
Other operating expenses
(6 4 0.3)(6 4.8)(8.4) - - 4 7. 1 (666.5)
Total operating expenditure( 9 1 7. 0 )(266.9)( 1 7. 5 ) - - 52.4 (1,149.0)
Operating surplus before financing,
derivatives, realisations and impairments234.6 433.3 (16.8)3 7. 5 9.1 (1.6)696.1
Net gain/(loss) on foreign exchange and
derivatives91.9 - 0.1 - - (0.1)91.9
Net realisations, revaluations and
impairments312.1 - - - - (329.2)( 1 7. 1 )
Interest income21.7 0.3 - - - - 22.0
Interest expense(165.5)(23.0)(0.1) - - (0.2)(188.8)
Net financing expense(14 3.8)(22.7)(0.1) - - (0.2)(166.8)
Net surplus/(loss) before taxation494.8 410.6 (16.8)3 7. 5 9.1 (331.1)604.1
Ta xati o n ex p e n s e
(41.3)(1.7) - - - 0.5 (42.5)
Net surplus/(loss) for the year453.5 408.9 (16.8)3 7. 5 9.1 (330.6)561.6
Current assets931.5 4 7. 3 26.7 - - 170.2 1,175.7
Non-current assets
5,670.6 2,759.5 2.8 441.1 308.8 (170.2)9,012.6
Current liabilities
1,019.2 70.0 26.0 - - 70.1 1,185.3
Non-current liabilities3,040.5 3 6 7. 8 0.3 - - (216.3)3,192.3
Net assets2,542.4 2,369.0 3.2 441.1 308.8 146.2 5,810.7
Net debt
2,170.6 262.2 (23.7) - - - 2,409.1
Capital expenditure and investments
355.9 4 7. 6 2.9 266.4 63.5 - 736.3
78
(6) Investments in associates
Associates are those entities in which the Group has significant influence, but not control, over the financial and operating policies. The Group's
investments in associates are made through a combination of equity, and in certain instances shareholder loans to those entities.
Notes
2024
$Millions
2023
$Millions
Investments in associates are as follows:
Equity investments in associates2,905.02,388.9
Shareholder loans to associates
271.4
429.6
Investments in associates3,176.4 2,818.5
Notes
2024
$Millions
2023
$Millions
Investments in associates are as follows:
One NZ6.1 - 171.7
CDC Data Centres6.21 , 5 3 7. 0 1,403.4
RetireAustralia6.34 36.6 410.9
Longroad Energy 6.4476.7315.8
Kao Data6.5431.8 255.7
Galileo6.699.1 53.3
Fortysouth6.7195.2 2 0 7. 7
Investments in associates3,176.4 2,818.5
Notes
2024
$Millions
2023
$Millions
Equity accounted earnings of associates are as follows:
One NZ6.1(1.9)204.0
CDC Data Centres6.2116.3 411.8
RetireAustralia6.318.4 (4.1)
Longroad Energy 6.4124.23 7. 4
Kao Data6.5(2.5)20.5
Galileo6.61.5 (11.4)
Fortysouth6.7(8.8)(4.8)
Equity accounted earnings of associates2 4 7. 2 653.4
79
(6.1) One NZ
On 15 June 2023, the Group completed the acquisition for a further 49.95% shareholding in ICN JV Investments Limited (the ultimate parent company
of One NZ). In accordance with IFRS 3 - Business Combinations, the Group's existing stake was remeasured to fair value with the entire investment
subsequently being reclassified as a subsidiary from completion date (see Note 8.1). The table below includes the results of One NZ as an associate
until 14 June 2023.
Movement in the carrying amount of the Group's investment in One NZ:
2024
$Millions
2023
$Millions
Carrying value at 1 April
171.6 838.2
Capital contributions - -
Shareholder loans - -
Capitalised transaction costs - -
Total capital contributions during the year - -
Interest on shareholder loan (including accruals)3.0 15.6
Share of associate’s surplus/(loss) before income tax(1.4)93.0
Share of associate’s income tax (expense)(3.5)95.4
Total share of associate’s earnings during the year(1.9)204.0
Share of associate's other comprehensive income1.1 0.7
less: Distributions received - ( 1 0 7. 4 )
less: Return of capital - (690.2)
less: Shareholder loan repayments including interest - (73.6)
Revaluation adjustment of investment to fair value 1,064.5 -
less: Consideration transferred to business combination(1,235.3) -
Carrying value of investment in associate - 171.7
Summary financial information:
2024
$Millions
2023
$Millions
Summary information for One NZ is not adjusted for the percentage ownership held by the Group (unless stated)
Current assets
- 428.2
Non-current assets - 3,090.7
Total assets- 3,518.9
Current liabilities - 572.7
Non-current liabilities
- 2,869.0
Total liabilities - 3,441.7
Net assets (100%)
- 7 7. 2
less: Non-controlling interest - (4.6)
Group's share of net assets - 36.1
Revenues
- 1,983.8
Net surplus/(loss) after tax
- 554.9
Total other comprehensive income
- 1.7
2024
$Millions
2023
$Millions
Reconciliation of the carrying amount of the Group's investment in One NZ:
Group's share of net assets
- 36.1
add: Shareholder loan
- 224.2
less: Infratil's share of the gain on sale of Aotearoa Towers limited (Fortysouth)
- (88.8)
add: Capitalised transaction costs
- 0.2
Carrying value of investment in associate - 171.7
80
(6.2) CDC Data Centres
CDC Data Centres ('CDC') is an owner, operator and developer of data centres, with operations in Canberra, Sydney, Auckland and Melbourne. Infratil
holds a 48.24% shareholding (31 March 2023: 48.08%) in CDC Group Holdings Pty Ltd (the ultimate parent company of CDC Data Centres), alongside
investment partners the Commonwealth Superannuation Corporation (24.12%), Future Fund (24.12%) and CDC Data Centres management (3.52%).
Movement in the carrying amount of the Group's investment in CDC:
2024
$Millions
2023
$Millions
Carrying value at 1 April
1,403.4 1,026.2
Capital contributions34.5 14.2
Shareholder loans(15.3) -
Capitalised transaction costs0.3 -
Total capital contributions during the year19.5 14.2
Interest on shareholder loan (including accruals)8.3 8.8
Share of associate’s surplus/(loss) before income tax156.0 5 74.1
Share of associate’s income tax (expense)(50.9)(171.8)
add: share of associate's share capital issue, net of dilution
2.9 0.7
Total share of associate’s earnings during the year116.3 411.8
Share of associate's other comprehensive income(5.9)5.1
less: Distributions received(14.7)(29.5)
less: Shareholder loan repayments including interest(5.7)( 7. 6 )
Foreign exchange movements recognised in other comprehensive income24.1 (16.8)
Carrying value of investment in associate1 , 5 3 7. 0 1,403.4
Summary financial information
2024
A$Millions
2023
A$Millions
Summary information for CDC is not adjusted for the percentage ownership held by the Group (unless stated)
Current assets
15 4.7 110.1
Non-current assets
6,666.0 5,762.3
Total assets6,820.7 5,872.4
Current liabilities
190.5 74.0
Non-current liabilities
4,05 4.6 3,428.1
Total liabilities4,245.1 3,502.1
Net assets (100%)
2,575.6 2,370.3
Group's share of net assets1,242.5 1,139.7
Revenues
412.3 3 45.0
Net surplus/(loss) after tax
201.9 762.7
Total other comprehensive income
(12.2)10.7
2024
$Millions
2023
$Millions
Reconciliation of the carrying amount of the Group's investment in CDC:
Group's share of net assets in NZD
1,353.3 1,220.2
Goodwill
1 7. 8 6.2
add: Shareholder loan
165.9 1 7 7. 0
Carrying value of investment in associate1 , 5 3 7. 01,403.4
CDC's functional currency is Australian Dollars (A$) 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 0.9181 (Spot rate) and 0.9271 (Average rate) (2023: Spot rate 0.9340,
Average rate 0.9114).
81
(6.3) 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:
2024
$Millions
2023
$Millions
Carrying value at 1 April
410.9 4 1 7. 3
Capital contributions - -
Total capital contributions during the year - -
Share of associate’s surplus/(loss) before income tax50.1(6.4)
Share of associate’s income tax (expense)(31.7)2.3
Total share of associate’s earnings during the year18.4 (4.1)
Share of associate's other comprehensive income - -
less: Distributions received - -
Foreign exchange movements recognised in other comprehensive income7. 3 (2.3)
Carrying value of investment in associate4 36.6 410.9
Summary financial information
2024
A$Millions
2023
A$Millions
Summary information for RetireAustralia is not adjusted for the percentage ownership held by the
Group (unless stated)
Current assets
239.5 189.5
Non-current assets
3 , 1 9 7. 6 2,871.0
Total assets3,437.1 3,060.5
Current liabilities
2 , 3 4 7. 8 2,033.0
Non-current liabilities
287.7 259.9
Total liabilities2,635.5 2,292.9
Net assets (100%)
801.6 7 6 7. 6
Group's share of net assets400.8 383.8
Group's share of net assets and carrying value of investment in associate ($NZD)4 36.6 410.9
Revenues
174.9 61.0
Net surplus/(loss) after tax
34.1 ( 7. 5 )
Total 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 0.9181 (Spot rate) and 0.9271 (Average rate) (2023: Spot rate 0.9340,
Average rate 0.9114).
82
(6.4) 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 36.95% (2023: 37.05%)
shareholding in Longroad Energy, alongside investment partners the New Zealand Superannuation Fund (36.95%), MEAG (11.25%) and Longroad
Energy management (14.85%).
In the prior year, Infratil, together with its co-investors the NZ Super Fund and the Longroad Energy management team, announced that MEAG, acting
as the asset management arm for entities of Munich Re, had agreed to invest US$300 million to acquire a 12.0% stake in Longroad Energy.
Immediately prior to completion of the transaction both Infratil and the NZ Super Fund each contributed US$85.0 million to Longroad Energy which
resulted in US$20.2 million being recognised as goodwill. Following the transaction, Infratil and the NZ Super Fund each retained a 37.0% stake in
Longroad Energy. As part of the transaction both Infratil and the NZ Super Fund also agreed to invest a further US$100 million, which will be used to
fund Longroad Energy’s near-term development pipeline.
With MEAG entering as a co-investor (12.0%) but contributing 40% of the US$500 million capital commitment, if this capital commitment was called
upfront on day one, Infratil would have recognised an upfront gain on sale on the sale of an interest to MEAG of US$72.9 million. However, the gain on
sale is dependent on the net assets of Longroad at the time the commitment is called. During the year, US$38.3 million was recognised as a gain on
sale on the transaction (31 March 2023: US$39.5 million). The committment was fully utilised during the year.
Movement in the carrying amount of the Group's investment in Longroad Energy:
2024
$Millions
2023
$Millions
Carrying value at 1 April315.8 90.5
Capital contributions96.2 242.2
Shareholder loans - -
Total capital contributions during the year96.2 242.2
Share of associate’s surplus/(loss) before income tax61.5(25.8)
Share of associate’s income tax (expense) - -
Gain/(loss) on sale of interest62.7 63.2
Total share of associate’s earnings during the year124.23 7. 4
Share of associate’s other comprehensive income13.7 20.3
Share of associates other reserves(65.7)( 74.6)
Fair value movements - -
less: Distributions received(19.4)( 7. 7 )
less: Capital returned - -
Foreign exchange movements recognised in other comprehensive income11.9 7. 7
Carrying value of investment in associate476.7315.8
83
Summary financial information
31 December
2023
US$Millions
31 December
2022
US$Millions
Summary information for Longroad is not adjusted for the percentage ownership held by the
Group (unless stated)
Current assets405.0 230.8
Non-current assets3,94 3.0 2,736.3
Total assets4,3 48.0 2,967.1
Current liabilities530.1250.7
Non-current liabilities2,789.61 , 2 0 7. 0
Total liabilities3,319.71 , 4 5 7. 7
Net assets (100%)1,028.31,509.4
Adjustment for movements between 31 December and 31 March(25.1)(51.5)
less: Non-controlling interests at 31 March(289.0)( 9 7 7. 5 )
Net assets attributable to owners of Longroad Energy as at 31 March714.2480.4
Group's share of net assets at 31 March263.9178.0
Group's share of net assets at 31 March (NZ$)4 40.5283.6
Goodwill 36.3 32.2
Carrying value of investment in associate (NZ$)476.7315.8
Revenues3 3 7. 6136.3
Net surplus/(loss) after tax226.5(24.1)
Total other comprehensive income0.385.2
Longroad's functional currency is United States Dollars (US$) 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 0.5991 (Spot rate) and 0.6098 (Average rate) (2023: Spot rate 0.6275,
Average rate 0.6240).
The summary information provided is based off the most recent annual financial statements of Longroad Energy Holdings, LLC which have a balance date of 31 December
and are reported as at that date.
At 31 March 2024, Infratil has contributed US$192.6 million (31 March 2023: US$152.0 million), in the form of capital contributions.
Letter of credit facility
Longroad has obtained an uncommitted secured letter of credit facility of up to US$200 million from HSBC Bank. Letters of credit under the Facility
are on issue to beneficiaries to support the development and continued operations of Longroad. Infratil has provided shareholder backing of the
Longroad Letter of Credit facility, specifically, Infratil (the New Zealand Superannuation Fund and MEAG) 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, taking into account immediately available working capital. As at 31 March 2024, Infratil's share of Longroad's
Letter of Credit facility is 43.4% (31 March 2023: 43.0%). Letters of Credit on issue under the Longroad Letter of Credit facility at 31 March 2024 are
US$110.1 million (Infratil share: US$47.8 million) (31 March 2023: US$90.2 million (Infratil share: US$38.8 million)) .
84
(6.5) Kao Data
Kao Data is an owner, operator and developer of data centres in the United Kingdom. Infratil holds a 52.9% (31 March 2023: 39.9%) shareholding
in Kao Data, alongside Legal & General Group 32.1% and Goldacre 14.9%.
On 22 September 2023, Infratil completed the acquisition of an additional 12.9% of Kao Data from Goldacre for cash consideration of £39.9 million,
increasing Infratil's shareholding to 52.9%.
Management have considered if they control Kao Data given the 52.9% shareholding. Based on the operational structure of Kao Data the Group does not
control Kao Data under under IFRS 10 therefore will continue to equity-account for the investment given the assessment of significant influence is met.
Movement in the carrying amount of the Group's investment in Kao Data:
2024
$Millions
2023
$Millions
Carrying value at 1 April255.7 203.4
Capital contributions115.1 21.2
Shareholder loans40.3 -
Capitalised transaction costs0.8 -
Total capital contributions during the year
156.2
21.2
Interest on shareholder loan (including accruals)3.7 -
Share of associate’s surplus/(loss) before income tax(6.2)20.5
Share of associate’s income tax (expense)--
Total share of associate’s earnings in the year
(2.5)20.5
Share of associate’s other comprehensive income--
less: Distributions received--
less: Shareholder loan repayments including interest--
Foreign exchange movements recognised in other comprehensive income22.4 10.6
Carrying value of investment in associate
431.8 255.7
Summary financial information
2024
£Millions
2023
£Millions
Summary information for Kao Data is not adjusted for the percentage ownership held by the
Current assets31.6 22.4
Non-current assets423.4 343.8
Total assets455.0 366.2
Current liabilities65.1 61.8
Non-current liabilities119.0 62.4
Total liabilities184.1 124.2
Net assets (100%)270.9 242.0
Group's share of net assets143.1 96.5
Revenues56.5 4 4.1
Net profit/(loss) after tax(6.1)26.7
Total other comprehensive income--
2024
$Millions
2023
$Millions
Reconciliation of the carrying amount of the Group's investment in Kao Data:
Group's share of net assets in NZD301.6 190.7
Goodwill7 7. 2 59.9
add: Shareholder loan4 7. 1 -
add: Capitalised transaction costs5.9 5.1
Carrying value of investment in associate431.8 255.7
Kao Data's functional currency is the Pound Sterling (GBP) and the summary financial information shown is presented in this currency. The NZD/GBP exchange rates used
to convert the summary financial information to the Group's functional currency ($NZD) were 0.4745 (Spot rate) and 0.4852 (Average rate) (31 March 2023: Spot rate
0.5060, Average rate 0.5175).
At 31 March 2024, Infratil has contributed £192.7 million (31 March 2023: £117.3 million), in the form of shareholder loan drawdowns (£19.5 million) and capital
contributions (£173.2 million).
85
(6.6) Galileo
Galileo develops renewable energy projects across Europe. Infratil holds a 40% shareholding in Galileo, alongside the New Zealand Superannuation
Fund (20%), Commonwealth Superannuation Corporation (20%) and the Morrison & Co Growth Infrastructure Fund (20%).
Movement in the carrying amount of the Group's investment in Galileo:
2024
$Millions
2023
$Millions
Carrying value at 1 April53.3 19.7
Capital contributions10.8 26.6
Shareholder loans28.7 15.7
Capitalised transaction costs--
Total capital contributions during the year
39.5
42.3
Interest on shareholder loan (including accruals)0.7 0.2
Share of associate’s surplus/(loss) before income tax1.2 (11.3)
Share of associate’s income tax (expense)(0.4)(0.3)
Total share of associate’s earnings in the year
1.5 (11.4)
Share of associate’s other comprehensive income--
Share of associates other reserves2.5 -
less: Distributions received--
less: Shareholder loan repayments including interest--
Foreign exchange movements recognised in other comprehensive income2.3 2.7
Carrying value of investment in associate
99.1 53.3
Summary financial information
2024
€Millions
2023
€Millions
Summary information for Galileo is not adjusted for the percentage ownership held by the Group
(unless stated)
Current assets106.2 51.9
Non-current assets59.3 39.7
Total assets165.5 91.6
Current liabilities12.7 6.1
Non-current liabilities72.9 48.3
Total liabilities85.6 54.4
Net assets (100%)79.9 3 7. 2
Group's share of net assets22.0 14.0
Revenues3.6 (2.3)
Net profit/(loss) after tax1.2 (17.4)
Total other comprehensive income1.1 ( 1 7. 3 )
2024
$Millions
2023
$Millions
Reconciliation of the carrying amount of the Group's investment in Galileo:
Group's share of net assets in NZD39.7 24.3
add: Shareholder loan58.5 27.9
add: Capitalised transaction costs0.9 1.1
Carrying value of investment in associate99.1 53.3
Galileo's functional currency is the Euro (EUR) and the summary financial information shown is presented in this currency. The NZD/EUR exchange rates used to convert
the summary financial information to the Group's functional currency ($NZD) were 0.5539 (Spot rate) and 0.5622 (Average rate) (31 March 2023: Spot rate 0.5749,
Average rate 0.5993).
At 31 March 2024, Infratil has contributed €64.0 million in total (2023: €41.9 million), in the form of shareholder loan drawdowns (€31.9 million) and capital contributions
(€32.1 million) (31 March 2023: shareholder loan drawdowns: €15.9 million, capital contributions: €26.0 million).
86
Letter of credit facility
In accordance with Galileo's investors initial commitment to provide support of up to €100 million to facilitate Galileo obtaining a Letter of Credit
facility ('LC'), on 9 October 2020, Galileo executed a €90 million LC facility with ANZ (London Branch). The purpose of the Uncommitted Standby LC is
to secure any customary development or other obligations arising from energy development and construction projects in Europe. At 31 March 2024
€50.3 million of LCs have been issued by ANZ (Infratil share: €20.4 million) (31 March 2023: €39.0 million, Infratil share: €15.6 million).
(6.7) Fortysouth
Fortysouth is an owner, operator and developer of passive mobile tower infrastructure. Infratil holds a 20.0% shareholding (31 March 2023: 20.0%) in
Mahi Tahi Towers Limited (the ultimate parent company of Fortysouth), alongside investment partners InfraRed Capital Partners (40.0%) and Northleaf
Capital Partners (40.0%).
Movement in the carrying amount of the Group's investment in Fortysouth:
2024
$Millions
2023
$Millions
Carrying value at 1 April2 0 7. 7 -
Capital contributions-212.1
Capitalised transaction costs-0.4
Total capital contributions during the period-212.5
Interest on shareholder loan (including accruals)--
Share of associate’s surplus/(loss) before income tax(8.8)(4.8)
Share of associate’s income tax (expense)--
Total share of associate’s earnings in the period(8.8)(4.8)
Share of associate’s other comprehensive income--
less: Distributions received(3.7)-
Carrying value of investment in associate195.22 0 7. 7
Summary financial information
2024
$Millions
2023
$Millions
Summary information for Fortysouth is not adjusted for the percentage ownership held by the
Group (unless stated)
Current assets25.4 49.7
Non-current assets2,110.2 1,814.5
Total assets2,135.6 1,864.2
Current liabilities26.7 24.1
Non-current liabilities1,13 4.7 803.6
Total liabilities1,161.4 8 2 7. 7
Net assets (100%)974. 2 1,036.5
Group's share of net assets194.8 2 0 7. 3
Revenues84.2 32.1
Net profit/(loss) after tax(50.5)(23.8)
Total other comprehensive income--
2024
$Millions
2023
$Millions
Reconciliation of the carrying amount of the Group's investment in Fortysouth:
Group's share of net assets194.8 2 0 7. 3
Goodwill--
add: Shareholder loan--
add: Capitalised transaction costs0.4 0.4
Carrying value of investment in associate195.2 2 0 7. 7
87
(7) Other investments
2024
$Millions
2023
$Millions
Clearvision Ventures142.6 125.2
Other50.3 17.4
Other investments192.9 142.6
Clearvision Ventures
In February 2016 Infratil made an initial commitment of US$25 million to the California based Clearvision Ventures. Further commitments of
US$25 million and US$50 million were made in May 2020 and May 2022 respectively bringing Infratil's total commitments to US$100 million.
The strategic objective of the investment is to help Infratil's businesses identify and engage with technology changes that will impact their activities.
As at 31 March 2024, Infratil has made total contributions of US$57.9million (31 March 2023: US$46.4 million), with the remaining US$42.1 million
commitment uncalled at that date.
(8) Acquisition of subsidiaries
(8.1) One NZ
On 7 June 2023, Infratil announced that it had reached an agreement with Brookfield Asset Management (‘Brookfield’), to acquire Brookfield’s 49.95%
stake in ICN JV Investments Limited (‘One NZ’) for $1,800.0 million, increasing Infratil’s ownership from 49.95% to 99.90%. The $1,800.0 million was
paid in cash and was allocated as $1,572.1 million consideration for the shares, and $227.9 million for Brookfield’s portion of the shareholder loan
receivable. The transaction completed on 15 June 2023, funded by existing cash reserves, external debt funding, and an equity raise.
Prior to 15 June 2023, Infratil’s investment in One NZ was equity accounted under NZ IAS 28 Investments in Associates and Joint Ventures. This was
on the basis that Infratil and Brookfield collectively controlled One NZ. As a result of Infratil's increased ownership, Infratil is required to consolidated
One NZ from the acquisition date. As Infratil's original stake in One NZ was acquired in May 2019, NZ IFRS 3 Business Combinations requires that the
acquisition of Brookfield's 49.95% stake is recognised as an acquisition achieved in stages ('step acquisition').
In a step acquisition, the fair value of the equity accounted investment in One NZ that Infratil held immediately before obtaining control is used in the
determination of goodwill that will be recognised by Infratil on acquisition of the controlling share in One NZ. This treatment effectively considers that
the 49.95% of the investment in One NZ that was held by Infratil, before obtaining control, is sold, and a 99.90% controlling interest in a subsidiary has
been purchased. The fair value of the initial 49.95% has been calculated as $1,235.3 million by discounting the price paid for the controlling interest
with observed market control premiums. As of 14 June 2023, the carrying value of Infratil’s investment in One NZ was $170.8 million. Comparing the
carrying value of Infratil’s investment immediately before obtaining control to the fair value results in a gain on acquisition of $1,064.5 million.
NZ IFRS 3 Business Combinations requires that the identifiable assets and liabilities acquired as part of a business combination are measured at fair
value at the date of acquisition, with any deficit between the consideration paid (including the previously held equity investment at fair value) and the
value of the net identifiable assets (or liabilities) acquired and any non-controlling interest, recognised as goodwill, with any gain recognised through
profit & loss. An independent valuer was appointed to perform this exercise. The key inputs and assumptions that are used in measuring the fair value
of material tangible assets include replacement values, historical costs, life assumptions and terminal values for each asset. For material customer
relationships and contract intangible asset, the key inputs and assumptions used for measuring the fair value include projections of future profitability
of customers, expected average customer tenure, contributory asset charges, and application of discount and tax rates. In measuring the fair value of
the One NZ trade name, the key inputs and assumptions include the historical costs incurred and the expected useful life.
