Sydney Airport Corporation

KEY data KEY CREDIT METRICS FINANCIAL YEAR END 31 DEC CREDIT RATING BBB/Baa2/BBB (S&P/Moody’s/Fitch) BLOOMBERG TICKER SYD AAU BOND PROTECTION ASX CODE SYD GEARING COVENANT Y (ND/EV<75%) KEY FINANCIALS HY12 FY11 FY10 leverage ratio N REVENUES (A$M) 504 973 943 INTEREST COVER RATIO Y (>1.1x) EBITDA (A$M) 411 790 773 CHANGE OF CONTROL Y NET PROFIT (A$M)1 93 161 150 COUPON STEP-UP N NET PROFIT (A$M) (48.0) (121) (131.4) NET SENIOR DEBT/EBITDA (x) 7.32 6.6 6.5 (1) Excluding shareholder-related RPS finance costs. instruments and bank debt for its debt funding. It has on issue (2) Change in net senior debt/EBITDA is due to redemption of SKIES being the subordinated debt listed in the ASX in January 2012. Australian credit-wrapped and unwrapped MTNs, Australian credit-wrapped capital-indexed bonds, US 144A/Reg S secured About Sydney Airport notes and Canadian Maple market secured notes. ydney Airport is Australia’s busiest airport and At June 30 2012 SCACH Group had net debt of handles on average 98,000 passengers each day. A$6.02 billion. The average maturity of outstanding debt is Sydney Airport is the gateway to Sydney, which approximately eight years. The company has no further term is Australia’s largest city, most popular tourist debt maturities until Q4 2012. destination and financial capital. A total of 42% of The SCACH Group is continuing to diversify its debt SAustralia’s arriving and departing international passengers and portfolio and will be continuing to look at opportunities in 22% of all domestic and regional passengers fly through the the international capital markets in addition to bank debt and airport. Sydney Airport is an integral component of Australia’s domestic capital markets. • national transport infrastructure network, linking Sydney to the world via 46 routes to international destinations and 49 routes outstanding bonds** margin at coupon to domestic and regional destinations. Issue date Volume (M) Maturity format issue date (% or bps) The principal activities of Sydney Airport are the provision (bps) AUD and management of airport facilities – including retail, (domestic) commercial and property businesses within the airport. In 1998 Dec 06 217 20 Nov 13 FRN* 23/BBSW 23/BBSW Sydney Airport entered into a lease with the Commonwealth of Sep 04 700 20 Nov 14 FRN* 49/BBSW 49/BBSW Australia to operate the airport for 50 years, with an option for Jul 10 175 Jul 15 Fixed 8.00% 8.00% a further 49 years. Sep 04 300 20 Nov 15 FRN* 49/BBSW 49/BBSW May 11 100 Jul 18 Fixed 7.75% 7.75% Various 6501 20 Nov 20 CPI-linked* 3.76% 3.76% Ownership Dec 06 200 20 Nov 21 FRN* 31/BBSW 31/BBSW In June 2002 Sydney Airport was privatised by the Dec 06 750 11 Oct 22 FRN* 29/BBSW 29/BBSW Commonwealth government. Southern Cross Airports Dec 06 659 11 Oct 27 FRN* 33/BBSW 33/BBSW Corporation Holdings Limited (the SCACH Group) is the Dec 06 3421 20 Nov 30 CPI-linked* 3.12% 3.12% parent company of Sydney Airport. Current shareholders of Offshore the SCACH Group are Australian Securities Exchange-listed Jun 11 C$225 Jul 18 Fixed 4.602% 4.602% Sydney Airport (84.8%), HOCHTIEF AirPort and affiliates Oct 10 US$500 Feb 21 Fixed 5.125% 5.125% (12.1%), and Australian superannuation funds (3.1%). * Credit-wrapped. ** As at June 30 2011. (1) The face value of the bond increases over time as a portion of interest is capitalised.

Liquidity position As at 30 June 2012 the SCACH Group had undrawn committed facilities of A$967 million and cash balances of for further information please contact: A$241 million. Christine Kelly, Treasurer +61 2 9667 6139 Debt funding [email protected] The SCACH Group uses a variety of capital market www.sydneyairport.com.au

6 9 ISSUER profiles

Tabcorp Holdings KEY CREDIT METRICS CREDIT RATING BBB (S&P)

BOND PROTECTION

GEARING COVENANT Y LEVERAGE RATIO N KEY data INTEREST COVER RATIO Y FINANCIAL YEAR END 30 JUN CHANGE OF CONTROL Y BLOOMBERG TICKER TAHAU COUPON STEP-UP N ASX CODE TAH TARGET GEARING Investment grade FY11 FY11 WEIGHTED AVERAGE DEBT MATURITY (continuing (reported) 4.8 years (as at Jun 30 2012) KEY FINANCIALS FY12 FY10 (Senior) buisness) (1) WEIGHTED AVERAGE COST OF DEBT (Senior) 7.9% (as at Jun 30 2012) MARKET CAPITALISATION (A$M) 2,139.2 2,263.5 N/A 3,877.9 REVENUES (A$M) 3,038.5 2,947.5 4,469.5 4,219.7 facilities should mature in any 12-month period within the next EBITDA (A$M) 725.2 686.8 1,132.7 998.0 five years. At June 30 2012 none (2011: 27%) of the group’s debt NET PROFIT AFTER TAX (A$M) 340.0 N/A 534.8 469.5 facilities will mature in less than one year. DEBT/EBITDA (x) (Senior) 1.7 1.4 N/A 2.1 Tabcorp’s drawn debt comprises 72% bond and 28% bank NET DEBT/NET DEBT + EQUITY (%) 43.3 40.3 N/A 50.1 debt. Tabcorp has a diversified debt portfolio which includes Share price (FY END) (A$) 2.93 3.29 N/A 6.33 AUD bank debt, AUD MTNs, AUD retail bonds, Tabcorp (1) In June 2011 Tabcorp completed the demerger of its casino business to form the Echo Entertainment Group (ASX code EGP). subordinated notes and USD bonds. Tabcorp remains well within its existing banking covenants. • About Tabcorp Holdings s a diversified publicly-listed gambling company, debt maturity profile Tabcorp Holdings (Tabcorp) conducts a unique MTNs Tabcorp retail bonds Drawn bank facilities combination of wagering, gaming, Keno and Undrawn bank facilities Subordinated notes (1) USPP media activities across Australia. It manages leading customer brands in Australia including TAB.com.au 600 Keno, Luxbet, Tabcorp Gaming Solutions, Sky Racing and Sky 500 )

A M Sports Radio, serving millions of customers every day. Tabcorp 400 284

(A$ 60 400

employs about 3,000 people in all states of Australia. Its head e office is in Melbourne. m 300 340

olu 250 v 200 211 Ownership 150 100 Tabcorp has been listed on the Australian Securities Exchange as TAH since August 1994. It is one of the top 100 listed 0 companies on the exchange. FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY19 (1) Subordinated notes mature in March 2037, but illustrated at the first call date in 2017.

SOURCE: TABCORP HOLDINGS JUNE 30 2012 Liquidity position Tabcorp aims to retain a strong investment-grade credit outstanding bonds rating and conservative balance sheet ratios. During FY12 the margin at coupon Issue date Volume (M) Maturity format issue date (% or bps) company extended existing bank facilities of A$400 million, (bps) and issued US$220 million of bonds and A$250 million of AUD Tabcorp subordinated notes. To help reduce liquidity risk the (domestic) 19 Jun 09 150 May 14 FRN 425/BBSW 425/BBSW group targets a minimum level of cash and cash equivalents 30 Apr 09 284.5 May 14 FRN 425/BBSW 425/BBSW to be maintained, and has revolving facilities in place with 22 Mar 12 250 Mar 37 FRN 400/BBSW 400/BBSW sufficient headroom. As at June 30 2012 Tabcorp reported a 27 Apr 12 83.5 Apr 19 Fixed ND 384/BBSW net debt position of A$1.1 billion, with headroom of A$460 27 Apr 12 127 Apr 22 Fixed ND 357/BBSW million in existing AUD bank lines. for further information please contact: Debt funding Damien Johnston, Chief Financial Officer The group’s objective is to maintain a balance between continuity +61 3 9868 2583 of funding and flexibility through the use of bank loans, bonds [email protected] and notes. The group’s policy is that not more than 33% of debt www.tabcorp.com.au

7 0 | A u stra l asia n C o rp o rate Y earb o o k : br o u g h t t o y o u by 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 ber 2 0 1 2 TATTS GROUP

KEY CREDIT METRICS CREDIT RATING Not rated WEIGHTED AVERAGE DEBT MATURITY 3.3 years (as at Jun 30 2012) WEIGHTED AVERAGE COST OF DEBT 6.9% (as at Jun 30 2012)

