Delivering: Profits & Reinvestment - Infratil Interim Report 2021
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Infratil
Interim Report
2021
Delivering:
Profits &
Reinvestment
1
2
Six Month
Score Card
April May June
Jason Boyes succeeds After almost 30 years, Vodafone Infratil pays a 11.5cps final cash
Marko Bogoievski as CEO effective shut down its dial-up internet service dividend for FY2021 (and 3.5 cps
from 1 April 2021. Jason is the third on 31 May 2021. imputation credits).
CEO in Infratil’s 27 year history. Infratil announces a new offer of Trustpower announces the
Wellington Airport welcomes its first Infrastructure Bonds maturing in conditional sale of its utility retail
trans-Tasman, quarantine-free flight December 2027 with a coupon of business to Mercury Energy for
in over a year. 3.60% per annum. $441 million.
Tilt Renewables sale price increased Infratil undertakes the acquisition CDC achieves ‘Certified Strategic’
from NZ$7.80 to NZ$8.10 per share. of a 53.5% stake in Pacific Radiology accreditation under the Australian
for $313.6 million. Federal Government’s hosting
framework across all its Australian
data centre facilities.
RetireAustralia officially opens its first
vertical village, The Verge, which
overlooks the Burleigh golf course.
July August September
Longroad Energy completes Infratil completes the $2.0 billion Infratil announces a US$233 million
construction on the 199MW sale of its 65.15% stake in investment to establish Gurīn Energy,
Sun Streams 2 solar project Tilt Renewables. a renewable energy development
in Arizona. platform headquartered in Singapore
Trustpower announces its new
which will focus on projects across
Pacific Radiology opens two new generation business name,
Asia.
clinics in Rolleston and Wellington Manawa Energy.
with continued investment in leading Infratil commits £120-130 million of
The New Zealand Government
high-tech medical equipment. growth capital to London data centre
reinstates Covid-19 restrictions
business Kao Data.
The New Zealand Government across the country.
suspends trans-Tasman, quarantine- Wellington Airport issues $125 million
Vodafone adds Manawatū-
free flights. of 3.32% 10-year bonds.
Whanganui to its 5G coverage.
Infratil announces its investment in
Longroad commences construction
Auckland Radiology Group on
of 26MW distributed solar project
4 October.
in Maine and completes construction
of the 331MW Prospero 2 solar project
in Texas.
1Corporate
Structure
Shareholders
Shareholders
Bondholders
Bondholders
100% owned
Banks
Funding Subsidiaries
F
Energy Healthcare Airport Connectivity Data Social/Other
Energy Healthcare Airport Connectivit
51% Infratil 56% Infratil 66% Infratil 49.9% Infratil 48% Infratil 50% Infratil
27% Tauranga Energy 30% Doctors and Staff 34% Wellington 51%Brookfield
49.9% Infratil 56% Infratil
24% Commonwealth 50%66%
NewInfratil
Zealand 49.9% Infratil
Consumer Trust 14% MGIF City Council 27% Tauranga
Asset Energy
Management 30%Superannuation
Doctors and Staff 34% Wellington
Superannuation Fund 49.9% Brookfield
Consumer Trust 14% MGIF
Corporation City Council Asset Manageme
24% Future Fund
4% Management Infratil Infrastructure
Property
40% Infratil
Clearvision Fund
40% New Zealand 40% Infratil
Superannuation Fund 40% New Zealand
20% Management Superannuation Fund
51% Infratil * 20% Management 40% Infratil *
49% Doctors and Staff 30% 51% Infratil
Legal *
& General
49% 30%
Doctors and Staff
Goldacre
* Target shareholding
* Target shareholding
40% Infratil
20% Commonwealth 40% Infratil
Superannuation 20% Commonwealth
Corporation Superannuation
20% New Zealand Corporation
Superannuation Fund 20% New Zealand
20% MGIF Superannuation Fund
20% MGIF
95% Infratil
5% Management 95% Infratil
5% Management
Sectors Capital Structure
Renewable Energy
Airport
Digital Infrastructure Net bank debt and dated bonds
Social Infrastructure & Healthcare Perpetual bonds
Equity (market value)
2Financial
Highlights
Infratil has continued to perform The net parent surplus for the six months Over the period Infratil continued to
strongly despite the challenges ended 30 September 2021 was invest, with $833.8 million invested either
posed by the pandemic. Many $1,080.6 million, up from $27.8 million in through its portfolio companies, or directly.
of Infratil’s companies provide the prior period. The key contributor to This included the acquisition of Pacific
the surplus was the $1,014.7 million gain Radiology ($313.6 million), the acquisition
essential services and are
recorded on the sale of Tilt Renewables. of a stake in Kao Data ($73.6 million) and
demonstrating their resilience
A detailed overview of the 23-year history the establishment of Gurīn Energy. These
and the benefits of Infratil’s of Infratil’s investment in Tilt Renewables investments were focused across Infratil’s
diversification. was provided in Infratil’s most recent core platforms, Digital Infrastructure,
Annual Report, dating back to the Renewables and Social Infrastructure.
construction of the Tararua Wind Farm.
30 September 2021 30 September 2020
Net parent surplus $1,080.6 million $27.8 million
Proportionate EBITDAF 1 $253.6 million $197.9 million
Proportionate capital expenditure 2 $833.8 million $488.9 million
Net debt 3 $280.9 million $1,389.6 million
6.50 cps cash 6.25 cps cash
Dividends declared 2.53 cps imputation 1.75 cps imputation
Shareholder returns (6 months) 13.2% 32.1%
1. EBITDAF is a non-GAAP measure of net earnings before interest, tax, depreciation, amortisation, financial derivative movements, revaluations, and
non-operating gains or losses on the sales of investments and assets. EBITDAF does not have a standardised meaning and should not be viewed in isolation,
nor considered a substitute for measures reported in accordance with NZ IFRS, as it may not be comparable to similar financial information presented by
other entities. Proportionate EBITDAF shows Infratil’s operating costs and its share of the EBITDAF of the companies it has invested in. It excludes discontinued
operations and management incentive fees. A reconciliation of net profit after tax to Proportionate EBITDAF is provided in the 30 September 2021 Interim
Results Presentation.
2. Infratil's share of the capital expenditure of investee companies, and investments made by Infratil.
3. Infratil Corporate and 100% subsidiaries.
3Report of the
Chief Executive
Capital allocation. Business
efficiency. Risk management
Our approach to delivering good risk-
adjusted returns for shareholders has
three key aspects; Capital allocation.