For the 10 months ended 31 March 2024, One NZ contributed revenue of $1,681.6 millon and a loss of $83.3 million to the Group's result, which
includes acquisition-related costs of $1.0 million. If the acquisition had occured on 1 April 2023, Management estimates that consolidated revenue
and net loss after tax would have been $2,016.7 million and net loss of $99.9 million, respectively. In determining these amounts, Management has
assumed the fair value adjustments that arose on the date of acquisition would have been materially the same if the acquisition had occured on
1 April 2023.
The acquisition accounting required under NZ IFRS 3 has been finalised at 31 March 2024. Goodwill of $2,880.4 million has been recognised based
on the carrying value of the identifiable assets and liabilities acquired, including intangible assets.
88
The following table summarises the recognised amounts of assets and liabilities assumed at the date of acquisition:
15 June 2023
Fair Value
$Millions
Cash and cash equivalents 24.9
Trade and other accounts receivable and prepayments
303.9
Derivative financial instruments
33.3
Inventories
59.3
Income tax receivable
9.3
Current assets4 30.7
Trade and other accounts receivable and prepayments
61.8
Property, plant and equipment
1,030.0
Right of use assets
951.5
Intangible assets
798.5
Investments in associates
20.4
Deferred tax asset
-
Non-current assets2,862.2
Total assets3,292.9
Accounts payable, accruals and other liabilities
495.1
Interest bearing loans and borrowings
9.4
Lease liabilities
55.0
Total current liabilities559.5
Interest bearing loans and borrowings
1,466.8
Accounts payable, accruals and other liabilities
106.3
Lease liabilities
867.9
Deferred tax liability
139.7
Shareholder loan
4 48.4
Non-current liabilities3,029.1
Total identifiable assets/(liabilities) at fair value 100%(295.7)
Goodwill arising from the acquisition has been recognised as follows:
15 June 2023
Fair Value
NZ$Millions
Cash consideration1,800.0
add: Previously held equity interest (fair value)1,235.3
Total consideration paid
3,035.3
Total identifiable assets/(liabilities) at fair value(295.7)
add: Shareholder loan4 48.4
add: Shareholder loan accrued interest6.7
Value of the net identifiable assets (or liabilities) acquired
159.4
add: Non-controlling interest (proportionate share of assets acquired)4.5
Goodwill
2,880.4
As part of the requirements under NZ IFRS 3 for a step acquisition, Infratil remeasured its previously held equity interest in One NZ to its acquisition-
date fair value of $1,235.3 million, and the resulting gain of $1,064.5 million has been recognised in the Statement of Comprehensive Income within
"revaluation adjustments of equity-accounted investment to fair value". Amounts previously recognised in OCI of $10.5 million were also reclassified
to "revaluation adjustments of equity-accounted investment to fair value" as if the initial equity interest had been sold to a third party.
Infratil's goodwill is mainly attributable to the perceived momentum and remaining upside within One NZ digital services and connectivity, the
enhancement to Infratil's portfolio and return profile, and the material benefits associated with 99.9% ownership.
Acquisition costs relating to the transaction of $1.0 million were recognised in the Statement of Comprehensive Income for the year ended
31 March 2024.
89
(8.2) Console Connect
On 10 July 2023, lnfratil executed a conditional agreement with Hong Kong Telecom (‘HKT’) to establish a strategic partnership to accelerate the
growth of HKT's Console Connect business. Infratil will initially acquire an 80% stake in Console Connect from HKT for US$160 million. Infratil and HKT
will also enter into a strategic partnership, with both jointly investing up to US$295 million over a 2-year period following completion of the acquisition
to accelerate Console Connect’s growth. Following this initial period of growth investment, Infratil will own between 60-80% of Console Connect, with
HKT holding the remainder.
The Group will fund the acquisition through existing bank loan facilities. Drawdown is contingent on completion of the acquisition. Completion of the
acquisition is conditional on certain telecommunication, foreign investment regulatory approvals and merger approvals. Assuming those approvals
are granted, completion is currently expected by Q3 FY2025. As such the acquisition remains incomplete at the date of signing the accounts.
(9) Discontinued operations and assets held for sale
(9.1) Trustpower Retail Business
On 21 June 2021, Trustpower announced the conditional sale of its gas, telecommunication and retail electricity supply business (excluding the supply
of electricity to commercial and industrial customers) to Mercury NZ Limited.
On 2 May 2022, Trustpower announced the conditions of the Trustpower Retail business to Mercury NZ Limited had been met and completion of
the sale occurred (effective as of 1 May 2022). The sale price was $467.4 million including working capital adjustments. A working capital wash-up
process was then completed which resulted in Mercury NZ Limited paying an additional $2.0 million to bring the final sale proceeds to $469.4 million.
After sale costs, the net proceeds from the sale were $467.0 million, resulting in a gain on sale at the group consolidated level of $328.8 million. At
that date the company also confirmed its name change to Manawa Energy Limited.
As the carrying amount of the Group’s investment in the Trustpower Retail business has been recovered through a sale transaction, the Trustpower
Retail business was classified as a discontinued operation at 31 March 2023. A detailed note disclosure is included in the published financial
statements for the year ended 31 March 2023.
(9.2) Infratil Infrastructure Property Limited
In June 2022, the Infratil Infrastructure Property Limited ('IIPL') Board approved the marketing of IIPL's investment property at 100 Halsey Street
('Wynyard 100') for a potential sale. The sales process remains ongoing at 31 March 2024. As such, the investment property at 100 Halsey Street is
deemed to be held for sale at 31 March 2024. Included in assets and liabilities held for sale are investment property ($94.0 million), right of use assets
($70.3 million) and lease liabilities ($69.3 million).
At 31 March 2024, the investment property at 100 Halsey Street is not deemed to be a discontinued operation as it does not represent a separate
major line of business or geographic area of operation for the Group.
(10) Revenue
2024
$Millions
2023
$Millions
Electricity - wholesale and retail4 39.3 418.3
Mobile service revenue
7 70.4 -
Fixed service revenue
585.9 -
Device and other revenue
2 5 7. 5 -
Telecommunications - other revenue
71.0 -
Aircraft movement and terminal charges
86.0 7 7. 3
Transport, hotel and other trading activities
54.3 50.5
Radiology practice services
175.8 147.9
Radiology services
474.0 4 45.2
Other
81.0 52.5
Total operating revenue2,995.2 1,191.7
90
Revenue Recognition Policies
The nature and timing of the various performance obligations in the Group’s contracts with customers and property leases and when revenue is
recognised is outlined below:
Description of performance obligations Timing and satisfaction of performance obligations
Electricity - Wholesale and Retail
Wholesale electricity revenue is received from the spot electricity
market for Manawa Energy's own generation production and includes
electricity price derivative settlements.
Retail electricity revenue is received from commercial and industrial
customers for the supply of electricity to their premises.
Wholesale revenue is recognised over time as the electricity is
delivered. Where Manawa Energy purchases the output from a third
party generator and submits this to the national grid under its own
name, Manawa Energy treats this as an agency relationship and does
not recognise the revenue or corresponding expense.
Retail revenue is recognised over time when the energy is supplied for
customer consumption. Revenue is measured and billed by calendar
month for half hourly metered customers and in line with meter
reading schedules for non-half hourly metered customers. There is
some judgement applied to determine the volume of unbilled revenue,
as revenues from electricity sales include an estimated accrual for
units sold but not billed at the end of the reporting period for non-half
hourly metered customers.
Telecommunications - Service revenue
This category includes One NZ's revenue from mobile services,
fixed line broadband and home phone revenues.
Service revenue is recognised over time, when or as One NZ performs
the related service during the agreed service period (usually monthly).
Customers typically pay in advance for prepay mobile services and
are billed and pay monthly for other communication services. Fixed
services customers are billed and pay in arrears.
Telecommunications - Device and other revenue
This category includes One NZ's device sales of, mainly, handsets
and modems.
For device sales made to customers, revenue is recognised when the
device is delivered to the end customer. Customers typically pay for
handsets and other equipment either up-front at the time of sale or
over the term of the related service agreement (usually 12 to 36
months), as the Group performs the related service (usually monthly).
For device sales made to intermediaries such as indirect channel
dealers, revenue is recognised if control of the device has transferred
to the intermediary and the intermediary has no right to return the
device to receive a refund; otherwise revenue recognition is deferred
until sale of the device to an end customer by the intermediary or the
expiry of any right of return.
Aircraft movement and terminal charges
Aircraft movement and terminal charges consists of Wellington
International Airport's airfield income, passenger service charges
and terminal service charges.
Airfield income consists of landing charges and aircraft parking
charges.
Landing charges and aircraft parking charges are paid by the airlines
and recognised as revenue at the point in time the airport facilities are
used by the arriving or departing aircraft.
Passenger services charges and terminal service charges relating to
arriving, departing and transiting passengers are paid by the airlines
and recognised as revenue at the point in time when the passenger
travels or the airport facilities are used.
Transport, hotel and other trading activities
Transport, hotel and other trading activities includes Wellington
International Airport's hotel and access to the airport’s car parking
facilities. This category also includes income from the hotel and
carpark owned by Infratil Infrastructure Property Limited.
Revenue from car parking is recognised at the point in time where the
utilisation of car parking facilities has been completed.
Revenue from the hotels is recognised at the point in time the service
is delivered.
91
Radiology practice services
Radiology practice services revenue is derived by Qscan Group from
services to medical practioners. Revenue is recognised net of amounts
payable to doctors under Practice Management Agreements.
Radiology practice services revenue is recognised at the point in time
when the services are delivered to the medical practitioner.
Radiology services
Radiology services revenue is derived by Qscan Group and RHCNZ
Medical Imaging from providing radiology services to patients.
Radiology services revenue is recognised at the point in time when the
radiology or other medical imaging services are provided to a patient
and a charge is levied for this service.
Other revenue includes Manawa Energy's non-electricity revenue which is recognised when the service is provided and Wellington International
Airport's retail concession fees and rental income. Retail concession fees are recognised as revenue based upon passenger throughput or the
turnover of the concessionaires and in accordance with the related agreements. Rental income is recognised as revenue on a straight-line basis over
the term of the leases on leases where the group is the lessor.
(11) Operating expenses
Note
2024
$Millions
2023
$Millions
Trading operations
Electricity and wholesale costs152.8 134.2
Line and generation asset maintenance costs96.4 86.0
Other energy business costs5 7. 7 43.8
Telecommunications – interconnect and access costs251.0 -
Telecommunications – device and other product costs272.9 -
Telecommunications - other direct and variable costs171.2 -
Telecommunications - outsourced services86.9 -
Telecommunications - IT and network costs108.4 -
Telecommunications - other operating business costs103.0 -
Diagnostic imaging costs126.2 113.5
Airport business costs35.0 33.4
Bad debts written off0.5 0.4
Increase/(Decrease) in provision for doubtful debts 22.1 6.5 1.2
Directors’ fees25 5.0 4.3
Administration and other corporate costs41.3 16.1
Management fee (to related party Morrison Infrastructure Management)27 214.6 232.9
Donations3.3 0.7
Total other operating expenses1,732.7 666.5
92
Fees paid to auditors (including fees paid by Associates)
2024
Fees paid to the
Group auditor
$000's
2024
Total
$000's
Audit and review of financial statements4,121.0 4,121.0
Regulatory audit work41.0 41.0
Other assurance services90.7 90.7
Taxation services31.8 31.8
Other services – climate related assurance 139.5 139.5
4,424.0 4,424.0
Audit fees paid to the Group auditor recognised through associates1,352.6 1,352.6
Other fees paid to the Group auditor recognised through associates460.6 460.6
Total fees paid to the Group auditor
6 , 2 3 7. 2 6 , 2 3 7. 2
2023
Fees paid to the
Group auditor
$000's
2023
Total
$000's
Audit and review of financial statements1,230.3 1,230.3
Regulatory audit work36.0 36.0
Other assurance services98.2 98.2
Taxation services122.6 122.6
Other services59.0 59.0
1,546.1 1,546.1
Audit fees paid to the Group auditor recognised through associates1,930.4 1,930.4
Other fees paid to the Group auditor recognised through associates2 0 7. 6 2 0 7. 6
Total fees paid to the Group auditor3,684.1 3,684.1
The audit fee includes the fees for both the annual audit of the financial statements and the review of the interim financial statements. Regulatory audit
work consists of the audit of regulatory disclosures. Other assurance services comprise of agreed upon procedures and audit of compliance reports.
Tax services relate to tax compliance work and tax advisory services provided to a subsidiary of the group.
In the prior year, other services related to a Māori Culture capability assessment.
93
(12) Taxation
(12.1) Tax Reconciliation
2024
$Millions
2023
$Millions
Net surplus before taxation from continuing operations938.6604.1
Taxation on the surplus for the year @ 28%
262.8169.1
Plus/(less) taxation adjustments:
Effect of tax rates in foreign jurisdictions
(11.3)(0.4)
Net benefit of imputation credits
(3.1)(8.5)
Exempt dividends
- (0.6)
Tax losses not recognised/(utilised)
4.8 2.1
Effect of equity accounted earnings of associates
(6.7)(165.9)
Recognition of previously unrecognised deferred tax
- -
Attributed to CFC and FIF income
- 25.1
(Over)/under provision in prior periods
6.9 (2 2.8)
Net investment realisations
(308.3)0.4
Impact of removal of commercial depreciation on buildings
4 4.1-
Other permanent differences
103.94 4.0
Taxation expense93.1 42.5
Current taxation
62.6 50.5
Deferred taxation 30.5 (8.0)
Tax on discontinued operations(0.2)0.4
The Group operates in various jurisdictions some of which have enacted or substantively enacted tax legislation to implement the Pillar Two Model
Rules. However, as the application of the Pillar Two Model Rules in respect of those jurisdictions will not apply to the financial reporting period ended
31 March 2024, there is no current tax impact in the year ended 31 March 2024. The Group has applied a temporary mandatory relief from deferred
tax accounting in respect of the Pillar Two Model Rules and will account for it as a current tax arising under the Pillar Tax Model rules when it is incurred.
Under Pillar Two legislation, the Group is liable to pay a top-up tax if the effective tax rate ('ETR') per jurisdiction is below the 15% minimum rate. Infratil
is in the process of assessing its exposure to the Pillar Two legislation for when it comes into effect. This assessment indicates that, no top-up tax would
have arisen for the Group’s operations during the period.
94
(12.2) Income tax recognised in other comprehensive income
2024
Before tax
$Millions
Tax (expense) /
benefit
$Millions
Net of tax
$Millions
Differences arising on translation of foreign operations73.6- 73.6
Realisations on disposal of subsidiary, reclassified to profit and loss - - -
Net change in fair value of available for sale financial assets( 7. 5 ) - ( 7. 5 )
Ineffective portion of hedges taken to profit and loss- - -
Effective portion of changes in fair value of cash flow hedges(4 3.4)8.7 (3 4.7)
Fair value movements in relation to executive share scheme
- - -
Net change in fair value of property, plant & equipment recognised in equity 70.9 (12.7)58.2
Share of associates other comprehensive income4.1 - 4.1
Balance at the end of the year
9 7. 7 (4.0)93.7
2023
Before tax
$Millions
Tax (expense) /
benefit
$Millions
Net of tax
$Millions
Differences arising on translation of foreign operations(3.6)(0.2)(3.8)
Realisations on disposal of subsidiary, reclassified to profit and loss - - -
Net change in fair value of available for sale financial assets(2.3) - (2.3)
Ineffective portion of hedges taken to profit and loss - - -
Effective portion of changes in fair value of cash flow hedges6.8 (1.7)5.1
Fair value movements in relation to executive share scheme
- - -
Net change in fair value of property, plant & equipment recognised in equity 65.4 (5.3)60.1
Share of associates other comprehensive income2 7. 7 - 2 7. 7
Balance at the end of the year94.0 ( 7. 2 )86.8
(12.3) Deferred Tax
Deferred tax assets and liabilities are offset on the Statement of Financial Position where they relate to entities with a legally enforceable right
to offset tax.
2024
$Millions
2023
$Millions
Balance at the beginning of the year(253.7)( 2 5 7. 4 )
Charge for the year
(30.5)8.0
Deferred tax impact from reversal of depreciation on buildings
- -
Deferred tax recognised in equity
1.4 (14.2)
Acquired with Business Combination
(139.7)(11.1)
Reclassification of prior year difference
(3.7) -
Disposal of subsidiaries
- -
Effect of movements in foreign exchange rates
(0.1)0.7
Tax losses recognised/(utilised)
(5.7)7. 0
Transfers to liabilities classified as held for sale
- 13.3
Balance at the end of the year(4 32.0)(253.7)
95
The Infratil New Zealand Group is forecasting to derive taxable profits in future periods, sufficient to utilise the tax losses carried forward and
deductible temporary differences. As a result deferred tax assets and liabilities have been recognised where they arise, including deferred tax on
tax losses carried forward.
On 28 March 2024, the New Zealand Government enacted the Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Act.
As a result, from the 2024-25 income tax year onwards, the Group can no longer claim any tax depreciation on all of its commercial buildings with
estimated useful lives of 50 years or more in New Zealand. The claim of tax depreciation of building fit-out separate from the related building
structures will not be affected. The Group has assessed the impact and this has resulted in an increase to deferred tax expense and deferred tax
liability of $50.3 million.
(12.4) Recognised deferred tax assets and liabilities
Assets
$Millions
Liabilities
$Millions
Net
$Millions
31 March 2024
Property, plant and equipment35.7 (4 59.8)(424.1)
Investment properties(0.9)(1.2)(2.1)
Derivative financial instruments - (15.3)(15.3)
Employee benefits18.2 - 18.2
Customer base assets - (139.6)(139.6)
Provisions30.7 - 30.7
Tax losses carried forward161.9 - 161.9
Lease liabilities351.9-351.9
Right of use assets-(330.2)(330.2)
Other items1.5 (8 4.9)(83.4)
Tot al599.0(1,031.0)(4 32.0)
31 March 2023
Property, plant and equipment - ( 3 5 7. 1 )( 3 5 7. 1 )
Investment properties(1.4)(1.1)(2.5)
Derivative financial instruments(10.4)( 7. 7 )(18.1)
Employee benefits11.8 - 11.8
Customer base assets - (35.9)(35.9)
Provisions5.9 - 5.9
Tax losses carried forward155.2 - 155.2
Lease liabilities60.5-60.5
Right of use assets-(56.2)(56.2)
Other items7. 7 (25.0)( 1 7. 3 )
Tot al229.3(483.0)(253.7)
96
(12.5) Changes in temporary differences affecting tax expense
Tax expense/(credit)Other comprehensive income
2024
$Millions
2023
$Millions
2024
$Millions
2023
$Millions
Property, plant and equipment( 7. 2 )(6.9)(12.7)(9.0)
Investment properties0.4 (0.2) - -
Derivative financial instruments(2.5)(8.7)8.7 (1.7)
Employee benefits(1.8)1.5 - (0.2)
Customer base assets6.3 0.8 - -
Provisions20.2 0.1 - -
Tax losses carried forward13.0 14.1 - -
Lease liabilities(2.8)7. 3--
Right of use assets10.8(5.4)--
Other items(66.9)5.4 5.3 3.5
(30.5)8.0 1.3 ( 7. 4 )
(12.6) Imputation credits available to be used by Infratil Limited
2024
$Millions
2023
$Millions
Balance at the end of the year0.8 28.7
Imputation credits that will arise on the payment/(refund) of tax provided for- -
Imputation credits that will arise on the (payment)/receipt of dividends accrued at year end- -
Imputation credits available for use0.8 28.7
97
(13) Property, plant and equipment
2024
Communication
and network
equipment
$Millions
Land and
civil works
Buildings
$Millions
Vehicles,
plant and
equipment
$Millions
Capital
work in
progress
$Millions
Leasehold
Improvements
$Millions
Renewable
Generation
Assets
$Millions
To t a l
$Millions
Cost or valuation
Balance at beginning of year - 858.7 603.9 282.6 175.4 90.8 1 , 6 9 7. 1 3,708.5
Additions110.7 1.7 - 53.8 230.7 13.4 8.6 418.9
Additions on acquisition of subsidiary1,696.4 - - 60.2 130.1 - - 1,886.7
Capitalised interest and financing costs - - - - - - - -
Disposals(1.6)(8.1)(0.8)(11.1)(0.2)(1.3) - (23.1)
Impairment - - - - - - - -
Revaluation - 3 4.6 36.2 - - - - 70.8
Transfers between categories55.9 3 4.7 20.8 7. 4 (128.6)9.8 - -
Transfers to assets classified as held for sale - (6.8) - - - - - (6.8)
Transfer to right of use assets - - - - - - - -
Transfers to intangible assets - - - - (3.9) - - (3.9)
Transfers from/(to) investment properties - - - - - - - -
Effect of movements in foreign exchange rates - - - 1.9 1.21.0 - 4.1
Balance at end of year1,861.4 914.8 660.1 394.8 404.7 113.7 1,705.7 6,055.2
Accumulated depreciation
Balance at beginning of year - 25.4 1.0 112.0 - 10.0 - 148.4
Depreciation for the year2 2 7. 8 9.5 16.9 4 4.5 - 7. 1 14.9 320.7
Depreciation and amortisation on acquisition
of subsidiary808.2 - - 22.1 - - - 830.3
Transfer from/(to) investment properties - - - - - - - -
Revaluation - - - - - - - -
Disposals0.1 - - (10.6) - (0.1) - (10.6)
Transfers to assets classified as held for sale - 2.0 - - - - - 2.0
Transfer to right of use assets on transition to
NZ IFRS 16
- - - - - - - -
Effect of movements in foreign exchange rates - - - 0.5 - 0.1 - 0.6
Balance at end of year1,036.1 36.9 1 7. 9 168.5 - 1 7. 1 14.9 1,291.4
Carrying value at 31 March 2024825.3 8 7 7. 9 642.2 226.3404.796.6 1,690.8 4,763.8
Capital work in progress in the year primarily relates to construction costs associated with Manawa Energy's large generator, dam strengthening and
reconsenting costs, works at Wellington Airport, two new clinics at RHCNZ, Te Kohoa Waikato and North Hamilton and One NZ's network infrastructure
projects.
Carrying value by Subsidiary
2024
Communication
and network
equipment
$Millions
Land and
civil works
Buildings
$Millions
Vehicles,
plant and
equipment
$Millions
Capital
work in
progress
$Millions
Leasehold
Improvements
$Millions
Renewable
Generation
Assets
$Millions
To t a l
$Millions
Gurīn Energy - - - 0.3 66.3 - - 66.6
Manawa Energy - 0.7 1.3 11.0 14 4.8 0.1 1,690.8 1,8 48.7
Mint Renewables - - - 1.3 0.3 - - 1.6
One NZ825.3 - - 39.5 96.0 - - 960.8
Qscan Group - - - 80.1 1.9 52.3 - 134.3
RHCNZ Medical Imaging - - - 81.3 19.8 4 4.2 - 145.3
Wellington International Airport - 8 7 7. 2 640.9 12.7 75.7 - - 1,606.5
Carrying value at 31 March 2024825.3 8 7 7. 9 642.2 226.2 404.8 96.6 1,690.8 4,763.8
98
2023
Land
and civil
works
Buildings
$Millions
Vehicles,
plant and
equipment
$Millions
Capital work
in progress
$Millions
Leasehold
Improvements
$Millions
Renewable
Generation
Assets
$Millions
To t a l
$Millions
Cost or valuation
Balance at beginning of year724.8 6 49.0 240.8 103.4 80.3 1,808.0 3,606.3
Additions - - 22.1 1 4 7. 8 0.8 - 170.7
Additions on acquisition of subsidiary - - 5.2 - 2.1 - 7. 3
Capitalised interest and financing costs0.3 0.2 0.1 1.2 - - 1.8
Disposals - - (20.8) - (0.6)(0.9)(2 2.3)
Impairment - - - - - (1 2.8)(1 2.8)
Revaluation 91.0 (53.2) - - - (78.0)(40.2)
Transfers between categories42.6 5.4 36.2 (73.7)8.7 (19.2) -
Transfers to assets classified as held for sale - - - - - - -
Transfer to right of use assets - - - - - - -
Transfers to intangible assets - - - - - - -
Transfers from/(to) investment properties - - - (3.3) - - (3.3)
Effect of movements in foreign exchange rates - 2.5 (1.0) - (0.5) - 1.0
Balance at end of year858.7 603.9 282.6 175.4 90.8 1,697.1 3,708.5
Accumulated depreciation
Balance at beginning of year1 7. 2 55.5 96.8 - 4.0 31.7 205.2
Depreciation for the year8.2 14.8 34.3 - 6.2 16.1 79.6
Transfer from/(to) investment properties - - - - - - -
Revaluation - (68.3) - - - ( 4 7. 3 )(115.6)
Disposals - (1.0)(18.7) - (0.1)(0.5)(20.3)
Transfers to assets classified as held for sale - - - - - - -
Effect of movements in foreign exchange rates - - (0.4) - (0.1) - (0.5)
Balance at end of year25.4 1.0 112.0 - 10.0 - 148.4
Carrying value at 31 March 2023833.3 602.9 170.6 175.4 80.8 1,697.1 3,560.1
Carrying value by Subsidiary
2023
Land
and civil
works
Buildings
$Millions
Vehicles,
plant and
equipment
$Millions
Capital work
in progress
$Millions
Leasehold
Improvements
$Millions
Renewable
Generation
Assets
$Millions
To t a l
$Millions
Gurīn Energy - - 0.3 1.7 - - 2.0
Manawa Energy1 7. 0 2.0 12.1 88.8 0.1 1 , 6 9 7. 1 1,817.1
Mint Renewables - - - 0.3 - - 0.3
Qscan Group - - 76.9 2.6 46.9 - 126.4
RHCNZ Medical Imaging - - 65.1 12.3 33.8 - 111.2
Wellington International Airport816.3 600.9 16.2 69.7 - - 1,503.1
Carrying value at 31 March 2023833.3 602.9 170.6 175.4 80.8 1,697.1 3,560.1
99
Property, plant and equipment is recorded at cost less accumulated depreciation and impairment losses, or at fair value less accumulated
depreciation and impairment losses.
