tatts group - kanganews€¦ · tatts group tabout tatts group atts group (tatts) is the provider...

7 6 | A u s t r A l A s i A n C o r p o r A t e Y e A r b o o k : b r o u g h t t o Y o u b Y W e s t p a c I n s t I t u t I o n a l B a n k A n d k A n g A n e w s n o v e m b e r 2 0 1 3

ISSUERprofiles

TATTS GROUP

About Tatts Group

T atts Group (Tatts) is the provider of a diversified portfolio of neighbourhood businesses delivering services to customers in wagering, lotteries, gaming, gaming services, technical maintenance and support services. Tatts has operations across every state and

territory in Australia, and in the UK. The lotteries and wagering businesses are conducted under generally exclusive long-term licenses, with material licenses ranging in expiry from 2018 to 2100. Tatts employs in excess of 3,200 people in Australia and the UK. Its head office is in Brisbane.

OwnershipTatts has been listed on the Australian Securities Exchange (ASX), as TTS, since June 2005. It is one of the top 100 listed companies on the exchange.

Liquidity positionTatts’ policy is to maintain a capital structure which ensures sufficient liquidity and support for operations, maintains shareholder and market confidence, provides strong stakeholder returns and positions the business for future growth. The ongoing maintenance of this policy is characterised by maintaining a gearing ratio that ensures an investment-grade positioning, maintaining appropriate sources of debt funding to ensure an appropriate maturity profile, a dividend policy aimed at dividend payout ratios of circa 90% on a fully franked basis, and investment criteria that consider earnings accretion and risk-adjusted rate of return requirements based on the weighted average cost of capital.

The operations generate a strong annual operating cash flow which, combined with a steady capital-expenditure profile, underpins the sound financial position. As at June 30 2013 Tatts had a total of A$298 million of undrawn committed debt funding, and corporate cash holdings of A$169 million.

for further information please contact:

Cale Bennett, Group Treasurer+61 7 3435 [email protected]

Debt fundingSince listing in June 2005 with minimal debt, the group has used various debt-funding strategies to facilitate the acquisition of gaming and lottery businesses in Australia and the UK. A disciplined approach has enabled the group to maintain investment-grade credit metrics without the need to ask shareholders for more equity.

As at June 30 2013 Tatts had total available debt funding facilities of A$1.9 billion, comprised of a A$1.5 billion syndicated multi-currency revolving bank debt facility, a US$225 million USPP note facility and A$194.7 million in ASX-listed retail bonds. The group’s weighted average debt maturity as at 30 June 2013 was 3.5 years. •

KEY CREDIT METRICSCREDIT RATING Not rated

BOND PROTECTION

GEARING COVENANT Y

LEVERAGE RATIO N

INTEREST COVER RATIO Y

CHANGE OF CONTROL Y

COUPON STEP-UP N

WEIGHTED AVERAGE DEBT MATURITY 3.5 years (as at June 30 2013)

WEIGHTED AVERAGE COST OF DEBT 4.8% (as at June 30 2013)

KEY DATAFINANCIAL YEAR END 30 JUN

BLOOMBERG TICKER TTS AU

ASX CODE TTS

KEY FINANCIALS FY13 FY12 FY11

MARKET CAPITALISATION (A$M) 4,446.6 3,570.8 3,164.8

REVENUES (A$M) 3,115.9 3,901.9 3,669.3

EBITDA (A$M) 544.1 650.2 616.3

NET PROFIT AFTER TAX (A$M) 247.3 319.1 275.4

DEBT/EBITDA (X) (SENIOR) 2.7 1.8 2.0

NET DEBT/NET DEBT + EQUITY (%) 34.6 31.3 32.8

SHARE PRICE (FY END) (A$) 3.17 2.62 2.40

OUTSTANDING BONDS

ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON (% OR BPs)

MARGIN AT ISSUE DATE (BPs)

AUD (DOMESTIC)

28 Jun 12 194.7 5 Jul 17 FRN 310/BBsW 310/BBsW

USD (USPP)

21 Dec 10 55 21 Dec 17 Fixed 4.37% nD

21 Dec 10 170 21 Dec 20 Fixed 5.14% nD

DEBT MATURITY PROFILE

Tatts BondsSyndicated facility USPP

vO

LU

mE

(A

$m

)

400

350

300

250

200

150

100

50

0FY14 FY15 FY16 FY17 FY18 FY20FY19 FY21

sourCe: tAtts group June 30 2013

350

300

350

195

300

180

60

186

7 7

TELECOM CORPORATION OF NEW ZEALAND

About Telecom Corporation of New Zealand

T elecom Corporation of New Zealand (Telecom) was incorporated on 24 February 1987 and commenced business on April 1 1987. With effect from this date the company acquired from the government the telecommunications business of the New Zealand

Post Office. In 1990 Telecom was fully privatised. Effective December 1 2011 it separated into two separate, publicly listed companies: Telecom and Chorus, a network services operator.

Telecom is a major supplier of telecommunications services. It provides fixed, mobile and IT products and services. Telecom is in the early stages of undertaking a strategic shift from a traditional fixed and mobile infrastructure company to a future-orientated, competitive provider of communication, entertainment and IT services.

OwnershipThe ordinary shares of Telecom are listed on the New Zealand Exchange and the Australian Securities Exchange. On June 19 2012 Telecom’s shares were delisted from the New York Stock Exchange and now trade OTC.

Liquidity positionTelecom’s liquidity policy is to maintain unused committed funding facilities of at least 110% of the next 12 months’ net funding requirements. In general, Telecom generates sufficient cash flows from its operating activities to meet its financial liabilities. In the event of any shortfalls, Telecom has two short-term financing programmes in place: a US$1 billion ECP programme and a NZ$500 million CP facility.

In addition, as at June 30 2013 Telecom had an undrawn committed standby facility of NZ$400 million and committed


Natalie Kirton, Treasury & Insurance Manager+64 9 [email protected]

two-, three- and five-year bank facilities totalling NZ$500 million, of which NZ$200 million was undrawn.

Debt fundingTelecom has a US$2 billion EMTN programme and a domestic bond programme. It has also recently established a A$1 billion AMTN programme. As at June 30 2013 reported gross debt was NZ$1 billion. All debt is unsecured and ranks equally with other liabilities. There are no financial covenants but there are certain triggers in the event of default.

Telecom is committed to maintaining an ‘A band’ credit rating and targets long-run net debt to EBITDA not greater than 1.1 times. To reduce refinancing risk, no more than NZ$400 million of long-term debt can mature within any 12-month period. •

KEY CREDIT METRICSCREDIT RATING A-/A3 (S&P/Moody’s)




BLOOMBERG TICKER TEL NZ

NZX CODE TEL

KEY FINANCIALS FY13 FY12 (1) FY11 (1)

MARKET CAPITALISATION (NZ$M) 4,088 4,438 N/A

REVENUE AND OTHER GAINS (NZ$M) 4,189 4,576 5,004

EBITDA (NZ$M) 922 1,079 761

NET PROFIT AFTER TAX (NZ$M) 238 311 (79)

DEBT/EBITDA (X) (SENIOR) 1.1 0.9 N/A

NET DEBT/NET DEBT + EQUITY (%) 38 34 N/A

SHARE PRICE (FY END) (NZ$) 2.25 2.39 2.46 (2)

(1) telecom’s reported results from continuing operations represents the ongoing business post separation of Chorus (see further detail below).(2) Adjusted for separation of Chorus.n/A: data not calculated for continuing operations.