KEY data FINANCIAL YEAR END 30 JUN • Investment criteria that consider earnings accretion and risk- BLOOMBERG TICKER TTS AU adjusted rate of return requirements based on the group’s ASX CODE TTS weighted average cost of capital. KEY FINANCIALS FY12 FY11 FY10 • Ongoing cash flow forecast analysis and detailed budgeting MARKET CAPITALISATION (A$M) 3,570.8 3,164.8 2,871.7 processes which, combined with continual development of REVENUES (A$M) 3,901.9 3,669.3 3,297.9 banking and investor relationships, is directed at providing EBITDA (A$M) 650.2 616.3 542.1 a sound financial positioning for the group’s operations and NET PROFIT AFTER TAX (A$M) 319.1 275.4 120.3 NET DEBT/EBITDA (x) (Senior) 1.8 2.0 2.3 financial management activities. NET DEBT/NET DEBT + EQUITY (%) 31.3 32.8 35.6 The group’s operations generate a strong and stable annual Share price (FY END) (A$) 2.62 2.40 2.24 operating cash flow which, combined with a regular and steady capital expenditure profile, underpins the maintenance of its sound financial position. As at June 30 2012 Tatts had a total of About Tatts Group A$603 million of undrawn committed debt funding, and cash atts Group Limited (Tatts) is the provider of a holdings (excluding prize reserves) of A$133 million. diversified portfolio of neighbourhood businesses delivering services to customers in wagering, lotteries, Debt funding gaming, gaming services, technical maintenance Since listing in June 2005 with minimal debt, the group has and support services. The group typically achieves used efficient and effective debt funding strategies to underpin Tconsistent and reliable revenue through using technology the acquisition of gaming and lottery businesses in Australia solutions to deliver high volumes of low average value and the UK, to grow the business in a profit- and cash-accretive transactions through a widely dispersed distribution network. fashion. This has been done so as to maintain the group’s The group has operations across every state and territory in investment-grade positioning and without the need to ask Australia, and in the UK. The lotteries and wagering businesses shareholders for more equity. are conducted under generally exclusive long-term licenses in As at June 30 2012 this has resulted in Tatts having total the states in which the company operates, with material licenses available debt funding facilities of A$1.9 billion, comprised ranging in expiry from 2018 to 2100. Tatts employs about 3,300 of a A$1.5 billion syndicated multi-currency revolving bank people in Australia and the UK. Its head office is in Melbourne. debt facility, a US$225 million USPP note facility and A$194.7 million in the Tatts Bonds offer. Tatts Bonds was placed in Ownership June 2012 and proceeds were used to repay existing debt. The Tatts has been listed on the Australian Securities Exchange, as group’s weighted average debt maturity as at June 30 2012 was TTS, since June 2005. It is one of the top 100 listed companies 3.3 years, with the next material debt maturities, occurring in on the exchange. March and June 2013, totalling A$489 million. •

Liquidity position outstanding bonds margin at Tatts’ policy is to maintain a capital structure for the business coupon Issue date Volume (M) Maturity format issue date (% or bps) which ensures sufficient liquidity and support for operations, (bps) AUD maintains shareholder and market confidence, provides strong (domestic) stakeholder returns, and positions the business for future 28 Jun 12 194.7 5 Jul 17 FRN 310/BBSW 310/BBSW growth. The ongoing maintenance and pursuit of this policy is USD (USPP) characterised by: 21 Dec 10 55 21 Dec 17 Fixed 4.37% ND • Maintaining a gearing ratio that ensures the investment-grade 21 Dec 10 170 21 Dec 20 Fixed 5.14% ND

positioning of the group. for further information please contact: • Maintaining appropriate sources of debt funding to ensure an Nick Cimino, Group Treasurer appropriate maturity profile for the group. +61 3 8517 7694 • A dividend policy aimed at dividend payout ratios of over [email protected] 90% on a fully-franked basis. www.tattsgroup.com

7 1 ISSUER profiles

TELECOM CORPORATION OF NEW ZEALAND

KEY CREDIT METRICS CREDIT RATING A-/A3 (S&P/Moody’s) WEIGHTED AVERAGE DEBT MATURITY 3 years (as at Jun 30 2012) WEIGHTED AVERAGE COST OF DEBT 6% (as at Jun 30 2012) KEY data FINANCIAL YEAR END 30 JUN Debt funding BLOOMBERG TICKER TEL NZ Telecom has a US$2 billion EMTN programme and a domestic NZX CODE TEL bond programme. As at June 30 2012 Telecom’s reported KEY FINANCIALS FY121 FY111 FY101 debt totalled NZ$1 billion. All Telecom’s debt is unsecured MARKET CAPITALISATION (NZ$M) 4,438 N/A N/A and ranks equally with other liabilities. There are no financial REVENUE AND OTHER GAINS (NZ$M) 4,576 5,004 5,177 covenants but there are certain triggers in the event of default. EBITDA (NZ$M) 1,079 761 916 Telecom is committed to maintaining an ‘A band’ credit NET PROFIT AFTER TAX (NZ$M) 311 (79) 6 DEBT/EBITDA (x) (Senior) 0.9 N/A N/A rating and targets long-run net debt to EBITDA not greater NET DEBT/NET DEBT + EQUITY (%) 34 N/A N/A than 1.1 times. As at June 30 2012 net debt to EBITDA was SHARE PRICE (FY END) (NZ$) 2.39 2.462 1.892 0.8 times. To reduce refinancing risk, the maximum term debt (1) Telecom’s reported results from continuing operations represents the ongoing business maturing in any financial year is not to exceed NZ$400 million. post separation of Chorus (see further detail below). (2) Adjusted for separation of Chorus. Telecom’s intention is to target a weighted average life of net N/A: Data not calculated for continuing operations. debt of greater than 2.5 years. •

About Telecom Corporation of New Zealand debt maturity profile elecom Corporation of New Zealand Ltd (Telecom) CP Bank funding Domestic bonds GBP EMTN is the largest provider of telecommunications and IT 500 services in New Zealand by revenue, customers and

*) 400 assets. With effect from December 1 2011, Telecom M 312 separated into two entirely separate, publicly-listed 300 (NZ$ companies: Telecom, a provider of telecommunications e

m 73 T 200 services and IT services, and Chorus Limited, a network olu 200 services operator. Telecom has retained ownership of the v 100 3 150 mobile network assets, the Public Switched Telephone Network 95 100 64 (PSTN), telecommunications network equipment, the national 0 46 transport network, international submarine cables and spectrum Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Jun 20 associated with the supply of mobile services. * After applying relevant cross-currency interest rate swaps. SOURCE: TELECOM CORPORATION OF NEW ZEALAND JUNE 30 2012

Ownership outstanding bonds The ordinary shares of Telecom are listed on the NZX and Issue date Volume (M) Maturity format coupon ASX. Telecom’s shares were listed on the NYSE in the form of NZD American depositary shares (ADS). On July 19 2012 the ADS (domestic) were delisted from the NYSE and now trade OTC. 22 Mar 06 250 22 Mar 13 Fixed 6.9% 1 Jul 08 39 15 Jun 13 Fixed 8.5% 1 Jul 08 23 15 Jun 13 Fixed 8.2% Liquidity position 1 Jul 08 18 15 Jun 15 Fixed 8.4% Telecom’s liquidity policy is to maintain unused committed 1 Jul 08 55 15 Jun 15 Fixed 8.7% facilities and available cash of at least 100% of the next 22 Mar 06 150 22 Mar 16 Fixed 7.0% 12 months’ net funding requirements. In general, Telecom Various 4 Various Various Various GBP (EMTN) generates sufficient cash flows from its operating activities 14 May 03 22 14 May 18 Fixed 5.6% to meet its financial liabilities. In the event of any shortfalls, 6 Apr 05 18 6 Apr 20 Fixed 5.8% Telecom has two short-term financing programmes in place:

a US$1 billion ECP programme and a NZ$500 million CP for further information please contact: facility. In addition, as at June 30 2012 Telecom had an undrawn Natalie Kirton, Treasury Manager committed standby facility of NZ$600 million and a committed +64 9 3572894 two- and three-year bank facility totalling NZ$400 million, of [email protected] which NZ$100 million was undrawn. www.telecom.co.nz

7 2 | A u stra l asia n C o rp o rate Y earb o o k : br o u g h t t o y o u by 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 ber 2 0 1 2 Telstra Corporation

KEY data KEY CREDIT METRICS FINANCIAL YEAR END 30 JUN CREDIT RATING A/A2/A (S&P/Moody’s/Fitch) BLOOMBERG TICKER TLS AU BOND PROTECTION ASX CODE TLS GEARING COVENANT N KEY FINANCIALS FY12 FY11 FY10 LEVERAGE RATIO N MARKET CAPITALISATION (A$M) 45,914 35,960 40,440 INTEREST COVER RATIO N SALES REVENUES (A$M) 25,232 24,983 24,813 CHANGE OF CONTROL N EBITDA (A$M) 10,234 10,151 10,847 COUPON STEP-UP N NET PROFIT AFTER TAX (A$M) 3,424 3,250 3,940 WEIGHTED AVERAGE DEBT MATURITY 4.75 years (as at Jun 30 2012) NET DEBT/EBITDA (x) 1.3 1.3 1.3 GEARING: NET DEBT + EQUITY (%) 53.2 52.5 51.7 SHARE PRICE (FY END) (A$) 3.69 2.89 3.25 as TLS since 1997. It is one of the top 20 companies on the exchange with a 100% free float.