Business efficiency. Risk management.
To comment on CDC, as Infratil’s largest
investment, and medical diagnosis as
the newest.
When we acquired 48% of CDC in
FY2017 for $411.5 million the company
had 40MW of capacity and earnings
of $50 million. The most recent
independent valuation of CDC at
30 June 2021 valued Infratil’s investment
in the range of A$2.3–2.5 billion.
A$1 billion of construction is underway
with more to follow. Earnings’ risk has been
materially reduced by contracting
long-term utilisation of facilities. And CDC
is achieving best-in-class construction
and operating efficiency and
environmental impact, as measured by
use of water for cooling and procurement
of renewably generated electricity.
Over the last year we invested
$686.9 million acquiring shareholdings in
Qscan, Pacific Radiology and Auckland
Having reported a billion Trustpower has conditionally divested
Radiology. Our co-shareholders in these
dollar net parent surplus, the its utilities retailing activities, illustrating
business are doctors and other staff.
our focus on returns and management
six months saw good broad- The attraction of diagnostic businesses is
of capital.
based progress on our goal of simply that their technology + expertise
long-term returns for Infratil’s We are well underway in healthcare with
delivers demonstrably better care at
our investments in Qscan, Pacific
shareholders: significantly lower cost. And this is only
Radiology and Auckland Radiology and
CDC’s A$1 billion of construction will next one of the medical sectors where this is
better understanding the potential of
year deliver over 100MW of data centre happening. Private provision of health
technology to improve lives and lower
capacity in Canberra, Sydney and services isn’t immune to political
healthcare costs.
Auckland, with more to come, notably in interventions, but it offers immense
Vodafone is showing the gains possible potential.
Melbourne.
from localisation of management and
Infratil’s establishment of Gurīn Energy to focusing on better, simpler services. Climate Change
develop renewable generation in Asia If Covid-19 is the immediate challenge,
RetireAustralia and Wellington Airport, our
means we are now active in this field in climate change is harder and longer term.
businesses most adversely affected by
Australasia, USA, Europe and Asia. All told
Covid-19, are both showing operational By 31 March 2022 Infratil will have been
the Infratil group has built 3,530MW of
resilience and a capacity to deliver value operating for 28 years, and 28 more years
solar, wind, and hydro generation
growth through investment. gets us to 2050 and net-zero.
capacity and we expect to more than
double that over the next decade.
4We can be proud of what we have “30% reduction by 2030” is fine for now, I am confident we are doing a good job
achieved over the first 28 years. but we may be able to do more if we know managing the risks we can manage, and
Trustpower, Longroad, and Tilt built the costs and benefits in a financial as while there are an unusual number of
3,530MW of renewable generation well as environmental sense. other threats, we have a strong capital
capacity, sufficient electricity for about base and our activities are diversified.
1.4 million households, producing Shareholder Returns
4.3 million tonnes less emissions than Over the six months Infratil paid dividends
Guidance
gas-fired generation (about 10% of of 15 cents per share (11.5 cps cash and Our FY2022 Proportionate EBITDAF
all New Zealand’s CO2 emissions). 3.5 cps imputation credits) and the share guidance range has been narrowed
Companies have a large role in delivering price rose from $7.13 to $7.96. to $500-$530 million (previously
net zero. A recent report calculated $505-$550 million).
For the current period Infratil is to pay a
that the combined emissions of the dividend of 9.03 cps (6.5cps cash and The top end of the range has been revised
40 highest emitting companies in each 2.53 cps imputation credits), 13% higher to reflect the acquisitions of Kao Data and
of the USA and Europe were greater than than last year, (the cash is up 4%). Gurin Energy during the period, which are
the entire emissions of either Africa or forecast to be a net cost of $12 million,
The payment is to be on 23 December
South America. 40 companies equals and to reflect the current estimates of the
to shareholders of record as at
a continent! full year impact of Covid-19 on Wellington
6 December.
But for companies to deliver requires Airport and Infratil’s diagnostic imaging
Obviously Infratil’s profit for the period businesses.
predictable policies and regulations.
and financial circumstances would have
A plethora of policies are emerging to It is worth noting the recent purchases
allowed a far larger payment. We stuck
reduce emissions, but are they coherent, of ASX listed companies Sydney Airport,
to gradually increasing the pay-out as
will outcomes be predictable, will AusNet and Spark Infrastructure for a
operating earnings grow rather than
consumers and companies change their combined $41 billion. In each case the
providing a windfall.
behaviour? acquisition values anticipate a full
We believe that shareholders would earnings recovery as covid-restrictions
Infratil made submissions on the incipient
rather have a solid sustainably rising are relaxed. The transactions are
New Zealand policies with the key theme
dividend than surprises, even pleasant indicative of the investment appetite of
that regulations and government
ones, and while Infratil has over $1 billion institutional investors. This is positive for
spending should be compatible with long-
of capital available for investment or the value of Infratil’s assets.
term investment decisions and link with a
return to shareholders, we are confident
reliable price for emissions. It also means that Infratil’s investment
the majority of shareholders would
Emissions use to cost emitters and activities have to avoid competing with
rather we invest on their behalf, and
consumers nothing (whether from those with very deep pockets, which we
we are confident we can productively
electricity generation, cars, aircraft, have shown we can do with Kao Data,
deploy this capital.
industrial processes, etc). Now, the cost of Gurīn Energy and medical diagnostics.
a return airline ticket Auckland-Wellington DRP These are stressful times, lockdowns,
includes about $9 for emissions. The The dividend reinvestment plan is again missing important family, business and
emissions of a car doing that round trip operating. We know that many individual social activities. Plans and expectations
costs about $21. Costs send signals which shareholders value the convenience. have gone west. “Keep calm and carry on”
companies and consumers factor into sounds corny, but I hope we can be
decisions. $21 of carbon charges on a Liabilities & Risks generous to those doing it hard.
1,400 kilometre road trip may not cause a With receipt of the Tilt sale proceeds,
motorist to buy an electric vehicle, but Infratil has little net debt. However, we
eventually price “works”. are conscious that inflation and nominal
At Infratil we are setting expectations interest rates are rising, and there are
across our businesses to provide reporting hard to quantify risks from government
on emissions and targets. But we want to debt, geo-political tension, wealth- Jason Boyes
put a cost on the emissions. A goal like inequality, Covid-19 and climate change. Chief Executive
5Report of the
Board Chair
The last six months have disruptions, we are comfortable to be thinking. With global emissions rising
been a period of significant in this position. we need to be certain we understand
activity, as Infratil transitioned However, our job isn’t to sit on cash how any investment will impact our
environmental footprint. We are putting
to a new Chief Executive and earning 1%. It is to build sustainable,
a lot of effort into developing detailed
dealt with the continuing long-term value for shareholders. We
are fortunate to have subsidiaries that metrics that will help us more accurately
challenges posed by the
will do much of the work by growing measure the impact of our activities
Covid-19 pandemic. across a range of factors. If we are looking
and investing in their own activities.