OUTSTANDING BONDSISSUE DATE VOLUME (M) MATURITY FORMAT COUPON

NZD (DOMESTIC)

1 Jul 08 18 15 Jun 15 Fixed 8.4%

1 Jul 08 55 15 Jun 15 Fixed 8.7%

22 Mar 06 150 22 Mar 16 Fixed 7.0%

25 Oct 12 250 25 Oct 19 Fixed 5.3%

Various 4 Various Various Various

GBP (EMTN)

14 May 03 22 14 May 18 Fixed 5.6%

6 Apr 05 18 6 Apr 20 Fixed 5.8%

GROSS DEBT MATURITY PROFILE

sourCe: teleCom CorporAtion of new ZeAlAnd June 30 2013

Domestic bonds

CP Bank funding GBP EMTNCall borrowing

vO

LU

mE

(N

Z$

m*)

350

300

250

200

150

100

50

0FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

312

95 100

200

150

73

3

250

46

100

64

150100

73

95

100

3

27

* After applying relevant cross-currency interest-rate swaps.


ISSUERprofiles

TELSTRA CORPORATION

About Telstra Corporation

T elstra Corporation (Telstra) is Australia’s leading telecommunications and information services company, offering a full range of communications services and competing in all telecommunications markets. In Australia the company provides 15.1

million mobile services, 7.8 million fixed-voice services and 2.8 million retail fixed-broadband services. Telstra’s international businesses include Hong Kong mobile operator CSL New World, Telstra Global’s networks and managed-services business and Telstra’s China-based search and advertising businesses.

Telstra understands that its customers want technology and content solutions that are simple and easy to use – that is why it has built networks like Australia’s largest fully integrated IP network and Australia’s largest and most reliable national mobile network.

National Broadband NetworkThe National Broadband Network (NBN) is a government-legislated initiative to provide all Australians with access to high-speed broadband. The NBN will be built, operated and maintained by NBN Co, a government business enterprise wholly owned by the Commonwealth. Telstra has definitive agreements with NBN Co and the Commonwealth to participate in the rollout of the NBN.

The new coalition government is in the process of determining an alternative NBN approach which is likely to result in a renegotiation of some aspects of the definitive agreements. Telstra will engage constructively with the coalition government on how the company can help the government deliver on its revised NBN policy commitments.

OwnershipTelstra has been listed on the Australian Securities Exchange (ASX) as TLS since 1997. It is one of the top 10 companies on the exchange with a 100% free float.

Liquidity positionIn its FY13 results Telstra reported free cash flow generated from operating and investing activities of A$5.02 billion, representing a decline of 3.3% from the FY12 results. This outcome included increased working capital to support business growth and cash proceeds from the sale of TelstraClear.

Given the size of its funding requirements and solid credit ratings, Telstra has a longstanding presence in the domestic and global debt capital markets and is able to access multiple debt markets on consistent and competitive terms through the use of its global debt-issuance programme.

Telstra has debt securities listed on the ASX, the London Stock Exchange, the Swiss Stock Exchange and the Singapore Stock Exchange. In March 2013 it completed a €1 billion, 10.5-year September 2023 benchmark bond issue. In addition, the company established a new domestic benchmark A$750

KEY CREDIT METRICSCREDIT RATING A/A2/A (S&P/Moody’s/Fitch)

BOND PROTECTION

GEARING COVENANT N

LEVERAGE RATIO N

INTEREST COVER RATIO N

CHANGE OF CONTROL N

COUPON STEP-UP N



BLOOMBERG TICKER TLS AU

ASX CODE TLS


MARKET CAPITALISATION (A$M) 59,353 45,914 35,960

SALES REVENUES (A$M) 25,502 25,232 24,983

EBITDA (A$M) 10,629 10,234 10,151

NET PROFIT AFTER TAX (A$M) 3,865 3,424 3,250

NET DEBT/EBITDA (X) (SENIOR) 1.2 1.3 1.3

GEARING: NET DEBT + EQUITY (%) 50.5 53.2 52.5



vO

LU

mE

(A

$m

)

2,500

2,000

1,500

1,000

500

062

565

2,183

1,414

2,067

FY19FY14 FY20FY15 FY21FY16 FY22FY17 FY23FY18 FY24

sourCe: telstrA CorporAtion June 30 2013

FY25

853

261

1,559

1,351

2,095

1,2481,416

7 9


Guy Wiley, Corporate Treasurer+61 3 8647 9716 [email protected]

Phil Wallis, Manager, Funding and Investments+61 3 8647 [email protected]

www.telstra.com.au/abouttelstra/investor/treasury/

million five-year bond issue in November 2012. These long-term borrowings have further strengthened the company’s financial position by extending its debt maturity profile and market access.

Debt fundingThe net debt position at June 30 2013 was A$13.1 billion (FY12: A$13.3 billion). Telstra’s effective interest rate on average net debt was 6.4% in FY13 (FY12: 7.0%). The average maturity of outstanding debt was 5.5 years (FY12: 4.75 years). Telstra continues to look at executing long-term borrowings across a diverse range of debt markets in FY14.

Outstanding borrowingsTelstra’s long-term debt portfolio comprises a combination of public bonds and private placements. As at June 30 2013 Telstra had no bank loans. •

PRIVATE PLACEMENTS BY CURRENCYFACE VALUE (M) YEARS TO MATURITY FORMAT

AUD (DOMESTIC)

144 Various to 2020 Fixed

AUD (OFFSHORE)

140 May 22 Fixed

50 Dec 23 Fixed

EUR

75 Dec 23 Fixed

HKD

330 Jul 20 Fixed

JPY

5,000 Sep 13 Fixed

5,000 Sep 14 Fixed

5,000 Nov 14 Fixed

4,000 Nov 15 Fixed

20,000 May 16 Fixed

3,000 Jun 16 Fixed

5,000 Dec 20 Fixed

5,000 Jul 24 Fixed

USD

150 Various to 2015 Fixed

PUBLIC BONDS BY CURRENCY (AT JUNE 30 2013)FACE VALUE (M) MATURITY FORMAT COUPON (% OR BPs)

AUD

500 Nov 13 Fixed 6.25%

500 Apr 15 Fixed 6.25%

100 Aug 16 Fixed 7.00%

275 Dec 16 FRN 65/BBSW

750 Nov 17 Fixed 4.00%

500 Jul 20 Fixed 7.75%

NZD

155 Nov 14 Fixed 7.15%

100 Jul 17 Fixed 7.515%

USD

1,000 Oct 21 Fixed 4.80%

EUR

500 Jul 14 Fixed 4.75%

500 Jul 15 Fixed 3.88%

1,000 Mar 17 Fixed 4.75%

1,000 Mar 20 Fixed 4.25%

500 Mar 21 Fixed 3.63%

750 May 22 Fixed 3.75%

1,000 Sept 22 Fixed 3.50%

1,000 Sept 23 Fixed 2.50%

CHF

225 Dec 18 Fixed 1.75%

GBP

200 Aug 14 Fixed 6.13%


ISSUERprofiles

TOLL HOLDINGS

About Toll Holdings

T oll Holdings (Toll) is the Asian region’s leading provider of integrated logistics, generating annual consolidated revenue of A$8.7 billion and operating an extensive network of over 1,200 sites in more than 50 countries.

Toll’s access to transport and infrastructure assets includes road fleets, warehousing, ships, air freight capacity, ports, and rail rolling stock. The provision of an integrated logistics service offering that incorporates international linkages to important regional sourcing markets within Asia, specifically China, is key to Toll’s strategy.

OwnershipToll has been listed on the Australian Securities Exchange as TOL since 1993 and is a member of the S&P/ASX50 Index of Australia’s 50 largest stocks by market capitalisation.

Liquidity positionToll aims to retain a perceived strong investment-grade credit rating and to maintain flexibility in funding by keeping adequate liquidity available so as to be able to take advantage of new investment opportunities that may arise. Toll maintains flexibility in funding by keeping committed credit lines available with a variety of counterparties. As at June 30 2013 Toll had undrawn committed facilities of A$369 million and cash balances of A$516 million.