Fair value is determined by an independent valuer or by management with reference to independent experts, using recognised valuation
techniques. An independent valuer is engaged to provide a valuation if management does not have sufficient expertise to perform the valuation.
These valuations are undertaken on a systematic basis at least every five years. In years where a valuation is not undertaken, a material change
assessment of each asset class is performed to assess whether carrying amounts differ materially from fair value. This assessment is undertaken
with assistance from independent experts and includes reference to projections of future revenues, volumes, operational and capital expenditure
profiles, capacity, terminal values, the application of discount rates and replacement values (as relevant to each class of asset) as an indicator of
a possible material change in fair value. Where a material change in fair value is identified, the carrying value is adjusted to bring carrying value
materially in line with fair value.
There were no independent external valuations of property, plant and equipment performed as at 31 March 2024.
As at 31 March 2024 a material change assessment was performed for each asset class recorded at fair value less accumulated depreciation
where no external valuation was undertaken. A summary of the fair value consideration is provided below.
Manawa Energy's Renewable Generation Assets
Manawa Energy's renewable generation assets are measured at fair value and are revalued by Independent external valuers, every three years or
more frequently if there is a significant change in value.
Manawa Energy's renewable generation assets include land and buildings which are not separately identifiable from other generation assets.
Renewable generation assets were last independently revalued, using a discounted cash flow methodology, as at 31 March 2023, to their estimated
market value as assessed by Deloitte Corporate Finance. Based on the Group’s assessment there was no material change identified in the carrying
value of Manawa Energy’s generation assets at 31 March 2024.
The valuation of Manawa Energy’s renewable generation assets are sensitive to the inputs used in the discounted cash flow valuation model.
A sensitivity analysis of key inputs is given in the table below. The overall valuation has been determined to be between $1,663.9 million to
$1,952.4 million and, while the mid-point has been selected for revaluation purposes, any value within this range would be considered appropriate.
The sensitivities around weighted average cost of capital have been used to create this overall range.
The following table summarises the valuation approach and key assumptions used by the independent valuer to arrive at fair value at the date of
the last external valuation.
Renewable Generation AssetsLowHighValuation impact vs. midpoint
New Zealand Assets
Forward electricity price pathDecreasing in real terms from
$140/MWh to $85/MWh by
2028. Thereafter held
constant.
Decreasing in real terms from
$140/MWh to $95/MWh by
2024. Thereafter held
constant.
-/+ $123.0 m
Inflation1.7% per annum2.3% per annum
-$90.0m / + $100.0m
Generation volume1,841 GWh per annum2,030 GWh per annum-/+ $149.0m
Operating costs$60.0 million per annum$73.0 million per annum-/+ $ 9 6.0 m
Capital expenditure$27.0 million per annum average $33.0 million per annum average-/+ $ 5 3 .0 m
Weighted average cost of capital6.70%7. 7 0 %- $14 4.0m / + $174.0m
Wellington International Airport's property, plant and equipment
Wellington Airport's Land, Civil Assets and Buildings are measured at fair value.
Land
The Group's assessment of WIAL’s land indicated a material change in value with reference to New Zealand and Wellington house price indices
published by Real Estate of New Zealand, changes in commercial and industrial property values and consideration of other key inputs. Using the last
independent external valuation performed for the year ended 31 March 2023 as a base, further work was performed to estimate fair value including
an assessment of key inputs into land value. An increase in MVAU rate per hectare to $2.86 million (2023: $2.74 million) was adopted and was based
on increases across residential, commercial and industrial property. There has been no change to other key inputs from the prior year. Airport
developers WACC has been held at 12.2%. Based on this, a fair value increase of $25.5 million (2023: $74.1 million) has been made to the carrying
value of land and recognised in the Asset Revaluation Reserve and Other Comprehensive Income.
Civil Assets
At 31 March 2024, a material change assessment was performed for Civil asset class given no independent external valuation was undertaken.
Based on the Group's assessment which includes reference to the Waka Kotahi Construction index and the Producers Price index, and assisted by
WSP Opus International Consultants Limited, a fair value increase of $9.1 million has been made to the carrying value of these assets in the Asset
Revaluation Reserve and Other Comprehensive Income (2023: $16.9 million).
Buildings
The Buildings asset class is comprised of three main sub-components; (a) Specialised buildings, (b) Vehicle business assets and (c) Hotel
business assets.
100
(a) Specialised buildings
Based on the Group's assessment which includes reference to the capital goods price index and consumer price index, a fair value increase
of $12.6 million has been made to the carrying value of these assets in the Asset Revaluation Reserve and Other Comprehensive Income
(2023: $29.4 million).
(b) Vehicle business assets
Based on the Group's assessment which includes reference to passenger forecasts and discounted cash flow modelling, a fair value increase
of $20.0 million has been made to the carrying value of these assets in the Asset Revaluation Reserve and Other Comprehensive Income
(2023: $2.7 million).
(c) Hotel business assets
Based on the Group's assessment which includes reference to passenger forecasts and discounted cash flow modelling, a fair value increase
of $3.6 million has been made to the carrying value of these assets in the Asset Revaluation Reserve and Other Comprehensive Income
(2023: $8.1 million).
The following table summarises the valuation approach and key assumptions used by the independent valuers to arrive at fair value at the date
of the last independent external valuation. Where there have been fair value adjustments in the year ended 31 March 2024, further detail has been
provided under the respective asset classes below.
Asset classification and description
Valuation
approachKey valuation assumptions
+/- 5%
Valuation impact
Land
Aeronautical land - used for airport activities and
specialised aeronautical assets.
Non-aeronautical land - used for non-aeronautical
purposes e.g. industrial, service, retail, residential and
land associated with the vehicle business.
Market Value
for Existing
Use
('MVEU')
Average MVAU
rate per hectare
$2.74 million per
hectare
+/- $ 2 8 .0 m
Developer's
WACC rate
12.20%+/- $ 1 5 .0 m
Holding period6 years+/- $ 2 2 .0 m
Last external valuation undertaken as at 31 March 2023 by independent valuers, CBRE Limited. For the year ended 31 March 2024, a material
change assessment has been undertaken, and further work carried out which resulted in a fair value increase of $25.5 million. In relation to the value
at 31 March 2024, a 5% change in the indices referenced equates to +/- $29.0 million in fair value. A 5% change in developers WACC rate equates
to +/- $16.0 million in fair value.
Civil
Civil works includes sea protection and site services,
excluding such site services to the extent that they
would otherwise create duplication of value.
Optimised
Depreciated
Replacement
Cost ('ODRC')
Average cost
rates per sqm for
concrete, asphalt,
base course and
foundations
Concrete $887
Asphalt $989
Basecourse $127
Foundations $20
+/- $9.5m
Estimated
remaining
useful life
Average
remaining useful
life 30 years
+/- $9.5m
Last external valuation undertaken as at 31 March 2020 by independent valuers, WSP Opus International Consultants Limited. For the year ended
31 March 2024, a material change assessment has been undertaken, and further work carried out which resulted in a fair value increase of
$9.1 million. In relation to the value at 31 March 2024, a 5% change in the indices referenced equates to +/- $0.5 million in fair value.
Buildings
Specialised buildings used for identified airport activities
Non-specialised buildings used for purposes other than
for identified airport activities, including space allocated
within the main terminal building for retail activities,
offices and storage.
Optimised
Depreciated
Replacement
Cost ('ODRC')
Average modern
equivalent asset
rate (per square
metre)
$9,273
$2,089
+/- $ 1 5 .7m
+/- $ 0. 2 m
Vehicle business assets associated with car parking and
taxi, shuttle and bus services (excluding land and civil)
Discounted
Cash flows
('DCF') and
Capitalisation
Rate
Revenue growth
Cost growth
Discount rate
Capitalisation
2.20%
2.12%
9.75%
7. 7 5 %
+/- $0.5m
+/- $0.5m
+/- $ 4. 8 m
+/- $7.5m
Last external valuation undertaken as at 31 March 2023 by independent valuers, CBRE Limited. For the year ended 31 March 2024, a material change
assessment has been undertaken, and further work carried out which resulted in a fair value increase of $32.6 million. In relation to the value of
specialised buildings at 31 March 2024, a 5% change in the indices referenced equates to +/- $0.6 million in fair value. In relation to the value of
vehicle business assets, a 5% change in passenger cashflow forecasts equates to +/- $8.8 million in fair value.
101
Asset classification and description
Valuation
approachKey valuation assumptions
+/- 5%
Valuation impact
Hotel business assets
Discounted Cash
flows ('DCF') and
Capitalisation
Rate
Capitalisation rate 7. 2 5 %+/- $ 1 .6 m
Discount rate9.25%+/- $ 0. 8 m
Last external valuation undertaken as at 31 March 2023 by independent valuers, CBRE Limited. For the year ended 31 March 2024, a material
change assessment has been undertaken, and further work carried out which resulted in a fair value increase of $3.6 million. In relation to the value
at 31 March 2024, a 5% change in the cashflow forecasts equates to +/- $1.3 million in fair value.
Effect of level 3 fair value measurements on profit or loss and other comprehensive income
The following table summarises for property, plant and equipment measured at fair value, classified as level 3 in the fair value hierarchy, the effect
of the fair value movements on profit or loss and other comprehensive income for the year. Items classified as level 3 contain valuation inputs for the
asset that are not based on observable market data.
2024
Recognised in
profit or loss
$Millions
Recognised
in OCI
$Millions
To t a l
$Millions
Level 3 fair value movements
Renewable Generation Assets - - -
Land and civil works - 3 4.6 3 4.6
Buildings
- 36.2 36.2
- 70.8 70.8
2023
Recognised in
profit or loss
$Millions
Recognised
in OCI
$Millions
To t a l
$Millions
Level 3 fair value movements
Renewable Generation Assets(1 2.8)(30.7)(4 3.5)
Land and civil works - 91.0 91.0
Buildings
- 15.1 15.1
(12.8)75.4 62.6
There were no transfers between property, plant and equipment assets classified as level 1 or level 2, and level 3 of the fair value hierarchy during the
year ended 31 March 2024 (2023: nil).
Revalued assets at deemed cost
For each revalued class the carrying amount that would have been recognised had the assets been carried on a historical cost basis are as follows:
2024
Cost
$Millions
Accumulated
depreciation
$Millions
Net book value
$Millions
Renewable Generation Assets766.9
-
766.9
Land and civil works423.0
(76.7)
346.3
Buildings679.1
(24 8.0)
431.1
1,869.0 (324.7)1,544.3
2023
Cost
$Millions
Accumulated
depreciation
$Millions
Net book value
$Millions
Renewable Generation Assets766.9 - 766.9
Land and civil works345.2 (70.8)274.4
Buildings692.8 ( 2 1 7. 6 )475.2
1,804.9 (288.4)1,516.5
102
(14) Investment properties
2024
Owned
property
$Millions
Right of use
assets
$Millions
To t a l
$Millions
Balance at beginning of year9 7. 0
35.2
132.2
Additions -
-
-
Disposals(4.2)
-
(4.2)
Transfers from/(to) property, plant and equipment -
-
-
Investment properties revaluation net increase/(decrease)(8.0)
(0.3)
(8.3)
Transfers to assets held for sale5.2
0.3
5.5
Balance at end of year90.0 35.2 125.2
2023
Owned
property
$Millions
Right of use
assets
$Millions
To t a l
$Millions
Balance at beginning of year1 9 7. 4 81.9 279.3
Additions - 3.6 3.6
Disposals - (1.0)(1.0)
Transfers from/(to) property, plant and equipment3.3 - 3.3
Investment properties revaluation net increase/(decrease)(4.5)21.3 16.8
Transfers to assets held for sale(99.2)(70.6)(169.8)
Balance at end of year97.0 35.2 132.2
The fair value of investment properties at Wellington International Airport and Infratil Infrastructure Property are estimated each year by an
independent valuer, Jones Lang LaSalle, which reflects market conditions at balance date. Changes to market conditions or to assumptions made in
the estimation of fair value will result in changes to the fair value of the investment properties.
The valuation of Wellington International Airport's investment properties is based on a discounted cash flow and capitalisation rate approach. The fair
value at 31 March 2024 is $90.5 million (2023: $97.0 million).
The valuation of Infratil Infrastructure Property's investment properties is based on a capitalisation of net income, forecast EBITDA and discounted
cashflow approach. The fair value at 31 March 2024 is $94.0 million (2023: $99.2 million). There were no capital works in progress included in
investment properties at 31 March 2024 (2023: none). Infratil Infrastructure Property investment property's assets and liabilities are classified as held
for sale at 31 March 2024.
Where a lease pertains to property held to earn rental income, the right of use asset is included within Investment properties and is measured at fair
value. Rental income from investment properties of $15.8 million was recognised in profit or loss during the year (2023: $14.2 million). Direct
operating expenses arising from investment properties of $4.6 million were also recognised in profit or loss during the year (2023: $2.7 million).
103
The following table summarises the valuation approach and key assumptions used by the valuer to arrive at fair value.
Description
Valuation
approach
Fair value
hierarchy levelSignificant unobservable inputs
Relationship of
unobservable inputs to
fair value
Wellington International Airport
Airport Retail Park and other properties held to
earn rental income.
DCF and Cap
rate
3
Weighted average
discount rate
7. 6 6 %
(2023: 7.56%)
An increase in the
discount rate will
decrease the fair value.
Weighted average
income
capitalisation rate
6.72%
(2023: 7.05%)
An increase in the
capitalisation rate will
decrease the fair value.
Weighted average
lease term
3.66 years
(2023: 3.20 years)
An increase in the
average lease term will
ordinarily increase the
fair value.
Infratil Infrastructure Property
Investment property assets situated at 100
Halsey Street, Wynyard Quarter, Auckland. The
site includes a commercial, car park and hotel
building, as well as the ground lease for the
adjacent bus depot site.
DCF and Cap
rate
3
Weighted average
discount rate
9.61% (2023:
9.06%)
An increase in the
discount rate will
decrease the fair value.
Weighted average
income
capitalisation rate
8.15% (2023:
7. 8 7 % )
An increase in the
capitalisation rate will
decrease the fair value.
Last external valuation undertaken as at 31 March 2024 by independent valuers, Jones Lang LaSalle.
104
(15) Leases
(15.1) Right of use assets
Right of use assets related to leased properties that do not meet the definition of investment properties are summarised below. Land and buildings
right of use assets include land held under ground leases and rental of office space.
2024
Cell sites
$Millions
Land and
Buildings
$Millions
Plant and
equipment
$Millions
To t a l
$Millions
Cost
Balance at beginning of year
- 202.8 0.6 203.4
Additions
3.6 59.7 32.3 95.6
Additions on acquisition of subsidiary
765.2 165.1 118.3 1,048.6
Disposals
(19.0)(29.5)(10.8)(59.3)
Remeasurements
- 7. 4 - 7. 4
Effect of movements in exchange rates
- 2.1 - 2.1
Transfers to assets held for sale
- - - -
Balance at end of year74 9.8 407.6 140.4 1,297.8
Accumulated depreciation
Balance at beginning of year- 41.7 0.5 42.2
Depreciation for the year 32.5 43.3 9.2 85.0
Effect of movements in exchange rates - 0.8 - 0.8
Disposals 10.4 5 4.0 10.5 74.9
Transfers to assets held for sale - - - -
Balance at end of year42.9 139.8 20.2 202.9
Carrying value at 31 March 2024706.9 2 6 7. 8 120.2 1,094.9
2023
Land and
Buildings
$Millions
Plant and
equipment
$Millions
To t a l
$Millions
Cost
Balance at beginning of year
179.0 0.4 179.4
Additions
15.4 0.2 15.6
Additions on acquisition of subsidiary
7. 5 - 7. 5
Disposals
(2.8) - (2.8)
Remeasurements
4.4 - 4.4
Effect of movements in exchange rates
(0.7) - (0.7)
Transfers to assets held for sale
-
- -
Balance at end of year202.8 0.6 203.4
Accumulated depreciation
Balance at beginning of year
19.9 0.3
20.2
Depreciation for the year
22.6 0.2 22.8
Effect of movements in exchange rates
(0.4) - (0.4)
Disposals
(0.4) - (0.4)
Transfers to assets held for sale
- - -
Balance at end of year41.7 0.5 42.2
Carrying value at 31 March 2023161.1 0.1 161.2
105
(15.2) Lease liabilities
2024
$Millions
2023
$Millions
Maturity analysis - contractual undiscounted cash flows
Between 0 to 1 year
162.7 34.9
Between 1 to 2 years
148.7 30.8
Between 2 to 5 years
3 74.8 81.8
More than 5 years
1,582.8 410.6
Transfers to liabilities held for sale
(69.3)(2 21.6)
Total undiscounted lease liabilities2,199.7 336.5
2024
$Millions
2023
$Millions
Lease liabilities included in the statement of financial position
Split as follows:
Current
81.4 19.0
Non-current
1,068.0 189.2
1,149.4 208.2
2024
$Millions
2023
$Millions
Amounts recognised in the consolidated statement of comprehensive income
Interest on lease liabilities
70.612.8
Variable lease payments not included in the measurement of lease liabilities
0.5-
Expenses relating to short-term leases
2.9 0.7
Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets 0.3 -
The weighted average incremental borrowing cost applied to lease liabilities at 1 April 2023 was 6.91% (1 April 2022: 5.05%). Total cash outflow for
leases for the year ended 31 March 2024 was $137.2 million (2023: $28.1 million).
(15.3) Leases as a lessor
The Group has receivables from operating leases relating to the lease of premises. The following table sets out a maturity analysis of lease payments,
showing the undiscounted lease payments to be received after the reporting date.
2024
$Millions
2023
$Millions
Operating lease receivables as lessor
Between 0 to 1 year
23.915.4
Between 1 to 2 years
1 7. 010.3
Between 2 to 5 years
33.5 21.0
More than 5 years41.4 43.1
Total undiscounted lease payments115.889.8
106
(16) Goodwill
2024
$Millions
2023
$Millions
Balance at beginning of the year1,846.1 1,807.2
Goodwill arising on acquisitions
2,881.4 42.8
Goodwill disposed of during the year
- -
Goodwill impaired during the year
(62.5) -
Transfers to disposal group assets classified as held for sale
- -
Effects of movements in exchange rates
12.0(3.9)
Balance at the end of the year4 , 6 7 7. 01,846.1
The aggregate carrying amounts of goodwill allocated to each investment are as follows:
Manawa Energy
61.9 61.9
Mint Renewables
1.1 -
One NZ
2,880.1 -
Qscan Group
653.4703.7
RHCNZ Medical Imaging
1,080.5 1,080.5
4 , 6 7 7. 0 1,846.1
The goodwill arising on Infratil's acquisition of an additional 49.95% stake in One NZ during the current year is outlined in note 8.1.
The carrying value of Goodwill is allocated across the five subsidiaries and is subject to an annual impairment at the Cash Generating Unit ('CGU')
level to ensure the carrying value does not exceed the recoverable amount at balance date. This is outlined below for each company.
Manawa Energy
Cash Generating Units and Impairment testing
The CGU is the operating segment of Manawa for impairment testing within the Group. In determining whether an impairment is necessary, the fair
value of the Company's investment in Manawa is assessed with reference to the market share price quoted on the NZX at each reporting date.
Qscan Group
Cash Generating Units
Qscan goodwill is allocated across six CGUs being, Queensland, Tasmania and Western Australia ('QTWA'), Northern New South Wales ('NNSW'),
Australian Capital Territory ('ACT'), Southern New South Wales ('SNSW'), Regional, Western Australia, ('WA').
Impairment testing
Goodwill assets were tested for impairment at 31 March 2024. The test involved calculating the recoverable value of the assets to ensure that it
exceeded their carrying value.
The recoverable amount of the CGUs has been calculated using the Fair Value Less Costs of Disposal ('FVLCOD') approach on a discounted cash flow
model. The recoverable amount of a CGU is defined as higher of FVLCOD and its value in use (’VIU’). Qscan’s VIU is less than its FVLCOD.
The future cash flows were discounted using a post-tax weighted cost of capital ('WACC') for the Qscan Group of 10.93% (31 March 2023: 10.38%).
The cash flow forecasts cover a period of 5 years with a terminal growth rate thereafter. The terminal growth rate, being 3% (31 March 2023: 3%), was
determined based on management's estimate of the long-term annual EBITDA growth rate for the Qscan Group and assume continuation of stable
growth in healthcare services in Australia.
The cashflow forecasts are initially based on the FY2025 Board approved budget, with forecasts beyond year one taking into consideration:
• Historical revenue growth and EBITDA margins achieved by each CGU as well as the trends within the Australian medical imaging industry, including
the recovery in demand following the disruption caused by the Covid-19 pandemic;
• Estimated cashflows related to new clinic growth including capital expenditure to support these activities; and
• Estimated cash flows related to Information Technology projects to support future growth in revenue and EBITDA margins.
The recoverable value calculations have been assessed for sensitivity in the earnings margins as a key input to reflect the macroeconomic and
inflationary conditions in the market. Based on the sensitivity assessment performed, the estimated recoverable amount of three of the six CGUs fell
below its carrying amount by approximately $61.9 million (31 March 2023: nil). As a result, Qscan recognised a $61.9 million (A$57.4 million)
impairment expense which is presented in net realisations, revaluations and impairments in the Statement of Comprehensive Income. The impairment
loss was fully allocated to goodwill.
107
The impairment loss is based on the downside scenario that assumes EBITDA margin growth is not fully realised (EBITDA margins sensitised to be
between ~1-2% growth on historically observed margins) and that the anticipated revenue growth is achieved more so through volume (rather than
yield), putting pressure on Qscan’s ability to grow clinic margins.
RHCNZ Medical Imaging
Cash Generating Units
Goodwill is allocated to the operating entities within RHCNZ of Pacific Radiology ('PRG'), Auckland Radiology ('ARG'), and Bay Radiology ('BRL').
Impairment testing
The recoverable amount of the CGUs has been calculated based on a value in use model using an internal discounted cash flow valuation model.
The future cash flows were discounted using a post-tax WACC for the RHCNZ Group of 9.8% (31 March 2023: 10.1%), with a CGU risk specific equity
premium applied to ARG and BRL.
The cash flows in the model cover a period of 10 years with a terminal growth rate of 3.5% thereafter. The cash flows are initially based on the FY2025
Board approved budget and Board approved long-term key assumptions, noting cash flows are based on a pure value in use basis and exclude
greenfield growth opportunities that were included in the budget. Forecasts beyond year one taking into the following key inputs and assumptions:
long-term industry growth (aligning with independent market research and global trends), patient volume growth, operating costs (specifically staff),
and machinery and facility utilisation.
During the year, no impairment was deemed necessary across the three CGUs.
One NZ
Cash Generating Units
The CGU is the operating segment of One NZ for impairment testing within the Group.
Impairment testing
The impairment assessment has determined the recoverable amount of the CGU by assessing the Fair Value Less Costs of Disposal ('FVLCOD') of the
underlying assets. During the year ending 31 March 2024 no impairment arose as a result of the assessment of goodwill. No reasonably possible
changes in assumptions have been identified that would result in impairment.
The model uses cash flow projections based on 20-year management approved forecasts. The forecasts use management estimates to determine
forecast earnings, expenses and capital expenditure for the CGU based on both past experience and future expectations of CGU performance. The
major inputs and assumptions used in the model that require judgement include revenue and operating expense forecasts, customer numbers and
churn, discount rate and growth rate used. This is because cash flows from the fixed and mobile product lines or the consumer/enterprise/wholesale
customers cannot be independently identified. Strategic decision making is made at the ICN JV group level.
