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Infratil Results for the Year Ended 31 March 2012

15 May 2012

Highlights for the full year result ended 31 March 2012:

• Strong 2nd half momentum carried the full year EBITDAF(1) from continuing operations to $520 million from $471 million in the prior year.
• Group net profit after tax rose 6% to $127.0 million. Adjusted net profit after tax was $134 million, up 12% on the prior year.
• $246 million of capital expenditure invested in future growth across the group.
• 2012/13 outlook for EBITDAF in the range of $530 - $560 million.
• Final dividend of 5.0 cents per share, up 18% on the prior year.

Infratil today announced a reported net surplus after tax of $127.0m for the year ended 31 March 2012, up 6.2% on the prior year. Given the strong momentum in the business and the solid capital position the Board today declared a final dividend of 5.0 cents per share bringing the total dividend for FY12 to 8.0 cents per share, up from 6.75 cents previously.

Over the last year the priority has been disciplined growth and operation. In difficult markets it is tempting to chase market share, to postpone development, to harvest rather than sow. Infratil and its businesses continue to balance the requirement to invest in the long term while delivering current performance and yield.

A great deal of work has gone into developing and executing investment options. The group’s capital spending was $246 million(2) and is expected to grow next year, before taking into account the potential for TrustPower’s very substantial Snowtown II project. Over the medium term infrastructure businesses deliver higher earnings and value from growth investment so the pipeline of activity is crucial.

In addition to the $246 million investment in facilities, the group also invested $39 million repurchasing shares (Infratil $34 million and TrustPower $5 million).

Operational discipline has meant ensuring that the basics are done well, services are fairly priced, and that businesses pursue profitable growth. Across most of Infratil’s markets; energy in Australia and New Zealand and fuel and air travel in New Zealand demand has been relatively flat and the priority is to keep meeting user needs effectively and efficiently without losing sight of the long-term. Public transport in Auckland is one exception to this markets picture and NZ Bus is working with Auckland Transport to meet and encourage growing user demand.

(1) EBITDAF is Earnings before interest, tax, depreciation, amortisation and movements in the value of financial derivatives.

(2) Capital investment includes 100% of that undertaken by Z Energy

Financial Highlights

• EBITDAF from continuing operations of $520 million was up from $471 million the previous year. Infratil Airports Europe has been classified as held for sale and accordingly is disclosed separately as discontinued operations (including restating the prior year). This increased reported EBITDAF by $12 million this year and $11 million the previous year.
• Group net profit after tax was $127 million, up from $120 million the previous year. Adjusted group profit, which removes the impact of fair value gains on acquisitions, revaluations, changes to tax rates, and discontinued operations, was $134 million, up from $119 million previously.
• Net surplus attributable to Infratil $52 million. Previously $65 million.
• 5 cents per share dividend will be paid on 15 June to shareholders as at 1 June.
• Over the year $99 million of Infratil infrastructure bonds matured and were refinanced. Bank facilities were maintained. The 100% Infratil group has dated debt as a percentage of debt and equity market value of 41% from 39% a year prior. Bank debt is 15% from 12%. While substantial facilities remain unutilised, debt is treated with caution. The paramount rule is to maintain resilience and flexibility with regards to funding.
• Over the year Infratil issued 3 million shares for $5 million under its dividend reinvestment plan and repurchased 19 million shares on market for $34 million.
• Over the year Infratil’s ownership changed slightly with management lifting its interest from 10% to 13% and local ownership rising to approximately 77%.

Looking Forward

Infratil’s strong current position and earnings momentum reflects how the group has prioritised capital to deliver disciplined growth in a difficult commercial and financial markets environment. The group’s capital structure anticipates on-going volatility in the capital markets while enabling continuation of our long-term investment programmes. Infratil’s businesses are operating well and are well placed to grow. The people behind these results remain energetic and committed.

For the financial year to 31 March 2013 Infratil’s earning and cashflow guidance is:

• Consolidated EBITDAF from continuing operations to rise to $530-$560 million from $510 million (normalised for Z Energy CCS adjustment).
• Consolidated operating cash flow to rise to $260-$290 million from $196 million.
• Investment spending of $240-$280 million from $246 million, before including Snowtown II (and including 100% of Z Energy).

Management have also initiated formal processes to sell Infratil’s two remaining European airports and continue to review targeted sectors for new investment opportunities.

Marko Bogoievski Chief Executive
David Newman Chairman

Infratil Results Announcement in full

Infratil Results Presentation

Infratil Results Breakdown

Infratil Ltd Audited Financial Statements for the Year Ended 31 March 2012

Auditors Independence Declaration