About Telstra Corporation Liquidity position elstra Corporation Limited (Telstra) is Australia’s In its FY12 results Telstra reported free cash flow of A$5.2 leading telecommunications and information services billion for the financial year. This figure represented a 5.1% company offering a full range of services. It also decrease on the free cash flow of A$5.5 billion at the end operates in New Zealand, Hong Kong and other of FY11. The decline in free cash flow was driven by an overseas countries. improvement in cash generated from the company’s operations TTelstra’s main activities include the provision of 4G and being more than offset by an increase in cash used by Telstra 3G mobile services, fixed voice services to most homes and for investment activities. businesses in Australia, fixed broadband services, as well as a comprehensive range of data and IP services. In addition, Debt funding Telstra provides services that include the supply of equipment, The net debt position at June 30 2012 was A$13.3 billion the management of business and government customers’ (FY11: A$13.6 billion). Telstra’s effective interest rate on network services, wholesale services to other carriers, carriage average net debt was 7.0% in FY12 (FY11: 7.2%). The average service providers and ISPs, and directories, advertising and maturity of outstanding debt was 4.75 years (FY11: 4.3 years). search services through Sensis® – these include popular Telstra continues to look at executing long-term borrowings information services such as Yellow™, White Pages® and across a diverse range of debt markets in FY13. Whereis®. Telstra has a unique geographical coverage through both debt maturity profile its fixed and mobile network infrastructure. This underpins the carriage and termination of the majority of Australia’s domestic 3.00 and international voice and data traffic. 2.75 2.97 2.50 2.25 National Broadband Network )

bn 2.00 2.18

The National Broadband Network (NBN) is a government- 2.10 1.75 2.07 (A$ legislated initiative to provide all Australians with access to e 1.50 m

1.25 1.56 high-speed broadband. The network is planned to be built over 1.41 1.35 olu

1.00 1.25 v approximately 10 years, starting in 2011. The NBN will be built, 1.19 0.75 operated and maintained by NBN Co, a government business 0.50 0.28 0.15 enterprise wholly owned by the Commonwealth. On June 23 0.25 0.10 2011 Telstra signed definitive agreements with NBN Co and 0.00 the Commonwealth to participate in the rollout of the NBN. FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 SOURCE: TELSTrA CORPORATION JUNE 30 2012 Ownership Telstra has been listed on the Australian Securities Exchange > > continued on p 74

7 3 ISSUER profiles

Given the size of its funding requirements and solid credit Bank loans by currency ratings, Telstra has a longstanding presence in global debt Face value (M) Years to Maturity capital markets and is able to access multiple debt markets on AUD standard and competitive terms through the use of its global 1,000 Various to 2012 debt issuance programme. USD Telstra has debt securities listed on the ASX, the London 600 Various to 2013 Stock Exchange, the Swiss Stock Exchange and Singapore Stock Exchange. In March 2012 Telstra completed a €1 Private Placements by Currency billion, 10.5-year September 2022 benchmark bond issue. The Face value (M) Years to Maturity company also established a new benchmark €750 million, AUD May 2022 bond issue in November 2011. These long-term 334 Various to 2023 borrowings have strengthened the company’s financial position USD 150 Various to 2015 by extending its debt maturity profile and enabling greater JPY market access. 48,000 Various to 2020

HKD Outstanding borrowings 330 Various to 2020

Telstra’s long-term debt portfolio comprises a combination of EUR public bonds, bank loans and private placements. • 75 Various to 2023

Public bonds by Currency

Face value (M) Maturity Maturity COUPON (% or BPs)

AUD 500 Nov 12 Fixed 7.25% 500 Nov 13 Fixed 6.25% 500 Apr 15 Fixed 6.25% 100 Aug 16 Fixed 7.00% 275 Dec 16 FRN BBSW+65 500 Jul 20 Fixed 7.75%

NZD 155 Nov 14 Fixed 7.15% 100 Jul 17 Fixed 7.52%

USD 1,000 Oct 21 Fixed 4.80% eur 500 Apr 13 Fixed 6.00% 500 Jul 14 Fixed 4.75% 500 Jul 15 Fixed 3.875% 1,000 Mar 17 Fixed 4.75% 1,000 Mar 20 Fixed 4.25% 500 Mar 21 Fixed 3.625% 750 May 22 Fixed 3.75% for further information please contact: 1,000 Sept 22 Fixed 3.50% Cliff Davis, Corporate Treasurer CHF +61 3 8647 9708 250 Oct 12 Fixed 4.00% [email protected] 300 Apr 13 Fixed 2.50% Phil Wallis, Manager, Funding and Investments 225 Dec 18 Fixed 1.75% +61 3 8647 9722 GBP [email protected] 200 Aug 14 Fixed 6.125% www.telstra.com.au/abouttelstra/investor/treasury/

7 4 | A u stra l asia n C o rp o rate Y earb o o k : br o u g h t t o y o u by 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 ber 2 0 1 2 Toll Holdings

KEY data KEY CREDIT METRICS FINANCIAL YEAR END 30 JUN CREDIT RATING Not rated BLOOMBERG TICKER TOL AU BOND PROTECTION ASX CODE TOL GEARING COVENANT N KEY FINANCIALS FY12 FY11 FY10 LEVERAGE RATIO Y MARKET CAPITALISATION (A$M) 2,854.2 3,444.1 3,851.7 INTEREST COVER RATIO Y REVENUES (A$M) 8,707.2 8,224.5 6,944.0 CHANGE OF CONTROL Y EBITDA (A$M) (1) 681.3 689.5 625.2 COUPON STEP-UP N NET PROFIT AFTER TAX (A$M) (1) 274.2 294.8 284.4 TARGET GEARING Investment grade NET PROFIT AFTER TAX (A$M) 70.9 294.8 284.4 WEIGHTED AVERAGE DEBT MATURITY 2.3 years (as at Jun 30 2012) DEBT/EBITDA (x) (Senior) (1) 2.5 2.2 2.4 WEIGHTED AVERAGE COST OF DEBT 2.1% (as at Jun 30 2012) NET DEBT/NET DEBT + EQUITY (%) 29.3 26.7 25.6 Share price (FY END) (A$) 3.98 4.85 5.48 (1) Before non-recurring items. was A$1.14 billion and the average maturity of debt facilities was 2.3 years. About Toll Holdings Toll’s drawn debt as at June 30 2012 comprises 16% USPP oll Holdings Limited (Toll) is the Asian region’s notes and 84% bank facilities. The company has funded its leading provider of integrated logistics, generating offshore assets with debt denominated in local currencies. Toll annual consolidated revenue of A$8.7 billion and remains well within its existing bank covenants. • operating an extensive network of over 1,200 sites in 55 countries. debt maturity profile Toll’s access to transport and infrastructure assets includes T Bank facilities drawn USPP Bank facilities undrawn road fleets, warehousing, ships, air freight capacity, ports, and rail rolling stock. The provision of an integrated logistics 1,000 900 service offering that incorporates international linkages to 172 800 ) important regional sourcing markets within Asia, specifically M 700 779 China, is key to Toll’s strategy. 600 (A$ e

m 500 400 186 Ownership olu v Toll has been listed on the Australian Securities Exchange 300 39 200 283 252 (ASX) as TOL since 1993 and is a member of the S&P/ASX50 100 117 75 Index of Australia’s 50 largest stocks by market capitalisation. 0 100 100 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY18 FY19 Liquidity position Toll aims to retain a perceived strong investment-grade SOURCE: TOLL HOLDINGS JUNE 30 2012 credit rating and to maintain flexibility in funding by keeping adequate liquidity available so as to be able to take advantage outstanding bonds margin at of new investment opportunities that may arise. Toll maintains Issue date Volume (M) Maturity format coupon issue date (bps) flexibility in funding by keeping committed credit lines available USD (USPP) with a variety of counterparties. As at June 30 2012 Toll had 7 Dec 10 100 7 Dec 15 Fixed 2.95% 180/UST undrawn committed facilities of A$396 million and cash 7 Dec 10 100 7 Dec 17 Fixed 3.65% 180/UST balances of A$569 million. 7 Dec 10 75 7 Dec 20 Fixed 4.34% 180/UST

Debt funding for further information please contact: Toll maintains a balance between continuity of funding and Todd Williams, Group Treasurer flexibility through the use of a combination of bank overdrafts, +61 3 9694 2853 bank loans, USPP notes and the overnight money markets [email protected] across a range of maturities. As at June 30 2012 Toll’s net debt www.tollgroup.com

7 5 ISSUER profiles

Transpower

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

BOND PROTECTION

GEARING COVENANT N LEVERAGE RATIO N KEY data INTEREST COVER RATIO N FINANCIAL YEAR END 30 JUN CHANGE OF CONTROL N BLOOMBERG TICKER TPFNZ COUPON STEP-UP N NZDX CODE TRP TARGET GEARING N KEY FINANCIALS FY12 FY11 FY10 WEIGHTED AVERAGE DEBT MATURITY 6.49 years (as at Oct 9 2012, to REVENUES (NZ$M) 794 737 734 (Senior) Apr 6 2019) EBITDA (NZ$M) 341 425 434 WEIGHTED AVERAGE COST OF DEBT (Senior) 7.36% (from Jul 1 2011 to Jun 30 2012) NET PROFIT AFTER TAX (NZ$M) 85 79 65 DEBT/EBITDA (x) (Senior) 6.8 4.5 3.8 NET DEBT/NET DEBT + EQUITY (%) 60.5 55.5 53.1 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% About Transpower of total debt can mature within the next three years and at least ranspower owns and operates New Zealand’s high- 30% of total debt must mature after five years. • voltage electricity transmission grid. It transports high-voltage electricity from power stations owned outstanding bonds by companies such as Meridian Energy (see p52) Issue date Volume (M) Maturity format coupon NZD and Mighty River Power (see p54) to cities, towns (domestic) and major industrial users across the country. Electricity is then 30 Nov 11 75 3 Dec 15 FRN N/A T 3 Sep 12 100 3 Dec 15 FRN N/A distributed to home and business consumers through local distribution networks such as those owned by Powerco (see 15 Feb 10 50 15 Feb 17 Fixed 6.595% p60) and Vector (see p80). As system operator, Transpower 30 Nov 11 125 30 Nov 18 Fixed 5.14% is also the provider of coordination functions for the New 6 Sep 12 200 6 Sep 19 Fixed 4.65% Zealand power system. 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% Ownership EMTN Transpower is a state-owned enterprise. Crown ownership is 11 Jun 08 CHF100 6 Aug 14 Fixed 3.385% exercised through two shareholding ministers: the minister for 6 Dec 07 CHF200 6 Aug 14 Fixed 3.385% state-owned enterprises and the minister of finance. These 24 Mar 10 HK$400 24 Mar 20 Fixed 4.00%

ministers appoint the company’s board of directors. USD (USPP) 27 Sep 04 25 27 Sep 16 Fixed 5.59% Liquidity position 27 Sep 04 75 27 Sep 19 Fixed 5.74% The liquidity policy requires Transpower to have access to 13 Oct 11 232 13 Oct 21 Fixed 3.58% committed funding facilities to cover the sum of all debt 15 Dec 10 150 15 Dec 22 Fixed 3.60% maturing in the next six months plus peak cumulative 13 Oct 11 78 13 Oct 23 Fixed 3.43% anticipated operating cash flow requirements in the next six 13 Oct 11 70 13 Oct 26 Fixed 3.83% months. Transpower has two committed standby facilities in CAD (MAPLE) place (undrawn), totalling NZ$500 million, and fully-drawn 20 Mar 12 250 20 Mar 12 Fixed 3.00% revolving cash advances facilities of NZ$200 million.

