Ann: FLLYR: IFT: Infratil Results Year Ended 31 M

• Release Date: 15/05/12 10:51
• Summary: FLLYR: IFT: Infratil Results Year Ended 31 March 2012
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IFT
15/05/2012 08:51
FLLYR

REL: 0851 HRS Infratil Limited

FLLYR: IFT: Infratil Results Year Ended 31 March 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      David Newman
Chief Executive      Chairman
End CA:00222854 For:IFT    Type:FLLYR      Time:2012-05-15 08:51:58