Debt fundingToll maintains a balance between continuity of funding and flexibility through the use of a combination of bank overdrafts, bank loans, USPP notes and the overnight money markets across a range of maturities. As at June 30 2013 Toll’s net debt


Todd Williams, Group Treasurer+61 3 9694 [email protected]

was A$1.3 billion and the average maturity of its debt facilities was 1.9 years.

Toll’s drawn debt as at June 30 2013 comprises 17% USPP notes and 83% bank facilities. The company has funded its offshore assets with debt denominated in local currencies. Toll remains well within its existing bank covenants. •


BOND PROTECTION

GEARING COVENANT N

LEVERAGE RATIO Y


CHANGE OF CONTROL Y

COUPON STEP-UP N

TARGET GEARING Investment grade




BLOOMBERG TICKER TOL AU

ASX CODE TOL



REVENUES (A$M) 8,719.4 8,707.2 8,224.5

EBITDA (A$M) (1) 710.9 681.3 689.5

NET PROFIT AFTER TAX (A$M) (1) 281.4 274.2 294.8


DEBT/EBITDA (X) (SENIOR) (1) 2.5 2.5 2.2


SHARE PRICE (FY END) 5.32 3.98 4.85

(1) before non-recurring items.

OUTSTANDING BONDS

ISSUE DATE VOLUME (M) MATURITY FORMAT COUPONMARGIN AT ISSUE DATE (BPs)

USD (USPP)

7 Dec 10 100 7 Dec 15 Fixed 2.95% 180/ust

7 Dec 10 100 7 Dec 17 Fixed 3.65% 180/ust

7 Dec 10 75 7 Dec 20 Fixed 4.34% 180/ust


Bank facilities undrawnBank facilities drawn USPP

vO

LU

mE

(A

$m

)

1,2001,000

900800700600500400300200100

0FY14 FY15 FY16 FY17 FY18 FY20FY19 FY21

sourCe: toll holdings June 30 2013

203

934

267

108

174

96

9870

108 14 81

8 1

TRANSPOWER

About Transpower

T ranspower owns and operates New Zealand’s high-voltage electricity transmission grid. It transports high-voltage electricity from power stations owned by companies such as Meridian Energy (see p57) and Mighty River Power (see p59) to cities, towns

and major industrial users across the country. Electricity is then distributed to home and business consumers through local distribution networks such as those owned by Powerco (see p65) and Vector (see p85). As system operator, Transpower is also the provider of coordination functions for the New Zealand power system.

OwnershipTranspower is a state-owned enterprise. Crown ownership is exercised through two shareholding ministers: the minister for state-owned enterprises and the minister of finance. These ministers appoint the company’s board of directors.

The Crown does not guarantee any of Transpower’s obligations, or any of the obligations of the other members of the Transpower Group.

Liquidity positionIts liquidity policy requires Transpower to have access to committed funding facilities to cover the sum of all debt maturing in the next six months plus peak cumulative anticipated operating cash-flow requirements in the next six months. Transpower has a committed standby facility in place – undrawn – totalling NZ$500 million, and fully-drawn revolving cash advances facilities of NZ$200 million.

Debt fundingDebt funding is achieved through a mix of internal cash flows and capital market issues. Transpower has five available debt facilities: ECP, EMTN, domestic MTN, Australian MTN and domestic CP programmes. As at August 28 2013, long-term


Chris Sutherland, Treasurer+64 4 590 [email protected]

debt stood at NZ$2.9 billion, with an average maturity of 6.51 years. With the exception of a most-favoured lender covenant and a 15% cap on priority indebtedness and sale of assets, debt issuance is free of covenants. To smooth refinancing requirements, the sum of total debt maturing in any 12-month period is not to exceed NZ$750 million. No more than 50% of total debt can mature within the next three years and at least 30% of total debt must mature after five years. •

KEY CREDIT METRICSCREDIT RATING AA-/A1 (S&P/Moody’s)

BOND PROTECTION

GEARING COVENANT N

LEVERAGE RATIO N


CHANGE OF CONTROL N

COUPON STEP-UP N

TARGET GEARING N

WEIGHTED AVERAGE DEBT MATURITY (SENIOR) 6.51 years

WEIGHTED AVERAGE COST OF DEBT (SENIOR)7.16% (from July 1 2012 to June 30 2013)


BLOOMBERG TICKER TPFNZ

NZ DX CODE TRP


REVENUES (NZ$M) 918 794 737

EBITDA (NZ$M) 658 341 425

NET PROFIT AFTER TAX (NZ$M) 264 85 79

DEBT/EBITDAFI (X) (SENIOR) 4.4 6.8 4.5



NZD (DOMESTIC)

30 Nov 11 75 3 Dec 15 FRN 110bp/BKBM

3 Sep 12 100 3 Dec 15 FRN 90bp/BKBM

15 Feb 10 50 15 Feb 17 Fixed 6.595%

30 Nov 11 125 30 Nov 18 Fixed 5.14%

6 Sep 12 200 6 Sep 19 Fixed 4.65%

12 Nov 08 50 12 Nov 19 Fixed 7.19%

17 May 10 100 15 May 20 CPI-linked 4.115%

10 Jun 05 150 10 Jun 20 Fixed 6.95%

15 Mar 13 50 15 Mar 23 Fixed 5.448%

15 Mar 13 100 15 Mar 28 Fixed 5.893%

EMTN

11 Jun 08 CHF100 6 Aug 14 Fixed 3.385%

6 Dec 07 CHF200 6 Aug 14 Fixed 3.385%

24 Mar 10 HK$400 24 Mar 20 Fixed 4.00%

20 Mar 12 C$250 20 Mar 17 Fixed 3.00%

USD (USPP)

27 Sep 04 25 27 Sep 16 Fixed 5.59%

27 Sep 04 75 27 Sep 19 Fixed 5.74%

13 Oct 11 232 13 Oct 21 Fixed 3.58%

15 Dec 10 150 15 Dec 22 Fixed 3.60%

13 Oct 11 78 13 Oct 23 Fixed 3.43%

13 Oct 11 70 13 Oct 26 Fixed 3.83%

AUD MTN (KANGAROO)

28 Aug 13 300 28 Aug 23 Fixed 5.75%


ISSUERprofiles

TRANSURbAN GROUP

About Transurban Group

T ransurban Group (Transurban) is a toll road owner and operator with a stake in nine roads in Australia and North America. Transurban’s headquarters is in Melbourne.

OwnershipTransurban is a public company, listed on the Australian Securities Exchange (ASX) as TCL. Transurban was first listed in 1996 and is an ASX top 50 company.


Ian Maher, Treasurer+61 3 9612 [email protected]


BLOOMBERG TICKER TCL AU

ASX CODE TCL


PROPORTIONAL RESULT (1)

DEBT (A$M) 7,472.1 6,755.1 6,326.7

TOLL FEE & OTHER REVENUES (A$M) 1,125.5 1,047.2 973.0

EBITDA (A$M) 828.0 784.0 737.3

DEBT/EBITDA (X) 9.0 8.6 8.6

STATUTORY RESULTS

TOLL FEE & OTHER REVENUES (A$M) 886.7 846.2 799.2

EBITDA (A$M) 676.2 636.9 603.9



(1) transurban’s percentage ownership as well as contribution from central group functions.