Debt funding Debt 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 for further information please contact: domestic CP programmes. As at October 9 2012, long-term Chris Sutherland, Treasurer debt stood at NZ$2.4 billion, with an average maturity of 6.49 +64 4 590 7338 years. With the exception of a most-favoured lender covenant [email protected] and a 15% cap on priority indebtedness and sale of assets, www.transpower.co.nz

7 6 | A u stra l asia n C o rp o rate Y earb o o k : br o u g h t t o y o u by 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 ber 2 0 1 2 Transurban Group

KEY data KEY CREDIT METRICS FINANCIAL YEAR END 30 JUN CREDIT RATING A-/Baa1/A- (S&P/Moody’s/Fitch) BLOOMBERG TICKER TCL AU WEIGHTED AVERAGE DEBT MATURITY (Senior) 9.6 years (as at Jun 30 2012) ASX CODE TCL WEIGHTED AVERAGE COST OF DEBT 6.9% (AUD) 5.2% (USD) KEY FINANCIALS FY12 FY11 FY10 (Transurban Group)

PROPORTIONAL RESULT (1) DEBT (A$M) 6,755.1 6,326.7 5,989.3 Corporate debt funding TOLL FEE & OTHER REVENUES (A$M) 1,047.2 973.0 880.3 Transurban has a medium- to long-dated corporate debt profile, EBITDA (A$M) 784.0 737.3 629.9 diversified by both sources of debt and maturities. At June DEBT/EBITDA (x) 8.6 8.6 9.5 NET DEBT/NET DEBT + EQUITY (%) 45 46 50 30 2012 there was A$450 million of working capital facilities

STATUTORY RESULTS in place, A$600 million outstanding in term bank debt, A$1.5

TOLL FEE & OTHER REVENUES (A$M) 846.2 799.2 751.1 billion equivalent in the USPP market, A$1.1 billion in domestic EBITDA (A$M) 636.9 603.9 527.5 AUD bonds and A$233 million equivalent of CAD notes. • NET PROFIT AFTER TAX (A$M) 58.6 118.2 59.6 SHARE PRICE (FY END) (A$) 5.69 5.23 4.24 outstanding bonds coupon (1) Transurban’s percentage ownership as well as contribution from central group functions. Issue date Volume (M) Maturity format (% or BPs) AUD (domestic) About Transurban Group 15 Mar 10 250 24 Mar 14 Fixed 7.25% ransurban Group (Transurban) is a toll road owner 29 Aug 05 300 10 Nov 15 FRN* 31/BBSW and operator with a stake in eight roads in Australia 8 June 11 200 8 Jun 16 Fixed 6.75% and North America. Transurban’s headquarters is in 29 Aug 05 300 10 Nov 17 FRN* 34/BBSW Melbourne. CAD (notes) 6 Mar 12 250 6 Mar 19 Fixed 3.37%

AUD (USPP) Ownership T 7 Dec 04 72 7 Dec 19 FRN 73/BBSW Transurban is a public company, listed on the Australian USD (USPP) Securities Exchange as TCL. 7 Dec 04 100 7 Dec 14 Fixed 5.02% 10 Aug 05 98 10 Aug 15 Fixed 5.04% Liquidity position 14 Nov 06 56.98 14 Nov 16 Fixed 5.71% As at June 30 2012 Transurban had A$390 million of undrawn 7 Dec 04 38.9 7 Dec 16 Fixed 5.17% debt facilities. 10 Aug 05 125.5 10 Aug 17 Fixed 5.19% 14 Nov 06 181.53 14 Nov 18 Fixed 5.86% 7 Dec 04 108.6 7 Dec 19 Fixed 5.47% 10 Aug 05 156.5 10 Aug 20 Fixed 5.35% debt maturity profile 14 Nov 06 162.2 14 Nov 21 Fixed 5.95% USPP EMTN AUD MTNs Term bank Working 14 Nov 06 67.39 14 Nov 26 Fixed 6.06% debt capital facility * Credit-wrapped. 700

600 129 ) 165 M 500 136 (A$ 254 e 250

400 500 m 300 300 315 olu v 200 133 233 219 220 206 for further information please contact:

100 159 160 130 94 125 0 100 Gary West, Treasurer 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 +61 3 9612 6908 [email protected] SOURCE: TRANSURBAN JUNE 30 2012 www.transurban.com

7 7 ISSUER profiles

TrustPower

KEY CREDIT METRICS CREDIT RATING Not rated KEY data BOND PROTECTION FINANCIAL YEAR END 31 MAR GEARING COVENANT N BLOOMBERG TICKER TPWNZ LEVERAGE RATIO Y (net debt/TTA <= 50%) NZX CODE TPW INTEREST COVER RATIO N

KEY FINANCIALS FY12 FY11 FY10 CHANGE OF CONTROL N

MARKET CAPITALISATION (NZ$M) 2,289 2,273 2,286 COUPON STEP-UP N REVENUES (NZ$M) 807.1 766.0 759.3 TARGET GEARING N/A EBITDA (NZ$M) 300.1 274.4 273.9 WEIGHTED AVERAGE DEBT MATURITY (Senior) 2.6 years (as at Mar 31 2012) NET PROFIT AFTER TAX (NZ$M) 131.7 112.4 119.4 DEBT/EBITDA (x) (Senior) 1.7 1.8 1.7 NET DEBT/NET DEBT + EQUITY (%) 32.7 35.8 33.9 2013 and July 2016, while its bonds – including subordinated Share price (FY END) (NZ$) 7.25 7.20 7.30 bonds – mature between September 2012 and December 2017. TrustPower refinanced NZ$108.6 million of subordinated bonds About TrustPower that matured in September 2012 with a NZ$140 million, seven- tarting business in 1925, TrustPower has grown to year subordinated bond maturing September 2019. • be New Zealand’s fifth-largest electricity generator and retailer. TrustPower is an integrated electricity debt maturity profile company operating electricity generation facilities Bank funding MTNs from renewable energy sources (hydro and wind), Sand retailing electricity to customers in the commercial and 400 residential sectors. The company has assets of more than 350 75 )

NZ$2.5 billion, mainly comprised of 34 small- to medium-sized M 300 55

hydro-generating stations and three wind farms (two in New 250 261 (NZ$ 239 Zealand and one in South Australia). The company’s head office e 200 m is in Tauranga. 150 140 olu 100

v 136 75 100 65 Ownership 50 11 11 7 15 TrustPower is a public company, listed on the New Zealand 0 11 11 11 11 Exchange as TPW. It is majority New Zealand owned. 0-1 1-2 2-3 3-4 4-5 5-6 6-7 7-8 8-9 9-10 10+ TrustPower has two large shareholders and approximately 13,200 small parcel shareholders, as well as 9,600 bondholders. SOURCE: TRUSTPOWER MARCH 31 2012 The main shareholders are Infratil (50.5%) (see p43), a specialist investor in infrastructure and utility assets, and the Tauranga outstanding bonds Energy Consumer Trust (33.0%), a consumer-elected trust board Issue date Volume (M) Maturity format coupon AUD based in Tauranga. (domestic) Subordinated Liquidity position 16 Feb 04 54.7 15 Mar 14 Fixed 8.50% TrustPower maintains conservative levels of committed credit 17 Dec 08 100 15 Dec 15 Fixed 8.40% facilities. Including subordinated bonds, the group currently has 15 Sep 12 140 15 Sep 19 Fixed 6.75% Senior Bonds around NZ$1.5 billion of committed debt funding in place. 18 Dec 09 75 15 Dec 14 Fixed 7.60% TrustPower has recently announced that it will proceed to 27 Jan 10 65 15 Dec 16 Fixed 8.00% construct the 270 MW Snowtown stage 2 wind farm in South 26 Oct 10 75 15 Dec 17 Fixed 7.10% Australia at an expected cost of A$439 million. for further information please contact: Debt funding Robert Farron, Chief Financial Officer At March 31 2012 net debt was NZ$762 million. The average +64 7 574 4820 maturity of outstanding debt as at March 31 2012 was 2.6 years. [email protected] TrustPower’s current cash advance facilities mature between July www.trustpower.co.nz

7 8 | A u stra l asia n C o rp o rate Y earb o o k : br o u g h t t o y o u by 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 ber 2 0 1 2 UNITED ENERGY