108
(17) Intangibles
2024
Radio
spectrum
licences
$Millions
Software
$Millions
Construction
in progress
$Millions
Customer
contracts
$Millions
Brands
$Millions
To t a l
$Millions
Cost or valuation
Balance at beginning of the year- 12.1 - 12.1 118.3 142.5
Additions at cost6.2 4 3.6 16.3-0.166.2
Additions on acquisition of subsidiary166.3 352.7 66.7 429.3 49.5 1,064.5
Disposals - (0.3)(0.1) - - (0.4)
Impairment - - - - - -
Transfers between categories - 45.0 (4 5.0) - - -
Transfers from property, plant and equipment - - 3.9 - - 3.9
Transfers to assets classified as held for sale
- - - - - -
Effect of movements in exchange rates - (0.2) - (0.1) 0.8 0.5
Balance at end of year172.5 452.9 41.8 441.3 168.7 1 , 2 7 7. 2
Amortisation and impairment losses
Balance at beginning of the year- ( 7. 3 ) - (6.5) - (13.8)
Amortisation on acquisition of subsidiary( 4 7. 4 )(218.4) - - - (265.8)
Amortisation for the year(10.6)(85.5) - (52.2)(4.6)(152.9)
Disposals - 0.1 - - - 0.1
Impairment - - - - - -
Transfers - - - - - -
Effect of movements in exchange rates - 0.2 - (0.1) - 0.1
Balance at end of year(58.0)(310.9) - (58.8)(4.6)(4 32.3)
Carrying value 31 March 2024114.5 142.0 41.8 382.5 164.1 84 4.9
2023
Radio
spectrum
licences
$Millions
Software
$Millions
Construction
in progress
$Millions
Customer
contracts
$Millions
Brands
$Millions
To t a l
$Millions
Cost or valuation
Balance at beginning of the year- 12.7 - 10.9 106.8 130.4
Additions at cost - 1.8 - - - 1.8
Additions on acquisition of subsidiary - - - 1.1 11.9 13.0
Disposals - (2.4) - - - (2.4)
Impairment - - - - - -
Transfers from property, plant and equipment - - - - - -
Reclassification of SaaS costs previously capitalised
- - - - - -
Effect of movements in exchange rates - - - 0.1 (0.4)(0.3)
Balance at end of year- 12.1 - 12.1 118.3 142.5
Amortisation and impairment losses
Balance at beginning of the year- (5.5) - (3.6) - (9.1)
Amortisation for the year - (3.0) - (2.9) - (5.9)
Disposals - 1.2 - - - 1.2
Impairment - - - - - -
Transfers - - - - - -
Reclassification of SaaS costs previously capitalised - - - - - -
Effect of movements in exchange rates - - - - - -
Balance at end of year- ( 7. 3 ) - (6.5) - (13.8)
Carrying value 31 March 2023- 4.8 - 5.6 118.3 128.7
109
(18) Loans and borrowings
This note provides information about the contractual terms of the Group's interest bearing loans and borrowings.
2024
$Millions
2023
$Millions
Current liabilities
Unsecured bank loans
2 4 7. 051.6
Secured bank loans
28.8 455.4
less: Loan establishment costs capitalised and amortised over term
(6.2)(1 2.4)
269.6 494.6
Non-current liabilities
Unsecured bank loans
6 45.0 23.1
Secured bank loans
2,238.5 286.9
less: Loan establishment costs capitalised and amortised over term
(14.2)(4.7)
2,869.3 305.3
Facilities utilised at reporting date
Unsecured bank loans
892.0 74.6
Unsecured guarantees
- -
Secured bank loans
2,267.3 742 .4
Secured guarantees
5.5 5.1
Facilities not utilised at reporting date
Unsecured bank loans
1,169.9 1,233.9
Unsecured guarantees
- -
Secured bank loans
130.6 140.0
Secured guarantees
- -
Facilities utilised at reporting date
Interest bearing loans and borrowings - current
269.6 494.6
Interest bearing loans and borrowings - non-current
2,869.3 305.3
Total interest bearing loans and borrowings
3,138.9 799.9
2024
$Millions
2023
$Millions
Maturity profile for bank facilities (excluding secured guarantees):
Between 0 to 1 year
356.8 8 4 3.0
Between 1 to 2 years
2,062.5 542.2
Between 2 to 5 years
1,983.8 805.7
Over 5 years
56.7 -
Total bank facilities
4,459.8 2,190.9
110
Financing arrangements
Wholly owned subsidiaries
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. These facilities are
primarily used to fund the corporate and investment activities of the Company. 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 31 March 2024 there was $811.0 million of drawn debt under the IGG facilities (31 March 2023: nil) and undrawn IGG facilities totalled
$800.9 million (31 March 2023: $898.4 million).
Non-wholly owned subsidiaries
The Group’s non-wholly owned subsidiaries also enter into bank facility arrangements. Amounts outstanding under these facilities are included
within loans and borrowings in the table above. Wellington International Airport and Manawa Energy’s facilities are both subject to negative pledge
arrangements, which with limited exceptions does not permit those entities to grant security over their respective assets. One NZ, Qscan Group and
RHCNZ Medical Imaging borrow under syndicated bank debt facilities, under which security is granted over their respective 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 operate within defined performance and gearing ratios as is typical
of debt facilities of this nature. Throughout the period the Group has complied with all debt covenant requirements as imposed by the respective
lenders.
Interest rates
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 year ranged from 6.48% to 9.24% (31 March 2023: 1.40% to 8.44%).
111
(19) Infratil Infrastructure bonds
2024
$Millions
2023
$Millions
Balance at the beginning of the year1,311.31,388.5
Issued during the year
2 7 7. 2 115.9
Exchanged during the year
(52.2) -
Matured during the year
(69.9)(193.7)
Purchased by Infratil during the year
- -
Bond issue costs capitalised during the year
(3.6)(1.5)
Bond issue costs amortised during the year
2.4 2.4
Issue premium amortised during the year
(0.3)(0.3)
Balance at the end of the year
1,464.9 1,311.3
Current
156.1 122.0
Non-current fixed coupon
95 4.6 835.3
Non-current variable coupon
122.3 122.1
Non-current perpetual variable coupon
231.9 231.9
Balance at the end of the year
1,464.9 1,311.3
Repayment terms and interest rates:
IFT210 maturing in September 2023, 5.25% p.a. fixed coupon rate
- 122.1
IFT230 maturing in June 2024, 5.50% p.a. fixed coupon rate
56.1 56.1
IFT260 maturing in December 2024, 4.75% p.a. fixed coupon rate
100.0 100.0
IFT250 maturing in June 2025, 6.15% p.a. fixed coupon rate
43.4 43.4
IFT300 maturing in March 2026, 3.35% p.a. fixed coupon rate
120.3 120.3
IFT280 maturing in December 2026, 3.35% p.a. fixed coupon rate
156.3 156.3
IFT310 Maturing in December 2027, 3.60% p.a. fixed coupon rate
102.4 102.4
IFT270 maturing in December 2028, 6.78% p.a. fixed coupon rate
146.2 146.2
IFT320 maturing in June 2030, 5.93% p.a. fixed coupon rate until June 2026
115.9 115.9
IFT330 maturing in July 2029, 6.90% p.a. fixed coupon rate
150.0 -
IFT340 maturing in March 2031, 7.08% p.a. fixed coupon rate
1 2 7. 2 -
IFTHC maturing in December 2029, 7.78% p.a. variable coupon rate, reset annually
123.2 123.2
IFTHA Perpetual Infratil infrastructure bonds
231.9 231.9
less: issue costs capitalised and amortised over term
(8.6)( 7. 4 )
add: issue premium capitalised and amortised over term
0.6 0.9
Balance at the end of the year
1,464.9 1,311.3
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. The coupon for the IFTHC
bonds for the 1-year period from (but excluding) 15 December 2023 was fixed at 7.78% per annum (for the 1-year period to 15 December 2023 the
coupon was 7.89%). Thereafter the rate will be reset annually at 2.50% per annum over the then one year swap rate for quarterly payments.
IFT270 bonds
The interest rate of the IFT270 bonds was fixed at 4.85% 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 was fixed at 6.78% until the maturity date.
IFT320 bonds
The interest rate of the IFT320 bonds is fixed at 5.93% for the first four years and will then reset on 15 June 2026 for a further four years. The interest
rate for the IFT320 bonds for the period from (but excluding) 15 June 2026 until the maturity date will be the sum of the four year swap rate on 15 June
2026 plus a margin of 2.00% per annum.
112
Perpetual Infratil infrastructure bonds ('PIIBs')
The Company has 231,916,000 (31 March 2022: 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 2023 the coupon was set at 7.06% per annum until the next reset date, being 15 November 2024 (2023: 6.45%). 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 (2023: nil) were repurchased
by Infratil Limited during the year.
Throughout the year the Company complied with all debt covenant requirements as imposed by its bond supervisor.
At 31 March 2024 Infratil Infrastructure bonds (including PIIBs) had a fair value of $1,363.1 million (31 March 2023: $1,203.4 million).
(20) Manawa Energy bonds
Unsecured senior bonds
2024
$Millions
2023
$Millions
Repayment terms and interest rates:
MNW180 maturing in July 2026, 3.35% p.a. fixed coupon rate
125.0 125.0
MNW190 maturing in September 2027, 5.36% p.a. fixed coupon rate
150.0 150.0
MNW170 maturing in February 2029, 6.56% p.a. fixed coupon rate
100.0 100.0
less: Issue costs capitalised and amortised over term
(2.3)(3.0)
Balance at the end of the year
372.7 372.0
Current
- -
Non-current
372.7 372.0
Balance at the end of the year
372.7 372.0
Manawa Energy's unsecured senior bonds rank equally with their bank loans. Manawa Energy borrows under a negative pledge arrangement, which
with limited exceptions does not permit Manawa Energy to grant any security interest over its assets. The Trust Deed for these bonds requires Manawa
Energy to maintain certain levels of shareholders' funds and operate within defined performance and debt gearing ratios. The arrangements under the
Trust Deed may also create restrictions over the sale or disposal of certain assets unless the senior bonds are repaid or renegotiated. Throughout the
year Manawa Energy complied with all debt covenant requirements as imposed by its bond supervisor.
At 31 March 2024 Manawa Energy's unsecured senior bonds had a fair value of $373.5 million (31 March 2023: $364.4 million).
113
(21) Wellington International Airport bonds and USPP notes
2024
$Millions
2023
$Millions
Repayment terms and interest rates:
WIA030 Retail bonds maturing May 2023, 4.25% p.a. fixed coupon rate
- 75.0
WIA040 Retail bonds maturing August 2024, 4.00% p.a. fixed coupon rate
60.0 60.0
WIA050 Retail bonds maturing June 2025, 5.00% p.a. fixed coupon rate
70.0 70.0
WIA060 Retail bonds maturing April 2030, 4.00% p.a. fixed coupon rate until 1 April 2025
98.1 9 7. 0
WIA070 Retail bonds maturing August 2026, 2.50% p.a. fixed coupon rate
100.0 100.0
WIA080 Retail bonds maturing September 2031, 3.32% p.a. fixed coupon rate
121.7 120.5
WIA090 Retail bonds maturing August 2028, 5.78% p.a. fixed coupon rate
75.0 75.0
WIA0100 Retail bonds maturing September 2030, 6.02% p.a. fixed coupon rate
100.0 -
USPP Notes - Series A (US$36 million)
55.2 53.7
USPP Notes - Series B (US$36 million)
55.2 53.7
less: Issue costs capitalised and amortised over term
(3.3)(4.5)
Balance at the end of the year
731.9 700.4
Current
60.0 75.0
Non-current
671.9 625.4
Balance at the end of the year
731.9 700.4
The Trust Deed for the retail bonds requires Wellington International Airport ('Wellington Airport') to operate within defined performance and debt
gearing ratios. The arrangements under the Trust Deed creates restrictions over the sale or disposal of certain assets. Throughout the year Wellington
Airport complied with all debt covenant requirements as imposed by the retail bond supervisor.
Wellington Airport's USPP comprised two equal tranches, Series A of US$36 million 10 year Note with a coupon of 3.47%, maturing July 2027 and
Series B of US$36 million 12 year Note with a coupon of 3.59%, maturing July 2029. In conjunction with the USPP issuance, Wellington Airport entered
into cross currency interest rate swaps ('CCIRS') to hedge the exposure to foreign currency risk over the term of the notes.
At 31 March 2024 Wellington Airport's bonds had a fair value of $616.6 million (2023: $581.0 million), and Wellington Airport's USPP Notes had a fair
value of $117.4 million (2023: $115.3 million).
The USPP notes are measured at amortised cost, translated to New Zealand dollars using the spot rate at balance date.
As at 31 March 2024 Wellington Airport has bank facilities amounting to $100 million, which remain undrawn (31 March 2023: $100 million). These
facilities and the US$72 million USPP Notes have certain financial covenants which were all met as at 31 March 2024.
(22) Financial instruments
The Group has exposure to the following risks due to its business activities and financial policies:
• Credit risk
• Liquidity risk
• Market risk
This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for measuring
and managing risk, and the Group’s management of capital.
(22.1) Credit risk
Credit risk is the risk that a counterparty will default on its contractual obligations, resulting in financial loss to the Group. The Group is exposed to credit
risk in the normal course of business including those arising from trade receivables with its customers, financial derivatives and transactions (including
cash balances) with financial institutions. The Group minimises its exposure to credit risk of trade receivables through the adoption of counterparty
credit limits and standard payment terms. Derivative counterparties and cash transactions are limited to high-credit-quality financial institutions and
organisations in the relevant industry. The Group’s exposure and the credit ratings of significant counterparties are monitored, and the aggregate value
of exposures are spread across approved counterparties. The carrying amounts of financial assets recognised in the Statement of Financial Position
best represent the Group’s maximum exposure to credit risk at the reporting date. Generally no security is held on these amounts.
114
Exposure to credit risk
2024
$Millions
2023
$Millions
The Group had exposure to credit risk with financial institutions at balance date from cash deposits
held as follows:
Financial institutions with 'AA' credit ratings
- -
Financial institutions with 'AA-' credit ratings
154.4 5 4 7. 6
Financial institutions with 'A+' credit ratings
2.6 -
Financial institutions with 'A' credit ratings
20.1 226.6
Unrated financial institutions
59.1 0.3
Total cash deposits with financial institutions
236.2 7 74.5
Cash on hand
- -
Total Cash and cash equivalents
236.2 7 74.5
No cash was included in assets held for sale at 31 March 2024 (31 March 2023: nil). Credit ratings are from S&P Global Ratings or equivalent
rating agencies.
Trade and other receivables
The Group has exposure to various counterparties. Concentration of credit risk with respect to trade receivables is limited due to the Group’s large
customer base in a diverse range of industries and geographies.
Ageing of trade receivables
2024
$Millions
2023
$Millions
The ageing analysis of trade receivables is as follows:
Not past due
3 41.6 7 7. 1
Past due 0-30 days
42.5 18.4
Past due 31-90 days
9.7 6.7
Greater than 90 days
14.8 6.2
Tot al
408.6 108.4
The ageing analysis of impaired trade receivables is as follows:
Not past due
(2.2)(0.4)
Past due 0-30 days
(1.1)(0.2)
Past due 31-90 days
(1.0)(0.2)
Greater than 90 days
(11.2)(6.0)
Tot al
(15.5)(6.8)
Movement in the provision for expected credit loss for the year was as follows:
Balance as at 1st April
6.8 4.7
Acquired through acquisition of subsidiary
15.9 0.5
Expected credit loss recognised (Charged to operating expenses)
5.6 1.2
Bad debts recovered
2.2 (0.6)
Provisions made/(utilised)
(15.0)1.0
Transfers to assets classified as held for sale
- -
Balance as at 31 March
15.5 6.8
Other prepayments and receivables
1 5 7. 0 63.6
Total Trade, accounts receivable and prepayments
550.1 165.2
115
(22.2) Liquidity risk
Liquidity risk is the risk that assets held by the Group cannot readily be converted to cash to meet the Group's contracted cash flow obligations.
Liquidity risk is monitored by continuously forecasting cash flows and matching the maturity profiles of financial assets and liabilities. The Group's
approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stress
conditions, without incurring unacceptable losses or risking damage to the Group's reputation. The Group manages liquidity risk by maintaining
sufficient cash and committed credit facilities and ensuring an appropriate spread of debt maturities and credit profile to ensure access to capital
markets as required.
The tables below analyses the Group's financial liabilities, excluding gross settled derivative financial liabilities and deferred tax, into relevant maturity
groupings based on the earliest possible contractual maturity date at year end. The amounts in the tables below are contractual undiscounted cash
flows, which include interest through to maturity. Perpetual Infratil Infrastructure Bonds cash flows have been determined by reference to the longest
dated Infratil bond maturity in the year 2030. Contractual cashflows include liabilities held for sale at 31 March 2024.
31 March 2024
Balance
sheet
$Millions
Contractual
cash flows
$Millions
6 months
or less
$Millions
6 -12
months
$Millions
1 to 2
years
$Millions
2 to 5
years
$Millions
5 +
years
$Millions
Accounts payable, accruals and other liabilities 1,131.7 1,560.4 852.5 80.0 526.1 31.5 70.3
Lease liabilities 1,149.4 2,266.7 81.4 81.3 146.4 3 74.8 1,582.8
Unsecured & secured bank facilities 3,138.9 3,642.1 268.2 119.4 2,198.7 990.4 65.4
Infratil Infrastructure bonds 1,233.0 1,5 46.0 89.8 131.7 222.8 5 49.2 552.5
Perpetual Infratil Infrastructure bonds 231.9 345.9 8.2 8.2 16.4 49.1 26 4.0
Wellington International Airport bonds 731.9 899.6 75.6 14.4 98.1 301.3 410.2
Manawa Energy bonds 372.7 429.4 8.1 8.1 413.2 - -
Derivative financial instruments 149.6 225.1 68.0 56.2 95.4 0.5 5.0
8,139.1 10,915.2 1,451.8 499.3 3,717.1 2,296.8 2,950.2
31 March 2023
Accounts payable, accruals and other liabilities 793.5 945.2 756.8 39.2 90.1 5 7. 1 2.0
Lease liabilities 208.2 555.5 16.3 16.2 30.8 81.8 410.4
Unsecured & secured bank facilities 799.9 900.2 84.1 470.1 56.2 289.8 -
Infratil Infrastructure bonds 1,079.4 1,310.9 148.9 23.6 4 7. 1 669.1 422.2
Perpetual Infratil Infrastructure bonds 231.9 339.9 7. 5 7. 5 15.0 4 4.9 265.0
Wellington International Airport bonds 700.4 853.7 89.1 12.5 83.7 279.9 388.5
Trustpower bonds 372.0 4 45.6 8.1 8.1 16.2 310.2 103.0
Derivative financial instruments 1 1 7. 0 249.8 51.5 30.8 164.1 3.3 0.1
4,302.3 5,600.8 1,162.3 608.0 503.2 1,736.1 1,591.2
116
(22.3) Market risk
Market risk is the risk that changes in market prices, such as interest rates, foreign exchange rates and energy prices will affect the Group’s income or
the value of its holdings of financial assets and liabilities. The objective of market risk management is to manage and control market risk exposures
within acceptable parameters, while minimising the volatility in the Group's NZD cashflows.
(22.3.1) Interest rate risk (cash flow and fair value)
Interest rate risk is the risk of interest rate volatility negatively affecting the Group's interest expense cash flow and earnings. Infratil mitigates this risk
by managing it's interest rate exposures in accordance with it's Group Treasury Policy, which sets out defined maximum and minimum hedging levels
that are maintained as a proportion of forecast total drawn debt. Infratil achieves compliance with these thresholds by issuing fixed rate bonds or
entering into interest rate derivatives to adjust it's fixed rate exposure profile. Borrowings issued at fixed rates does expose the Group to fair value
interest rate risk.
2024
$Millions
2023
$Millions
At balance date the face value of interest rate contracts outstanding were:
Interest rate swaps - notional value
4,683.6 2,672.2
Fair value of interest rate swaps
50.3 43.5
Fair value adjustments
(9.7)3.3
Cross currency interest rate swaps - notional value
99.8 99.8
Fair value of cross currency interest rate swaps
10.2 6.9
The termination dates for the interest rate swaps are as follows:
Between 0 to 1 year
777.6 420.0
Between 1 to 2 years
1,130.8 250.2
Between 2 to 5 years
1,600.2 1,4 48.0
Over 5 years
1,175.0 55 4.0
The termination dates for the cross currency interest rate swaps are as follows:
Between 0 to 1 year
- -
Between 1 to 2 years
- -
Between 2 to 5 years
49.9 49.9
Over 5 years
49.9 49.9
Interest rate sensitivity analysis
The following table shows the impact on post-tax profit and equity of a movement in bank interest rates of 100 basis points higher/lower with all other
variables held constant.
2024
$Millions
2023
$Millions
Profit or loss
100 bp increase
14.4 18.4
100 bp decrease
(16.2)(18.7)
Other comprehensive income
100 bp increase
21.4 4.0
100 bp decrease
(20.5)(4.3)
Assumptions used in the interest rate sensitivity analysis include:
Reasonably possible movements in interest rates were determined based on a review of historical movements. A movement of 100 basis points
higher/lower is considered appropriate to demonstrate the sensitivity of the Group to movements in interest rates. The sensitivity was calculated by
taking interest rate instruments including loans and borrowings, bonds, interest rate swaps and cross currency interest rate swaps at balance date and
adjusting the interest rate upwards and downwards to quantify the resulting impact to profit or loss and other comprehensive income.
117
(22.3.2) Foreign currency risk
The Group has exposure to foreign currency risk on the value of its net investment in foreign investments, assets and liabilities, future investment
obligations and future income. Foreign currency obligations and income are recognised as soon as the flow of funds is likely to occur. Decisions on
buying forward cover for likely foreign currency investments is subject to the Group’s expectation of the fair value of the relevant exchange rate.
The Group may enter into forward exchange contracts to reduce the risk from price fluctuations of foreign currency commitments associated with the
construction of generation assets and to hedge the risk of its net investment in foreign operations. Any resulting differential to be paid or received as a
result of the currency hedging of the asset is reflected in the final cost of the asset. The Group has elected to apply cash flow hedge accounting to
these instruments.
The following table shows the impact on post-tax profit and equity if the New Zealand dollar had weakened or strengthened by 10 per cent against the
currencies with which the Group has foreign currency risk with, all other variables held constant.
20242023
+ 10%
$Millions
- 10%
$Millions
+ 10%
$Millions
- 10%
$Millions
Profit or loss
AUD
(10.5)10.5 (11.7) 11.7
EUR
(0.7)0.7 (0.7) 0.7
GBP
- - - -
USD
(6.4)6.4(0.1) 0.1
Other comprehensive income
AUD
(1 26.9)1 2 7. 5 ( 1 1 7. 9 ) 118.3
EUR
(1.1)1.1 (0.8) 0.8
GBP
(8.7)8.7 (6.5) 6.5
USD
(36.9)39.3 ( 2 7. 4 )29.7
Assumptions used in the foreign currency exposure sensitivity analysis include:
Reasonably possible movements in foreign exchange rates were determined based on a review of historical movements. A movement of plus or minus
10% has been applied to the NZD/AUD, NZD/USD, NZD/EUR and NZD/GBP exchange rates to demonstrate the sensitivity of foreign currency risk of
the company’s investment in foreign operations and associated derivative financial instruments. The sensitivity was calculated by taking each currency
pair's spot rate as at balance date, moving this spot rate by plus and minus 10% and then reconverting the foreign currency balances with the ‘new
spot-rate’.
Unhedged foreign currency exposures
At balance date the Group has the following unhedged exposure to foreign currency risk arising on foreign currency monetary assets and liabilities that
fall due within the next twelve months:
2024
$Millions
2023
$Millions
Cash, short term deposits and trade receivables
United States Dollars (USD)
3.9 1.6
Australian Dollars (AUD)
3.3 4.6
Euro (EUR)
0.8 1.3
Pound Sterling (GBP)
0.7 0.8
Bank overdraft, bank debt and accounts payable
Australian Dollars (AUD)
1.6-
118
(22.3.3) Energy price risk
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 energy hedge contract to reduce the energy price risk from price fluctuations. This
hedge contract establishes 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 a cash flow hedge.
The electricity price contract for difference ('CFD') entered with Mercury NZ Limited was transferred at a price of $1 per the mass market retail
business sale and purchase agreement. When valued against the wholesale electricity price curve, this derivative had a value on day 1 of negative
$521.7 million. NZ IFRS 9 Financial Instruments requires that where the fair value differs to the transaction price for a Level 3 instrument, the valuation
must be calibrated to reflect the transaction price. As a result, no day 1 fair value has been recorded. The day 1 loss of $521.7 million will be recognised
in profit and loss as contractual cash flows on the swap are settled and fair value gains/losses on the calibrated swap are realised over time.