KEY CREDIT METRICSCREDIT RATING A-/Baa1/A- (S&P/Moody’s/Fitch)

WEIGHTED AVERAGE DEBT MATURITY (SENIOR) 3.9 years (as at June 30 2013)

WEIGHTED AVERAGE COST OF DEBT (TRANSURBAN GROUP) 6.6% (AUD), 4.6% (USD)

OUTSTANDING BONDS


AUD (DOMESTIC)

15 Mar 10 250 24 Mar 14 Fixed 7.25%

29 Aug 05* 300 10 Nov 15 FRN 31/BBSW

8 Jun 11 200 8 Jun 16 Fixed 6.75%

29 Aug 05* 300 10 Nov 17 FRN 34/BBSW

CAD (NOTES)

6 Mar 12 250 6 Mar 19 Fixed 3.37%

AUD (USPP)

7 Dec 04 72 7 Dec 19 FRN 73/BBSW

USD (USPP)

7 Dec 04 100 7 Dec 14 Fixed 5.02%

10 Aug 05 98 10 Aug 15 Fixed 5.04%

14 Nov 06 57 14 Nov 16 Fixed 5.71%

7 Dec 04 39 7 Dec 16 Fixed 5.17%

10 Aug 05 126 10 Aug 17 Fixed 5.19%

14 Nov 06 182 14 Nov 18 Fixed 5.86%

7 Dec 04 109 7 Dec 19 Fixed 5.47%

10 Aug 05 157 10 Aug 20 Fixed 5.35%

14 Nov 06 162 14 Nov 21 Fixed 5.95%

14 Nov 06 67 14 Nov 26 Fixed 6.06%

* Credit-wrapped.


AUD MTNsWorking capital facility

Term bank debt

EMTN USPP

vO

LU

mE

(A

$m

)

900

800

700

600

500

400

300

200

100

0

sourCe: trAnsurbAn group JulY 31 2013

Liquidity positionAs at June 30 2013 Transurban had A$218 million of undrawn debt facilities.

Corporate debt fundingTransurban has a medium- to long-dated corporate debt profile, diversified by both sources of debt and maturities. At June 30 2013 there was A$520 million of working capital facilities in place, A$600 million outstanding in term bank debt, A$1.5 billion equivalent in the USPP market, A$1.1 billion in domestic AUD bonds and A$233 million equivalent of CAD notes. •

FY19FY14 FY20FY15 FY21FY16 FY22 FY23FY17 FY25FY24FY18 FY26 FY27

250

136

100

315 50

020

012

9

133

160

165

125

233

254

300

219

94

20

6

175

94

Note: The A$220m working capital facility maturing in 2014 has since been refinanced.

220

8 3

TRUSTPOWER

About TrustPower

S tarting business in 1925, TrustPower has grown to be New Zealand’s fifth-largest electricity generator and retailer. TrustPower is an integrated electricity company operating electricity-generation facilities from renewable energy sources – hydro and wind

– and retailing electricity to customers in the commercial and residential sectors. The company has assets of more than NZ$2.9 billion, mainly comprised of 34 small- to medium-sized hydro-generating stations and three wind farms (two in New Zealand and one in South Australia). The company’s head office is in Tauranga.

OwnershipTrustPower is a public company, listed on the New Zealand Exchange as TPW. It is majority New Zealand owned. TrustPower has two large shareholders and approximately 13,000 small-parcel shareholders, as well as 9,700 bondholders.

The main shareholders are Infratil (50.7%) (see p50), a specialist investor in infrastructure and utility assets, and the Tauranga Energy Consumer Trust (33.1%), a consumer-elected trust based in Tauranga.

Liquidity positionTrustPower maintains conservative levels of committed credit facilities. Including subordinated bonds, the group currently has around NZ$1.3 billion of committed debt funding in place. TrustPower is currently constructing the 270 MW Snowtown stage 2 wind farm in South Australia at an expected cost of A$439 million.

Debt fundingAt March 31 2013 net debt was NZ$911 million. The average maturity of outstanding debt as at March 31 2013 was 3.8 years.


Robert Farron, Chief Financial Officer+64 7 574 [email protected]

TrustPower’s current cash-advance facilities mature between September 2014 and July 2018, while its bonds – including subordinated bonds – mature between March 2014 and September 2019. •


BOND PROTECTION

GEARING COVENANT N

LEVERAGE RATIO Y (net debt/TTA <+ 50%)


CHANGE OF CONTROL N

COUPON STEP-UP N

WEIGHTED AVERAGE DEBT MATURITY (SENIOR) 3.8 years (as at March 31 2013)

KEY DATAFINANCIAL YEAR END 31 MAR

BLOOMBERG TICKER TPWNZ

NZX CODE TPW


MARKET CAPITALISATION (NZ$M) 2,431 2.289 2,273

REVENUES (NZ$M) 805.5 807.1 766.0

EBITDA (NZ$M) 294.8 300.1 274.4

NET PROFIT AFTER TAX (NZ$M) 123.4 131.7 112.4



SHARE PRICE (FY END) (NZ$) 7.70 7.25 7.20


NZD (DOMESTIC)

SUBORDINATED

16 Feb 04 54.7 15 Mar 14 Fixed 8.50%

17 Dec 08 100 15 Dec 15 Fixed 8.40%

15 Sep 12 140 15 Sep 19 Fixed 6.75%

SENIOR

18 Dec 09 75 15 Dec 14 Fixed 7.60%

27 Jan 10 65 15 Dec 16 Fixed 8.00%

26 Oct 10 75 15 Dec 17 Fixed 7.10%


Bank funding Bonds

vO

LU

mE

(N

Z$

m)

400

350

300

250

200

150

100

50

00-1 6-71-2 7-82-3 8-93-4 9-104-5 10+5-6

sourCe: trustpower JulY 31 2013

140

75

10065

163

121

13

125

21

266

21 13

181

55

2111

75

mATURITy yEARS


ISSUERprofiles

UNITED ENERGY

About United Energy

U nited Energy distributes electricity to approximately 650,000 customers across east and south-east Melbourne and the Mornington Peninsula. Ninety per cent of customers are residential. The company manages a network of approximately 215,000 poles

and 13,000 kilometres of wires. Electricity is received via 78 sub-transmission lines at 46 zone stations, where it is transformed from subtransmission voltages to distribution voltages. United Energy’s head office is in Melbourne.

OwnershipThe DUET Group owns, in aggregate, 66% of United Energy with SPI (Australia) Assets (see p71) holding the remaining shares.

Liquidity positionAs at June 30 2013 United Energy had undrawn facilities of A$231 million and cash at bank and on deposit of A$257 million, with cash flow from operating activities of A$243 million in financial year 2013.

Debt fundingAs at June 30 2013 United Energy had A$2.32 billion of borrowings from bank debt facilities, MTNs, US 144A and USPP notes. The average maturity of the company’s debt is 3.3 years.

In April 2013 United Energy arranged a A$400 million syndicated bank facility with a number of Asian-based banks. The facility matures in 2018. Additionally, in May 2013 United Energy entered into a deferred drawdown, A$125 million five-year bank facility with Westpac Banking Corporation. • for further information please contact:

Andrew Sutcliffe, General Manager Corporate Finance+61 3 8846 [email protected]

KEY CREDIT METRICSCREDIT RATING BBB/Baa2 (S&P/Moody’s)




BLOOMBERG TICKER DUEAU

ASX CODE NOT LISTED


REVENUES (A$M) 466.6 440.5 405.2

EBITDA (A$M) 317.8 275.5 273.7

NET PROFIT AFTER TAX (A$M) 12.6 (31.3) (2.4)

NET SENIOR DEBT/REGULATED ASSET BASE (%) 91 89 95

OUTSTANDING BONDSISSUE DATE VOLUME (M) MATURITY FORMAT

AUD (DOMESTIC)

6 Oct 05 500 23 Oct 14 FRN

11 Apr 12 200 11 Apr 17 Fixed

17 Aug 12 65 11 Apr 17 Fixed

USD (USPP)

15 Dec 10 70 15 Dec 14 Fixed

15 Dec 10 365 15 Dec 17 Fixed

USD (144A)

19 Nov 03 200 15 Apr 16 Fixed


vO

LU

mE

(A

$m

)

1,200

1,000

800

600

400

200

0

FY14 FY15 FY16 FY17 FY18

sourCe: united energY June 30 2013

Asian syndicated facility

Senior corporate facility Working capital

facility

Westpac facility

USPP

AUD MTNs

77

118

500

279 265

125

120

402

400

30

US 144A notes

8 5

About vector

V ector is a multi-infrastructure utility with operations primarily spread across electricity distribution networks in Auckland, natural gas distribution in Auckland and 30 towns and cities in New Zealand’s North Island, high-pressure natural gas transmission,

natural gas processing and wholesale and retail of liquefied petroleum gas, metering services to electricity retailers, and fibre-optic networks in Auckland and Wellington.