KEY data KEY CREDIT METRICS FINANCIAL YEAR END 30 JUN CREDIT RATING BBB/Baa2 (S&P/Moody’s) BLOOMBERG TICKER DUEAU WEIGHTED AVERAGE DEBT MATURITY 3.5 years (as at Jun 30 2012) ASX CODE NOT LISTED WEIGHTED AVERAGE COST OF DEBT 6.2% (as at Jun 30 2012) KEY FINANCIALS FY12 FY11 FY10 REVENUES (A$M) 440.5 405.2 370 debt maturity profile EBITDA (A$M) 275.5 273.7 263.4 NET PROFIT AFTER TAX (A$M) (31.3) (2.4) 33.9 144A notes USPP AMI facility NET SENIOR DEBT/REGULATED ASSET BASE (%) 89 95 99 AUD MTNs Senior corporate Working capital facility facility 700

About United Energy 600 77

nited Energy distributes electricity to more than ) 500 402

M 500 380 644,000 customers across east and south-east 400 (A$ Melbourne and the Mornington Peninsula. Ninety e m per cent of customers are residential. The company 300

olu 279 v manages a network of 209,000 poles and over 13,000 200 200 kilometres of wires. Electricity is received via 78 sub-transmission 100 120 U 50 lines at 45 zone stations, where it is transformed from sub- 0 30 transmission voltages to distribution voltages. FY14 FY15 FY16 FY17 FY18 United Energy employs about 165 people and its head office is in Melbourne. SOURCE: UNITED ENERGY JUNE 30 2012

Ownership outstanding bonds The DUET Group owns, in aggregate, 66% of United Energy Issue date Volume (M) Maturity format with SPI (Australia) Assets Pty Ltd (see p66) holding the AUD (domestic) remaining shares. 31 Oct 05 500 23 Oct 14 FRN 11 Apr 12 200 11 Apr 17 Fixed

USD (USPP) Liquidity position 15 Dec 10 70 15 Dec 14 Fixed As at June 30 2012 United Energy had undrawn facilities of 15 Dec 10 365 15 Dec 17 Fixed

A$348 million, and cash at bank of A$46 million, with cash flow USD (144A) from operating activities of A$276 million. 19 Nov 03 200 15 Apr 16 Fixed

Debt funding As at June 30 2012 United Energy had A$1.69 billion of borrowings from bank debt facilities, MTNs, US 144A and USPP notes. The average maturity of the company’s debt is 3.5 years. In August 2012 United Energy added to its outstanding MTNs with the issue of A$65 million of fixed rate notes. •

for further information please contact: Andrew Sutcliffe, General Manager Corporate Finance +61 3 8846 9907 [email protected] www.unitedenergy.com.au

7 9 ISSUER profiles

Vector

KEY CREDIT METRICS CREDIT RATING BBB+ (S&P) AVERAGE DEBT MATURITY 6.25 years (as at Jun 30 2012) KEY data company’s asset profile. In February 2012 Vector refinanced the FINANCIAL YEAR END 30 JUN maturing undrawn NZ$50 million senior credit facility with a BLOOMBERG TICKER VCT NZ new bilateral NZ$150 million senior credit facility that matures NZX CODE VCT in February 2015. In June the NZ$307 million capital bonds KEY FINANCIALS FY12 FY11 FY10 were successfully rolled for a further five-year term, with the MARKET CAPITALISATION (NZ$M)) 2,668 2,529 2,151 next election date set for June 2017. • REVENUES (NZ$M) 1,252.6 1,244.6 1,187.4 EBITDA (NZ$M) 627.4 636.6 578.1 NET PROFIT AFTER TAX (NZ$M) 198.8 201.41 193.52 debt maturity profile

DEBT/EBITDA (x) 3.91 3.79 4.43 Working capital facility Senior credit facility NZD MTNs NET DEBT/NET DEBT + EQUITY (%) 52.5 52.0 54.0 Capital bonds Credit-wrapped FRNs USPP Share price (FY END) (NZ$) 2.68 2.54 2.16 (1) Includes NZ$30.1 million one-off contribution from a Transpower agreement. GBP MTNs (2) Includes NZ$20.9 million one-off, non-cash decrease in deferred tax liability due to 2010 government budget changes. 600 99 ) 500 About Vector M

ector is a multi-infrastructure utility with operations 400 160 (NZ$ 400 e

primarily spread across electricity distribution m 300 350 150 307 296

networks in Auckland, natural gas distribution in olu 286 v 250 Auckland and 30 towns and cities in New Zealand’s 200 251 50

North Island, high-pressure natural gas transmission, 100 150 125 natural gas processing and wholesale and retail of liquefied 23 V 0 petroleum gas, lease of meters to electricity retailers, and fibre FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23

optic networks in Auckland and Wellington. SOURCE: VECTOR JUNE 30 2012

Ownership outstanding bonds Vector is listed on the New Zealand Exchange as VCT. The margin at coupon Issue date Volume (M) Maturity format issue date (% or bps) majority shareholder is the Auckland Energy Consumer Trust (bps) with a 75.1% stake. The remaining shares are held by individual NZD and institutional shareholders. (domestic) 27 May 09 150 15 Oct 14 Fixed 7.80% ND 26 Oct 05 250 26 Oct 15 FRN N/A ND Liquidity position 4 Apr 07 160 4 Apr 17 FRN N/A ND For the year ended June 30 2012 Vector reported that it 15 Jun 12 307 15 Jun 17* Fixed 7.00% ND continued to have comfortable headroom with cash on balance 26 Oct 05 400 26 Oct 17 FRN N/A ND sheet of NZ$82 million and undrawn credit facilities of NZ$325 26 Oct 05 350 26 Oct 20 FRN N/A ND million. The company continues to have a strong liquidity USD (USPP) position with operating cash flow increasing 4.7% to NZ$392.3 16 Sep 04 15 16 Sep 12 Fixed ND ND million and net interest cover of 2.7 times for the year ended 16 Sep 04 65 16 Sep 16 Fixed ND ND June 30 2012. 16 Sep 04 195 16 Sep 19 Fixed ND ND 20 Dec 12 182 20 Dec 22 Fixed ND ND

gbp (emtn) Debt funding 11 Apr 08 115 14 Jan 19 Fixed 7.625% ND Vector’s debt portfolio has a spread of maturities extending * Election date only. out to 2022, with an average maturity of 6.25 years. At June 30 2012 Vector had borrowings of NZ$2.45 billion, principally for further information please contact: from domestic retail and wholesale bonds, USPP notes and Binaifer Behdin, Group Treasurer GBP bonds. The tenor of the debt facilities is consistent +64 9 978 7546 with Vector’s strategy to further extend the maturity of its [email protected] debt portfolio to better reflect the long-term nature of the www.vector.co.nz

8 0 | A u stra l asia n C o rp o rate Y earb o o k : br o u g h t t o y o u by 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 ber 2 0 1 2 Watercare Services

KEY CREDIT METRICS CORPORATE CREDIT RATING AA- (S&P) bond rating AA (S&P)

bond protection

GEARING COVENANT Y (shareholders’ funds >= NZ$500M) KEY data LEVERAGE RATIO Y (total liabilities/TTA <= 60%) FINANCIAL YEAR END 30 JUN INTEREST COVER RATIO Y (EBITDA/funding costs >= 1.75x) BLOOMBERG TICKER WATERC GOVT CHANGE OF CONTROL Y NZX CODE NOT LISTED COUPON STEP-UP Y (on some facilities) KEY FINANCIALS FY12 FY11 FY10 Watercare targets interest serviceability rather REVENUES (NZ$M) 441.95 373.11 198.12 TARGET GEARING than a gearing ratio. Funds from operations/ interest cover is maintained above 2.5x EBITDA (NZ$M) 253.16 216.57 109.39 WEIGHTED AVERAGE DEBT NET PROFIT AFTER TAX (NZ$M) (45.31) (12.33) (26.67) MATURITY 2.95 years (as at Jun 30 2012) DEBT/EBITDA (x) (Senior) 5.12 5.67 4.81 WEIGHTED AVERAGE COST OF DEBT 5.58% (as at Jun 30 2012) NET DEBT/NET DEBT + EQUITY (%) 19 18 58 million of inter-company loans from Auckland Council, About Watercare Services down from the NZ$691 million of loans inherited as part of atercare Services Limited (Watercare) provides the November 1 2010 integration of Auckland region local water and wastewater services to 1.3 million government and water and wastewater providers. Watercare residents of Auckland. Each day it collects, may undertake additional borrowings from Auckland Council treats and supplies around 350 million litres of in future. • drinking water from dams, bores, springs and four river sources. Watercare collects, treats and disposes of W debt maturity profile wastewater at 20 treatment plants and operates 7,500km of Inter-company MTNs Term loan CP Revolving sewers. Watercare also works with 1,700 business customers on loans facility credit the transfer, treatment and disposal of trade waste. Watercare facility has been operating water and wastewater infrastructure in the 300 220

Auckland region since 1991, initially as a wholesaler supplying 150

) 250 14 M services to local network operators that served the public. From $

200 150 nz 130

November 1 2010, following legislative change, Watercare also ( e became responsible for retail water and wastewater services. m 150 125 olu 133

v 100 Ownership 87 80 Watercare is 100% owned by Auckland Council, which also 50 77 30 10 5 2 28 provides an explicit guarantee over Watercare’s borrowings and 0 17 22 interest rate hedges. Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Jun 20 Jun 21 Jun 22 Jun 23 SOURCE: WATERCARE SERVICES JUNE 30 2012 Liquidity position Watercare’s liquidity position is underpinned by the stability outstanding bonds coupon Issue date Volume (M) Maturity format and predictability of its primary revenues. Refinancing risk (% or bps) is mitigated by the financing policy, which requires sufficient NZD (domestic) committed funding to be in place to cover at least the next six 15 May 09 130 15 May 14 Fixed 6.785% months’ borrowing requirements, including debt maturities. As 15 May 09 40 15 May 14 FRN 200/BKBM at June 30 2012 Watercare had NZ$261.5 million of available 8 Dec 09 40 15 May 14 Fixed 6.79% headroom under committed bank funding facilities. 8 Dec 09 10 15 May 14 FRN 200/BKBM 16 Feb 11 150 16 Feb 15 Fixed 5.74% 18 May 09 30 18 May 16 Fixed 7.14% Debt funding 26 Oct 11 75 26 Oct 18 Fixed 5.685% Watercare’s objective is to maintain a balance between 13 Dec 11 50 26 Oct 18 Fixed 5.685% continuity of funding and flexibility through the use of MTNs, for further information please contact: term loans, a revolving credit facility, the CP programme, and Jason Isherwood, Treasury Manager a bank overdraft. Providers of bank funding and holders of +64 9 539 7543 MTNs and CP receive a negative pledge undertaking from [email protected] Watercare. As at June 30 2012 Watercare had NZ$461.2 www.watercare.co.nz