One of a board’s key responsibilities is Additionally, we are also willing to invest to build sustainable long-term value for
selecting a Chief Executive. directly in “early stage” companies. Gurīn shareholders, then by definition, this work
Energy and Kao Data are in this category. is critical.
We were very fortunate to have
Marko Bogoievski, who stood down on Gurīn Energy combines the local Some of the policies being developed
1 April. Marko has been an outstanding knowledge and sector expertise of the by Governments to reduce emissions are
leader for Infratil since taking over the Singapore based management team lead problematic. We have actively engaged
reins in 2009, leading an investment and by Dr Assaad Razzouk, with the not in policy debate and participated in
portfolio strategy which has delivered inconsiderable renewables development consultations. We believe there should
remarkable results. capability, financial resources, and be a cost on emissions. A functioning
investment discipline of Infratil. The international emissions pricing system
Early investments in emerging
success of Tilt Renewables and Longroad is the subject of intense discussion in
infrastructure themes were a hallmark
Energy enabled Infratil to establish Gurīn Glasgow at COP26. We hope they get
of Marko’s time. These included fuel
with a team who are responsible for it right as it is a long way from where it
distribution, data and connectivity,
developing over 5,000MW of renewable needs to be.
global renewables development
platforms, and, most recently, the generation capacity in Asia - a track A final point. New Zealand is seeing
investment into our healthcare portfolio. record and legacy we expect to build on. the emergence of a new group of
We are pleased with our recent shareholders operating through low-cost
In Jason Boyes, we have an excellent
investment decisions, but many proposals investment platforms like Sharesies and
new CEO and the transition has been
do not get over the line, often because of Hatch. Infratil now has 12,000 individual
seamless, as the half year results show.
the price being asked for growth. shareholders through the former. They own
The Board is highly confident that, with on average of just over $1,000 of our shares.
Jason’s skills and experience coupled With Pacific Radiology, Qscan and We hope we can reward their support, and
with the support of a seasoned team, Auckland Radiology, we did pay for both we also hope they get to know Infratil. To
we have the capability required to existing operations and their potential. We help with this we are updating our website
successfully implement our strategy. believe there are enormous opportunities structure and content.
to deploy technology to deliver better
Capital allocation and risks are To all our shareholders and bondholders
healthcare at lower cost. This goes
always front of mind. Activity over thank you for your support, it is very much
beyond diagnostic imaging.
the period included the sale of appreciated.
Tilt Renewables, sale of the retail One of the largest uncertainties we are all
operations of Trustpower, and the dealing with relates to climate change.
refinancing and extension of our bank We know there will be continuing changes
facilities. We also received a very positive to weather patterns, that carbon
response to our last bond issue. emissions are unsustainable, and this will
require unprecedented government policy Mark Tume
This puts us in an unusually secure
alignment across the globe. Chair
position. In the context of uncertainties
such as rising interest rates, more Infratil’s first ever investment was into
interventionist Government policies, helter renewable generation, and renewables
skelter energy markets, and Covid-19 are a central thematic to our strategic
67
Communication
with Shareholders
& Bondholders
Over the six months to presentation, and the details of the formal Often similar questions were asked at
30 September 2021 the aspects of the meeting (voting results). many of the meetings. The most common
following meetings were held 396 people participated in the meeting ones were:
with share and bond holders. remotely. A number submitted questions. “Why did you sell Tilt Renewables? Does
this mean that you are now no longer
In all cases there were opportunities for Shareholder Presentations looking to invest in renewables? What is
attendees to provide feedback and raise The annual series of presentations to the plan to reinvest the proceeds from the
questions and concerns with directors and shareholders and bondholders ran across sale of Tilt Renewables?”
management. 15 meetings from 31 May 2021 to 22 June There is huge demand for more renewable
• The Annual Meeting on 19 August; 2021. Meetings were held in Invercargill, generation on both sides of the Tasman.
including shareholder resolutions, a Dunedin, Queenstown, Christchurch, The key justification for selling was that
speech by the Chair on governance Nelson, Wellington, Kāpiti, Palmerston the sale price offered for the Australian
and strategy, and a presentation by North, Napier, New Plymouth, Rotorua, assets placed a large value on Tilt’s
management on activities and Tauranga, Hamilton, Auckland, and the development pipeline; we estimated
prospects. North Shore. about $1 billion.
• The annual results announcement on Approximately 2,000 people attended We had to ask ourselves, should we
29 May and interim results across the country. The meetings entailed hold on to our stake and capture that
announcement on 12 November. a 45-minute presentation by two or three value over the next several years by
members of Infratil’s management, about Tilt Renewables progressing the
• The annual cycle of presentations to
15 minutes of Q&A, followed by light developments? Or could we take that
shareholders around New Zealand
refreshments where attendees could have $1 billion and invest it elsewhere, ideally
which ran from 31 May to 22 June.
one-on-one time with management. where Infratil would end up with both
The Annual Meeting Attendees were surveyed after the $1 billion and the returns we have
The Annual Meeting was again impacted presentations. 97% of people found that it generated on that $1 billion. Because
by Covid-19 lockdown restrictions. All of helped them understand Infratil's goals, Infratil investor companies are actively
the following participated from their own strategy, circumstances and prospects. undertaking renewables projects in
homes; the Chair Mark Tume and all the 94% felt they had a good opportunity to Europe, Asia and the USA we have both
other directors, auditors, legal advisers, talk to management and have their high confidence that we can find uses for
members of Infratil’s management and questions addressed. The topics of it and grow the $1 billion.
the management of Infratil’s subsidiaries. greatest interest were Infratil’s strategies “What is happening with Wellington
A record of the meeting is available on and areas of opportunity. The others are Airport’s runway extension?”
Infratil’s website, as is the manager shown in the pie chart.
At present the project is bogged down in
the regulatory, legal and consenting
process. However, the Airport is committed
What content are you most interested in?
to the project, but the reasons for the
Strategy & opportunities construction have become more nuanced.