OwnershipVector is listed on the New Zealand Exchange as VCT. The majority shareholder is the Auckland Energy Consumer Trust with a 75.1% stake. The remaining shares are held by individual and institutional shareholders.

Liquidity positionFor the year ended June 30 2013 Vector reported that it continued to have comfortable headroom with cash on balance sheet of NZ$56 million and undrawn credit facilities of NZ$325 million. The company continues to have a strong liquidity position with operating cash flow increasing 8.6% to NZ$426.2 million and net interest cover of 2.8 times for the year ended June 30 2013.

Debt fundingVector’s debt portfolio has a spread of maturities extending out to 2022, with an average maturity of 5.7 years. At June 30 2013 Vector had borrowings of NZ$2.45 billion, principally from domestic retail and wholesale bonds, USPP notes and GBP bonds. The tenor of the debt facilities is consistent with Vector’s strategy to further extend the maturity of its debt portfolio to better reflect the long-term nature of the


Binaifer Behdin, Group Treasurer+64 9 978 [email protected]

company’s asset profile. In September 2012 Vector repaid the US$15 million tranche of its USD fixed-rate senior notes. •

KEY CREDIT METRICSCREDIT RATING BBB+ (S&P)

AVERAGE DEBT MATURITY 5.7 years (as at June 30 2013)


BLOOMBERG TICKER VCT NZ

NZX CODE VCT


MARKET CAPITALISATION (NZ$M) 2,668 2,668 2,529

REVENUES (NZ$M) 1,279.2 1,252.6 1,244.6

EBITDA (NZ$M) 630.5 627.4 636.6

NET PROFIT AFTER TAX (NZ$M) 203.3 198.8 201.4*

DEBT/EBITDA (X) 3.84 3.91 3.79


SHARE PRICE (FY END) (NZ$) 2.68 2.68 2.54

* includes nZ$30.1 million one-off contribution from a transpower agreement.

OUTSTANDING BONDS



NZD (DOMESTIC)

27 May 09 150 15 Oct 14 Fixed 7.80% ND

26 Oct 05 250 26 Oct 15 FRN ND ND

4 Apr 07 160 4 Apr 17 FRN ND ND

15 Jun 12 307 15 Jun 17* Fixed 7.00% ND

26 Oct 05 400 26 Oct 17 FRN ND ND

26 Oct 05 350 26 Oct 20 FRN ND ND

USD (USPP)

16 Sep 04 65 16 Sep 16 Fixed ND ND

16 Sep 04 195 16 Sep 19 Fixed ND ND

20 Dec 12 182 20 Dec 22 Fixed ND ND

GBP (EMTN)

11 Apr 08 115 14 Jan 19 Fixed 7.625% ND

* election date only.

VECTOR


vO

LU

mE

(N

Z$

m)

600

500

400

300

200

100

0

sourCe: veCtor June 30 2013

7.00% capital bonds

Credit-wrapped FRNs

Sterling 7.625% bonds

Working capital facility Senior credit facility

NZ senior bond USPP

FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23

50

150

125 150

99

250

307350

160

400

286296

250.5


ISSUERprofiles

WELLINGTON AIRPORT

About Wellington Airport

W ellington Airport is one of New Zealand’s three largest airports, handling more than five million passengers annually. It acts as a major domestic hub in the national transport system, serving as the gateway to central New Zealand as well as

providing international services to Australia and Fiji. Wellington Airport opened in 1959 and it now has

approximately 1,500 people working on any given day, of which Wellington International Airport Limited (WIAL) employs approximately 85. Passenger numbers are forecast to double over the next 20 years, with international passenger numbers having grown by 4.85% per year and domestic passengers by 3.35% per year over the last 15 years.

OwnershipWellington Airport was privatised in 1998 and is now 66% owned by NZ Airports – which is wholly owned by Infratil (see p50) – and 34% owned by Wellington City Council. In the normal course of business the airport transacts with the Wellington City Council on an arms-length basis.

Liquidity positionAs of March 31 2013 WIAL has ample funding headroom with standby credit facilities of NZ$90 million. WIAL has forecast major capital expenditure projects for terminal extension and car parking development over the coming five years. Funding facilities in place or planned will cover these projects.

Debt fundingAll the airport’s non-bank debt funding is by way of medium-term bonds with maturities in 2013 (November), 2017, 2019 and 2020. This form of long-dated debt suits the nature of


Martin Harrington, Chief Financial Officer+64 4 385 5105mharrington@wellingtonairport.co.nzwww.wellingtonairport.co.nz

the company’s assets and income flows. The airport’s standby credit facilities were renewed in April 2011. These bank facilities consist of NZ$60 million maturing in June 2014 and NZ$30 million maturing in June 2016. As of March 31 2013 none of these facilities were drawn. Various standard banking and bond covenants are in place.

In June 2013 the airport refinanced NZ$50 million of the NZ$100 million of retail bonds maturing in November 2013. WIAL chose to refinance this early due to favourable market conditions. WIAL will consider options for the second tranche of this refinancing in late 2013, along with the NZ$60 million of bank facilities maturing in 2014.

WIAL has a NZ$100 million commercial paper programme in place, however nothing was on issue under this facility at March 31 2013. •

KEY CREDIT METRICSCREDIT RATING BBB+ (S&P)

BOND PROTECTION

GEARING COVENANT N

LEVERAGE RATIO Y


CHANGE OF CONTROL N

COUPON STEP-UP Y

WEIGHTED AVERAGE DEBT MATURITY (SENIOR) 2.9 years (as at March 31 2013)

WEIGHTED AVERAGE COST OF DEBT (SENIOR) 6.87% (as at March 31 2013)


BLOOMBERG TICKER IFTNZ

NZX CODE WIA010

KEY FINANCIALS FY13 (1) HY13 (1) HY12 (2) FY12 (3)

REVENUES (NZ$M) 106.2 51.4 47.6 99.5

EBITDA (NZ$M) 82.9 39.4 34.8 75.5

NET PROFIT AFTER TAX (NZ$M) 16.2 (5.6) (11.8) 3.8

DEBT/EBITDA (X) (SENIOR) 4.64 10.20 11.56 5.12

NET DEBT/NET DEBT + EQUITY (%) 47.4 50.5 56.5 48.6

(1) effective April 1 2012 wellington Airport noise treatment (100% owned subsidiary) was consolidated into the group results. (2) hY12 and hY13 numbers include the payment of an annual distribution and subvention payment in the period.(3) subsidiary isite was sold on July 29 2011 and consequently fY12 represents parent company accounts only.