8 1 ISSUER profiles

Wellington Airport

KEY CREDIT METRICS KEY data CREDIT RATING BBB+ (S&P) FINANCIAL YEAR END 31 MAR BOND PROTECTION BLOOMBERG TICKER IFTNZ GEARING COVENANT N NZX CODE WIA010 LEVERAGE RATIO Y

hY12 (1) fY12 (2) FY11 INTEREST COVER RATIO Y

REVENUES (NZ$M) 47.6 99.5 114.7 CHANGE OF CONTROL N EBITDA (NZ$M) 34.8 75.5 72.3 COUPON STEP-UP Y NET PROFIT/(LOSS) AFTER TAX (NZ$M) (11.8) 3.8 (18.9) WEIGHTED AVERAGE DEBT MATURITY (Senior) 3.9 years (as at Mar 31 2012) DEBT/EBITDA (x) (Senior) 11.56 5.12 5.34 WEIGHTED AVERAGE COST OF DEBT (Senior) 6.87% (as at Mar 31 2012) NET DEBT/NET DEBT + EQUITY (%) 56.5 48.6 51.4 (1) HY12 numbers include the payment of an annual distribution and subvention payment in the period. (2) Wellington Airport’s subsidiary iSite Limited was sold on July 29 2011 and consequently Debt funding FY12 represents parent company accounts only. All of the airport’s non-bank debt funding is by way of medium- term bonds with maturities in 2013 and 2017. This form of About Wellington Airport long-dated debt suits the nature of the company’s assets and ellington Airport is one of New Zealand’s three income flows. The airport’s standby credit facilities were renewed largest airports, handling more than five million in April 2011. These bank facilities consist of NZ$60 million passengers annually. It acts as a major domestic maturing in June 2014 and NZ$30 million maturing in June 2016. hub in the national transport system, serving as As of March 31 2012 NZ$7 million of these facilities was drawn. the gateway to central New Zealand as well as Various standard banking and bond covenants are in place. • Wproviding international services to Australia and Fiji. The airport has three main airline customers: Air New Zealand, Qantas maturity profile (BOnds) (including Jetstar) and Virgin. Wellington Airport opened in 1959 and it now has 160 approximately 1,500 people working there on any given day, of 140 ) 150 which Wellington International Airport Limited (WIAL) employs M 120

approximately 90. Passenger numbers are forecast to double over (NZ$ 100 e 100 the next 20 years, with international passenger numbers having m 80

grown by 5.4% per year and domestic passengers by 3.4% per olu

v 60 year over the last 15 years. 40 Approximately 20 hectares of airport land have been 20 developed for non-aeronautical use. 0 FY13 FY17 Ownership SOURCE: WELLINGTON AIRPORT SEPTEMBER 2012 Wellington Airport was privatised in 1998 and is now 66% owned by NZ Airports – which is wholly owned by Infratil (see outstanding bonds p43), a company publically listed on the New Zealand Exchange coupon Issue date Volume (M) Maturity format – and 34% owned by Wellington City Council. In the normal (% or bps) NZD course of business the airport transacts with the Wellington City (domestic) Council on an arms-length basis. 2 Dec 08 100 15 Nov 13 Fixed 7.5% 1 Aug 07 150 1 Aug 17 FRN 25/BKBM Liquidity position As of March 31 2012 WIAL has ample funding headroom with

standby credit facilities of NZ$90 million. WIAL completed a for further information please contact: major capital expenditure project for its terminal redevelopment Martin Harrington, Chief Financial Officer and expansion in November 2010. While other capital +64 4 385 5105 developments are planned, there are funding facilities in place to [email protected] cover these projects. www.wellington-airport.co.nz

8 2 | A u stra l asia n C o rp o rate Y earb o o k : br o u g h t t o y o u by 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 ber 2 0 1 2 Wesfarmers

KEY data KEY CREDIT METRICS FINANCIAL YEAR END 30 JUN CREDIT RATING A-/Baa1 (S&P/Moody’s) BLOOMBERG TICKER WESAU BOND PROTECTION ASX CODE WES GEARING COVENANT N KEY FINANCIALS FY12 FY11 FY10 LEVERAGE RATIO N MARKET CAPITALISATION (A$M) 34,846 36,913 33,171 INTEREST COVER RATIO N REVENUES (A$M) 58,080 54,875 51,827 CHANGE OF CONTROL Y (subject to certain conditions) EBITDA (A$M) 4,544 4,155 3,786 COUPON STEP-UP Y (subject to certain conditions) NET PROFIT AFTER TAX (A$M) 2,126 1,922 1,565 WEIGHTED AVERAGE DEBT MATURITY (Senior) 2.5 years (as at Jun 30 2012) (1) NET DEBT/EBITDA (x) 1.1 1.0 1.1 (1) Excludes the €650 million 10-year bonds issued on August 2 2012. NET DEBT/ EQUITY (%) 19.1 17.1 16.3 CASH INTEREST COVER (x) 10.8 9.5 6.8 Wesfarmers has a well-spread debt maturity profile. It Share price (FY END) (A$) 29.90 31.85 28.65 accesses a number of bank and debt capital markets globally to fund its businesses. Wesfarmers currently has corporate bonds About Wesfarmers outstanding in the Australian, Euro and US144A debt capital esfarmers has grown into one of Australia’s markets. All the group’s bank and capital market debt benefits largest listed companies and employers, with from cross guarantees from the major operating subsidiaries of over 200,000 employees. Its diverse business the group. As at June 30 2012 the A$1.6 billion of short-term operations cover supermarkets, department debt maturities was amply covered by A$598 million in cash and stores, home improvement, office supplies, coal A$2.2 billion of committed undrawn bank facilities. Wmining, insurance, chemicals, energy, fertilisers, and industrial Wesfarmers’ borrowings are subject to a number of financial and safety products. It is the second-largest player in Australia in covenants, including EBITDA net interest cover, net debt to supermarkets (Coles Group), and the largest player in discount EBITDA, and restrictions on secured debt. Wesfarmers has department stores (brands include Target and Kmart), hardware comfortable headroom within all financial covenants and various and home improvement (Bunnings), and office supplies bank facilities include ratings-based pricing grids. • (Officeworks). Wesfarmers is headquartered in Perth. outstanding bonds coupon margin at issue Ownership Issue date Volume (M) Maturity format (% or bps) date (bps) Wesfarmers has been listed on the Australian Securities Exchange AUD since November 1984 as WES. It is one of the top 20 listed (domestic) companies on the exchange. 25 Jul 05* 400 25 Jul 12 Fixed 6.00% 51/swap 11 Sep 09 400 11 Sep 14 Fixed 8.25% 260/swap 11 Sep 09 100 11 Sep 14 FRN 260/BBSW 260/BBSW Liquidity position 4 Nov 11 500 4 Nov 16 Fixed 6.00% 150/swap As at June 30 2012 cash at bank and on deposit available for 28 Mar 12 500 28 Mar 19 Fixed 6.25% 165/swap immediate debt reduction totalled A$598 million, while the USD (144A) company had committed undrawn facilities of A$2.2 billion. 10 Apr 08 650 10 Apr 13 Fixed 6.998% 425/UST 18 May 11 650 18 May 16 Fixed 2.983% 115/UST Debt funding EUR (EMTN)** By the end of FY12 Wesfarmers had gross debt of A$5.5 billion 10 Mar 10 500 10 Jul 15 Fixed 3.875% 135/mid-swaps and net debt of A$4.9 billion, with an average debt maturity * Issued in the name of Coles Myer (before Wesfarmers’ acquisition of Coles). profile of 2.5 years. In addition, the company also has operating- ** Excludes the €650m 10-year bonds issued on August 2 2012. lease debt relating to its retail store networks. The majority of the lease obligations are long-dated and have staggered maturities for further information please contact: and low refinancing risk. On August 2 2012 Wesfarmers issued €650 million (A$764 million) of 10-year bonds. This bond issue Luigi Mottolini, General Manager Finance and Tax +61 8 9327 4282 had the effect of extending the debt maturity profile to 3.8 years. [email protected] The proceeds from this issue were used to repay existing bank www.wesfarmers.com.au/debt-investors.html debt and maturing bonds. www.wesfarmers.com.au

8 3 ISSUER profiles

Westfield Group

KEY CREDIT METRICS CREDIT RATING A-/A2 (S&P/Moody’s)