Portfolio overview & performance One of the Airport’s absolute priorities is a
Renewables safe and functional airfield. To deliver on
Data Centres
these criteria the Airport is going to have
Wellington Airport
to replace the seawall which was built in
Healthcare
the 1950s and 1970s. Rising sea levels and
Dividends
more devastating storms means this has
Sustainability
Economy
to happen, sooner than later.
Vodafone Another related consideration is making
Management & Governance sure that the airfield has appropriate
Financial Results safety allowances at each end (called
the Runway End Safety Areas, “RESA”).
8At present the RESA is 90 metres but quite unique, and its takeover would leave those of any corporate management
depending on the aircraft used by the a real hole. team. The same can be said about the
airlines servicing Wellington it may be “Is CDC interested in building a data board.
desirable to increase this to 140 metres. centre at Tiwai Point?” Board and management set corporate
The third reason for extending the airfield CDC’s developments are customer-led goals, strategies, and risk parameters.
would be to improve Wellington’s and if customers were to demand a Management executes the goals and
connectivity with the rest of the world via substantial new data centre in Invercargill, the board monitors management’s
services which could fly direct to Asia and CDC would investigate a development. performance and makes the final
North America rather than via stop-offs. However, at present CDC isn’t aware of decisions about investments and
This is more of a commercial and such demand. divestments.
environmental consideration than one It is worth noting that CDC’s customers There are probably two key points of
related to resilience and safety. tend to require immediate proximity difference relative to the management
“What happened to the AustralianSuper to their data and processing, so that team which Infratil would employ were it
takeover offer?” access is instantaneous. This is the hiring people one at a time. One is that
During 2020, Infratil’s independent rationale behind CDC having data centres Morrison & Co employs many more
directors were approached with two in Canberra and Sydney and building in people than a company of Infratil’s size
takeover offers from AustralianSuper. Auckland (and soon Melbourne). Some could afford. This is because Morrison &
The board rejected these offers as data centres store data where speed of Co also manages investments for other
undervaluing Infratil’s assets and not access isn’t so critical, which would likely parties. A second is that Morrison & Co
reflecting the potential of Infratil to be the case if a data centre was must absolutely prioritise returns to
continue to deliver for its shareholders. developed in Invercargill. shareholders. Of course, regular
Feedback on the decision was mostly “What do shareholders get for the management would too, but a threat
positive. In particular, several business Management fees paid to Morrison & Co?” to one or two people should they
journalists noted that Infratil provides There is little difference between Morrison under-perform isn’t quite as powerful
New Zealand investors with something & Co’s day-to-day responsibilities and as a threat to a whole team.
9ESG performance
We believe that benchmarking Performance is the Net Asset Value (NAV) In 2021, Infratil achieved an outstanding
the performance of Infratil weighted average GRESB performance of Management score of 97% as part of its
and its investments using the entity’s underlying investments (a score Fund Assessment. The chart (below left)
of zero is allocated to investments that do demonstrates that Infratil outperformed its
industry recognised ESG rating
not participate). peers materially in several Management
systems provides valuable categories, particularly in ESG risk
insights into the maturity of The GRESB Infrastructure Asset Assessment
management and stakeholder
assesses the ESG performance of
ESG approaches on an absolute engagement.
individual infrastructure assets. The
and relative basis.
assessment also includes two key focus Nine portfolio entities participated in the
Robust ESG benchmarking also informs areas, ‘Management’ and ‘Performance’. Asset Assessment in 2021 - CDC Data
investment and asset management Centres, Tilt Renewables, Trustpower,
For assets, the Management aspect
priorities, and simplifies the communication Vodafone, Wellington International Airport,
considers the six aspects noted previously.
of ESG performance to stakeholders. In Qscan, RetireAustralia, Longroad Energy
The Performance aspect, which has a
2020, Infratil and three of its portfolio and Galileo Green Energy.
60% weighting, considers the extent of
entities successfully piloted the GRESB reporting on environmental, safety and Infratil’s Performance score (the NAV
Infrastructure Assessment and we social sustainability performance and weighted average of the Portfolio Entities)
subsequently sought broader participation rewards entities that have established was 63%.
across the portfolio in 2021. targets for each ESG metric. Infratil’s Management and Performance
The GRESB Infrastructure Fund Assessment Participants in the Fund Assessment are scores generated an overall GRESB Score
was launched in 2015 and assesses the assigned three GRESB scores: of 73%.
ESG performance of infrastructure funds
1. Management score: Performance The average of the scores achieved by
and investment companies. The
against the five ESG indicators that Infratil’s portfolio entities (by category) are
assessment is split into two key areas –
consider the management of the fund/ described in the chart (below right). The
‘Management’ and ‘Performance’.
investment company. chart also shows the average score that
Management considers ESG leadership, 2. Performance score: The weighted was achieved by sector peers.
policies, reporting, risk management and average performance of the entity’s The chart demonstrates that while there
stakeholder engagement, and is focused underlying investments. are several opportunities for Infratil’s
on the systems and processes that have
3. Overall GRESB score: Combination of portfolio entities to improve their approach
been established by the organisation’s
the entity’s Management score (30% to ESG integration, the portfolio did not
management team.
weighting) with its Performance score materially underperform the relevant peer
(70% weighting). groups.
Management performance Average portfolio entity performance
ESG leadership
Stakeholder engagement 68%
95%
ESG leadership
100% ESG policies
60%
ESG reporting
57%
Risk
management
ESG policies 81%
100%
ESG performance Stakeholder
ESG management ESG reporting 65% engagement
96% 97% 81%
Infratil Peer Group Portfolio entities Peer Group
10Carbon emissions
footprint
We are committed to To account for the carbon offsets delivered systems e.g., cooling has been excluded
measuring, monitoring and through energy suppliers’ participation in as it is considered to be Scope 3 for Infratil.
reducing the carbon emissions New Zealand’s Emissions Trading Scheme, The data has not been independently
the Scope 1 and 2 carbon emissions for verified or assured.
arising through Infratil’s
each New Zealand based entity have
operations and investment Infratil’s carbon emissions footprint will be
been adjusted from Infratil’s gross carbon
portfolio, and have assessed measured, verified and disclosed annually.
footprint to calculate its net footprint.
Infratil’s 2020 carbon footprint.
Infratil’s net carbon emissions footprint for
Carbon emissions data has been sourced 2020 (Scope 1 and 2) has been estimated Carbon emissions by sector
from each entity’s response to the GRESB at approximately 7,000 tonnes CO2-e.
