MACQUARIE KOREA INFRASTRUCTURE FUND REPORTS FIRST QUARTER 2012 FINANCIAL AND TRAFFIC RESULTS

Transcription

1 Macquarie Korea Infrastructure Fund 4F, Hanwha Building 110 Sogong-dong, Jung-gu Seoul KOREA Telephone Fax Internet macquarie.com/mkif 30 April 2012 MACQUARIE KOREA INFRASTRUCTURE FUND REPORTS FIRST QUARTER 2012 FINANCIAL AND TRAFFIC RESULTS Macquarie Korea Infrastructure Fund ( MKIF ) today announced its financial results for the 1 st quarter ended 31 March 2012 (the Quarter ), together with the traffic results for the same period. Highlights for the Quarter include: On a non-consolidated basis, MKIF s revenue and net income recorded KRW 43.0 billion and KRW 29.9 billion. Excluding the one-off gain of KRW 0.6 billion recognised in the 1 st quarter 2011, the revenue and net income increased by 11% and 19%, respectively, compared to the previous corresponding period ( pcp ), mainly due to the increase in interest income from additional capital injections into Busan New Port Phase 2-3 ( BNP ) and the drop in interest expense and one-off transaction costs. The performance of the underlying assets has been solid. On a weighted average basis N, actual traffic volume and revenues of the underlying assets increased compared to pcp by 5.3% and 8.4% 2, respectively. During the Quarter, the four newly opened transportation assets P have reached approximately 72% of the Concession Agreement forecast volume. 4 BNP starts on a positive footing - Successful vessel callings for the two Terminal Sharing Partners, CMA CGM and KMTC on superior move time - Busan s total container throughput volume remains robust with the increase in the market share for the Busan New Port, reaching 52% of the total - Marketing to third party carriers progressing as scheduled MKIF remains financially healthy with conservative capital positions: J Proportionately consolidated cash balance 5 of KRW billion J Continued de-gearing of asset level debt with an weight average maturity of 8.6 years J MKIF net debt of KRW 378 billion with the corporate loan facility not maturing until May 2016 J Proportionately consolidated gearing 6 of 49% with 58% of interest obligations either fixed or hedged 7 for next twelve months J MKIF domestic credit rating remains AA (Stable) 8 1 The weighted average growth rates in traffic and revenue are weighted by reference to revenue and calculated based on MKIF s percentage ownership interest in each concession company 2 Excludes toll-freeze compensations 3 Yongin-Seoul Expressway, Seoul-Chuncheon Expressway, Seoul Subway Line 9 Section 1 and Incheon Grand Bridge 4 On a weighted average basis based on total commitment amount 5 Proportionately consolidated cash balance (including MKIF cash balance of KRW 63.3bn) 6 Gearing MKIF Net Debt/( MKIF Net Debt + MKIF market capital(3-month average)), where MKIF Net Debt Proportionate net debt from assets + Corporate net debt. Excludes shareholder loans 7 Hedging (Fixed or swapped to fixed) Proportionately consolidated MKIF net debt adjusted for fixed or swapped debt / Proportionately consolidated MKIF net debt 8 Rated by Korea Ratings on 4 April 2012 WS:MSIM_Seoul:181594:v1

2 Mr Chul Hum Paik, Representative Director of Macquarie Korea Asset Management Co. Ltd. ( MKAM ), said: MKIF continues to deliver stable results amid precarious business environment and this year s rally in the share price is a reflection of market s appetite for the defensive attributes which MKIF offers. Overall, MKIF remains financially strong and the performance of the underlying assets have been pleasing. As for BNP, we are excited about its operational performance to date, having achieved outstanding move time compared to its peer terminals in Asia, and this type of strong track record is driving BNP s marketing efforts to third party carriers. Given the cyclical nature of terminal demand, we are cautiously optimistic about the business based on its performance to date, added Mr. Paik. Financial Results (Unit: KRW million) Quarter to 31 March 2012 Quarter to 31 March 2011 Revenue 42,968 39,454 Interest income 42,968 38,833 Capital gain Operating Expenses 13,053 13,620 Management fee 6,434 5,877 Interest expense 6,007 6,233 Other expenses 612 1,510 Net Income 29,915 25,834 Normalised Net Income2 29,915 25, Gain on securitisation of interest receivable in Cheonan-Nonsan Expressway (Tranche III) 2. Excluding one-off gain Traffic Results Q over Q Asset Traffic (%) 1 Revenue (%) 2 Weighted Average growth 5.3% 8.4% NK Percentage increase from prior corresponding period, based on average daily traffic OK Percentage increase from prior corresponding period, based on average daily revenue For further information, please contact: Jiroo Eoh Investor Relations Macquarie Korea Infrastructure Fund Jiroo.Eoh@macquarie.com Ally An Investor Relations Macquarie Korea Infrastructure Fund Ally.An@macquarie.com This release is not an offer for sale of the securities of Macquarie Korea Infrastructure Fund ( MKIF ) in the United States or in any jurisdiction where any offer, sale or solicitation in respect of such securities is not permitted. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended, or in any jurisdiction where such offer or sale is not permitted. MKIF does not intend to register any portion of any contemplated offering in the United States or to conduct a public offering of securities in the United States. Not for distribution in the United States or in any jurisdiction where any offer, sale or solicitation in respect of the contemplated securities is not permitted. 2