OUTSTANDING BONDS


NZD (DOMESTIC)

2 Dec 08 100 15 Nov 13 Fixed 7.50%

1 Aug 07 150 1 Aug 17 FRN 25/BKBM

11 Jun 13 25 11 Jun 20 Fixed 5.27%

17 Jun 13 25 17 Jun 19 FRN 130/BKBM

DEBT MATURITY PROFILE (BONDS)

vO

LU

mE

(N

Z$

m)

160

140

120

100

80

60

40

20

0FY14 FY18 FY20 FY21

sourCe: wellingtion Airport mArCh 31 2013

100

150

25 25

8 7

WESFARMERS

About Wesfarmers

W esfarmers has grown into one of Australia’s largest listed companies and employers, with more than 200,000 employees. Its diverse business operations cover supermarkets, department stores, home improvement, office

supplies, coal mining, insurance, chemicals, energy, fertilisers, and industrial and safety products. It is the second-largest player in Australia in supermarkets (Coles Group), and the largest player in discount department stores (brands include Target and Kmart), hardware and home improvement (Bunnings), and office supplies (Officeworks). Wesfarmers is headquartered in Perth.

OwnershipWesfarmers has been listed on the Australian Securities Exchange since November 1984 as WES. It is one of the top 20 listed companies on the exchange.

Liquidity positionAs at June 30 2013 cash at bank and on deposit available for immediate debt reduction totalled A$520 million, while the company had committed undrawn facilities of A$2.9 billion.

Debt fundingBy the end of FY13 Wesfarmers had gross debt of A$5.8 billion and net debt of A$5.3 billion, with an average debt maturity profile of four years. In addition, the company also has operating lease debt relating to its retail store networks. The majority of the lease obligations are long-dated and have staggered maturities and low refinancing risk.

Wesfarmers has a well-spread debt maturity profile. It accesses a number of bank and debt capital markets globally to fund its businesses. Wesfarmers currently has corporate bonds outstanding in the Australian, euro and US144A debt capital


Luigi Mottolini, General Manager Finance and Tax+61 8 9327 [email protected]/debt-investors.htmlwww.wesfarmers.com.au

markets. All the group’s bank and capital market debt benefits from cross guarantees from the major operating subsidiaries of the group.

Wesfarmers’ borrowings are subject to a number of financial covenants, including EBITDA net interest cover, net debt to EBITDA, and restrictions on secured debt. Wesfarmers has comfortable headroom within all financial covenants and various bank facilities include ratings-based pricing grids.

During the year ended June 30 2013 Wesfarmers issued the following corporate bonds:• August 2 2012: €650 million (A$764.2 million) 10-year fixed-

rate notes, European market.• March 12 2013: A$350 million seven-year fixed-rate notes,

Australian domestic market.• March 20 2013: US$750 million (A$728.2 million) five-year

fixed-rate notes, 144A market.Proceeds from these bond issues were applied to general

group funding and to repay existing shorter-term borrowings. •


BOND PROTECTION

GEARING COVENANT N

LEVERAGE RATIO N


CHANGE OF CONTROL Y (subject to certain conditions)

COUPON STEP-UPN (no longer offered due to rating stability)

WEIGHTED AVERAGE DEBT MATURITY (SENIOR) 4.0 years (as at June 30 2013)


BLOOMBERG TICKER WESAU

ASX CODE WES



REVENUES (A$M) 59,832 58,080 54,875

EBITDA (A$M) 4,729 4,544 4,155

NET PROFIT AFTER TAX (A$M) 2,261 2,126 1,922

NET DEBT/EBITDA (X) (SENIOR) 1.1 1.1 1.0

NET DEBT/ EQUITY (%) 20.2 19.1 17.1

CASH INTEREST COVER (X) 12.2 10.8 9.5


OUTSTANDING BONDS


AUD (DOMESTIC)

11 Sep 09 400 11 Sep 14 Fixed 8.25%

11 Sep 09 100 11 Sep 14 FRN 260/BBSW

4 Nov 11 500 4 Nov 16 Fixed 6.00%

28 Mar 12 500 28 Mar 19 Fixed 6.25%

12 Mar 13 350 12 Mar 20 Fixed 4.75%

USD (144A)

18 May 11 650 18 May 16 Fixed 2.983%

20 Mar 13 750 20 Mar 18 Fixed 1.874%

EUR (EMTN)

10 Mar 10 500 10 Jul 15 Fixed 3.875%

2 Aug 12 650 2 Aug 22 Fixed 2.75%


ISSUERprofiles

WESTFIELD GROUP

About Westfield Group

H eadquartered in Sydney, Westfield Group (Westfield) is one of the world’s largest listed retail property groups. The shopping centre group engages in the ownership, operation, development, design, construction, management, leasing and marketing

of shopping centres and in funds and asset management on behalf of investors. As at June 30 2013 the property investment portfolio consisted of interests in 100 shopping centres in Australia, New Zealand, the US and the UK with a gross value of around A$67.9 billion. Total consolidated assets were A$35.0 billion.

In December 2010 Westfield established the Westfield Retail Trust (WRT) (see facing page) as a standalone listed property trust holding 50% of the interests that Westfield held in most of its Australian and New Zealand shopping centres. WRT does not form part of Westfield.

OwnershipWestfield is a stapled group – comprising the securities of Westfield Holdings Limited (WHL), Westfield Trust (WT) and Westfield America Trust (WAT) – which has been listed on the Australian Securities Exchange (ASX) since July 2004.

WHL is an Australian corporation and was incorporated and listed on the ASX in 1979 as part of a corporate reorganisation of Westfield Limited (formerly Westfield Development Corporation Limited) which had been listed since 1960. WT and WAT are managed investment schemes registered under the Australian Corporations Act.

Liquidity positionAt June 30 2013 Westfield’s undrawn committed bank facilities and cash totalled approximately A$3.7 billion.

Debt fundingWestfield has a diversified funding base made up of


Richard Williams, Group Treasurer+61 2 9358 [email protected]/corporate

international bonds, syndicated bank facilities, bilateral bank facilities and secured mortgages. In the capital markets Westfield has previously issued bonds in USD, GBP, EUR and AUD. At June 30 2013 interest-bearing liabilities, on a statutory consolidation basis, totalled A$12.5 billion – including bonds totalling the equivalent of A$9.8 billion. In July 2013 Westfield redeemed US$1.8 billion of bonds that were scheduled to mature in 2014. •


BOND PROTECTION

SECURED DEBT Y (≤45%)

UNENCUMBERED LEVERAGE Y (≥125%)

LEVERAGE RATIO Y (≤65%)

INTEREST COVER RATIO Y (≥1.5x)

CHANGE OF CONTROL N

COUPON STEP-UP N

TARGET GEARING Not specified

WEIGHTED AVERAGE MATURITY (BANK FACILITIES)

3.3 years (as at June 30 2013 adjusted for financing completed in July)

WEIGHTED AVERAGE MATURITY (BONDS & MORTGAGES)

5.6 years (as at June 30 2013 adjusted for financing completed in July)

KEY DATAFINANCIAL YEAR END 31 DEC

BLOOMBERG TICKER WDC AU

ASX CODE WDC

KEY FINANCIALS HY13 FY12 HY12 FY11

MARKET CAPITALISATION (A$M) 24,863.3 23,531.9 21,474.8 17,987.4

REVENUES (A$M) 1,182.8 2,277.8 1,213.4 4,006.0

EBITDA (A$M) 973.4 1,994.4 995.4 1,922.8

NET PROFIT AFTER TAX (A$M) 524.0 1,765.3 842.4 1,546.0

SHARE PRICE (FY OR HY END) (A$) 11.44 10.56 9.50 7.81

OUTSTANDING BONDS


USD (144A)

2 Sep 09 750 2 Sep 15 Fixed 5.75% 350/UST

28 Sep 06 900 1 Oct 16 Fixed 5.70% 109/UST

16 Apr 08 1,100 15 Apr 18 Fixed 7.125% 375/UST

2 Sep 09 1,250 2 Sep 19 Fixed 6.75% 350/UST

3 May 11 1,000 10 May 21 Fixed 4.625% 147/UST

25 Sep 12 500 3 Oct 22 Fixed 3.375% 180/UST

GBP (EMTN)