Infrastructure Asset Assessment which
The charts (right) demonstrate that
rewards participating entities that 3%
7% 15% 13%
Infratil’s renewable energy businesses were
comprehensively report on the carbon 5%
the primary contributors to its carbon
emissions arising through their operations,
emissions footprint, predominantly due
particularly Scope 1 and Scope 2 carbon
to the use of diesel during construction.
emissions. The reporting of Scope 3
90% 67%
emissions is also encouraged (refer to Investments in the Digital Infrastructure
definitions below). sector also made a significant contribution GROSS GROSS
Scope 1 emissions Scope 2 emissions
to Infratil’s gross footprint, primarily due to
To calculate Infratil’s gross carbon
Vodafone’s electricity requirements.
emissions footprint each entity’s data has 8%
been adjusted based on the equity It should be noted that the carbon 19%
ownership percentage held in each emissions data excludes Qscan, Pacific
39% 49% 62%
investment during the reporting period, Radiology (acquired after the reporting 19%
and then aggregated. period), ASIP, Infratil Infrastructure Property
and Clearvision Ventures. The data only 4%
Infratil’s gross 2020 carbon emissions
includes Tilt Renewables’ Australian
footprint (Scope 1 and 2) has been GROSS NET
operations, and carbon emissions Scope 1 & 2 emissions Scope 1 & 2 emissions
estimated at approximately 16,000 tonnes
associated with CDC Data Centres’
CO2-e. Renewable Energy Digital Infrastructure
tenants’ IT equipment and ancillary
Transport Social Infrastructure
Corporate carbon emissions sources
Scope 1 emissions arise through the Scope 2 emissions are associated Scope 3 emissions are those that
direct combustion of fossil fuels by with the carbon emissions of the typically arise in an organisation’s value
organisations e.g., natural gas for electricity being purchased and chain, particularly where the organisation
heating, fuel for vehicles and plant, consumed by an organisation. has limited control e.g., the emissions
and the leakage of other greenhouse associated with corporate air travel,
gases such as refrigerants. cloud based data storage and employee
commuting. While information relating
to Scope 3 emissions is becoming
available, a complete dataset for Infratil
is not available at this time.
1130
1,800
20
1,600
Financial Trends 10
1,400
0
1,200
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
These graphs have been chosen to illustrate the
1,000 Equity (market value) Net bank debt and dated bonds Perpetual bonds
key financial trends over the last decade.
800
For FY2022 shareholder returns, assets and funding
are as at 30 September 2021. Proportionate 600
EBITDAF and investment are annualised based on 400
the latest forecasts and guidance.
200
0
EBITDAF, Free Cash Flows, Dividends
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Other Energy Transport Social Data Telecommunications
$Millions Dividend, cents per share
700
20
Shareholder Returns 600
Annual Return Accumulation Ann
Index
100% 80
Between 1 October 2011 and 30 September 800
500
2021 Infratil provided its shareholders with 15
70
an after-tax return of 22.7% per annum. 80%
400 640
$100 invested at the start of the period would
60
10
have compounded to $775 by the end if all 300
60% 480
distributions were reinvested. Accumulation Index 40
200
The graphs show six month returns for 2012 40% 320
5
and 2022 and full years in between. 20
100
20% 160
0
0 0
0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
0
-20
Interest, tax, working capital Operating cash flow Dividend (rhs)
-20% -40
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Dividend Return Capital Return
Sources of Consolidated EBITDAF
Proportionate EBITDAF 1 $Millions
600
The calculation of proportionate EBITDAF is
outlined on page 3 of this report. It is intended to
500
show Infratil’s share of the earnings of the
companies in which it has a shareholding.
400
The figures include the contribution of assets
held for sale and disposed over the period. 300
200
100
0
-100
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Corporate Tilt Renewables Longroad Vodafone NZ Qscan & Sold
Pacific Radiology
Trustpower Wellington Airport RetireAustralia CDC Total
1. Proportionate EBITDAF is an unaudited non-GAAP measure and is defined on page 3.
$Millions
2,000
12
1,8001,200
2,000
1,000
1,800 Proportionate Investment
800
1,600
Proportionate Capital Investment $Millions
600
1,400
2,000
Over the decade Infratil has invested over 400
1,200
$7 billion, with the majority undertaken by 1,800
200
investee companies. 1,000
1,600
Funding for new investments has been 800
0
1,400 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
provided by operating cashflows, debt,
600 Other Tilt Renewables Longroad Vodafone NZ Qscan Kao Data
equity issuance and divestments. 1,200
Trustpower Wellington Airport RetireAustralia CDC Pacific Radiology
400
1,000
200
Infratil's Assets
800
0
600
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
400 Other Tilt Renewables Longroad Vodafone NZ Qscan Kao Data
Trustpower Wellington Airport RetireAustralia CDC Pacific Radiology
200
0
$Millions
2013 2014 2015 2016
Infratil's Assets
2017 2018 2019 2020 2021 2022
Other Tilt Renewables Longroad Vodafone NZ Qscan Kao Data
6,000
Trustpower Wellington Airport RetireAustralia CDC Pacific Radiology
5,500
5,000
Infratil Assets
4,500 Infratil's Assets
4,000
$Millions
This graph shows the book values of Infratil’s 3,500
6,000
unlisted assets and the NZX values of those 3,000
5,500
listed. In some cases, these values can 2,500
5,000
be lower than fair value (private market 2,000
valuations). 4,500
$Millions
1,500
4,000
This is highlighted by Infratil’s investment in 6,000
1,000
3,500
CDC Data Centres which has a current book 5,500
500
3,000
value of $899.2 million compared to an 5,0000
2,500
independent valuation at 30 June 2021 of 4,500 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
A$2,313-2,469 million. 2,000
4,000 Sold Wellington Airport RetireAustralia Vodafone NZ Qscan & Pacific Radiology
1,500 Other Trustpower Tilt Renewables CDC Kao Data
3,500
1,000
3,000
500
2,500
0
2,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
1,500
Infratil's Capital Structure
Sold Wellington Airport RetireAustralia Vodafone NZ Qscan & Pacific Radiology
1,000 Other Trustpower Tilt Renewables CDC Kao Data
500
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Infratil Funding % Sold Wellington Airport RetireAustralia Vodafone NZ Qscan & Pacific Radiology
Other Trustpower Tilt Renewables CDC Kao Data
Infratil's Capital Structure
100
Infratil uses a mix of debt and equity funding
which is bound by Infratil’s policy of 90
maintaining credit metrics which are broadly 80
consistent with an Investment Grade credit
rating (Infratil is not credit rated). 70
Infratil's Capital Structure
%
Changes to the relative funding occurs as 60
100
businesses are sold and acquired as seen at 50
90
30 September 2021 following the receipt of
40
the Tilt proceeds. 80
%
30
70
100
20
60
90
10
50
80
0
40
70 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
30 Equity (market value) Net bank debt and dated bonds Perpetual bonds
60
20
50
10
40
0 13
30 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Financial Performance
& Position
Infratil provides audited financial statements annually for years to 31 March. The six month interim accounts to 30 September are
reviewed by Infratil’s auditors but not audited. A summary of the interim accounts is provided in this report. The full financial
statements are available by contacting Infratil or on its website.