During the current period, $129.7 million (cumulative to date: $251.9 million) of the deferred day 1 value has been recognised through wholesale
electricity revenue as the calibrated CFD cash flows have been realised throughout the period. These CFD cash settlements have reduced the impact
of changes in wholesale electricity prices on Manawa Energy's revenue. As the absolute value of the actual hedge as at 31 March 2024 is less than the
absolute of the hypothetical, the hedge is deemed effective and any prior ineffectiveness taken to the profit and loss is reversed. On this basis a
current period fair value loss of $69.6 million (31 March 2023 $97.3 million gain) has been recognised with $nil (31 March 2023: $27.8 million) taken
to the cash flow hedge reserve and $69.6 million loss (31 March 2023: $69.6 million gain) taken to net fair value gains/losses on financial
instruments. The fair value of this electricity price derivative at 31 March 2024 is a $3.7 million liability (31 March 2023: $97.4 million asset).
20242023
At balance date the aggregate notional volume of outstanding energy derivatives were:
Electricity (GWh)
11,810.9 12,926.0
Fair value of energy derivatives ($millions)
( 1 7. 6 )62.5
2024
$Millions
2023
$Millions
The termination dates for the notional energy derivatives are as follows:
Between 0 to 1 year
422.1 634.2
Between 1 to 2 years
1,251.8 650.7
Between 2 to 5 years
90.1 628.3
Over 5 years
46.0 72.1
1,810.0 1,985.3
Energy price sensitivity analysis
The following table shows the impact on post-tax profit and equity of an increase/decrease in the Level 3 forward electricity prices with all other
variables held constant:
2024
$Millions
2023
$Millions
Profit or loss
10% increase in energy forward prices
(9.3)(12.2)
10% decrease in energy forward prices
9.3 12.2
Other comprehensive income
10% increase in energy forward prices
68.9 104.4
10% decrease in energy forward prices
(83.6)(104.4)
Assumptions used in the energy forward price sensitivity analysis include:
Reasonably possible movements in energy forward prices were determined based on a review of historical movements. A movement of 10% higher/
lower is considered appropriate to demonstrate sensitivity to movements in forward energy prices. The sensitivity was calculated by taking balances
that incorporate expectations of forward electricity prices at balance date and adjusting the forward electricity price upwards and downwards to
quantify the resulting impact to profit or loss and other comprehensive income.
If the discount rate for valuing electricity price increased/decreased by 1% then the fair value of the electricity price derivatives would have
decreased/increased by $0.8 million (2023: $1.4 million). If the forecast inflation rate has increased/decreased by 1% then the fair value of electricity
price derivatives would have increased/decreased by $8.3 million (2023: $16.2 million).
119
(22.4) Fair values
The carrying value of derivative financial assets and liabilities recorded in the statement of financial position are as follows:
Assets
2024
$Millions
2023
$Millions
Derivative financial instruments - energy110.3 156.0
Derivative financial instruments - cross currency interest rate swaps
10.2 6.9
Derivative financial instruments - foreign exchange
2.8 3.3
Derivative financial instruments - interest rate
70.4 66.0
193.7 232.2
Split as follows:
Current
116.3 25.3
Non-current
7 7. 4 206.9
193.7 232.2
Liabilities
Derivative financial instruments - energy1 2 7. 8 93.5
Derivative financial instruments - cross currency interest rate swaps
- -
Derivative financial instruments - foreign exchange
1.6 0.5
Derivative financial instruments - interest rate
20.2 23.0
149.6 1 1 7. 0
Split as follows:
Current
90.2 3 7. 0
Non-current
59.4 79.5
149.6 116.5
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 by 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 curvePublished market swap rates
Foreign exchange forward pricesPublished spot foreign exchange rates
Electricity forward price curveMarket 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 derivativesPublished market interest rates as applicable to the remaining life of the instrument
Discount rate for valuing forward foreign exchange contractsPublished market rates as applicable to the remaining life of the instrument
Discount rate for valuing electricity price derivativesAssumed counterparty cost of funds ranging from 5.1% to 6.1%
(31 March 2023: 3.1% to 6.1%)
120
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.
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.
31 March 2024
Level 1
$Millions
Level 2
$Millions
Level 3
$Millions
To t a l
$Millions
Assets per the statement of financial position
Derivative financial instruments - energy- - 110.3 110.3
Derivative financial instruments - cross currency interest rate swaps - 10.5 - 10.5
Derivative financial instruments - foreign exchange - 2.4 - 2.4
Derivative financial instruments - interest rate1.5 69.0 - 70.5
Trade receivables - fair value through other comprehensive income - - 63.5 63.5
Tot al1.5 81.9 173.8 2 5 7. 2
Liabilities per the statement of financial position
Derivative financial instruments - energy - - 1 2 7. 8 1 2 7. 8
Derivative financial instruments - cross currency interest rate swaps - - - -
Derivative financial instruments - foreign exchange - 1.6 - 1.6
Derivative financial instruments - interest rate - 20.2 - 20.2
Tot al - 21.8 1 2 7. 8 149.6
31 March 2023
Level 1
$Millions
Level 2
$Millions
Level 3
$Millions
To t a l
$Millions
Assets per the statement of financial position
Derivative financial instruments - energy- - 155.5 155.5
Derivative financial instruments - cross currency interest rate swaps - 6.9 - 6.9
Derivative financial instruments - foreign exchange - 3.3 - 3.3
Derivative financial instruments - interest rate - 66.5 - 66.5
Tot al - 76.7 155.5 232.2
Liabilities per the statement of financial position
Derivative financial instruments - energy - - 92.9 92.9
Derivative financial instruments - cross currency interest rate swaps - - - -
Derivative financial instruments - foreign exchange - 0.6 - 0.6
Derivative financial instruments - interest rate - 23.0 - 23.0
Tot al - 23.6 92.9 116.5
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 year ended 31 March 2024 (31 March 2023: none).
121
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.
2024
$Millions
2023
$Millions
Assets per the statement of financial position
Opening balance
155.5 106.2
Foreign exchange movement on opening balance
- -
Acquired as part of business combination
- -
Gains and (losses) recognised in profit or loss
1 1 7. 8 (4 8.1)
Gains and (losses) recognised in other comprehensive income
(163.1)9 7. 4
Transfer to assets held for sale
- -
Closing balance
110.2 155.5
Total gains/(losses) for the year included in profit or loss for assets held at the end of the reporting year
91.5 63.0
Liabilities per the statement of financial position
Opening balance
92.9 103.2
Foreign exchange movement on opening balance
- -
Acquired as part of business combination
- -
(Gains) and losses recognised in profit or loss
31.2 (10.3)
(Gains) and losses recognised in other comprehensive income
3.7 -
Transfers to liabilities held for sale
- -
Closing balance
1 2 7. 8 92.9
Total gains/(losses) for the year included in profit or loss for liabilities held at the end of the reporting year
7 7. 2 8 7. 9
Settlements during the year
54.3 (11.2)
(22.5) Risk Management Framework
The Board of Directors has overall responsibility for the establishment and oversight of Infratil's risk management framework. Infratil has established an
Audit and Risk Committee's ('ARC') and a comprehensive enterprise risk management framework. The ARC's risk management responsibilities include
reviewing management practices in relation to the ongoing identification, assessment and management of risks which are grouped into principal risk
categories; portfolio, operational, stakeholder and regulatory and compliance. Particular attention is given to strategic risks that have the potential to
materially impact the overall performance of the Infratil portfolio. Infratil Management provide regular reporting to the ARC on the relevant risks and
the controls and treatments for those risks, with escalation to the Board where necessary. Through its material Board representation across each
significant subsidiary and associate, Infratil seeks to ensure that the Board and Management teams of each entity have robust governance and risk
management processes in place to effectively identify, assess and monitor the operational and strategic risks relevant to each individual business.
(22.6) Climate Risk Assessment and Mitigation
Infratil recognises the importance of assessing and mitigating climate-related risks across their portfolio companies. As a responsible investor in
infrastructure assets, Infratil acknowledges the potential impacts of climate change on its portfolio and is committed to taking proactive measures to
address these risks.
Assessment of Climate Risks
Infratil has conducted a thorough assessment of climate-related risks across its portfolio, considering both physical risks and transition risks associated
with climate change.
As of 1 April 2023, the Group is a Climate Reporting Entity for the purpose of the Financial Markets Conduct Act 2013 (‘FMCA’). On 21 December
2023, Infratil released its voluntary inaugural Climate Related Disclosures. Further information on the Group’s response to climate-related risks and
disclosures is available here https://infratil.com/for-investors/reports-results-meetings-investor-days/#sustainability-reports-page. Infratil will
release its mandatory Climate Risk Disclosure report by 31 July 2024.
The Group reviews its investments against independent external valuation reports to determine whether there is any indication that those assets have
suffered an impairment loss. Independent external valuations also form the basis for the International Portfolio Incentive Fees paid to Morrison
annually. The valuers have considered the impact of climate change on the investments but have made no explicit adjustments in respect of climate
change matters. However, the Group and valuers anticipate that climate change could have a greater influence on valuations in the future as
investment markets place a greater emphasis on this topic.
122
(22.7) Capital Management
The Group's capital includes share capital, reserves, retained earnings and non-controlling interests of the Group. From time to time the Group
purchases its own shares on the market with the timing of these purchases dependent on market prices, an assessment of value for shareholders
and an available window to trade on the NZX. Primarily the shares are intended to be held as treasury stock and may be reissued under the
Dividend Reinvestment Plan or cancelled. During the year the Group issued 677,644 shares under the dividend reinvestment plan.
The Group seeks to manage it's maturity concentration through the regular assessment of it's funding maturity profile and maintaining aggregate
concentration below an acceptable limit. Discussions on refinancing of debt facilities will normally commence at least six months before maturity.
Facilities are maintained with highly rated financial institutions, and with a minimum number of bank counterparties to ensure diversification.
(23) Capital commitments
2024
$Millions
2023
$Millions
Group capital commitments
Committed but not contracted for
79.8 135.5
Contracted but not provided for
214.6 32.8
Capital commitments
294.4 168.3
Group capital commitments are primarily associated with RHCNZ Medical Imaging's capital expenditure in relation to completion costs for new
branches, branch expansion and the purchase of various new and replacement machinery, One NZ's open capital expenditure purchase orders
and committed spend for Spectrum, and Wellington Airport's new fire station.
Infratil capital commitments
Capital commitments from Infratil are primarily associated with Infratil's capital contributions to development phase subsidiaries and associates.
Total committed capital by Infratil and total uncalled commitment to date is designated in the entity's local currency.
Local currency
Total
commitment at
31 March 2024
$Millions
Uncalled
Commitment at
31 March 2024
$Millions
Uncalled
commitment at
31 March 2024
(NZD) $Millions
Longroad EnergyUSD3 46.0 52.3 8 7. 4
GalileoEUR68.0 4.0 7. 2
Gurīn EnergyUSD133.0 67.9 113.4
Kao DataGBP202.3 9.6 20.3
Mint Renewables AUD219.0 209.5 228.2
ClearvisionUSD100.0 41.9 70.0
Tot al526.5
Infratil approved increases to its capital commitments to Galileo (€52.0 million) and Gurīn Energy (US$57.0 million). These will be executed after
31 March 2024 and are therefore not included in the table above. The uncalled commitment at 31 March 2023 was $679.1 million. Infratil’s
shareholding allows it to control the timing and quantum of any capital calls.
123
(24) Reconciliation of net surplus with cash flow from operating activities
2024
$Millions
2023
$Millions
Net surplus for the year845.1891.7
(Add) / Less items classified as investing activity:
(Gain)/Loss on investment realisations, impairments and disposals of discontinued operations
(1,008.2)(328.7)
Transaction costs: payables relating to investing activities
(0.1)0.7
Add items not involving cash flows:
Movement in financial derivatives taken to the profit or loss
63.1 (91.5)
Decrease in deferred tax liability excluding transfers to reserves
( 1 7. 8 )(14.6)
Changes in fair value of investment properties
8.0 4.3
Equity accounted earnings of associate net of distributions received
(203.4)(4 86.1)
Depreciation
406.0 102.2
Movement in provision for bad debts
5.7 -
Amortisation of intangibles
153.5 5.8
Other
33.2 (8.7)
Movements in working capital:
Change in receivables
16.8 (25.8)
Change in inventories
13.2 (0.1)
Change in trade payables
39.2 2 7. 1
Change in accruals and other liabilities
56.1 (99.3)
Change in current and deferred taxation
4 7. 4 8.6
Net cash flow from operating activities
4 5 7. 8 (14.4)
(25) Key management personnel disclosures
Key management personnel have been defined as the Chief Executives and direct reports for the Group's operating subsidiaries
(including executive Directors).
2024
$Millions
2023
$Millions
Key management personnel remuneration comprised:
Short-term employee benefits
23.9 15.7
Post employment benefits
- -
Termination benefits
2.4 -
Other long-term benefits
1.5 1.8
Share based payments
1.9 1.1
29.7 18.6
Directors fees paid to directors of Infratil Limited and its subsidiaries during the year were $5.0 million (2023: $4.3 million).
124
(26) Related parties
Morrison Infrastructure Management Limited ('Morrison') is the management company for the Company and receives management fees in
accordance with the applicable management agreement. Morrison is owned by H.R.L Morrison & Co Group Limited Partnership, in which Jason Boyes,
a director and Chief Executive of Infratil, has a beneficial interest.
The passive mobile tower assets sold by One NZ to Fortysouth during the year ended 31 March 2023 have been leased back to One NZ as part of the
20-year master service agreement. Following the One NZ acquisition (Note 8.1), the right-of-use asset and lease liability attributable to agreements
with Fortysouth are held on the Balance Sheet at $714.0 million and $762.5 million, respectively. Additionally, interest expense was $62.4 million and
right-of-use asset depreciation was $32.3 million for the 10 months to 31 March 2024 within the Statement of Comprehensive Income. The Group’s
share of the operating revenue for Fortysouth is included within share of associate earnings line in the Statement of Comprehensive Income. Infratil
has deemed that any unrealised gains or losses for transactions between One NZ and Fortysouth are not material and will not be eliminated.
There are other related party transactions between companies within the Group. These are carried out in the ordinary course of business at the
appropriate market rate. The arrangements are not deemed material for separate disclosure.
Management and other fees paid by the Group (including associates) to Morrison or its related parties during the year were:
Note
2024
$Millions
2023
$Millions
Management fees27214.6 232.9
Executive secondment and consulting0.3 1.0
Directors' fees3.0 2.8
Financial management, accounting, treasury, compliance and administrative services1.6 1.9
Total management and other fees219.5 238.6
As at 31 March 2024 no amounts included in the above table related to discontinued operations (2023: nil).
At 31 March 2024 amounts owing to Morrison of $9.2 million (excluding GST) are included in trade creditors (2023: $5.7 million).
Morrison, or Employees of Morrison received directors fees from the Company, subsidiaries or associates as follows:
2024
$000's
2023
$000's
CDC Group Holdings Pty Ltd
178.0 241.4
Fortysouth
- -
Galileo
373.5 350.4
Gurīn Energy
4 30.5 480.9
Infratil Infrastructure Property
59.3 33.8
Longroad Energy
246.0 240.5
RHCNZ Medical Imaging
180.0 180.0
Manawa Energy
324.3 438.8
Mint Renewables
310.1 82.3
Qscan Group
- -
RetireAustralia
423.2 306.3
One NZ
- -
Wellington International Airport
463.5 4 41.5
2,988.4 2,795.9
A loan has been provided to the co-investor of Gurīn Energy. Given this entity represents the key management personnel of Gurīn Energy, it has been
identified as a related party loan. The loan balance at 31 March 2024 is $6.5 million (31 March 2023: $2.9 million) and is included within trade and
other receivables at 31 March 2024.
125
(27) Management fees paid under the Management Agreement with Morrison Infrastructure
Management Limited
The day-to-day management responsibilities of the Company have been delegated to Morrison Infrastructure Management Limited ('Morrison') under
a Management Agreement. The Management Agreement specifies the duties and powers of Morrison, and the management fees payable to Morrison
for delivering those services. These include a New Zealand Portfolio Management Fee, International Portfolio Management Fee and International
Portfolio Incentive Fees.
Management fees paid under the Management Agreement during the year were:
2024
$Millions
2023
$Millions
New Zealand & International Portfolio Management Fees86.8 63.3
International Portfolio Incentive Fees
1 2 7. 8 169.6
214.6 232.9
New Zealand Portfolio Management Fee
The New Zealand base management fee is paid on the 'New Zealand Company Value' at 0.80% per annum on the New Zealand Company Value above
$150 million, 1.00% per annum on the New Zealand Company Value between $50 million and $150 million and 1.125% per annum on New Zealand
Company value up to $50 million. The New Zealand Company Value is defined as:
• the Company's market capitalisation as defined in the Management Agreement (the aggregated market value of the Company's listed securities,
being ordinary shares, partly paid shares and, Infratil Infrastructure bonds);
• plus the Company and its wholly owned subsidiaries' net debt (excluding listed debt securities and the book value of the debt in any non-
Australasian investments);
• minus the cost price of any non-Australasian investments; and,
• an adjustment for foreign exchange gains or losses related to non-New Zealand investments.
International Portfolio Management Fee
The international fund management fee is paid at the rate of 1.50% per annum on:
• the cost price of any non-Australasian investments; and,
• the book value of the debt in any wholly owned non-Australasian investments.
International Portfolio Incentive Fees
International Investments are eligible for International Portfolio incentive fees (‘Incentive fees’) under the Management Agreement between
Morrison 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 areas:
• 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
The Company's investments in Kao Data and Gurīn Energy are eligible for the International Portfolio Initial Incentive Fee assessment as at
31 March 2024 (31 March 2023: Qscan Group). Kao Data and Gurīn Energy have generated a total initial incentive fee of $38.8 million
(Kao Data: $15.6 million, Gurīn Energy: $22.8 million) (31 March 2023: nil).
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, Galileo, Longroad Energy, RetireAustralia and Qscan Group are eligible for the International
Portfolio Annual Incentive fee assessment as at 31 March 2024 (31 March 2023: CDC Data Centres, Galileo, Longroad Energy, RetireAustralia).
Based on independent valuations obtained as at 31 March 2024, an Annual Incentive Fee of $89.0 million has been accrued as at that date
(31 March 2023: $169.6 million).
126
International Portfolio Annual and Initial Incentive Fees
2024
$Millions
2023
$Millions
CDC Data Centres
60.1 38.6
Galileo
23.1 (0.5)
Gurīn Energy
22.8 -
Kao Data
15.6 -
Longroad Energy
19.1 136.7
Qscan
( 7. 0 ) -
RetireAustralia
(5.9)(5.2)
1 2 7. 8 169.6
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
being scaled down if the fair value of the relevant asset (including distributions, if any) is less than fair value or cost as at the 31 March for which the
Incentive Fee was first calculated.
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% per annum after tax, relative to the most recent 31 March valuation, or cost.
No Realised Incentive Fees were payable as at 31 March 2024 (31 March 2023: nil).
(28) Contingent liabilities
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.
(29) Events after balance date
Dividend
On 20 May 2024, the Directors approved a fully imputed final dividend of 13.0 cents per share to holders of fully paid ordinary shares to be paid on
25 June 2024.
127
© 2024 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private
English company limited by guarantee. All rights reserved.
Independent Auditor’s Report
To the shareholdersof Infratil Limited
Report on theaudit of theconsolidated financial statements
Opinion
In our opinion, the consolidated financial statements
of Infratil Limited(the’company’)and its subsidiaries
(the 'group') onpages64to126present fairly, in all
material respects:
i.the Group’sfinancial position as at 31 March 2024
and its financial performance and cash flows for
the yearended on that date;
in accordance withNewZealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standardsissued
by the New Zealand Accounting Standards Board.
We have audited theaccompanyingconsolidated
financial statementswhich comprise:
—theconsolidated statementof financial position
as at 31 March 2024;
—theconsolidatedstatements of comprehensive
income,changes in equityand cash flowsfor the
yearthen ended; and
—notes,including a summary of significant
accounting policies.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand)(‘ISAs (NZ)’). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the groupin accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (Including International Independence Standards) (New Zealand)issued by the
New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence
Standards)(‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code.
Our responsibilities under ISAs(NZ)are further described in the Auditor’s responsibilities for the audit of the
consolidated financial statementssection of our report.
Our firm has also provided other services to the group in relation toclimate related assurance,taxation services,
audit of regulatory disclosures, other assurance engagements and a cultural capability assessment. 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 auditor of the group. The firm has no other relationship with, or interest in, the group.
Scoping
The scope of our audit is designed to ensure that we perform adequate work to be able to give an opinion on the
consolidated financial statements as a whole, taking into account the structure of the group, the financial reporting
systems, processes and controls, and the industry in which it operates.
© 2024 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private
English company limited by guarantee. All rights reserved.
Independent Auditor’s Report
To the shareholdersof Infratil Limited
Report on theaudit of theconsolidated financial statements
Opinion
In our opinion, the consolidated financial statements
of Infratil Limited(the’company’) and its subsidiaries
(the 'group') onpages64to126present fairly, in all
material respects:
i.the Group’sfinancial position as at 31 March 2024
and its financial performance and cash flows for
the yearended on that date;
in accordance withNewZealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standardsissued
by the New Zealand Accounting Standards Board.
We have audited theaccompanyingconsolidated
financial statementswhich comprise:
—theconsolidated statementof financial position
as at 31 March 2024;
—theconsolidatedstatements of comprehensive
income,changes in equityand cash flowsfor the
yearthen ended; and
—notes,including a summary of significant
accounting policies.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand)(‘ISAs (NZ)’). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the groupin accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (Including International Independence Standards) (New Zealand)issued by the
New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence
Standards)(‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code.
Our responsibilities under ISAs (NZ)are further described in the Auditor’s responsibilities for the audit of the
consolidated financial statementssection of our report.
Our firm has also provided other services to the group in relation toclimate related assurance,taxation services,
audit of regulatory disclosures, other assurance engagements and a cultural capability assessment. 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 auditor of the group. The firm has no other relationship with, or interest in, the group.
Scoping
The scope of our audit is designed to ensure that we perform adequate work to be able to give an opinion on the
consolidated financial statements as a whole, taking into account the structure of the group, the financial reporting
systems, processes and controls, and the industry in which it operates.
© 2024 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private
English company limited by guarantee. All rights reserved.
Independent Auditor’s Report
To the shareholdersof Infratil Limited
Report on theaudit of theconsolidated financial statements
Opinion
In our opinion, the consolidated financial statements
of Infratil Limited(the’company’)and its subsidiaries
(the 'group') onpages64to126present fairly, in all
material respects:
i.the Group’sfinancial position as at 31 March 2024
and its financial performance and cash flows for
the yearended on that date;
in accordance withNewZealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standardsissued
by the New Zealand Accounting Standards Board.
We have audited theaccompanyingconsolidated
financial statementswhich comprise:
—theconsolidated statementof financial position
as at 31 March 2024;
—theconsolidatedstatements of comprehensive
income,changes in equityand cash flowsfor the
yearthen ended; and
—notes,including a summary of significant
accounting policies.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand)(‘ISAs (NZ)’). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the groupin accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (Including International Independence Standards) (New Zealand)issued by the
New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence
Standards)(‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code.
Our responsibilities under ISAs(NZ)are further described in the Auditor’s responsibilities for the audit of the
consolidated financial statementssection of our report.
Our firm has also provided other services to the group in relation toclimate related assurance,taxation services,
audit of regulatory disclosures, other assurance engagements and a cultural capability assessment. 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 auditor of the group. The firm has no other relationship with, or interest in, the group.
Scoping
The scope of our audit is designed to ensure that we perform adequate work to be able to give an opinion on the
consolidated financial statements as a whole, taking into account the structure of the group, the financial reporting
systems, processes and controls, and the industry in which it operates.
128
2
The context for our audit is set by the group's major activities in the financial year ended 31 March 2024. In
establishing the overall approach to the group audit, we determined the type of work that needed tobe performed
at the component level by us, as the group engagement team, or component auditors operating under
our instruction.
A full scope audit was performed on the most significant investments for the group using component materialities
which were lower than group materiality. The component materiality consideredthe size and the risk profileof each
component.
Where the work was performed by component auditors, we determined the level of involvement we needed tohave
in the audit work at those investments to be able to conclude whether sufficient appropriate audit evidencehad
been obtained as a basis for our opinion on the group financial statements as a whole. We kept in regular
communication with component audit teams throughout the year withphone calls, discussions and written
instructions and ensured that the component audit teams had the appropriate skills and competencies which are
needed for the audit. We reviewed the work undertaken by component auditors in order to ensure the quality and
adequacy of their work.
Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and
on the consolidated financial statements as a whole. The materiality for the consolidated financial statements as a
whole was set at $120million determined with reference to a benchmark of grouptotal assets. We chose the
benchmark because, in our view, this is a key measure of thegroup’s performance.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the consolidated financial statements in the current period. We summarise below those matters and our key audit
procedures to address those matters in order that the shareholders as a body may better understand the process
by which we arrived at our audit opinion. Our procedures were undertaken in the context of and solely for the
purpose of our statutory audit opinion on the consolidated financial statements as a whole and we do not express
discrete opinions on separate elements of the consolidated financial statements.
The key audit matter How the matter was addressed in our audit
Acquisition of One NZ
On 7 June 2023, Infratil announced the acquisition of
Brookfield’s 49.95% stake in One NZ for $1.8billion,
increasing Infratil’s ownership from 49.95% to 99.90%.
The completion of the acquisition occurred on 15 June
2023.
The One NZ acquisition is deemed to be a step
acquisition (achieved in stages) givenInfratil held a
49.95% interest in One NZ prior to the transaction.
Accounting for step acquisitions under IFRS is inherently
complex, requiring the Directors to exercise judgement
in the following areas:
-Determining acquisition date;
Our audit procedures included:
—Evaluating the acquisition accountingadoptedby the
Group against the requirements of the accounting
standards;
—Reviewing management’s calculation for the fair value
of the existing interest as at the acquisition date and
subsequent gain on disposal recognised;
—Determining the appropriateness of theacquisition
date with reference to the achievement of control over
the acquired business interest;
—Reviewing the fair value of the purchase consideration
with reference to the underlying sale agreements and
cash consideration paid;
129
3
The key audit matter How the matter was addressed in our audit
-Disposal of the existing interest, which includes
measuring the fair value of the existing interest
and recognising a gain/loss on disposal;
-Estimating the fair value of the purchase
considerations;
-Identification of potential intangible assets
acquired as part of the acquisitions; and
-Determining the fair value of assets and
liabilities acquired.
Given the size of the acquisition and complexity
involved, we consider this to be a key audit matter.
The impact of the acquisition is disclosed in note 8.1 of
the financial statements.
—Evaluating the qualifications, competence and
objectivity of experts used by the group to determine
the fair value of assets and liabilities acquired;
—Performing audit procedures over the acquisition
balance sheet amounts;
—Assessing the identification of potential intangible
assets acquired as part of the acquisitions;
—Using valuation specialists to assess the
appropriateness of the valuation methodology and key
assumptions adopted by managements specialist for
calculating the fair value for each material category of
tangible and intangible assets; and
—Assessing the adequacy of disclosures in the financial
statements using our understanding obtained from our
testing and against the requirements of the accounting
standards.
Carrying value of Goodwill
As disclosed in note 16, the carrying value of the
group’s goodwill as at 31 March 2024 was $4.7 billion.
Key goodwill balances relate to One NZ, $2.9 billion,
RHCNZ group, $1.1 billion, and Qscan Group, $0.7
billion.
The goodwill is valued based on discounted cash flow
models which include a range of judgemental
assumptions about the future performance of the
relevant cash generating unit (CGU).
The impairment testing focuses on those assumptions
which have the most impact on value and therefore
indicate a higher risk of impairment.
Given the significance of the goodwill to the group, we
consider this to be a key audit matter.
Our audit procedures over the goodwill included:
—Assessing the appropriateness of the CGUs determined;
—Comparing the methodology adopted in the valuation
models to accepted valuation approaches;
—Comparing the cash flow forecasts to Board approved
budgets;
—Comparing the revenue and EBITDA forecast to historic
cash flows, and growth rates achieved;
—Using our valuation specialists to assess the
reasonableness of the discount and terminal growth
rates used for each CGU; and
—Performing sensitivity analysis and considering a range
of likely outcomes for various scenarios.
Valuation of Property, Plant and Equipment
As disclosed in note 13 of the financial statements, the group has property, plant and equipment of $4.8 billion
(2023: $3.6 billion), with renewable generation assets, communication and network equipment, land and civil works
and buildings making up the majority of this balance. The group has a policy of recording classes of property, plant
and equipment at cost less accumulated depreciation, or at valuation. Renewable generation assets, land and civil
worksand buildingsare recorded at fair value, with valuations undertaken at least every three years anda material
change assessment carried out in the intervening years.
Renewable generation assets ($1.7billion).
Valuation of renewable generation assets is
considered to be a key audit matter due to both its
magnitude and the judgement involved in the
assessment of the fair value of these assets by the
group’s Directors. The judgement relates to the
Utilising our energy sector valuation specialist we have
challenged the key assumptions used to determine the
estimated valuation range. Our procedures included:
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4
The key audit matter How the matter was addressed in our audit
valuation methodology used and the assumptions
included within that methodology.
A full external revaluation of generation assets was
carried out as at 31 March 2023, with a material
change assessment carried out in the current period.
Fair value is determined using a discounted cash flow
methodology. The valuation of generation assets
involves a number of significant assumptions
including;
—forward electricity prices;
—the weighted average cost of capital used to
discount future cash flows;
—the inflation rate; and
—operational inputs such as future generation
volumes, operating costs and capital
expenditure.
All these assumptions involve judgements about the
future.
—Assessing the methodology used in determining the
fair value;
—
Comparing the forward electricity price path to
current externally derived market forecast data;
—Comparing the weighted average cost
of capital
against our independently calculated rate reflecting
current market conditions; and
—
Comparing the inflation rate used to the Reserve
Bank of New Zealand forecast.
We have assessed the appropriateness of the operational
inputs and assumptions forgeneration volumes and costs by:
—Comparing forecast generation volumes to actual
released volumes over time; and
—
Assessing forecasted operating and capital
expenditure by understanding and evaluating the
reasons for any significant changes between the
costs in the current forecast and historical actual
costs, and agreeing forecasts to supporting
approval documentation.
Land and civil works ($0.9billion)and Buildings ($0.6
billion).
Valuation of land and civil works and buildings,
specifically in relation to airport assets, is considered
to be a key audit matter due to the magnitude and
judgement involved in the assessment of the fair value
of these assets by the group’s Directors. The
judgement relates to the valuation methodologies
used and the assumptions included in each of those
methodologies.
The group has a policy of having the assets externally
revalued at least every 5 years by an independent
valuer. The last full external revaluation of land and
buildings was carried out asat 31 March 2023. The
last independent valuation of civil works asset was
carried out as at 31 March 2020.
In years where an external revaluation is not
undertaken, a material change assessment for each
asset class is performed to assess whether the
carrying values of each class materially vary from their
fair value.
The assumptions that have the largest impact on the
fair value assessment are:
—The potential value of the airport land if there
was no airport on the site primarily driven by
weighted averagecost of capital;
Our audit procedures to assess the fair value of land,
buildings and civil works included, amongst others:
—Comparing the valuation methodologies used for the
material change assessment, to the valuation
methodologies used by the external valuers in prior
external valuations;
—
Assessing the key assumptions which are
judgemental in nature and which have the largest
impact on the value of land, buildings and civil
works. This comprised assessing:
—Changes to the weighted average cost ofcapital/
discount rate against observable market data;
—the reasonableness of income capitalisation
rates;
—changes in the ODRC of specialised buildings
and civil works with reference to relevant
indices;
—changes in the value of underlying land prices
with references to relevant indices; and
—the future cash flows against budgets and
historical financial performance.
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5
The key audit matter How the matter was addressed in our audit
—The replacement cost of buildings including
the main terminal building with reference to
relevant indices;
—The replacement cost of civil works including
the runway, taxiways and roads with
reference to relevant indices; and
—The estimated future cash flows and
expected rate of return from the vehicle and
hotel business assets.
Carrying value of investment in associate
The carrying value of the group’s investment in
associates as at 31 March 2024 was $3.3 billion.
Investments in associates contribute a significant
portion of the group’s net surplus and total assets.
Given the significance of these investments to the
group, we consider this to be a key audit matter.
Our procedures performed to assess the carrying value
of associates included, amongst others:
—For significant associate investments, performing
audit procedures over the investee financial
information;
—
Testing a sample of acquisitions made and
distributions received from associates during the
year;and
—
Consideration of associate’s performance to date
with reference to the most recent audited financial
statements and assessment of relevant indicators of
impairment.
Other information
The Directors, on behalf of the group, are responsible for the other information included in the entity’s
Annual Report. Other information includes discussion and analysis of the business on pages 1to61and
corporate governance disclosures on pages 133to146.Our opinion on the consolidated financial statements
does not cover any other information and we do not express any form of assurance conclusion thereon.
Inconnectionwithourauditoftheconsolidatedfinancialstatementsourresponsibilityistoreadtheother
information and, in doing so, consider whether the other information is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audit or otherwise appears materially misstated. If, based
on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholdersas a body. Our audit work has been
undertaken so that we might state to theshareholdersthose matters we are required to state to them in the
independent auditor’s 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 shareholdersas a bodyfor our audit work, this independent
auditor’s report, or any of the opinions we have formed.
132
6
Responsibilities of the Directors for the consolidated
financial statements
The Directors, on behalf of thecompany, are responsible for:
—the preparation and fair presentation of theconsolidated financial statementsin accordance with generally
accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial
Reporting Standards) and International Financial Reporting Standardsissued by the New Zealand Accounting
Standards Board;
—implementing necessary internal controlto enable the preparation ofa consolidated set of financial statements
that isfree 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 theyeither intend to liquidateor to
cease operations orhave no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated
financial statements
Our objective is:
—to obtain reasonable assurance about whether the financial statementsas a whole arefree from material
misstatement, whether due to fraud or error; and
—to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance butis not a guarantee that an audit conducted in accordance
with ISAs NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of our responsibilities for the audit of these consolidated financial statementsis located at the
External Reporting Board (XRB) website at:
http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/
This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this independent auditor's report is Brent Manning
For and on behalf of
KPMG
Wellington
20May 2024
133
The Board is committed to undertaking its role in accordance with
internationally accepted best practice, within the context of Infratil’s
business. Infratil’s corporate governance practices have been prepared
with reference to the Financial Markets Authority’s Corporate Governance
Handbook, the requirements of the NZX Listing Rules and the
recommendations in the NZX Corporate Governance Code (‘NZX Code’).
Copies of Infratil’s key corporate governance documents are available on
the corporate governance section of Infratil’s website: https://infratil.
com/about-infratil/board/#our-governance-documents.
These include Infratil’s Constitution, the Management Agreement, the
Board and Committee Charters, the Corporate Governance Statement
(which discloses Infratil’s compliance with the NZX Code) and key
corporate governance policies.
Corporate governance structure
The Board is elected by the shareholders with overall responsibility for
the governance of Infratil, while the day-to-day management of Infratil
has been delegated to Morrison. The respective roles of the Board and
Morrison within this corporate governance structure are summarised
below.
The Board
Role of the Board
The Board’s role and responsibilities are set out in the Board Charter. The
primary role of the Board is to approve and monitor the strategic direction
of Infratil recommended by Morrison and add long-term value to Infratil’s
shares, having appropriate regard to the interests of all material
stakeholders.
Further information on the Board’s role is set out in the Corporate
Governance Statement and the Board Charter.
Board Committees
The Board has established three standing committees, and other
committees may be formed when it is efficient or necessary to facilitate
efficient decision-making or when required by law:
• Audit and Risk Committee
The Board has established this Committee to oversee financial
reporting, accounting policies, financial management, internal control
systems, risk management systems, systems for protecting assets and
compliance.
• Nomination and Remuneration Committee
The Board has established this Committee to manage the
identification, consideration and recommendation of director
appointments to the Board, succession planning for Directors,
ensuring written agreements are in place for all Directors, the induction
programme for new Directors and recommending remuneration for
directors for consideration by shareholders.
• Manager Engagement Committee
The Board has established the Manager Engagement Committee to
monitor Morrison’s performance and compliance with the
Management Agreement.
Further information on the Audit and Risk Committee, Nomination and
Remuneration Committee and Manager Engagement Committee is set
out in the Corporate Governance Statement.
Corporate Governance
Board Membership
The number of Directors is determined by the Board, in accordance with
Infratil’s constitution, to ensure it is large enough to provide a range of
knowledge, views and experience relevant to Infratil’s business. The
composition of the Board will reflect the duties and responsibilities it is to
discharge and perform in setting Infratil’s strategy and seeing that it is
implemented. The Board Charter requires both a majority of the Board,
and the Chair, to be independent Directors.
The Board currently comprises seven Directors (six independent Directors
and one non-independent Director). The composition of the Board,
experience and Board tenure are set out below:
Alison Gerry (BMS(Hons), MAppFin)
Chair and Independent Director
Alison Gerry has been Chair since May 2022, an independent director
since 2014 and was last re-elected in 2022. She is a director of
Air New Zealand, ANZ Bank New Zealand, and Chair of Sharesies.
She has been a professional director since 2007. Previously, Ms Gerry
worked for both corporates and for financial institutions in Australia,
Asia and London in trading, finance and risk roles.
Jason Boyes (BCA, LLB(Hons))
Non-Independent Director
Jason Boyes is Chief Executive of Infratil and joined the Board in 2021.
Mr Boyes is Chair of Longroad Energy and a director of CDC Data Centres.
He joined Morrison in 2011 after a 15-year legal career in corporate
finance and M&A in New Zealand and London. Mr Boyes has an interest
in Morrison, which has the Management Agreement with Infratil.
Andrew Clark (MBA, BEng, BSc)
Independent Director
Andrew Clark joined the Board as an independent director on 1 June
2022. Mr Clark is an experienced strategist and transformation executive
with over 30 years of diverse management consulting experience. During
this time, he held a number of senior roles within the Boston Consulting
Group (BCG).
Paul Gough (BCom(Hons))
Independent Director
Paul Gough joined the Board as an independent director in 2012 and was
last re-elected in 2021. He is managing partner of the UK private equity
fund STAR Capital. He is a director of several international companies in
the transport, logistics, healthcare, infrastructure and financial services
sectors. Mr Gough previously worked for Credit Suisse First Boston in
New Zealand and London.
Kirsty Mactaggart (BAcc, CA)
Independent Director
Kirsty Mactaggart joined the Board as an independent director in 2019,
and was last re-elected in 2022. Ms Mactaggart is a Director of Sharesies
Investment Management Limited and a Senior Advisor at Montarne.
Prior to her director and advisory career, she was Head of Equity Capital
Markets and, Corporate Governance for Fidelity International in Asia,
and was also a Managing Director at Citigroup based in Hong Kong and
London. She has over 25 years of global equity market experience with
a unique investor perspective and a focus on governance.
134
Peter Springford (MBA)
Independent Director
Peter Springford joined the Board as an independent director in 2016 and
was last re-elected in 2023. He has extensive experience in managing
companies in Australia, New Zealand and Asia, including five years based
in Hong Kong as President of International Paper (Asia) Limited and four
years as Chief Executive Officer and Managing Director of Carter Holt
Harvey Limited.
Independence
The Board Charter sets out the standards for determining whether a
Director is independent for the purposes of service on the Board and
committees. These standards reflect the requirements of the NZX Listing
Rules.
A Director is independent if the Board affirmatively determines that the
Director satisfies these standards. The Board has determined that:
• All the non-executive Directors (namely, A Gerry, A Clark, P Gough,
K Mactaggart, P Springford and A Urlwin) are independent Directors.
• The Chief Executive (J Boyes), as an employee of Morrison and
occupying a position analogous to an executive director, is not an
independent Director.
Anne Urlwin (BCom, FCA)
Independent Director
Anne Urlwin joined the Board as an independent director in January 2023.
She is a chartered accountant and an experienced finance and
governance professional. Her current governance roles include
chairmanship of Precinct Properties and directorships of Vector and
Ventia. She has previously been a director of Summerset Holdings,
Tilt Renewables, Chorus and Meridian Energy. Ms Urlwin is Chair of the
Audit and Risk Committee and has a significant accounting, financial,
risk and sustainability background.
Tenure
Directors are not appointed for fixed terms. However, the Constitution
and the NZX Listing Rules require all Directors to stand for re-election
at the third annual meeting after appointment or after three years
(whichever is longer).
A Director appointed by the Board to fill a casual vacancy must also
stand for election at the following annual meeting.
Director skill matrix
The skills matrix below indicates the areas of deep expertise of each director.
NameAlison
Gerry
Jason
Boyes
Andrew
Clark
Paul
Gough
Kirsty
Mactaggart
Peter
Springford
Anne
Urlwin
QualificationsBMS (Hons),
MAppFin
BCA, LLB
(Hons)
MBA, BEng,
BSc
BCom
(Hons)
BAcc, CAMBABCom, FCA
SkillCapability
Decision making,
risk taking and
collaboration
Ability to deal with ambiguity and digest and
comprehend complex information quickly. Having
an entrepreneurial and curious mindset and an
appetite for taking risk. Collaboration and
constructive engagement and high-quality
decision making.
Corporate
Governance
Listed company governance experience.
Stakeholder management (including ESG issues).
Experience dealing with an external manager and
managing conflicts.
Investment
& Funds
Management
Capital or private market investment or funds
management and institutional investment
experience including capital management, risk
allocation, risk adjusted returns and portfolio
construction.
CommercialGeneral commercial, transactional, strategy and
asset management experience.
FinancialAudit, accounting, risk management and capital
structuring experience.
LeadershipExperience as a CEO or senior executive in a large
operational business, including the ability to set
appropriate organisation culture.
StrategyExperience of strategy construction and
execution, including strategic planning around
investment option values and portfolio
composition.
High capabilityMedium capability
135
Board and Committee Meetings
The Board will normally hold at least six meetings in each year, and
additional Board meetings are held where necessary in order to prioritise
and respond to issues as they arise.
The Board and Committee meetings and attendance in Financial Year
2024 are set out below:
Full Agenda
Board
Meetings
Limited
Agenda
Board
Meetings
Audit & Risk
Committee
Nomination &
Remuneration
Committee
Manager
Engagement
Committee
A Gerry8/83/34/41/16/6
J Boyes8/8-4/4--
A Clark8/83/33/4-6/6
P Gough6/83/3-1/15/6
K Mactaggart7/83/34/4-6/6
P Springford8/83/3-1/16/6
A Urlwin8/83/34/4-6/6
Independent Professional Advice and Training
With the approval of the Chair, Directors are entitled to seek independent
professional advice on any aspect of the Directors’ duties, at Infratil’s
expense. Directors are also encouraged to identify and undertake training
and development opportunities.
The Board, the Audit and Risk Committee and individual Directors are
subject to a performance appraisal from time to time, further information
on which is set out in the Corporate Governance Statement.
Directors’ and Officers’ Insurance
Infratil has arranged Directors’ and Officers’ liability insurance covering
Directors acting on behalf of Infratil. Cover is for damages, judgments,
fines, penalties, legal costs awarded and defence costs arising from
wrongful acts committed while acting for Infratil. The types of acts that
are not covered are dishonest, fraudulent, malicious acts or omissions,
willful breach of statute or regulations or duty to Infratil, improper use of
information to the detriment of Infratil, or breach of professional duty.
Takeover Protocols
The Board has approved protocols that set out the procedure to be
followed if there is a takeover offer for Infratil, which reflect the
requirements of the Takeovers Code, market practice and
recommendations by the Takeovers Panel.
Morrison
Role of Morrison
The day-to-day management responsibilities have been delegated to
Morrison under the Management Agreement. The Management
Agreement specifies the duties and powers of Morrison, and the
management fee payable to Morrison (which is summarised in note 27
to the Financial Statements on page 125 of this annual report).
The Board determines and agrees with Morrison specific goals and
objectives, with a view to achieving the strategic goals of Infratil. Between
Board meetings, the Chair maintains an informal link between the Board
and Morrison and is kept informed by Morrison on all important matters.
The Chair is available to Morrison to provide counsel and advice where
appropriate. Decisions of the Board are binding on Morrison. Morrison is
accountable to the Board for the achievement of the strategic goals of
Infratil. At each of its Board meetings, the Board receives reports from or
through Morrison including financial, operational and other reports and
proposals.
Infratil’s management comprises people employed by the Morrison
(including the Chief Executive and Chief Financial Officer), and people
employed by Infratil’s subsidiaries and investee companies.
Manager Performance
A key responsibility of the Board is monitoring Morrison’s performance
and compliance with the Management Agreement (including potential
conflicts between the interests of Morrison and the interests of Infratil
shareholders). Given the importance of this responsibility in the context
of Infratil’s business, the Board has established the Manager Engagement
Committee as a dedicated Board committee charged with this
responsibility.
The Board also recognises the potential for conflicts to arise in the
allocation of investment opportunities among clients of Morrison
(including Infratil). Infratil has used investment joint ventures for many
years and expects to continue to do so, and the Board encourages
Morrison to identify aligned parties with which Infratil can co-invest.
Accordingly, the Board and Morrison have established a deal allocation
process, so Infratil has visibility of all investment opportunities that fit with
Infratil’s investment strategy and clear investment rights in respect of
those opportunities.
The Board initiates a review of the Management Agreement from time
to time. An external review of the management fee payable to Morrison
under the Management Agreement was conducted in Financial Year
2021 (and the key conclusions of that were noted in the 2021 Annual
Report).
In Financial Year 2023, Infratil and Morrison agreed amendments to
the incentive fee provisions in the Management Agreement. The
amendments provide for: (a) annual ‘offsetting’ of over and under
performance between the three categories of incentive fees for
international assets; (b) carrying forward the impact of
underperformance for unrealised assets (and in limited circumstances
for realised assets); and (c) replacing the binary nature of the deferred
tranche payments with a more proportionate approach. No changes have
been made to the base management fees or how the underlying
incentive fee calculations are performed. Incentive fees can still only be
earned on international assets, and the hurdle for triggering payment of
an incentive fee remains at a fixed 12% per annum with any fee calculated
as 20% of outperformance above that hurdle.
Health and Safety
Health and safety is managed by Infratil’s operational businesses and
Morrison (rather than in aggregate at a group level), and the Board is
provided with regular health and safety reports for those operating
businesses and Morrison.
Climate-related Disclosure Obligations
For the purposes of NZX Listing Rule 3.7.1(b)(ii), as amended with effect
from 24 May 2024, Infratil’s climate statements will be accessible on its
internet site here - https://infratil.com/for-investors/reports-results-
meetings-investor-days/#sustainability-reports-page.
Diversity
Infratil has a Diversity Policy, which describes Infratil’s approach to
diversity and inclusion and how diversity and inclusion is promoted and
embedded within Infratil, portfolio businesses and Morrison as manager
of Infratil. The policy applies to the Board and also sets out the diversity
principles which Infratil expects portfolio businesses and Morrison as
manager of Infratil to adopt for their own businesses.
Further information on the Diversity Policy is set out in the Corporate
Governance Statement.
136
The following table provides a quantitative breakdown as at 31 March
2024 as to the gender composition of the Board, Infratil’s Officers, and
senior executives and employees in portfolio businesses and Morrison:
2024 PositionNumberPropotion
FemaleMaleGender
Diverse
FemaleMaleGender
Diverse
Board 3 4 - 43% 57% -
Officers ¹ - 3 - - 100% -
Morrison 94 105 - 47% 53% -
Senior
Executives ² 29 80 - 27% 73% -
Organisation ³ 3,750 2,919 13 56% 44% 0.2%
2023 PositionNumberPropotion
FemaleMale
Gender
DiverseFemaleMale
Gender
Diverse
Board 3 4 - 43% 57% -
Officers¹ 1 2 - 33% 67% -
Morrison 90 97 - 48% 52% -
Senior
Executives ² 24 81 - 23% 77% -
Organisation³ 3,616 2,848 10 56% 44% 0.2%
1 Officers comprise the Chief Executive, Chief Financial Officer and Company
Secretary
2 Senior Executives are defined as a CEO or CEO direct report, or a position that
effectively carries executive responsibilities, in portfolio businesses
3 Organisation includes all portfolio businesses
Risk Management
Risk Management and Compliance
The Audit and Risk Committee is responsible for ensuring that Infratil has
an effective risk management framework to identify, treat and monitor
key business risks and regulatory compliance, and also reviews
management practices in these areas. Formal systems have been
introduced for regular reporting to the Board on business risk, including
impacts and mitigation strategies and compliance matters.
Morrison (via the Chief Executive and Chief Financial Officer) is required
to, and has confirmed to the Audit and Risk Committee and the Board in
writing that, in their opinion:
• Financial records have been properly maintained and Infratil’s financial
statements present a true and fair view, in all material respects, of
Infratil’s financial condition, and operating results are in accordance
with relevant accounting standards;
• The financial statements have been prepared in accordance with
New Zealand Generally Accepted Accounting Practice and comply
with International Financial Reporting Standards and other applicable
financial reporting standards for profit-oriented entities;
• This opinion has been formed on the basis of a sound system of risk
management and internal control which is operating effectively; and
• That system of risk management and internal control is appropriate
and effective internal controls and risk management practices are in
place to safeguard and protect Infratil’s assets, to identify, assess,
monitor and manage risk, and identify material changes to Infratil’s
risk profile.