3 This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order ) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as relevant persons ). Any securities will only be available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire any securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. MKIF or Macquarie Korea Asset Management Co., Ltd.(MKAM) is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of this entity do not represent deposits or other liabilities of Macquarie Bank Limited ABN (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities. Investments in MKIF are subject to investment risk, including possible delays in repayment or loss of income and/or capital investment. Neither MKIF, nor any member of the Macquarie Bank Group, including MKAM, guarantees the performance of MKIF, the repayment of capital or the payment of a particular rate of return on MKIF securities. 3

4 Appendix1. Financial results (Unaudited, non-consolidated basis) STATEMENT OF FINANCIAL POSITION As at 31 March 2012, 31 December 2011 and 31 March 2011 Assets (Unit: KRW millions) 31 March December March 2011 Ⅰ. Invested Assets 1,834,482 1,869,892 1,832,446 Cash & deposits 63, , ,771 Loans receivable 1,139,355 1,137,196 1,104,789 Equity securities 1 631, , ,886 Ⅱ. Others 274, , ,530 Interest receivables 260, , ,642 Other receivables 4,458 4,458 4,460 Deferred costs, net 9,532 9,749 12,428 Total Assets 2,109,424 2,126,520 2,035,976 Liabilities Accounts payable Management fee payable 6,434 6,140 5,877 Other liabilities 1,750 1,812 2,496 Long-term debt 191, , ,917 Bond 249, ,978 - Total Liabilities 448, , ,353 Shareholders Equity Ⅰ. Share Capital 1,670,986 1,670,986 1,670,986 Ⅱ. Retained Earnings (39,995) 14,696 (10,363) Total Shareholders Equity 1,660,906 1,685,682 1,660,623 Total Liabilities and Shareholders Equity 2,109,424 2,126,520 2,035, Pursuant to the Financial Investment Services and Capital Market Act, MKIF reports all its unlisted equity investments at acquisition cost. These are unaudited numbers and as such may be subject to change 4

5 STATEMENTS OF INCOME For the quarters ended 31 March 2012 and 31 March 2011 (Unit: KRW million) Quarter Ended 31 Mar 2012 Quarter Ended 31 Mar 2011 Ⅰ. Revenue 42,968 39,454 Interest income 42,968 38,833 Gain on sales of investment Ⅱ. Expenses 13,053 13,620 Management fees 6,434 5,877 Custodian fees Administrator fees Interest expense 6,007 6,233 Other expenses 477 1,377 Ⅲ. Net Income 29,915 25,834 5

6 Appendix 2. Traffic and Revenue 1. TRAFFIC VOLUME AND TRAFFIC REVENUE - PORTFOLIO SUMMARY On a weighted average basis 1, traffic and revenue increased by 5.3% and 8.4%, respectively, during the first quarter (the Quarter), when compared to pcp. The highlights from the traffic results include: The traffic growth of the portfolio during the Quarter was largely attributable to: - The four newly opened assets 2 delivered solid traffic ramp-up of 7% 3 growth on pcp - Certain assets, including Cheonan-Nonsan Expressway, Gwangju Second Beltway Section 3-1 and Machang Bridge, performed well on additional traffic inflow from adjacent roads Traffic volume of Woomyunsan Tunnel decreased due to the toll rate adjustment Traffic for each toll road asset is calculated as the average daily traffic volume. Except as stated otherwise, revenues for each toll road asset represents actual average daily revenue collected (excluding VAT). Actual revenue collected does not include minimum revenue compensation payments received from the relevant government authority or the toll freeze compensations related to the CPI growth. Accordingly, revenue performance in the concession companies is not a direct guide to the revenue performance of MKIF. The revenue growth recorded by the concession companies in which MKIF invests reflects inflation linked toll rate increases, and may also be influenced by changes to the traffic mix, between heavy and light vehicles, for which different toll rates apply First Quarter % of MKIF Asset Traffic (%) a Revenue (%) b Portfolio c Incheon International Airport Expressway 0.8% 3.1% SKO Baekyang Tunnel 1.2% 0.0% MKO Gwangju Second Beltway, Section % 6.8% QKV Gwangju Second Beltway, Section 1 3.1% 3.1% NMKU Woomyunsan Tunnel (3.7%) 20.3% NKN Cheonan-Nonsan Expressway 8.2% 13.5% NRKP Soojungsan Tunnel 0.6% (1.7%) SKR Daegu 4 th Beltway East 4.1% 4.1% RKN Machang Bridge 7.1% 7.1% SKQ Yongin-Seoul Expressway 8.2% 8.4% TKS Seoul-Chuncheon Expressway 5.8% 11.7% TKT Seoul Subway Line 9, Section1 15.5% 22.4% QKO Incheon Grand Bridge 3.3% 4.7% VKP Weighted Average 5.3% 8.4% - a Percentage increase from prior corresponding period, based on average daily traffic. b Percentage increase from prior corresponding period, based on average daily revenue. c Percentage based on total commitments by MKIF to all investments in the MKIF portfolio. 1 On a weighted average basis based on revenue size of each asset and the MKIF s equity interest in each concession company 2 Yongin-Seoul Expressway, Seoul-Chuncheon Expressway, Seoul Subway Line 9 Section 1 and Incheon Grand Bridge 3 Weighted average daily traffic during 1st quarter 2012 over 1st quarter