Infratil consolidates companies when it owns more than 50%, including Trustpower, Wellington Airport, Qscan and Pacific Radiology.
Associates such as CDC Data Centres, Vodafone New Zealand, Longroad Energy and RetireAustralia are not consolidated. For those
investments, the EBITDAF column shows 100% of their EBITDAF and the "Revaluations and other adjustments" column includes the
adjustment required to reconcile Infratil's share of their net surplus after tax. The contribution of Pacific Radiology is for the period
since its acquisition on 31 May 2021.
Six months ended 30 September 2021
Infratil’s
Revaluations share of net
EBITDAF & other surplus after
$Millions Share 100% D&A Interest Tax adjustments Minorities tax
CDC Data Centres 48% $79.8 - - - ($24.8) - $55.0
Vodafone 50% $251.8 - - - ($242.8) - $9.0
Trustpower 51% $106.4 ($11.9) ($14.4) ($45.4) $78.5 ($58.6) $54.6
Longroad Energy 40% $41.8 - - - ($17.3) - $24.5
Wellington Airport 66% $31.5 ($14.4) ($12.5) ($3.6) $2.1 ($1.1) $2.0
Qscan Group 56% $33.1 ($14.4) ($9.4) ($3.5) - ($2.5) $3.3
Pacific Radiology 53% $22.2 ($2.6) ($5.5) ($3.3) ($20.9) $4.6 ($5.5)
RetireAustralia 50% $12.6 - - - $16.2 - $28.8
Corporate & Other - ($50.6) - ($38.2) ($2.3) ($1.8) - ($92.9)
Total (continuing) $528.6 ($43.3) ($80.0) ($58.1) ($210.8) ($57.6) $78.8
Tilt Renewables 65% $12.1 ($19.5) ($6.3) $3.7 $1,002.0 $7.9 $999.9
Trustpower Retail 51% $15.8 ($12.6) ($0.6) ($0.7) - - $1.9
Total $556.5 ($75.4) ($86.9) ($55.1) $791.2 ($49.7) $1,080.6
Six months ended 30 September 2020
Infratil’s
Revaluations share of net
EBITDAF & other surplus after
$Millions Share 100% D&A Interest Tax adjustments Minorities tax
CDC Data Centres 48% $79.1 - - - $29.4 - $108.5
Vodafone 50% $224.7 - - - ($240.3) - ($15.6)
Trustpower 51% $92.1 ($10.7) ($14.4) ($11.5) ($26.5) ($16.7) $12.3
Longroad Energy 40% $27.8 - - - ($41.6) - ($13.8)
Wellington Airport 66% $10.9 ($13.5) ($12.9) $8.2 $4.5 ($2.6) ($5.4)
RetireAustralia 50% $10.2 - - - ($3.8) - $6.4
Corporate & Other ($81.2) - ($38.6) $12.7 $19.1 - ($88.0)
Total (continuing) $363.6 ($24.2) ($65.9) $9.4 ($259.2) ($19.3) $4.4
Tilt Renewables 65% $34.1 ($21.8) ($5.5) ($12.5) $34.4 ($9.9) $18.8
Trustpower Retail 51% $18.3 ($11.2) ($0.7) ($1.8) - - $4.6
Total $416.0 ($57.2) ($72.1) ($4.9) ($224.8) ($29.2) $27.8
14Consolidated Results
Six months ended 30 September ($Millions) 2021 2020
The net parent surplus for the six
months ended 30 September 2021 Operating revenue $541.1 $244.1
was $1,080.6 million, up from Operating expenses ($289.8) ($76.7)
$27.8 million in the prior period.
International Portfolio incentive fee ($9.4) ($57.7)
The key contributor to the surplus was
the $1,014.7 million gain recorded on Depreciation & amortisation ($43.2) ($24.2)
the sale of Tilt Renewables. The other Net interest ($80.0) ($65.9)
notable change from the prior period
includes the contributions from Qscan Tax expense ($58.1) $9.4
and Pacific Radiology, which have both Realisations and Revaluations $75.8 ($5.4)
been acquired in the last 12 months
and are consolidated by Infratil. Discontinued operations $993.9 $33.4
Recognised in the gain on sale is a Net surplus after tax $1,130.3 $57.0
$122.1 million realised incentive fee
Minority earnings ($49.7) ($29.2)
accrual relating to the sale of
Tilt Renewables. Net parent surplus $1,080.6 $27.8
Discontinued operations include the gain
on sale, as well as the operating results
of both Tilt Renewables and Trustpower’s
Retail business for the period.
Proportionate EBITDAF
Six months ended 30 September ($Millions) Share 2021 2020
Proportionate EBITDAF is intended to
CDC Data Centres 48% $38.3 $38.0
show Infratil’s share of the earnings of the
companies in which it has a shareholding. Vodafone 50% $125.6 $112.1
Proportionate EBITDAF is shown from Trustpower 51% $54.4 $47.0
continuing operations and includes
Longroad Energy 40% $13.7 $9.4
corporate and management costs,
however, excludes international portfolio Wellington Airport 66% $20.8 $7.2
incentive fees and contributions from
Qscan Group 56% $18.7 -
businesses sold, or held for sale.
To illustrate the calculation of Pacific Radiology 53% $12.4 -
Proportionate EBITDAF, Infratil owns 48.0% RetireAustralia 50% $6.3 $5.1
of CDC Data Centres, CDC Centres’
EBITDAF for the period was A$75.2 million, Corporate & Other ($36.6) ($20.9)
and 48% of that translated into NZD is Proportionate EBITDAF 1 $253.6 $197.9
$38.3 million.