BOND PROTECTION

Secured Debt Y (<45%) UNENCUMBERED LEVERAGE Y (>125%) KEY data LEVERAGE RATIO Y (<65%) FINANCIAL YEAR END 31 DEC INTEREST COVER RATIO Y (>1.5x) BLOOMBERG TICKER WDC AU COUPON STEP-UP N ASX CODE WDC TARGET GEARING Not specified KEY FINANCIALS HY12 FY11 HY11 FY10 WEIGHTED AVERAGE MATURITY 3.4 years (as at Jun 30 2012 adjusted MARKET CAPITALISATION (A$M) 21,474.8 17,987.4 19,945.0 22,063.9* (bank facilities) for financing in July) REVENUES (A$M) 1,213.4 4,006.0 1,358.4 3,625.6 WEIGHTED AVERAGE MATURITY 5.1 years (as at Jun 30 2012 adjusted (bonds & mortgages) for financing in July) EBITDA (A$M) 995.4 1,922.8 914.0 2,564.8 NET PROFIT AFTER TAX (A$M) 842.4 1,546.0 617.4 1,124.8 Share price (HY END) (A$) 9.50 7.81 8.66 9.58* facilities and secured mortgages. In the capital markets * Post establishment of Westfield Retail Trust in December 2010. Westfield has previously issued bonds in USD, GBP, EUR and AUD. At June 30 2012 interest-bearing liabilities, on a statutory About Westfield Group consolidation basis, totalled A$10.9 billion – including bonds eadquartered in Sydney, Westfield Group (Westfield) is totalling the equivalent of A$8.5 billion. • one of the world’s largest listed retail property groups. The shopping centre group engages in the ownership, debt maturity profile

operation, development, design, construction, Bonds Undrawn Mortgages management, leasing and marketing of shopping facilities centres and in funds and asset management on behalf of 4.0 3.5

H 1.2 investors. As at June 30 2012 the property investment portfolio ) 3.0 2.3 consisted of interests in 109 shopping centres in Australia, New bn 2.5 0.3 1.5

Zealand (NZ), the US, the UK and Brazil with a gross value of (A$ 2.0 e 0.4 0.6 2.1 around A$61.7 billion. Total consolidated assets were A$33.7 m 1.5 0.1 0.1 0.6 0.1 olu 1.0 0.1 0.4 1.2 1.2

billion. In December 2010 Westfield established the Westfield v 1.1 0.5 0.5 1.0 0.9 0.9 0.7

Retail Trust (WRT) (see facing page) as a standalone listed 0.6 0.6 property trust holding 50% of the interests that Westfield held 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 in most of its Australian and NZ shopping centres. WRT does not form part of Westfield. SOURCE: WESTFIELD GROUP 2012

Ownership outstanding bonds margin at Westfield is a stapled group – comprising the securities of Issue date Volume (M) Maturity format coupon issue date Westfield Holdings Limited (WHL), Westfield Trust (WT) (bps) USD (144A) and Westfield America Trust (WAT) – which has been listed 28 Sep 06 600 1 Oct 12 Fixed 5.40% 85/UST on the Australian Securities Exchange (ASX) since July 2004. 2 Jun 09 700 2 Jun 14 Fixed 7.50% 548.9/UST WHL is an Australian corporation and was incorporated and 2 Nov 04 1,400 15 Nov 14 Fixed 5.125% 115/UST listed on the ASX in 1979 as part of a corporate reorganisation 2 Sep 09 750 2 Sep 15 Fixed 5.75% 350/UST of Westfield Limited (formerly Westfield Development 28 Sep 06 900 1 Oct 16 Fixed 5.70% 109/UST Corporation Limited) which had been listed since 1960. WT 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 and WAT are managed investment schemes registered under the 3 May 11 1,000 10 May 21 Fixed 4.625% 147/UST Australian Corporations Act. 25 Sep 12 500 3 Oct 22 Fixed 3.375% 180/UST gbp (emtn) Liquidity position 27 Jun 05 600 27 Jun 17 Fixed 5.50% 110/Gilts At June 30 2012 Westfield’s undrawn committed bank facilities 4 Jul 12 450 11 Jul 22 Fixed 4.25% 255/Gilts and cash totalled approximately A$7.1 billion. for further information please contact: Richard Williams, Group Treasurer Debt funding +61 2 9358 7972 Westfield has a diversified funding base made up of [email protected] international bonds, syndicated bank facilities, bilateral bank www.westfield.com/corporate

8 4 | A u stra l asia n C o rp o rate Y earb o o k : br o u g h t t o y o u by 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 ber 2 0 1 2 WESTFIELD RETAIL TRUST

KEY CREDIT METRICS CREDIT RATING A+ (S&P)

BOND PROTECTION KEY data LEVERAGE RATIO Y (<65%) FINANCIAL YEAR END 31 DEC SECURED DEBT Y (<45%) BLOOMBERG TICKER WRT AU INTEREST COVER RATIO Y (>1.5x) ASX CODE WRT UNENCUMBERED LEVERAGE Y (>125%) KEY FINANCIALS hY12 FY11* COUPON STEP-UP N market capitalisation (a$m) 8,704 7,605 TARGET GEARING Not specified revenues (a$m) 251 480 WEIGHTED AVERAGE DEBT MATURITY 3.6 years (as at Jun 30 2012) ebitda (a$m) 361 712 net profit after tax (a$m) 417 974 refinance the A$1.34 billion Westfield Sydney facility. In July debt/ebitda (x) (senior) 4.0 3.8 net debt/net debt + equity (%) 21.9 20.8 2012 Westfield Retail Trust issued A$30 million of 10-year fixed share price (fy or hy end) (a$) 2.85 2.49 rate AUD MTNs. * The first year of operation forW estfield Retail Trust was for the year ended Dec 31 2011. Westfield Retail Trust has a common borrowing and credit structure for all unsecured, unsubordinated lenders who rank About Westfield Retail Trust pari passu irrespective of jurisdiction of the borrower. The estfield Retail Trust is Australia’s largest listed trust’s unsecured borrowings contain financial covenants real estate investment trust solely focused on in relation to gearing, secured debt, interest coverage and Australian and New Zealand retail property. unencumbered leverage. • It has total assets valued in excess of A$13.5 billion, with low gearing and income derived debt maturity profile* primarily in Australian dollars. W Bilateral bank Bilateral bank MTNs The trust’s principal investment is the joint venture facilities drawn facilities undrawn ownership, alongside Westfield Group (see facing page), 1,000 together with other third parties, in a high-quality shopping )

800 900 16 centre portfolio comprising interests in 52 major shopping M

centres located predominantly in Australia, with 8 per cent of 335 709 (A$ 600 e the assets located in New Zealand. m 5 400 olu v 125 420 Ownership 390 Westfield Retail Trust is a stapled entity comprising Westfield 200 300 176 30 Retail Trust 1 and Westfield Retail Trust 2. It is listed on the 0 Australian Securities Exchange (ASX) as WRT. WRT was H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 established in November 2010 and commenced trading on the 2012 2013 2014 2015 2016 2017 2018+ ASX the following month. * At 30 June 2012 and includes A$30 million MTNs issued July 2012. SOURCE: WESTFIELD RETAIL TRUST JUNE 30 2012 Liquidity position At June 30 2012 Westfield Retail Trust’s undrawn committed outstanding bonds coupon margin at issue Issue date Volume (M) Maturity format bank facilities and cash totalled approximately A$500 million. (% or bps) date (bps) AUD Debt funding (domestic) 18 Apr 11 800 18 Oct 16 Fixed 7.00% 120/swap Westfield Retail Trust has a diversified funding base made up of 18 Apr 11 100 18 Oct 16 FRN ND 120/BBSW bilateral bank facilities with domestic and international banks 4 Jul 12 30 4 Jul 22 Fixed ND ND and domestic bonds. At June 30 2012 the trust had net debt of

A$2.9 billion, with a weighted average facility maturity of 3.6 for further information please contact: years. In April 2011 Westfield Retail Trust issued A$900 million Brian Mackrill, Chief Financial Officer of 5.5-year MTNs in the domestic market. In the second half +61 2 9333 4803 of 2011 Westfield Retail Trust raised A$1.5 billion in new [email protected] forward-starting bilateral facilities. These facilities were used to www.westfieldretailtrust.com

8 5 ISSUER profiles

Woodside Petroleum

KEY data KEY CREDIT METRICS FINANCIAL YEAR END 31 DEC CREDIT RATING BBB+/Baa1 (S&P/Moody’s) BLOOMBERG TICKER WPLAU ASX CODE WPL debt facilities. In May 2011 Woodside issued US$700 million in KEY FINANCIALS HY12 FY11 FY10 the US 144A bond market. The company’s average cost of debt MARKET CAPITALISATION (A$M) 25,558 24,670 33,342 at December 31 2011 was approximately 3.2% per year on a REVENUES (US$M) 2,655 4,802 4,193 portfolio basis. EBITDA (US$M) 1,741 2,837 3,003 All loans and bonds are subject to various covenants and a NET PROFIT AFTER TAX (US$M) (1) 812 1,507 1,575 DEBT/EBITDA (x) (Senior) N/A N/A 1.63 negative pledge restricting future secured borrowings, subject to NET DEBT/NET DEBT + EQUITY (%) 26 29 26 a number of permitted lien exceptions. • Share price (HY END) (A$) 31.02 30.62 42.56 (1) After significant items. debt maturity profile About Woodside Petroleum Bonds and Bank oodside Petroleum (Woodside) is the biggest notes

operator of oil and gas production in Australia 2,000 1,858 and Australia’s largest independent dedicated oil