Internal Financial Control
The Board has overall responsibility for Infratil’s system of internal financial
control. Infratil does not have a separate internal audit function, however
the Board has established procedures and policies that are designed to
provide effective internal financial control:
• Annual budgets, forecasts and reports on the strategic direction of
Infratil are prepared regularly and reviewed and agreed by the Board.
• Financial and business performance reports are prepared periodically
and reviewed by the Board throughout the year to monitor
performance against financial and non-financial targets and strategic
objectives.
External Auditor
The Audit and Risk Committee is also responsible for the selection and
appointment of the external auditor (which is included within the External
Audit Relationship section of the Audit and Risk Committee Charter) and
ensuring that the external auditor or lead audit partner is changed at least
every five years.
Going Concern
After reviewing the current results and detailed forecasts, taking into
account available credit facilities and making further enquiries as
considered appropriate, the Directors are satisfied that Infratil has
adequate resources to enable it to continue in business for the
foreseeable future. For this reason, the Directors believe it is appropriate
to adopt the going concern basis in preparing the financial statements.
Reporting and Disclosure
Disclosure
Infratil is committed to promoting investor confidence by providing
forthright, timely, accurate, complete and equal access to information,
and to providing comprehensive continuous disclosure to shareholders
and other stakeholders, in compliance with the NZX Listing Rules. This
commitment is reflected in Infratil’s Disclosure and Communications
Policy. Under this policy:
• All shareholder communications and market releases are subject to
review by Morrison (including Chief Executive, Chief Financial Officer
and Company Secretary), and information is only released after proper
review and reasonable inquiry.
• Full year and half year results releases are approved by the Audit and
Risk Committee and by the Board.
Shareholder and other Stakeholder Communications
Infratil aims to communicate effectively, give ready access to balanced
and understandable information about Infratil group and corporate
proposals and make it easy to participate in general meetings. Infratil
seeks to ensure its shareholders are appropriately informed on its
operations and results, with the delivery of timely and focused
communication, and the holding of shareholder meetings in a manner
conducive to achieving shareholder participation.
Shareholder meetings are generally held in a location and at a time which
is intended to maximise participation by shareholders. Full participation of
shareholders at the annual meeting is encouraged to ensure a high level
of accountability and identification with Infratil’s strategies and goals.
Shareholders have the opportunity to submit questions prior to each
meeting and Morrison, senior management of portfolio businesses and
auditors are present to assist in and provide answers to questions raised
by shareholders. There is also generally an opportunity for informal
discussion with Directors, Morrison and senior management for a period
after the meeting concludes.
137
Infratil supports the efforts of the New Zealand Shareholders’ Association
(“NZSA”) to raise the quality of relations between public companies and
their shareholders. Shareholders wishing to learn more about the NZSA
can find information on its website (http://www.nzshareholders.co.nz).
While Infratil supports the general aims and objectives of the NZSA, its
specific actions and views are not necessarily endorsed by Infratil, or
representative of Infratil’s view.
Further information on Infratil’s shareholder and other stakeholder
communications is set out in the Corporate Governance Statement.
Renumeration and Performance
Directors’ Remuneration
The Board determines the level of remuneration paid to Directors within
the amounts approved from time to time by Shareholders. For the year
ended 31 March 2024, this was $1,525,500 per annum, which was
approved by Shareholders at the 2023 annual meeting. Directors are
paid a base fee and may also be paid, as additional remuneration:
• an appropriate extra fee as Chair or Member of a Board Committee;
• an appropriate extra fee as a director of an Infratil subsidiary (other
than Manawa Energy); and
• an appropriate extra fee for any special service as a Director as
approved by the Board.
In addition, Directors are entitled to be reimbursed for costs directly
associated with the performance of their role as Directors, including
travel costs. The Chair approves all Directors’ expenses, and the Chair
of the Audit and Risk Committee approves the Chair’s expenses.
Mr Boyes is not paid fees in his capacity as a Director, and receives
no remuneration from Infratil for his role as Chief Executive, and his
remuneration as Chief Executive is paid by Morrison.
Remuneration is reviewed annually by the Board, and fees are reviewed
against fee benchmarks in New Zealand and Australia and to take into
account the size and complexity of Infratil’s business. The fee structure
approved by the Board for the year ended 31 March 2024 is set out
below:
Annual fee structureFinancial year
2024 (NZD)
Financial year
2023 (NZD)
Base Fees:
Chair of the Board 375,000 286,100
Director 187,500 137,400
Overseas Director (P Gough) 217,500 171,800
CEO (J Boyes)NilNil
Board Committee Fees:
Audit and Risk Committee
Chair 48,000 41,800
Member 22,500 21,500
Nomination and Remuneration
Committee
ChairNilNil
MemberNilNil
Manager Engagement Committee
Chair 30,000 15,000
Member 10,000 7,800
Directors’ Remuneration paid by Infratil
Directors’ remuneration (in their capacity as such) in respect of the year
ended 31 March 2024 and 31 March 2023 paid by the Company was as
follows (these amounts exclude GST, where appropriate):
Annual fee structureFinancial year
2024 (NZD)
Financial year
2023 (NZD)
A Clark 220,000 165,627
A Gerry (Chair) 375,000 269,765
A Urlwin 245,500 46,750
J Boyes (CEO) - -
K Mactaggart 250,000 173,900
M Tume ¹ - 156,585
P Gough 227,500 179,600
P Springford 197,500 145,200
To t a l 1,515,500 1,137,427
1 Retired 31 December 2022
Directors’ Remuneration paid by Infratil Subsidiaries
No benefits have been provided by Infratil or its subsidiaries to a director
for services as a director or in any other capacity, other than as disclosed
in the related party note to the financial statements, or in the ordinary
course of business. No loans have been made by Infratil or its subsidiaries
to a director, nor has Infratil or its subsidiaries guaranteed any debts
incurred by a director.
Employee Remuneration
During the year ended 31 March 2024, the following number of
employees (and former employees) and Infratil and its subsidiaries
received remuneration and other benefits in their capacity as employees
of at least $100,000. These disclosures are provided in accordance with
sections 211(1)(g) and 211(2) of the Companies Act 1993 and,
accordingly:
• These disclosures provide information in respect of employees (and
former employees) of the portfolio businesses which are subsidiaries
of Infratil. These businesses are One NZ, Mint Renewables, Gurīn
Energy, Infratil Infrastructure Property, Qscan, RHCNZ Medical
Imaging, Manawa Energy and Wellington International Airport.
• These disclosures do not provide information in respect of employees
(or former employees) of the portfolio businesses. These businesses
are CDC Data Centres, Galileo, Kao Data, Longroad Energy, and
RetireAustralia.
• These disclosures do not provide information in respect of employees
(or former employees) of Morrison (who include most of the
management team listed on page 12 of this annual report, including
the Chief Executive and Chief Financial Officer), as these employees
are remunerated by Morrison and the only cost to Infratil of these
employees is the Management Fee payable to Morrison.
138
Remuneration bandNumber of employees
$100,000 to $110,000 222
$110,001 to $120,000 345
$120,001 to $130,000 272
$130,001 to $140,000 238
$140,001 to $150,000 120
$150,001 to $160,000 168
$160,001 to $170,000 123
$170,001 to $180,000 87
$180,001 to $190,000 66
$190,001 to $200,000 39
$200,001 to $210,000 46
$210,001 to $220,000 20
$220,001 to $230,000 26
$230,001 to $240,000 22
$240,001 to $250,000 21
$250,001 to $260,000 24
$260,001 to $270,000 20
$270,001 to $280,000 17
$280,001 to $290,000 13
$290,001 to $300,000 5
$300,001 to $310,000 14
$310,001 to $320,000 3
$320,001 to $330,000 13
$330,001 to $340,000 7
$340,001 to $350,000 8
$350,001 to $360,000 5
$360,001 to $370,000 11
$370,001 to $380,000 2
$380,001 to $390,000 4
$390,001 to $400,000 4
$400,001 to $410,000 6
$410,001 to $420,000 4
$420,001 to $430,000 7
$430,001 to $440,000 8
$440,001 to $450,000 4
$450,001 to $460,000 5
$460,001 to $470,000 3
$470,001 to $480,000 7
$480,001 to $490,000 2
$490,001 to $500,000 7
$500,001 to $510,000 2
$510,001 to $520,000 2
$520,001 to $530,000 1
$530,001 to $540,000 1
$540,001 to $550,000 1
$550,001 to $560,000 1
$570,001 to $580,000 2
$580,001 to $590,000 2
$590,001 to $600,000 2
$620,001 to $630,000 2
$650,001 to $660,000 2
$660,001 to $670,000 1
Remuneration bandNumber of employees
$670,001 to $680,000 1
$680,001 to $690,000 1
$720,001 to $730,000 2
$730,001 to $740,000 3
$740,001 to $750,000 1
$750,001 to $760,000 1
$760,001 to $770,0002
$780,001 to $790,0002
$840,001 to $850,000 1
$1,080,001 to $1,090,000 1
$1,180,001 to $1,190,000 1
$1,580,001 to $1,590,000 1
$1,890,001 to $1,900,000 1
Disclosures
Directors Holding Office
Infratil’s Directors as at 31 March 2024 were:
• Alison Gerry (Chair)
• Jason Boyes
• Andrew Clark
• Paul Gough
• Kirsty Mactaggart
• Peter Springford
• Anne Urlwin
Entries in the Interests Register
Statement of Directors’ Interests
As at 31 March 2024, Directors had relevant interests (as defined in the
Financial Markets Conduct Act 2013) in quoted financial products of
Infratil or any related body corporate of Infratil, as follows:
Beneficial
Interests
Non-Beneficial
Interests
Infratil Limited (IFT) ordinary shares
A Clark 304,255
A Gerry 39,637
A Urlwin 16,818
J Boyes 1,054,810
K Mactaggart 76,659
P Gough 222,525
P Springford 50,785
Manawa Energy ordinary shares
K Mactaggart 8,300
IFTHA Bonds
A Clark 205,000
IFT330 Bonds
A Urlwin 56,000
IFT340 Bonds
A Urlwin 57,000
P Springford 40,000
As at 31 March 2024, Directors and Senior Managers held, in aggregate,
0.33% of the Infratil ordinary shares.
139
Dealing in Securities
The following table shows transactions by Directors and Senior
Managers recorded in respect of those securities during the period
from 1 April 2023 to 31 March 2024:
Director
No of securities
bought/(sold)
Cost/(proceeds)
(NZD)
Infratil Limited (IFT) ordinary shares
Andrew Carroll - beneficial
On-market acquisitions - 23/01/2024 17,500 180,369
Initial disclosure - 22/11/2023 97 7
Andrew Clark - beneficial
On-market acquisitions - 22/01/2024 50,528 516,712
On-market acquisitions - 23/01/2024 39,472 408,481
On-market acquisitions - 09/06/2023 25,300 250,194
On-market acquisitions - 09/06/2023 25,300 250,007
On-market acquisitions - 12/06/2023 25,300 248,143
On-market acquisitions - 13/06/2023 25,300 249,425
On-market acquisitions - 13/06/2023 50,600 497,673
Acquisition of shares under IFT's Retail
Offer announced on 7 June 2023 -
04/07/2023 7,455 68,586
Alison Gerry - beneficial
On-market acquisitions - 23/06/2023 516 4,975
On-market acquisitions - 19/06/2023 255 2,475
Acquisition of shares in the placement
announced on 7 June 2023 -
14/06/2023 4,308 39,634
Anne Urlwin - beneficial
On-market acquisitions - 23/01/2024 3,839 39,945
On-market acquisitions - 24/01/2024 411 4,276
On-market acquisitions - 14/06/2023 7,066 69,529
Allotment of shares under Dividend
Reinvestment Plan - 19/12/2023 68 677
Acquisition of shares in the placement
announced on 7 June 2023 -
14/06/2023 5,434 49,993
Jason Boyes - beneficial
Acquisition of shares in the placement
announced on 7 June 2023 -
14/06/2023 118,464 1,089,869
Kirsty Mactaggart - beneficial
On-market acquisitions - 19/06/2023 1,543 14,975
On-market acquisitions - 14/06/2023 2,038 20,000
Acquisition of shares in the placement
announced on 7 June 2023 -
14/06/2023 8,208 75,514
Director
No of securities
bought/(sold)
Cost/(proceeds)
(NZD)
Paul Gough - beneficial
Acquisition of shares in the placement
announced on 7 June 2023 -
14/06/2023 24,992 229,926
Paul Newfield - beneficial
Off-market transfer - 22/01/2024 605,294 6,125,575
Acquisition of shares in the placement
announced on 7 June 2023 -
14/06/2023 67,979 625,407
Acquisition of shares in the placement
announced on 7 June 2023 -
14/06/2023 37,204 342,277
Peter Springford - beneficial
Allotment of shares under Dividend
Reinvestment Plan - 19/12/2023 355 3,534
Acquisition of shares under IFT's Retail
Offer announced on 7 June 2023 -
04/07/2023 5,664 52,109
Phillippa Harford - beneficial
Acquisition of shares in the placement
announced on 7 June 2023 -
14/06/2023 7,733 71,144
Infratil Limited (IFT) Infrastructure
Bonds (IFT330)
Anne Urlwin - beneficial
Acquisition of Infratil Infrastructure
Bonds - 15/09/2023 57,000 57,000
Acquisition of Infratil Infrastructure
Bonds - 21/07/2023 56,000 56,000
Infratil Limited (IFT) Infrastructure
Bonds (IFT340)
Peter Springford - beneficial
Acquisition of Infratil Infrastructure
Bonds - 15/09/202340,00040,000
Use of Company information
During the period the Board has received no notices from any Director of
the Company or its subsidiaries requesting to use company information
received in their capacity as a Director, which would not otherwise have
been available to them.
140
Directors’ Relevant Interests
The following are relevant interests of the Company’s Directors as at
31 March 2024:
A Gerry
Director of Air New Zealand Limited
Director of ANZ Bank New Zealand Limited
Director of Glendora Avocados Limited
Director of Glendora Holdings Limited
Director of On Being Bold Limited
Director of Sharesies Limited
Director of Sharesies AU Group Limited
Director of Sharesies Group Limited
Director of Sharesies Nominee Limited
Director of Sharesies Investment Management Limited
J Boyes
Director of various Infratil wholly owned companies
Director of Infratil Trustee Company Limited
Chair of Longroad Energy Holdings, LLC
Director of CDC Group Holdings Pty Ltd
Director of various companies wholly owned by the
H.R.L. Morrison & Co Group Limited Partnership
Director of Morrison & Co Employee Co-Invest (PIP 2) Limited
Director of Morrison & Co Employee Co-Invest (PIP 3) Limited
Director of Morrison Asian Investments Limited
Director of Morrison Leasing Limited
A Clark
Chair of the Regional Education Support Network
P Gough
Partner of STAR Capital Partners
Director of various STAR Capital Group entities
Director of Star Asset Finance Limited
Director of Gough Capital Limited
Director of OPM Investments Limited
Director of Tipu Capital Limited
Director of Tipu Capital (NZ) Limited
Director of STAR Mayan Limited
Director of Urban Splash Residential Limited and various
Urban Splash Residential Group entities
Director of STAR Errigal BidCo Limited
Director of STAR III Limited
Director of Safair Holdings (Pty) Ltd
Director of Safair Lease Finance (Pty) Ltd
Director of SAFOPS Investment Holdings (Pty) Ltd
Director of STAR Throne Midco Limited
Director of STAR Throne Bidco DAC
Director of ASL Aviation Holdings DAC
Director of STAR III Executive Co-Investment Nominee Limited
Director of STAR Strategic Assets III-A nominee Limited
Director of STAR Strategic Assets III Nominee Limited
Director of STAR Fusion Topco Limited
Director of STAR Fusion Midco Limited
Director of STAR Fusion Bidco Limited
K Mactaggart
Director and shareholder of Luxury Stays Ltd.
Director of Sharesies Investment Management Limited
P Springford
Director and Shareholder of Cerbere Investments Limited
Director and Shareholder of Charlie Farley Forestry Limited
Director and Shareholder of Medicann Investments Limited
Director and Shareholder of Omahu Ventures Limited
Director and Shareholder of Springford and Newick Limited
A Urlwin
Director and Shareholder of Maigold Holdings Limited
Director and Shareholder of Urlwin Associates Limited
Director and Shareholder of Clifton Creek Limited
Director of Vector Limited
Director of Precinct Properties New Zealand Limited
Director of Ventia Services Group Limited
Director of City Rail Link Limited
P Gough
Aotea Energy Limited effected public offering of securities insurance
brokered by Marsh & McLennan Agency Limited for the benefit of
Z Energy Limited, Aotea Energy Investments Limited, Aotea Energy
Holdings Limited and its subsidiaries, NZSF Aotea Limited and its
subsidiaries, Guardians of New Zealand Superannuation as manager and
administrator of the New Zealand Superannuation Fund as shareholder
of NZSF Aotea Limited, Infratil Limited and its subsidiaries, Morrison and its
subsidiaries (subject to a professional indemnity exclusion), and the
directors and employees of the foregoing.
All Directors
Infratil has arranged Directors’ and Officers’ liability insurance covering
any past, present or future director, officer, executive officer, non-
executive director or employee acting in a managerial or supervisory
capacity or named as a co-defendant with Infratil or a subsidiary of Infratil.
Cover is for damages, judgements, fines, penalties, legal costs awarded
and defence costs arising from wrongful acts committed while acting for
Infratil or a subsidiary, but excluding dishonest, fraudulent, malicious acts
or omissions, willful breach of statute or regulations or duty to Infratil or a
subsidiary, improper use of information to the detriment of Infratil or a
subsidiary, or breach of professional duty.
As permitted by its Constitution, Infratil Limited has entered into a deed
of indemnity, access and insurance indemnifying certain directors and
senior employees of Infratil, its wholly-owned subsidiaries and other
approved subsidiaries and investment entities for potential liabilities,
losses, costs and expenses they may incur for acts or omissions in their
capacity as directors or senior employees, and agreeing to effect
directors’ and officers’ liability insurance for those persons, in each case
subject to the limitations set out in the Companies Act 1993.
141
Directors of Infratil Subsidiary Companies
Subsidiary CompanyDirector of Subsidiary
Alpenglow Australia Pty LtdGary Shepherd
ANZ Renewables LimitedPhil Wiltshire
Athena Power Co., Ltd.Ratchaneewan Pulnil, Kajal Bhimani Singh
Auckland Radiology Group Services LimitedMichael Brook, Peter Coman
Australian Sustainable Energy Developments Pty LtdWilliam McIndoe, Peter Cowling, Glen Ryan
Bay Echo LimitedMichael Brook, Peter Coman, Graeme Porter, Stuart Tie, Jonathan Tisch, Calum Young
Bay Radiology LimitedMichael Brook, Peter Coman
Baycity Communications LimitedJason Paris
Berera Radiology Holdings Pty LtdGary Shepherd
Breast Screen Bay of Plenty LtdMichael Brook, Bruce Chisholm, Peter Coman, Antony Moffatt
Canterbury Breast Care LimitedBirgit Dijkstr, Philippa Mercer, Gemma Sutherland, Berenika Willi-Sedlacek
Centurion GSM LimitedChristopher Fletcher, Jason Paris and Thomas Thursby
Cleveland X-Ray Services Pty LtdGary Shepherd
Cyclotek Pharmaceuticals LimitedTrevor Fitzjohn, Gregory Santamaria, Jeremy Sharr, Robert Ware
DEFEND LimitedRalph Brayham, Nigel Everett, Wenzel Huettner, Michael Purchase and Michelle Young
Envision Medical Imaging Pty LtdGary Shepherd
Envision Medical Real Estate Pty LtdGary Shepherd
GE-SK Pte. Ltd.Assaad Razzouk, Robert Driscoll, Michele Boardman
GE-TH Pte. Ltd.Michele Boardman, Stanley Lim
Gurīn Service Korea LLCKim Hannah, Kajal Bhimani Singh
Gurīn Services (Thailand) Co., Ltd.Michele Boardman, Ratchaneewan Pulnil
Gurīn Services Japan K.K.Stanley Lim , Celine Takizawa (Mazars Japan)
Gurīn Services Philippines Inc.Estelito Madridejos, Maria Canimo, Carol Salazar
Gurīn Services Pte. Ltd.Assaad Razzouk, Robert Driscoll, Michele Boardman, Stanley Lim , Mayen Michelle Ekong
Gurīn Solar PH 2 Pte. Ltd. Assaad Razzouk, Robert Driscoll, Michele Boardman, Stanley Lim
Gurīn Solar PH 3 Pte. Ltd.
(formerly known as SRE Green Power Pte. Limited)
Assaad Razzouk, Robert Driscoll, Michele Boardman, Stanley Lim
Gurīn Solar PH 4 Pte. Ltd. Michele Boardman, Stanley Lim
Gurīn Solar PH 5 Pte. Ltd. Michele Boardman, Stanley Lim
Gurīn Solar PH 6 Pte. Ltd. Michele Boardman, Stanley Lim
Gurīn Solar PH I Pte. Ltd.Assaad Razzouk, Robert Driscoll, Michele Boardman, Stanley Lim
Heart Vision LimitedRoss Keenan, Clive Low, Graham Muir
Hikari Solar Inc.Estelito Madridejos, Maria Canimo, Carol Salazar
HR Clinic Asset Pty LtdGary Shepherd
HR Clinic Services Pty LtdGary Shepherd
HR Clinic Services Unit TrustN/A
ICN JV Holdings LimitedMarko Bogoievski, Brett Chenoweth, Phillippa Harford, Alexandra Badenoch
ICN JV LimitedMarko Bogoievski, Brett Chenoweth, Phillippa Harford, Alexandra Badenoch
Ilesilver Pty LtdGary Shepherd
Infratil 1998 LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil 2018 LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil 2019 LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil AR LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
142
Subsidiary CompanyDirector of Subsidiary
Infratil Australia LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil CHC LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil Digital Exchange Limited
(established 8 May 2023)
Jason Boyes (appointed 8 May 2023), and Phillippa Harford (appointed 8 May 2023)
Infratil DX (Singapore) PTE. Ltd.