International Portfolio incentive fees ($9.4) ($57.7)
Tilt Renewables 66% $7.8 $22.3
Trustpower Retail 51% $8.0 $9.3
Total $260.0 $171.8
1. Proportionate EBITDAF is an unaudited non–GAAP measure and is defined on page 3.
15Financial Performance & Position
Infratil and Wholly Owned
Subsidiaries Operating Cash Six months ended 30 September ($Millions) 2021 2020
Flows CDC Data Centres $5.8 -
This table shows the operating cash Vodafone $24.5 $42.2
flows of Infratil and its 100% subsidiaries.
Trustpower $29.6 $24.8
Receipts include dividends from
Tilt Renewables $16.1 $179.6
portfolio companies, interest and
capital returns. Outgoings are primarily Longroad Energy $44.8 $19.1
operating costs and interest payments.
Wellington Airport - $37.5
Corporate & Other includes $27.9 million
of management expenses. Clearvision Ventures $1.6 -
The Incentive Fees paid during the Net interest paid ($36.6) ($34.2)
period related to the second tranche of
Corporate & Other ($32.5) ($30.5)
the FY2020 incentive fee and the first
tranche of the FY2021 incentive fee. Operating cashflow $53.3 $238.5
International Portfolio Incentive Fees ($116.2) ($41.7)
Operating cashflow (after incentive fees) ($62.9) $196.8
Proportionate Capital
Six months ended 30 September ($Millions) Share 2021 2020
Expenditure and Investment
This table shows Infratil's share of CDC Data Centres 48% $99.8 $77.4
the capital expenditure of investee Vodafone 50% $110.5 $44.9
companies, and investments made
by Infratil during the period. Trustpower 51% $7.8 $7.9
To illustrate the calculation of Tilt Renewables 65% $21.9 $200.3
Proportionate capital expenditure, Longroad Energy 40% $189.1 $113.9
Infratil owns 49.9% of Vodafone, Vodafone’s
capital expenditure for the period Wellington Airport 66% $4.7 $7.6
was $221.3 million, and 49.9% of that Qscan Group 56% $3.1 -
is $110.5 million.
RetireAustralia 50% $6.9 $15.4
Investment undertaken by Infratil in the
period amounted to $390.0 million. Capital expenditure $443.8 $467.4
This primarily included the investments
Pacific Radiology $313.6 -
in Pacific Radiology and Kao Data.
Kao Data $73.6 -
Other $2.8 $21.5
Proportionate capital expenditure
and investment $833.8 $488.9
16Infratil Assets Book Values 30 September 31 March
$Millions 2021 2021
This table shows the book values of
CDC Data Centres $899.2 $873.0
Infratil’s unlisted assets and the NZX
values of the listed ones. Vodafone $846.7 $857.3
The asset values in the table are Kao Data $72.6 -
presented in accordance with NZ IFRS
Trustpower $1,167.7 $1,314.7
with the exception of Trustpower which
is shown at its NZX value, Wellington Tilt Renewables - $1,869.3
Airport which reflects Infratil’s share of
Longroad Energy $51.4 $44.9
net assets excluding deferred tax, and
Qscan and Pacific Radiology which are Wellington Airport $558.9 $511.2
shown as Infratil’s initial investment
Qscan Group $309.6 $309.6
amount.
Pacific Radiology $313.6 -
Other includes Infratil Infrastructure
Property, Galileo Green Energy, Gurīn RetireAustralia $355.9 $340.9
Energy and Clearvision Ventures.
Other $181.0 $238.1
Total $4,756.6 $6,359.0
Infratil Funding and 30 September 31 March
Capital Structure ($Millions) 2021 2021
This table shows the mix of debt and Net bank debt/(cash) ($1,114.4) $328.2
equity funding at Infratil’s Corporate level.
Infratil Infrastructure bonds $1,163.4 $1,155.2
Over the period, $93.9 million of bonds
matured of which $54.8 million were Infratil Perpetual bonds $231.9 $231.9
exchanged for IFT310 bonds and the Market value of equity $5,754.7 $5,151.0
remaining $39.2 million were repaid.
A further $47.6 million of IFT310 bonds Total capital $6,035.6 $6,866.3
were issued, taking the total issue Dated debt/total capital 0.8% 21.6%
to $102.4 million, a net increase of
Total debt/total capital 4.7% 25.0%
$8.5 million of bonds on issue.
There were no shares issued during the
period, with the change in the market
value of equity reflecting an increase in
the Infratil share price from $7.13 to $7.96.
17CDC
Data Centres
Digital Infrastructure
Infratil 48%
Commonwealth Superannuation Corporation 24%
Future Fund 24%
Management 4%
From 40MW of capacity in 2017, The Australian Government’s digitalisation on meeting client needs as they arise,
CDC is on track to have 268MW plan is for 80% of its data to be stored reflecting CDC’s huge investment
in 2022, with a development electronically. With only 20% of its data in capacity, the cost advantages
capability for an additional stored electronically today, and the volume generated by its construction and
436MW. of data doubling every two years, demand development expertise, local ownership,
for data storage will remain strong. reliability and security credentials, track
In five years, CDC has gone from operating
In response to the new requirements record, and the ability to more than
data centres at two Canberra campuses,
imposed by the Australian Government in double its presence in size and locations
to a third in Sydney, building two more in
March 2021, CDC was the first provider to over the next two years.
Auckland, and expanding into Melbourne.
achieve ‘Certified Strategic’ accreditation CDC is also rising to the sustainability
Growth opportunities in other Australian
by the Australian Government for all of its challenge. CDC was started with a clear
markets are also under assessment.
data centres. In addition, only CDC vision to be a clean and green data centre
In a market where announcements achieved this status for all its capacity provider and has a significant track record
about projected data centre capacity across all its Australian locations, while of using 100% renewably generated
investments are now commonplace other operators were only able to provide electricity in its facilities, along with
(and rarely include when construction limited enclaves within their centres operating zero-water cooling solutions,
will commence), CDC is distinguishing capable of being certified. This provides saving the environment tens of millions of
itself with over $1 billion of construction a clear indication of CDC’s ability to
litres of water per day. CDC has also
underway adding 104MW of capacity meet customer needs and provide a
achieved zero waste across its operations
and construction of a further 20MW differentiated value proposition.
and is well on its journey to be recognised
expected to start shortly.
CDC’s market leading position in Australia as the ESG leader of the industry.