) 1,600 and gas company. As one of the world’s leading M

producers of liquefied natural gas, Woodside is 1,200 1,100 (US$ helping to meet the demands for cleaner energy from Japan, e m W 700 China, Korea and other countries in the Asia Pacific region. 800 250 olu 817 v 600 Formed in 1954, a year after Australia’s first oil discovery, 583 Woodside’s initial focus was on oil exploration off the south 400 483 333 83 83 coast. Its direction changed in the 1970s when major natural gas 0 83 83 discoveries were made off the Western Australian coast. 2012 2013 2014 2015 2016 2017 2018 2019 2020 Woodside has its headquarters in Perth and the company -2023 employs 3,800 staff around the world. SOURCE: WOODSIDE PETROLEUM JUNE 30 2012

outstanding bonds* Ownership margin at Woodside has been a public company listed on the Australian Issue date Volume (M) Maturity format coupon issue date (bps) Securities Exchange since November 1971 as WPL. It is one USD (144A) of the top 20 listed companies on the exchange. Shell Australia 3 Nov 03 250 15 Nov 13 Fixed 5.00% ND owns 24%. 24 Feb 09 400 1 Mar 14 Fixed 8.125% ND 3 Nov 09 700 10 Nov 14 Fixed 4.50% ND Liquidity position 24 Feb 09 600 1 Mar 19 Fixed 8.75% ND The liquidity position of the group is managed to ensure 10 May 11 700 10 May 21 Fixed 4.60% ND sufficient liquid funds are available to meet its financial * As at June 30 2011. 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 December 31 2011 Woodside had US$2.2 billion in cash and undrawn debt facilities. for further information please contact: Don Spector, Vice President, Tax and Treasury Debt funding +61 8 9348 4000 At December 31 2011 Woodside had US$2.65 billion [email protected] outstanding in bonds and US$2.49 billion outstanding in other www.woodside.com.au

8 6 | A u stra l asia n C o rp o rate Y earb o o k : br o u g h t t o y o u by 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 ber 2 0 1 2 Woolworths

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

KEY data facilities comprise domestic Australian CP and MTNs, USPP FINANCIAL YEAR END 24 JUN 2012 (1) and 144A issuance, syndicated and revolving bank facilities, BLOOMBERG TICKER WOWAU and step-up, deferrable, subordinated notes. In October 2011 ASX CODE WOW Woolworths arranged a A$1.2 billion syndicated facility across KEY FINANCIALS FY12 FY11 FY10 two tranches, followed by A$700 million of retail hybrid REVENUES (A$M) 56,700.1 54,142.9 51,694.3 securities in November 2011. Woolworths also issued a seven- EBIT (A$M) 2,956.7 3,276.4 3,082.1 year A$500 million MTN in the AUD domestic institutional EBITDA (A$M) 3,852.6 4,134.3 3,879.8 market in March 2012. • NET PROFIT AFTER TAX (A$M) 1,816.7 2,124.0 2,020.8 NET DEBT/EBIT (x) (Senior) 1.46 1.22 0.95 DEBT MATURITY PROFILE (HARD MATURITIES) GEARING (%) (2) 33.76 33.83 27.16 Share price (FY END) (A$) 26.38 27.25 27.40 Syndicated loans 2011 US 144A 2010 US 144A 2005 US 144A (1) Different day each year; always on a Sunday. WOW Notes II USPPs Domestic MTNs (2) Net repayable debt/net repayable debt + equity. 2,500 About Woolworths 2,000

oolworths is made up of some of the most ) 290 M recognisable and trusted brands in retailing, 1,500 620 (A$ 530 serving millions of customers every day across e m Australia and New Zealand. It is Australia’s 1,000 532

olu 581 largest, and New Zealand’s second-largest, v 700 500 580 794 supermarket retailer with operations comprising more than 500 381 500 W 127 127 870 supermarket stores in Australia and more than 160 stores 0 in New Zealand. It also has buying offices in Hong Kong FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22+ and Shanghai. Woolworths’ retail expertise stretches across Excludes A$2.2bn in revolving bank facilities which are typically rolled on an annual basis. food and grocery, liquor, petrol, general merchandise and Source: Wooloworths June 24 2012 home improvement. Based in Sydney, Woolworths is one of the largest private sector employers in Australia, with almost outstanding bonds coupon Issue date Volume (M) Maturity format 200,000 staff. (% or bps) AUD (domestic) Ownership Mar 11 500 Mar 16 Fixed 6.75% Woolworths is a public company, listed on the Australian Mar 12 500 Mar 19 Fixed 6.00% Securities Exchange since July 1993 as WOW. It is one of the Nov 11 700 Nov 36 FRN 325/BBSW top 10 listed companies on the exchange. USD (USPP) Feb 05 100 Apr 15 Fixed 5.06% Liquidity position Feb 05 300 Apr 17 Fixed 5.16% Woolworths sets its capital structure with the objectives of Feb 05 100 Apr 20 Fixed 5.41% USD (144A) enhancing shareholder value through minimising the weighted Nov 05 425 Nov 15 Fixed 5.55% average cost of capital while retaining flexibility to pursue growth Sep 10 500 Sep 15 Fixed 2.55% and capital management opportunities. As at June 24 2012 Sep 10 750 Sep 20 Fixed 4.00% undrawn committed bank debt facilities totalled A$3.38 billion. Apr 11 300 Apr 16 Fixed 3.15% Apr 11 550 Apr 21 Fixed 4.55% Debt funding

The majority of Woolworths’ debt financing is provided by for further information please contact: long-term operating leases, with lease maturities of up to 40 Asrar Rahman, Group Treasurer years. The maturity profile of the group’s on-balance sheet debt +61 2 8885 1107 maturities is well spread and diversified across the bank and [email protected] capital markets in Australia, Asia and the US. Woolworths’ debt www.woolworthslimited.com.au

8 7 ISSUER profiles

Z Energy

KEY CREDIT METRICS CREDIT RATING Not rated

BOND PROTECTION

GEARING COVENANT N KEY data LEVERAGE RATIO Y FINANCIAL YEAR END 31 MAR INTEREST COVER RATIO Y BLOOMBERG TICKER NOT LISTED CHANGE OF CONTROL Y

KEY FINANCIALS FY12 FY11 FY10 COUPON STEP-UP N

REVENUES (NZ$M) 3,179 2,795 2,152 TARGET GEARING 35-45% EBITDA (NZ$M) (NZ current cost) 172 157 138 WEIGHTED AVERAGE DEBT MATURITY 5.8 years (as at Aug 31 2012) NET PROFIT AFTER TAX (NZ$M) 100 226 N/A WEIGHTED AVERAGE COST OF DEBT 8.5% (as at Mar 31 2012) DEBT/EBITDA (x) (Senior) 2.34 2.18 N/A NET DEBT/NET DEBT + EQUITY (%) 37 35 N/A and stressed conditions, without incurring unacceptable losses or risking damage to the company’s reputation. The group About Z Energy maintains a working capital facility of NZ$350 million to fund Energy is the company which now owns and operates its operations. This facility is subject to clean down (reduce to the downstream fuels business in New Zealand zero or below) at least three consecutive business days per four- previously owned by Shell New Zealand. In April 2010 month period, and other covenant requirements. As at March listed infrastructure company Infratil (see p43) and the 31 2012, Z Energy had NZ$16.5 million cash on hand. New Zealand Superannuation Fund purchased the ZShell business in New Zealand. Debt funding Z Energy sells around a third of New Zealand’s total liquid Z Energy’s policy is to seek to spread the maturities of its fuel volume to retail and commercial customers, and bitumen debt with no more than 50% of core debt facilities maturing to roading contractors. Z Energy’s operations also include a in any forward 12-month period. The group’s core term debt 17.1% stake in the New Zealand Refining Company (NZRC), comprises bank debt and bonds. a 25% stake in Loyalty New Zealand – which runs the Fly Buys Z Energy has a NZ$50 million revolving debt facility with loyalty programme – over 200 retail service stations, 94 truck its banks. The initial facility of NZ$350 million was fully drawn stops, a part interest in the two coastal tankers which transfer in April 2010 to fund the acquisition, and partially repaid from refined product from NZRC around New Zealand, pipelines, 2010 following an initial bond issue and subsequent issues terminals and bulk storage infrastructure around New Zealand. in 2011 and 2012. As at August 31 2012 the facility remains The New Zealand liquid fuel distribution sector is undrawn. The bond offers raised a total of NZ$432 million. dominated by four vertically-integrated companies and new Proceeds have been used to repay bank debt, extend the entrants have only entered segments of the market. The New maturity profile and optimise corporate funding structures. Zealand industry does not have a competitive refining market, The banks’ facilities expire at the end of June 2014, in as is the case in Australia, hence all new entrant retailers procure relation to the revolving debt, and May 2014, in relation to the fuel from one of the four vertically-integrated companies. working capital facility. The average duration of Z Energy’s Z Energy has negligible real exposure to fluctuating NZD debt as at August 31 2012 is approximately 5.8 years. • oil prices as the NZD oil price helps to set the pump price. It also has the most efficient distribution network with its stations outstanding bonds selling well in excess of the average of the rest of the industry. margin at Issue date Volume (M) Maturity format coupon issue date (bps) Ownership NZD Z Energy is 50% owned by the New Zealand Superannuation (domestic) 11 Aug 10 147 15 Oct 16 Fixed 7.35% 280/swap Fund and 50% owned by Infratil. As at March 31 2012 the 9 Aug 11 150 15 Aug 18 Fixed 7.25% 241/swap shareholders had equity of NZ$652 million with a gearing ratio 15 Aug 12 135 15 Nov 19 Fixed 6.50% 304/swap of 37%.

for further information please contact: Liquidity position Richard Norris, Treasurer Z Energy’s approach to managing liquidity is to ensure that it +64 4 462 4611 will always have sufficient liquidity to meet its liabilities when [email protected] due and is able to make value decisions, under both normal www.z.co.nz

8 8 | A u stra l asia n C o rp o rate Y earb o o k : br o u g h t t o y o u by 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 ber 2 0 1 2

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