Channel Infrastructure NZ (CHI) Investor presentation summary

Investment highlights

• Owns critical infrastructure with long-term customer contracts and inflation-linked earnings, supporting stable cash flows and a strong balance sheet.

• Offers an 11% free cash flow yield and 8% dividend yield, with infrastructure resilient to New Zealand's transition to renewable fuels.

Infrastructure and operations

• Handles about 3.4 billion litres of fuel annually, with a 170km pipeline supplying Auckland and 400 million litres of tank capacity available for conversion.

• Supplies 40% of New Zealand's transport fuel demand and 80% of jet fuel demand, with significant unutilised land for future development.

Financial performance and stability

• 91% of revenue is indexed to the Producer Price Index, providing inflation protection.

• EBITDA margin stands at 67%, with FY24 EBITDA guidance of $92–$96 million and a stable dividend yield of 8%.

• 10-year customer contracts with renewal options underpin revenue stability.