(established 10 November 2023)
Jason Boyes (appointed 10 November 2023), Phillippa Harford (appointed 10 November
2023), and Wong Fang Shan (appointed 10 November 2023)
Infratil Energy LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil Energy New Zealand LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil Europe LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil Finance LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil HC LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil HPC LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil Infrastructure Property LimitedPeter Coman and Kevin Baker (ceased 6 June 2023)
Infratil Investments LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil No.1 LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil No.5 LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil PPP LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil RE LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil Renewables LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil RHC NZ LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil TowerCo Limited Andrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil Trustee Company LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil US Renewables, Inc.Jason Boyes and Phillippa Harford
Infratil Ventures 2 LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Infratil Ventures LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
J One Solar CorporationKim Hannah, Koh Seung Tae, Kajal Bhimani Singh
J Two Solar CorporationKim Hannah, Koh Seung Tae, Kajal Bhimani Singh
Jindo Green Solar Co., Ltd
(formerly known as J Three Solar Corporation)
Kim Hannah, Koh Seung Tae, Kajal Bhimani Singh
Kanji Solar Inc.Estelito Madridejos, Maria Canimo, Carol Salazar
King Country Energy Holdings LtdPhil Wiltshire
King Country Energy LtdPhil Wiltshire, Todd Mead, Joanna Bransgrove
Lochindorb Wind GP LimitedClayton Delmarter, Jan Jonker, Peter McClean, Richard Spearman
143
Subsidiary CompanyDirector of Subsidiary
Manawa Energy Holdco 1 LimitedPhil Wiltshire
Manawa Energy Insurance Limited
(formerly known as Trustpower Insurance Limited)
Phillippa Harford and Phil Wiltshire
Manawa Energy Limited
(formerly Trustpower Limited)
Joanna Breare, Sheridan Broadbent, Deion Campbell, Phillippa Harford, Michael Smith,
Joe Windmeyer
Manawa Energy Metering Limited
(previously known as Trustpower Metering Limited)
Phil Wiltshire
Manawa Generation Limited (formerly knowns as
Hopsta Limited & Energy Direct NZ Limited)
Phil Wiltshire
Medex Radiology LtdMichael Brook, Peter Coman
Meitaki LimitedMartin Harrington, Matt Clarke and A Willis (based in the Cook Islands)
Mindarra Wind Farm Pty LtdWilliam McIndoe, Peter Cowling, Glen Ryan
Mindarra Wind Farm Unit TrustN/A
Mindarra Wind Holdings Pty LtdWilliam McIndoe, Peter Cowling, Glen Ryan
Mint Renewables Holdings 1 Pty LtdWilliam McIndoe
Mint Renewables Holdings 2 Pty LtdWilliam McIndoe
Mint Renewables Holdings Administration
Company Pty Ltd
William McIndoe
Mint Renewables Holdings Trust 1N/A
Mint Renewables Holdings Trust 2N/A
Mint Renewables Pty LtdWilliam McIndoe, Peter Cowling
Nilgen Pty LtdWilliam McIndoe, Peter Cowling, Glen Ryan
Nilgen Wind Farm Unit TrustN/A
North Coast Radiology Holdings Pty LtdGary Shepherd
North Coast Radiology TrustN/A
Northern Suburbs Investment TrustN/A
Northwest Auckland Airport LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
NZ Airports LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
One New Zealand Group LimitedJuliet Jones, Jason Paris, Nick Judd
Pacific Radiology Group LimitedMichael Brook, Peter Coman
Premier Medical Imaging Pty LtdGary Shepherd
Proximal Pty LtdGary Shepherd
PT Vanda Energy IndonesiaDiko Dewantomo Darwoto, Jeremy Chong, Enda Ersinallsal Ginting
PT Vanda Services IndonesiaDiko Dewantomo Darwoto, Jeremy Chong, Enda Ersinallsal Ginting
Qscan Cleveland CT JV Pty LtdGary Shepherd
Qscan Dental JV Pty LtdMark Hansen, Hal Rice
Qscan Everton Park CT JV Pty LtdGary Shepherd
Qscan Everton Park Pty LtdGary Shepherd
Qscan Group Bidco Pty LtdGary Shepherd
Qscan Group Midco Pty LtdGary Shepherd
Qscan Group Pty LtdGary Shepherd
Qscan Intermediary 1 Pty Ltd
(formerly Qscan Group Holdings Pty Ltd)
Gary Shepherd
Qscan Intermediary 2 Pty Ltd
(formerly Qscan Mezzco Pty Ltd)
Gary Shepherd
Qscan Intermediary 3 Pty Ltd
(formerly Qscan Finance Pty Ltd)
Gary Shepherd
144
Subsidiary CompanyDirector of Subsidiary
Qscan Intermediary 4 Pty Ltd
(formerly Qscan Bidco Pty Ltd)
Gary Shepherd
Qscan NZ LimitedMichael Brook
Qscan Pty LtdGary Shepherd
Qscan Services Pty LtdGary Shepherd
Queensland Cardiovascular Imaging Pty LtdMark Hansen, Hal Rice
Rangitata Diversion Race Management LimitedNeil Brown, Evan Chisnall, Jen Crawford, Matt James, Phil Lowe, Richard Spearman
Red Gully North Pty LtdWilliam McIndoe, Peter Cowling, Glen Ryan
Red Gully North Wind Farm Pty LtdWilliam McIndoe, Peter Cowling, Glen Ryan
Red Gully North Wind Farm Unit TrustN/A
Red Gully South Pty LtdWilliam McIndoe, Peter Cowling, Glen Ryan
Red Gully South Wind Farm Pty LtdWilliam McIndoe, Peter Cowling, Glen Ryan
Red Gully South Wind Farm Unit TrustN/A
Renew Nominees LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
RHCNZ LimitedMichael Brook, Peter Coman
RHCNZ Midco LimitedMichael Brook, Peter Coman
Rosa RE Pte. Ltd. Jeremy Chong, Michele Boardman, Gareth Swales, Lee Yeow Chor
(alternate director: Amir Mohd Hafiz Bin Amir Khalid)
ScreenSouth Ltd
(Shares held by Canterbury Breast Care Ltd)
Shelley Boyd, Diana Burgess, Jacqueline Copland, Lynda Gray, Keiran Horne,
Gemma Sutherland
Shizen Inc.Estelito Madridejos, Carol Salazar, Kajal Bhimani Singh, Jeremy Chong, Jose Leviste, Jr.
Sindicatum C-Solar Power Inc.Estelito Madridejos, Carol Salazar, Kajal Bhimani Singh, Jeremy Chong, Jose Leviste, Jr.
Skynet Broadband Pty LtdMatthew Swain
South East Radiology Pty LtdGary Shepherd
Stella Power 1 Co., Ltd.Ratchaneewan Pulnil, Kajal Bhimani Singh, Somkiat Masunthasuwun, Prapon Chinudomsub,
Akarin Prathuangsit
Stella Power 2 Co., Ltd.Ratchaneewan Pulnil, Kajal Bhimani Singh, Somkiat Masunthasuwun, Prapon Chinudomsub,
Akarin Prathuangsit
Stella Power 3 Co., Ltd.Ratchaneewan Pulnil
Strickland Crescent Nominees Pty LtdJulian Adler, Gary Shepherd
Suna Solar Inc.Estelito Madridejos, Carol Salazar, Kajal Bhimani Singh, Jeremy Chong, Jose Leviste, Jr.
Swift Transport LimitedAndrew Carroll (appointed 14 February 2024), Jason Boyes and Phillippa Harford
(ceased 14 February 2024)
Te Rourou, Vodafone Aotearoa Foundation Tāpui
(Limited)
Christopher Fletcher, Jennifer Gill, David Graham, Juliet Jones, Jodie King and Kirstin Te Wao
The Northern Exposure TrustN/A
Tiro Medical Ltd
(Shares held by Canterbury Breast Care Ltd)
James Chase, Colin Dawson, Richard Wien
UMI Canberra Unit TrustN/A
UMIC Newco Pty LtdGary Shepherd
UMIC Pty LtdGary Shepherd
Vanda RE Pte. Ltd. Michele Boardman, Robert Driscoll, Emma Biddles, Jeremy Chong,
Syed Malek Faisal Syed Mohamad, Lim Jui Kian
Wellington Airport Noise Treatment LimitedMartin Harrington and Matt Clarke
Wellington International Airport LimitedRachel Drew, Elizabeth Albergoni, Wayne Eagleson, Matthew Ross, Phil Walker, and
Tory Whanau
Whare Manaakitanga LimitedMartin Harrington and Matt Clarke
X Radiology Australia Pty LtdGary Shepherd
145
Directors’ Fees paid by Infratil Subsidiary Companies
(Not otherwise disclosed in the Annual Report)
Subsidiary companyDirector of subsidiaryCurrency2024
Gurīn Energy Pte. LtdVimal Vallabh (Chair)USD 75,000
Priya GrewalUSD 37,500
Anthony MuhUSD 75,000
Jonty PalmerUSD 75,000
Winnie TangUSD 24,497
Assaad RazzoukUSD -
Angela QuUSD 42,500
Qscan Group Holdings
Pty Ltd
Peter Coman (Chair)AUD -
Rachel DrewAUD -
Lilan BianchiAUD 84,360
Dr Jason YeoAUD 56,240
Dr Ian CappeAUD 133,570
Dr Mark HansenAUD 156,782
Dr Rajeev JyotiAUD -
Dr Tanya WoodAUD 56,034
John LivingstonAUD 172,151
Alan McCarthyAUD 126,540
RHC Holdco NZ Limited
Peter Coman (Chair)NZD 60,000
Michael BrookNZD 60,000
Dr Andrew GoodingNZD 60,000
Dr Nick KenningNZD 60,000
Alan McCarthyNZD 80,000
Dr Katherine O'ConnorNZD 58,846
Rachel Drew
NZD 60,000
Manawa Energy Limited
Deion Campbell (Chair)NZD 159,409
Paul Ridley-SmithNZD 36,129
Kevin BakerNZD 55,699
Joanna BreareNZD 116,788
Sheridan BroadbentNZD 119,974
Michael SmithNZD 100,000
Phillippa HarfordNZD 73,105
Joe Windmeyer
NZD 69,892
Wellington International
Airport Limited
Rachel Drew (Chair)NZD 168,036
Wayne EaglesonNZD 104,298
Matthew RossNZD 104,298
Tory WhanauNZD 86,915
Phillippa HarfordNZD 25,350
Phillip WalkerNZD 98,504
Elizabeth Albergoni
NZD 67,359
Subsidiary companyDirector of subsidiaryCurrency2024
Mint Renewables
Limited
Deion Campbell (Chair)AUD 75,000
Will McIndoeAUD 75,000
Priya GrewalAUD 75,000
Clayton Delmarter
AUD 62,500
One New ZealandPhillippa Harford (Chair)NZD -
Marko BogoievskiNZD -
Brett ChenowethNZD -
Alex BadenochNZD 7,292
Donations
The Group made donations of $3.3 million during the year ended
31 March 2024 (2023: $0.7 million).
Auditors
It is proposed that KPMG be reappointed automatically at the annual
meeting pursuant to section 200(1) of the Companies Act 1993.
NZX Waivers
Infratil was granted and has relied on the following waivers from the NZX
Listing Rules (all of which are available on Infratil's website: www.infratil.
com/for-investors/announcements):
• On 22 May 2020, Infratil was granted a standing waiver from NZX
Listing Rule 5.2.1 (this was originally granted on 8 May 2017 from the
previous NZX Listing Rule 9.2.1 and was re-documented under NZX’s
transition arrangements for the current NZX Listing Rules). The effect
of the waiver is to waive the requirement for Infratil to obtain an
Ordinary Resolution from shareholders to enter into a Material
Transaction with a Related Party to the extent required to allow Infratil
to enter into transactions with co-investors that have also engaged an
entity related to H.R.L. Morrison & Co Group LP for investment
management or advisory services. The waiver is provided on the
conditions specified in paragraph 2 of the waiver decision. Infratil has
not relied on this waiver during Financial Year 2024.
• On 26 June 2020, Infratil was granted a standing waiver from NZX
Listing Rule 7.8.5(b) to the extent that rule would otherwise require
Infratil to prepare an appraisal report to accompany any Notice of
Meeting at which shareholders will consider and vote on, an Ordinary
Resolution in accordance with NZX Listing Rule 4.1.1 and NZX Listing
Rule 4.2.1, to approve a proposal for the issue of Infratil ordinary shares
to Morrison by way of satisfaction of Infratil’s contractual obligation to
pay Incentive Fees to Morrison in accordance with the prescribed
payment mechanisms set out in the Management Agreement. The
waiver is provided on the conditions specified in paragraph 5 of the
waiver decision. During Financial Year 2024, Infratil relied on this waiver
in seeking approval from shareholders at the 2023 Annual Meeting to
give the Board the option to exercise Infratil’s rights under the
Management Agreement to issue shares to Morrison to pay the
second instalment of the Financial Year 2023 international portfolio
annual incentive fee and/or the third instalment of the Financial Year
2022 international portfolio annual incentive fee in 2024.
NZX Corporate Governance Code
Infratil considers that, during Financial Year 2024, Infratil materially
complied with the NZX Code, but from time to time there may be
recommendations which Infratil does not consider appropriate for it,
and where it has adopted alternative arrangements which the Board
considers are more appropriate.
146
Recommendation 5.3 states that an issuer should disclose the
remuneration arrangements in place for the CEO in its annual report.
Infratil does not disclose remuneration for the CEO in the Annual Report
for the reasons set out in the Corporate Governance Statement.
Credit Rating
Infratil does not have a credit rating. As at 31 March 2024, Wellington
International Airport Limited has a BBB/Stable/A-2 rating from
S&P Global Ratings.
Continuing share buyback programme
Infratil maintains an ongoing share buyback programme, as outlined in
its 2023 Notice of Meeting. Infratil did not repurchase any shares during
Financial Year 2024 pursuant to that programme (which allows up to
20,000,000 shares to be bought back).
Shareholder information programme
Infratil is incorporated in New Zealand and is not subject to Chapters 6,
6A, 6B and 6C of the Australian Corporations Act 2001. The acquisition
of securities in Infratil may be limited under New Zealand law by the
Takeovers Code (which restricts the acquisition of control rights of more
than 20% of Infratil other than via a takeover offer under the Code) or the
effect of the Overseas Investment Act 2005 (which restricts the
acquisition of New Zealand assets by overseas persons).
Substantial Product Holders
The following information is pursuant to Section 293 of the Financial
Markets Conduct Act 2013. According to notices received by Infratil
under that Act, there were no substantial product holders in Infratil as
at 31 March 2024.
The total number of voting securities of the Company on issue as
at 31 March 2024 were 832,567,631 fully paid ordinary shares
(31 March 2023: 723,983,582).
On 1 May 2024, FirstCape Group Limited advised that it became a
substantial product holder with a 6.14% interest in Infratil, following the
FirstCape Group Limited acquisition of Jarden Wealth Limited, Harbour
Asset Management Limited, BNZ Investment Services Limited, and
JBWere (NZ) Pty Limited.
Twenty Largest Shareholders as at 31 March 2024
HSBC Nominees (New Zealand) Limited 57,809,981
Bnp Paribas Nominees NZ Limited Bpss40 51,319,515
Tea Custodians Limited 49,658,927
Citibank Nominees (Nz) Ltd 38,028,538
Custodial Services Limited 36,464,044
Forsyth Barr Custodians Limited 35,087,016
HSBC Nominees (New Zealand) Limited 35,022,662
JPMORGAN Chase Bank 31,077,354
FNZ Custodians Limited 29,007,655
Accident Compensation Corporation 28,158,136
New Zealand Superannuation Fund Nominees Limited 24,854,764
HSBC Custody Nominees (Australia) Limited 23,480,053
JBWERE (Nz) Nominees Limited 19,282,994
Morrison & Co Property Investment Limited 19,049,719
Robert William Bentley Morrison & Andrew Stewart &
Anthony Howard 16,367,141
New Zealand Permanent Trustees Limited 15,733,948
New Zealand Depository Nominee 12,816,051
Premier Nominees Limited 11,963,384
Citicorp Nominees Pty Limited 10,644,587
National Nominees Limited 8,720,103
Spread of Shareholders as at 31 March 2024
Number
of shares*
Number of
holders
Total
shares held%
1 - 1,000 5,727 2,536,669 0.3%
1,001 - 5,000 8,299 21,627,680 2.6%
5,001 - 10,000 3,495 25,185,651 3.0%
10,001 - 50,000 3,717 75,293,511 9.0%
50,001 - 100,000 411 28,342,021 3.4%
100,001 and over 244 679,582,099 81.7%
TOTAL 21,893 832,567,631 100.0%
* 303 shareholders hold less than a marketable parcel of Infratil shares
Twenty Largest Infrastructure Bondholders as at 31 March 2024
Forsyth Barr Custodians Limited 193,891,665
JBWERE (Nz) Nominees Limited 184,636,166
Custodial Services Limited 150,198,713
FNZ Custodians Limited 113,893,993
New Zealand Central Securities 75,810,566
Hobson Wealth Custodian Limited 56,339,167
Investment Custodial Services Limited 31,875,178
Pin Twenty Limited 13,804,166
Forsyth Barr Custodians Limited 10,899,839
The Tindall Foundation 10,165,000
Rgtkmt Investments Limited 8,250,000
NZX WT Nominees Limited 7,340,886
Forsyth Barr Custodians Limited 6,951,224
FNZ Custodians Limited 6,259,780
JBWERE (Nz) Nominees Limited 6,000,000
Frank Simon Pearson & Sam Lindley Pearson 3,985,591
Adminis Custodial Nominees Limited 3,910,770
Tappenden Holdings Limited 3,770,000
Gareth Samuel Morgan & Gareth Huw Thomas
Morgan & Mark Daniel Mcguiness 3,577,000
Hobson Wealth Custodian Limited 3,100,000
Spread of Infrastructure Bondholders as at 31 March 2024
Number
of bonds
Number of
holders
Total
bonds held%
1 - 1,000 2 2,000 -
1,001 - 5,000 1,143 5,657,696 0.4%
5,001 - 10,000 3,041 29,105,600 2.0%
10,001 - 50,000 8,424 237,858,751 16.1%
50,001 - 100,000 1,431 115,586,949 7.8%
100,001 and over 879 1,084,788,346 73.7%
TOTAL 14,920 1,472,999,342 100.0%
147
Directors
Alison Gerry (Chair)
Jason Boyes
Andrew Clark
Paul Gough
Kirsty Mactaggart
Peter Springford
Anne Urlwin
Company Secretary
Brendan Kevany
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/-. Morrison Private Markets
Level 31
60 Martin Place
Sydney NSW 2000
Telephone: +61 2 8098 7500
Manager
Morrison Infrastructure Management Limited
5 Market Lane
PO Box 1395
Wellington
Telephone: +64 4 473 2399
Internet address: www. morrisonglobal.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
44 Bowen Street
PO Box 996
Wellington 6140
Legal Advisors
Chapman Tripp
20 Customhouse Quay
PO Box 993
Wellington 6140
Directory
148
---
Notes20242023
$000$000
Dividends received from subsidiary companies-115,000
Subvention income--
Operating revenue247,402240,328
Total revenue247,402355,328
Directors' fees 1,5151,101
Management and other fees 13215,693233,862
Other operating expenses 430,4405,988
Total operating expenditure247,648240,951
Operating surplus/(loss) before financing, derivatives, realisations and impairments(246)114,377
Net gain/(loss) on foreign exchange and derivatives(18)29
Net realisations, revaluations and (impairments)-71
Financial income 13326,641173,937
Financial expenses(79,948)(65,626)
Net financing income246,693108,311
Net surplus before taxation246,429222,788
Taxation expense6(2,095)3,827
Net surplus for the year 244,334226,615
Total other comprehensive income after tax--
Total comprehensive income for the year244,334226,615
The accompanying notes form part of these financial statements.
Infratil Limited
Statement of Comprehensive Income
For the year ended 31 March 2024
1
DocuSign Envelope ID: DB65D522-CE78-4466-AD66-F618DF49FA74
NotesCapitalOther reserves
Retained
earningsTotal
$000$000$000$000
Balance as at 1 April 20231,050,002-242,1031,292,105
Total comprehensive income for the year
Net surplus for the year--244,334244,334
Other comprehensive income after tax
----
Total other comprehensive income----
Total comprehensive income for the year--244,334244,334
Contributions by and distributions to owners
Share buyback----
979,906--979,906
Shares issued under dividend reinvestment plan6,746--6,746
Conversion of executive redeemable shares----
Reserves transferred from amalgamated company----
Dividends to equity holders 3--(149,508)(149,508)
Total contributions by and distributions to owners986,652-(149,508)837,144
Balance as at 31 March 20242,036,654-336,9292,373,583
Balance as at 1 April 20221,050,002-122,4081,172,410
Total comprehensive income for the year
Net surplus for the year--226,615226,615
Other comprehensive income after tax
----
Total other comprehensive income----
Total comprehensive income for the year--226,615226,615
Contributions by and distributions to owners
Share buyback----
Shares issued----
----
Conversion of executive redeemable shares----
Reserves transferred from amalgamated company--28,79128,791
Dividends to equity holders 3--(135,711)(135,711)
Total contributions by and distributions to owners--(106,920)(106,920)
Balance at 31 March 20231,050,002-242,1031,292,105
The accompanying notes form part of these financial statements.
Infratil Limited
Fair value movements in relation to executive share scheme
Shares issued
Fair value movements in relation to executive share scheme
Shares issued under dividend reinvestment plan
Statement of Changes in Equity
For the year ended 31 March 2024
Statement of Changes in Equity
For the year ended 31 March 2023
2
DocuSign Envelope ID: DB65D522-CE78-4466-AD66-F618DF49FA74
Notes20242023
$000$000
Cash and cash equivalents--
Prepayments and sundry receivables3,3592,233
International Portfolio Incentive fees receivable from subsidiaries 13158,647164,132
Advances to subsidiary companies 133,246,7832,005,433
Current assets3,408,7892,171,798
International Portfolio Incentive fees receivable from subsidiaries 13117,430146,317
Deferred tax 624,38421,690
Investments 13585,529585,529
Non-current assets727,343753,536
Total assets4,136,1322,925,334
Bond interest payable6,4324,556
Accounts payable9,7206,680
Accruals and other liabilities5,4105,788
International Portfolio Incentive fees payable 13158,647158,647
Infrastructure bonds 7156,097121,954
Total current liabilities336,306297,625
International Portfolio Incentive fees payable 13117,430146,318
Infrastructure bonds 71,076,896957,368
Perpetual Infratil Infrastructure bonds 7231,917231,917
Non-current liabilities1,426,2431,335,603
Attributable to shareholders of the Company2,373,5831,292,105
Total equity2,373,5831,292,105
Total equity and liabilities4,136,1322,925,334
Approved on behalf of the Board on 20 May 2024
Director Director
The accompanying notes form part of these financial statements.
As at 31 March 2024
Statement of Financial Position
Infratil Limited
3
DocuSign Envelope ID: DB65D522-CE78-4466-AD66-F618DF49FA74
Notes20242023
$000$000
Cash flows from operating activities
Cash was provided from:
Dividends received from subsidiary companies-115,000
Subvention income--
Interest received326,641173,937
Operating revenue receipts152,009171,856
478,650460,793
Cash was dispersed to:
Interest paid(75,917)(63,553)
Payments to suppliers(145,256)(169,792)
Taxation (paid) / refunded(4,789)(5,206)
(225,962)(238,551)
Net cash flows from operating activities 10252,688222,242
Cash flows from investing activities
Cash was provided from:
Net movement in subsidiary company loan--
--
Cash was dispersed to:
Net movement in subsidiary company loan(1,181,350)(7,298)
(1,181,350)(7,298)
Net cash flows from investing activities(1,181,350)(7,298)
Cash flows from financing activities
Cash was provided from:
Proceeds from issue of shares926,653-
Issue of bonds277,248115,919
1,203,901115,919
Cash was dispersed to:
Repayment of bonds(122,104)(193,696)
Infrastructure bond issue expenses(3,627)(1,457)
Repurchase of shares--
Dividends paid 3(149,508)(135,710)
(275,239)(330,863)
Net cash flows from financing activities928,662(214,944)
Net cash movement --
Cash balances at beginning of year--
Cash balances at year end--
The accompanying notes form part of these financial statements.
For the year ended 31 March 2024
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.
Infratil Limited
Statement of Cash Flows
4
DocuSign Envelope ID: DB65D522-CE78-4466-AD66-F618DF49FA74
(1) Accounting policies
(A) Reporting Entity
(B) Basis of preparation
Accounting estimates and judgements
(a) Valuation of investments
(b) Accounting for income taxes
(C) Taxation
(D) Impairment of assets
(E) Borrowings
Preparation of the financial statements requires management to make estimates as to, amongst other things, the amount of tax that will ultimately be payable,
the availability of losses to be carried forward and the amount of foreign tax credits that it will receive. Actual results may differ from these estimates as a result of
reassessment by management and/or taxation authorities.
Income tax comprises both current and deferred tax. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the balance date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognised in respect of the differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the carrying amounts used for taxation purposes.
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates
enacted or substantively enacted at the balance sheet date. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits or
deferred tax liabilities will be available within the Company against which the asset can be utilised.
At each reporting date, the Company reviews the carrying amounts of its investments and advances, to determine whether there is any indication that those
assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss (if any). Where the asset does not generate cash flows that are independent from other assets, the Company estimates the recoverable amount
of the cash-generating unit to which the asset belongs.
Borrowings are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition, borrowings are measured at amortised cost with any
difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the borrowing using the
effective interest rate. Fees and other costs incurred in arranging debt finance are capitalised and amortised over the term of the relevant debt facility.
Infratil Limited
The financial statements comprise statements of the following: comprehensive income; financial position; changes in equity; cash flows; significant accounting
policies; and the notes to those statements. These are the separate stand alone financial statements of the Parent entity. Reference should be made to the
consolidated financial statements of Infratil Group Limited for the Group position. The financial statements are prepared on the basis of historical cost.
Notes to the Financial Statements
For the year ended 31 March 2024
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.
The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (‘NZ GAAP’) and comply with New Zealand
equivalents to International Financial Reporting Standards ('NZ IFRS') and other applicable financial reporting standards as appropriate for profit-oriented entities.
The presentation currency used in the preparation of these financial statements is New Zealand dollars, which is also the Company's functional currency, and is
presented in $ thousands unless otherwise stated. The principal accounting policies adopted in the preparation of these financial statements are set out below.
These policies have been consistently applied to all the periods presented, unless otherwise stated. To aid comparability certain balance sheet items have been
represented from those reported in prior years to conform to the current year’s presentation. Total equity remains unchanged.
The preparation of financial statements in conformity with NZ IFRS requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Future outcomes
could differ from those estimates. The principal areas of judgement in preparing these financial statements are set out below.
Infratil completes an assessment of the carrying value of investments at least annually and considers objective evidence for impairment on each investment
taking into account observable data on the investment, the fair value, the status or context of capital markets, its own view of investment value, and its long term
intentions. Infratil notes the following matters which are specifically considered in terms of objective evidence of impairment of its investments, and whether
there is a significant or prolonged decline from cost, which should be recorded as an impairment, and taken to profit and loss: any known loss events that have
occurred since the initial recognition date of the investments, including its long term investment horizon, specific initiatives which reflect the strategic or
influential nature of its existing investment position and internal valuations; and the state of financial markets. The assessment also requires judgements about
the expected future performance and cash flows of the investment.
5
DocuSign Envelope ID: DB65D
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