CDC’s expansion to four geographies (and in due course New Zealand) is based
reflects both a desire to meet client
demands and the benefits of being able Year ended 31 March
to do so. Over the last three years, CDC Six months ended 30 September 30 September 30 September 31 March
All A$ unless noted 2021 2020 2021
has secured contracts for utilisation that
have underpinned the economics of new Data Centre capacity (built) 1 164MW 164MW 164MW
capacity, allowing construction to be
debt funded and locking in the value of Capacity under construction 104MW 28MW 104MW
new capacity before construction has Development pipeline 436MW 362MW 286MW
even started. While current customer
demand for capacity is not abating, Weighted average lease term (with options) 22.5 years 15.4 years 14.4 years
CDC’s scale and rising earnings are
Rack utilisation 74% 64% 69%
allowing consideration of projects where
capacity can be built to also address Target PUE 2 1.19 n/a n/a
expected forward demand.
EBITDAF $75.2m $73.8m $147.3m
The factors driving demand for capacity
in CDC’s facilities are intensifying. Capital expenditure $195.8m $150.3m $231.6m
Governments, companies and individuals
Net debt $1,219.6m $1,031.8m $1,041.4m
are demanding their data is housed locally,
both due to concerns about security and Infratil cash income (NZ$) $5.8m - $5.8m
by the need for faster communication
1. Built capacity is the total available power to support ICT load and cooling within a data centre. The presentation
speeds between users and their data. of MW capacity has been restated where necessary to reflect built capacity on a consistent basis across the
Meanwhile, the volume of data requiring portfolio. From time to time this will change, in particular as design and planning for future builds progresses.
storage is growing by over 50% per annum 2. PUE is a ratio defined as the power used by a data centre divided by the power used by the ICT equipment it
and the advantages of having computers houses. It shows how much power is used by IT equipment (which provides revenue) compared with the power
used by all the data centres services, which also includes cooling, lighting and other equipment.
and data housed in the type of specialist
data centres that CDC owns is increasing.
18Society & Environment
Well on its way to be the ESG leader
of the industry, including through using
100% renewable power, zero waste
and zero water cooling solutions.
Dollar for dollar charitable donation
matching in place for donations from
employees.
Employees given financial incentives
and in-kind support to promote
vaccination and support Covid-19
recovery.
Built Facilities and Capacity
capacity
Facility Status (MW) MW
250
Hume 1 & 2 Operating 12
Hume 3 Operating 9
Hume 4 Operating 29
200
Hume 5 Under Construction 22
Fyshwick 1 Operating 19
150
Fyshwick 2 Operating 26
Eastern Creek 1 Operating 7
Eastern Creek 2 Operating 20 100
Eastern Creek 3 Operating 42
Infratil invests
Eastern Creek 4 Under Construction 54
50
Auckland 1 & 2 Under Construction 28
Total Operating and Under Construction 268
Canberra Future Build 178 0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Sydney Future Build 108
Melbourne Future Build 150
Canberra Sydney Auckland
19Vodafone
New Zealand
Digital Infrastructure
Infratil 49.9%
Brookfield Infrastructure Partners 49.9%
Management 0.2%
Vodafone is on track with its diverse needs without incurring the cost operating and ownership models
transformation strategy and of building in-house capability, Vodafone emerging. Network sharing is
has laid solid foundations to aggregates services provided by parties improving connectivity, reducing
such as AWS, Palo Alto, and Microsoft. costs and risk, while ensuring retail
remediate legacy investment
service providers compete and
deficits and improve performance. Individuals’ demands are also changing.
innovate in product development
As people utilise more data, they find it
Since its acquisition for $3.4 billion in July and customer service.
efficient to shift to “unlimited use”
2019, the focus of the Vodafone team packages. The benefit for Vodafone is In New Zealand, network sharing
has been on improving the experience that these customers are more loyal and is proving particularly necessary
for customers and reducing costs. This likely to buy additional products, so long to improve rural connectivity, and
is entailing a major transformation of as they have a good network and service telecommunications companies are
the company’s information systems, experience. working to bring this about while
simplification of product offering, and preserving the benefits of competition.
investment in expanding 4th and 5th The quality of Vodafone’s network
Vodafone continues to explore the
generation cellular-network capability. remains the foundation of its mobile,
possibility of further infrastructure
broadband, and other services, and
The goal is for Vodafone to be sharing arrangements and network
investment continues in both 4G and 5G
New Zealand’s lowest-cost capital release options, with a number
capability. During the last six months
telecommunications provider, with the of recent transactions highlighting the
improvements were delivered in the
best network, and a suite of services potential value achieved through such
Manawatu, Bay of Plenty, Southland, and
which attracts and retains both those arrangements.
Taranaki. This is encouraging increased
customers interested in value and also utilisation from Vodafone’s customers, One area of further opportunity is
those with more complex requirements. wholesalers and other telecommunication wireless broadband, with the broadband
During the period Vodafone’s banks also companies seeking to cost-efficiently fill market continuing to be dominated by
responded to the good progress by “holes” in their own networks. fibre connections.
renewing and extending Vodafone’s
Globally, the telecommunications sector In relation to 5G services, in the short
facilities at lower margins.
continues to attract investor attention, term the lack of 5G phones and
Vodafone’s progress is not just being with a series of transactions and strong applications with very high data
noticed by customers and capital valuations being realised over the last demands (e.g., 3D gaming) is limiting
providers. In a tight labour market where 12 months. consumer demand, but if history is a
the calibre of staff makes a real guide, consumers will find ways to fully
Mobile tower assets are a particular focus
difference and everyone has employment utilise the increased network capacity.
for infrastructure investors with new
choices, Vodafone’s operational
improvements are also enabling the
company to be an employer of choice Year ended 31 March 30 September 30 September 31 March
Six months ended 30 September 2021 2020 2021
for talented people.
High calibre staff, network reliability and Mobile revenue $401.2m $401.1m $793.7m
reach, and efficient systems are allowing Fixed revenue $358.3m $372.6m $728.1m
Vodafone to offer enhanced services for
an increasing number of receptive Other revenue $196.9m $167.7m $431.9m
customers. Globally, the last two years Operating costs ($704.6m) ($716.8m) ($1,505.9m)
has seen huge increases in data use,
reliance on cloud-computing and EBITDAF $251.8m $224.7m $447.8m
external data storage, remote working, Capital expenditure $221.4m $90.0m $253.4m
and cyber-security concerns. These
developments are causing business Net debt $1,389.8m $1,232.7m $1,300.8m
customers to prioritise a package of Infratil’s book value $846.7m $917.5m $857.3m
factors; reliability, availability, services,
security, and value. To satisfy these Infratil cash income $24.5m $42.2m $96.7m
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