27 Jun 05 600 27 Jun 17 Fixed 5.50% 110/Gilts

4 Jul 12 450 11 Jul 22 Fixed 4.25% 255/Gilts


Mortgages BankBonds Undrawn facilities

sourCe: westfield group August 30 2013

vO

LU

mE

(A

$B

N)

4.54.03.53.02.52.01.51.00.5

0FY18FY13 FY19FY14 FY20FY15 FY21FY16 FY22FY17 FY23

0.3 0.30.4

0.2

1.5

0.70.2

0.2

0.7

0.5 0.1 0.4 0.5

0.8

0.8

1.2

1.0

0.9

1.0

0.2

1.2

1.41.1

1.3

8 9

WESTFIELD RETAIL TRUST

About Westfield Retail Trust

W estfield Retail Trust is Australia’s largest listed real estate investment trust solely focused on Australian and New Zealand retail property. It has total assets valued at approximately A$13.8 billion, with low gearing and income derived

primarily in Australian dollars. The trust’s principal investment is the joint venture ownership, alongside Westfield Group (see facing page), together with other third parties, in a high-quality shopping centre portfolio comprising interests in 47 major shopping centres located predominantly in Australia, with 8 per cent of the assets located in New Zealand.

OwnershipWestfield Retail Trust is a stapled entity comprising Westfield Retail Trust 1 and Westfield Retail Trust 2. It is listed on the Australian Securities Exchange (ASX) as WRT. Westfield Retail Trust was established in November 2010 and commenced trading on the ASX the following month.

Liquidity positionAt June 30 2013 Westfield Retail Trust’s undrawn committed bank facilities and cash totalled over A$700 million – including A$250 million of bank facilities established post June 30 2013.

Debt fundingWestfield Retail Trust has a diversified funding base made up of bilateral facilities with domestic and international banks and AUD and EUR bond issuance. At June 30 2013 net debt was A$3 billion with weighted average facility maturity of 3.9 years – including A$250 million bilateral bank facilities established and A$1.175 billion existing facilities extended post June 30 2013. Westfield Retail Trust has a common borrowing and credit structure for all unsecured, unsubordinated lenders who


Brian Mackrill, Chief Financial Officer+61 2 9333 [email protected]

rank pari passu irrespective of jurisdiction of the borrower. The trust’s unsecured borrowings contain financial covenants in relation to gearing, secured debt, interest coverage and unencumbered leverage. •

KEY CREDIT METRICSCREDIT RATING A+ (S&P)

BOND PROTECTION

LEVERAGE RATIO Y (≤ 65%)

SECURED DEBT Y (≤45%)

INTEREST COVER RATIO Y (≥ 1.5x)

UNENCUMBERED LEVERAGE Y (≥ 125%)

COUPON STEP-UP N

TARGET GEARING Not specified

WEIGHTED AVERAGE DEBT MATURITY* 3.9 years (as at June 30 2013)

* includes A$250m bilateral bank facilities established and A$1.175bn existing facilities extended post June 30 2013.


BLOOMBERG TICKER WRT AU

ASX CODE WRT

KEY FINANCIALS HY13 FY12 HY12 FY11

MARKET CAPITALISATION (A$M) 9,294 9,199 8,704 7,605

REVENUES (A$M) 267 515 251 480

EBITDA (A$M) 374 736 361 712

NET PROFIT AFTER TAX (A$M) 402 831 417 974

DEBT/EBITDA (X) (SENIOR) 4.0 3.8 4.0 3.8

NET DEBT/NET DEBT + EQUITY (%) 22.3 20.9 21.9 20.8

SHARE PRICE (FY OR HY END) (A$) 3.10 3.02 2.85 2.49

OUTSTANDING BONDS



AUD (DOMESTIC)

18 Apr 11 800 18 Oct 16 Fixed 7.00% 120/swap

18 Apr 11 100 18 Oct 16 FRN ND 120/BBSW

4 Jul 12 30 4 Jul 22 Fixed ND ND

23 Oct 12 150 23 Oct 19 Fixed 5.00% 190/swap

EUR

11 Sep 13 500 11 Sep 23 Fixed 3.25% ND

sourCe: westfield retAil trust June 30 2013

H213

H114

H214

H115

H215

H116

H216

H117

H217

H118

H119

H218

H219

H120

H220+

*includes A$250m bilateral bank facilities established and A$1.175bn existing facilities extended post June 30 2013. excludes €500m mtns issued in september 2013.

DEBT MATURITY PROFILE*

MTNsBilateral bank facilities drawn

Bilateral bank facilities undrawn

vO

LU

mE

(A

$m

)

1,000

800

600

400

200

0100

194

465

575

125

268

200

150125150

233

100

100

900

6

30


ISSUERprofiles

WOODSIDE PETROLEUM

About Woodside Petroleum

W oodside Petroleum (Woodside) is the biggest operator of oil and gas production in Australia. It is Australia’s largest independent dedicated oil and gas company, with a proud history of safe and reliable operations spanning decades. As

one of the world’s leading producers of liquefied natural gas, Woodside is helping to meet the demands for cleaner energy from Japan, China, Korea and other countries in the Asia Pacific region.

Formed in 1954, a year after Australia’s first oil discovery, Woodside’s initial focus was on oil exploration off the south coast. Its direction changed in the 1970s when major natural gas discoveries were made off the Western Australian coast.

Woodside has its headquarters in Perth and the company employs around 4,000 staff across the globe.

OwnershipWoodside has been a public company listed on the Australian Securities Exchange as WPL since November 1971. It is one of the top 20 listed companies on the exchange. Shell Australia owns 23%.

Liquidity positionThe liquidity position of the group is managed to ensure sufficient liquid funds are available to meet its financial commitments in a timely and cost-effective manner. Group treasury continually reviews the group’s liquidity position, including cash-flow forecasts, to determine the forecast liquidity position and maintain appropriate liquidity levels. At June 30 2013 Woodside had US$3.4 billion in liquidity in the form of cash and undrawn debt facilities. for further information please contact:

[email protected]

KEY CREDIT METRICSCREDIT RATING BBB+/Baa1 (S&P/Moody’s)


BLOOMBERG TICKER WPL AU

ASX CODE WPL

KEY FINANCIALS HY13 FY12 FY11


REVENUES (US$M) 2,857 6,348 4,802

EBITDA (US$M) 1,836 4,979 2,839

NET PROFIT AFTER TAX (US$M) (1) 873 2,983 1,507

NET DEBT/NET DEBT + EQUITY (%) 13 11 29

SHARE PRICE (HY END) (A$) 35.01 33.88 30.62

(1) After significant items.


USD (144A)

3 Nov 03 250 15 Nov 13 Fixed 5.00%

24 Feb 09 400 1 Mar 14 Fixed 8.125%

3 Nov 09 700 10 Nov 14 Fixed 4.50%

24 Feb 09 600 1 Mar 19 Fixed 8.75%

10 May 11 700 10 May 21 Fixed 4.60%

Debt fundingAt June 30 2013 Woodside had US$2.65 billion outstanding in bonds and US$1.38 billion outstanding in other debt facilities. Net debt was US$2.2 billion. The company’s average cost of debt at June 30 2013 was approximately 3.6% per year on a portfolio basis.

All loans and bonds are subject to various covenants and a negative pledge restricting future secured borrowings, subject to a number of permitted lien exceptions. •


Drawn bank debt

US bonds

DE

BT

(U

S$

m)

2,0001,8001,6001,4001,2001,000

800600400200

0

sourCe: woodside petroleum June 30 2013

FY13 FY14 FY15 FY16 FY17 FY18 -FY23

83

42

633

83 83

500

1,300

1,100

250

9 1

WOOLWORTHS

About Woolworths

W oolworths is made up of some of the most recognisable and trusted brands in retailing, serving millions of customers every day across Australia and New Zealand. It is Australia’s largest, and New Zealand’s second-largest,

supermarket retailer with operations comprising more than 890 supermarket stores in Australia and more than 160 stores in New Zealand. Woolworths also has buying offices in Hong Kong, Bangladesh and Shanghai. The company’s retail expertise stretches across food and grocery, liquor, petrol, general merchandise and home improvement. Based in Sydney, Woolworths is one of the largest private-sector employers in Australia, with almost 195,000 staff.

OwnershipWoolworths is a public company, listed on the Australian Securities Exchange since July 1993, as WOW. It is one of the top 10 listed companies on the exchange.

Liquidity positionWoolworths sets its capital structure with the objectives of enhancing shareholder value through minimising the weighted average cost of capital while retaining flexibility to pursue growth and capital management opportunities. As at June 30 2013 undrawn committed bank debt facilities totalled A$3.46 billion.

Debt fundingThe majority of Woolworths’ debt financing is provided by long-term operating leases, with lease maturities of up to 40 years. The maturity profile of the group’s on-balance sheet debt maturities is well spread and diversified across the bank


Asrar Rahman, Group Treasurer+61 2 8885 [email protected]

and capital markets in Australia, Asia and the US. Woolworths’ debt facilities comprise domestic Australian CP and MTNs, an EMTN programme, USPP and 144A issuance, syndicated and revolving bank facilities, and step-up, deferrable, subordinated notes.

Woolworths’ last debt issuance was a seven-year A$500 million MTN in the AUD domestic institutional market in March 2012. In June 2013 the company repurchased US$615 million of US 144A bonds to use cash proceeds received from the sale of properties to the SCA Property Group during FY13. Woolworths also established a US$2 billion EMTN programme in June 2013. •


KEY DATAFINANCIAL YEAR END 30 JUN 2013 (1)

BLOOMBERG TICKER WOWAU

ASX CODE WOW



REVENUES (A$M) 59,158.0 56,700.1 54,142.9

EBIT (A$M) 3,607.0 2,956.7 3,276.4

NET PROFIT AFTER TAX (A$M) 2,259.4 1,816.7 2,124.0

NET DEBT/EBIT (X) (SENIOR) 1.04 1.46 1.22

GEARING (%) (2) 28.72 33.76 33.83


(1) different day each year; always on a sunday. (2) net repayable debt/net repayable debt + equity.

OUTSTANDING BONDS


AUD (DOMESTIC)

Mar 11 500 Mar 16 Fixed 6.75%

Mar 12 500 Mar 19 Fixed 6.00%

Nov 11 700 Nov 36 FRN 325/BBSW

USD (USPP)

Feb 05 100 Apr 15 Fixed 5.06%

Feb 05 300 Apr 17 Fixed 5.16%

Feb 05 100 Apr 20 Fixed 5.41%

USD (144A)

Nov 05 353 Nov 15 Fixed 5.55%

Sep 10 279 Sep 15 Fixed 2.55%

Sep 10 617 Sep 20 Fixed 4.00%

Apr 11 223 Apr 16 Fixed 3.15%

Apr 11 438 Apr 21 Fixed 4.55%

DEBT MATURITY PROFILE (HARD MATURITIES)

Syndicated loans

WOW Notes II

2011 US 144A

USPPs Domestic MTNs

2010 US 144A 2005 US 144Av

OL

Um

E (

A$

m)

2,500

2,000

1,500

1,000

500

0

sourCe: woolworths June 30 2013

FY13 FY14 FY16 FY20FY18 BeyondFY15 FY19FY17 FY21

127

700

381

620

580

482

296

216

500500

127

424

654


ISSUERprofiles

Z ENERGY

About Z Energy

Z Energy is the company which owns and operates the downstream fuels business in New Zealand previously owned by Shell New Zealand. In April 2010 listed infrastructure company Infratil (see p50) and the New Zealand Superannuation Fund purchased the Shell

business in New Zealand for NZ$695 million.In August 2013 Z Energy listed on the New Zealand

and Australian stock exchanges, becoming the first listed downstream fuel company on the New Zealand Exchange. Z Energy was listed with 400 million shares on issue with a listing price of NZ$3.50 per share and a market capitalisation of NZ$1.4 billion.

Z Energy sells around 30 per cent of New Zealand’s total liquid fuel volume to retail and commercial customers, and bitumen to roading contractors. Its operations also include a 17.1% stake in Refining NZ (NZRC), a 25% stake in Loyalty New Zealand – which runs the Fly Buys loyalty programme – 213 retail service stations, 94 truck stops, a part interest in two coastal shipping tankers which transfer refined fuels from NZRC around New Zealand, pipelines, terminals and bulk storage infrastructure around the country.

Z Energy has negligible real exposure to fluctuating NZD oil prices as the NZD oil price helps to set the pump price. It also has the most efficient distribution network with its stations selling well in excess of the average of the rest of the industry.

OwnershipZ Energy is 20% owned by the New Zealand Superannuation Fund and 20% owned by Infratil. The remaining 240 million shares on issue are held by a mix of retail and institutional investors, both domestic and offshore.

Liquidity positionZ Energy’s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when due and


Richard Norris, Treasurer+64 4 462 [email protected]

is able to make value decisions, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company’s reputation.

The group maintains a working capital facility of NZ$350 million to fund its operations. This facility has been drawn on regularly since inception, primarily to fund the purchase of crude oil and refined product. As a result of variability in the timing and magnitude of working capital commitments, the cash position, and hence net debt, can vary significantly at year end. As at March 31 2013 Z Energy had NZ$275 million cash on hand.

Debt fundingZ Energy’s policy is to seek to spread the maturities of its debt with no more than 50% of core debt facilities maturing in any forward 12-month period. The group’s core term debt comprises bank debt and bonds.

Z Energy has a NZ$50 million revolving debt facility with its banks. The initial facility of NZ$350 million was fully drawn in April 2010 to fund the acquisition, and partially repaid in 2010 following an initial bond issue and subsequent issues in 2011 and 2012. As at August 31 2013 the facility remains undrawn. The bond offers raised a total of NZ$432 million. Proceeds have been used to repay bank debt, extend the maturity profile and optimise corporate funding structures. The banks’ facilities (working capital and revolving debt) expire in July 2016.

The average duration of Z Energy’s term debt as at August 31 2013 was approximately 4.7 years. •


BOND PROTECTION

GEARING COVENANT N

LEVERAGE RATIO Y


CHANGE OF CONTROL N

COUPON STEP-UP N

WEIGHTED AVERAGE DEBT MATURITY 4.7 years (as at August 31 2013)

WEIGHTED AVERAGE COST OF DEBT 8.04% (12 months to March 31 2013)


BLOOMBERG TICKER ZELNZ

NZX/ASX CODE ZEL.NZ/ZNZ.AU


REVENUES (NZ$M) 2,989 3,179 2,795

EBITDA (NZ$M) (NZ CURRENT COST) 195 172 157

NET PROFIT AFTER TAX (NZ$M) 57 100 226


NET DEBT/NET DEBT + EQUITY (%) 20 38 35

OUTSTANDING BONDS


NZD (DOMESTIC)

11 Aug 10 147 15 Oct 16 Fixed 7.35% 280/swap

9 Aug 11 150 15 Aug 18 Fixed 7.25% 241/swap

15 Aug 12 135 15 Nov 19 Fixed 6.50% 304/swap

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