7 2. TRAFFIC AND REVENUE - INDIVIDUAL CONCESSION COMPANY PERFORMANCE Incheon International Airport Expressway Average daily traffic (vehicles / day) 48,686 48, % Average daily revenue (1,000 won) 314, , % The higher revenue growth than traffic volume growth is mainly due to the toll rate increase in November Basic toll rate increased from KRW7,500 to KRW7,700 (small vehicle) Baekyang Tunnel Average daily traffic (vehicles / day) 68,805 67, % Average daily revenue (1,000 won) 49,433 49, % Traffic for the Quarter slightly increased compared to pcp due to increased traffic of small vehicles Gwangju Second Beltway, Section 3-1 Average daily traffic (vehicles / day) 35,481 33, % Average daily revenue (1,000 won) 31,309 29, % Strong traffic growth compared to pcp is mainly due to the increase in intercity traffic flow and the connection of Gwangju-Muan Expressway which opened in May 2008 Gwangju Second Beltway, Section 1 Average daily traffic (vehicles / day) 35,324 35, % Average daily revenue (1,000 won) 36,618 34, % Traffic and revenue for the Quarter increased compared to pcp due to connection of the beltway to the national expressway no. 25 in June 2010 (Moonheung JCT), followed by the completion of Gakhwa Bridge in previous year (December 2009) Woomyunsan Tunnel Average daily traffic (vehicles / day) 24,606 25,550 (3.7%) Average daily revenue (1,000 won) 53,281 44, % Basic toll rate for all vehicles increased from KRW2,000 to KRW2,500 in December

8 Cheonan-Nonsan Expressway Average daily traffic (vehicles / day) 40,453 37, % Average daily revenue (1,000 won) 324, , % Traffic growth for the Quarter compared to pcp due to additional traffic inflow from Sooncheon-Wanjoo Expressway opened in January Basic toll rate increased from KRW8,400 to KRW8,700 (small vehicle) in November 2011 Soojungsan Tunnel Average daily traffic (vehicles / day) 41,278 41, % Average daily revenue (1,000 won) 30,282 30,804 (1.7%) Revenue for the Quarter decreased compared to pcp and lower than the traffic growth because small vehicles volume increased and large and extra-large traffic volume for North port development decreased Daegu 4 th Beltway East Average daily traffic (vehicles / day) 19,869 19, % Average daily revenue (1,000 won) 19,869 19, % Constant traffic growth compared to pcp is mainly due to the traffic inflow from Gomo IC after opening of a mega-retail (discount) store in July Machang Bridge Average daily traffic (vehicles / day) 14,892 13, % Average daily revenue (1,000 won) 26,900 25, % Traffic and revenue for the Quarter increased compared to pcp due to natural ramp-up and the completion of Imgok- Hyungdong Expressway opened in December 2010 Yongin-Seoul Expressway Average daily traffic (vehicles / day) 61,880 57, % Average daily revenue (1,000 won) 99,835 92, % Yongin-Seoul Expressway has commenced its toll operation from 1 July Since opening, Strong traffic volume growth is due to the ramp up effect. Average daily traffic volume up to the end of Quarter was 74% of CA forecast Seoul-Chuncheon Expressway Average daily traffic (vehicles / day) 33,972 32, % 8

9 Average daily revenue (1,000 won) 207, , % Seoul-Chuncheon Expressway has commenced its toll operation from 15 July Traffic volume has increased considerably due to the ramp up effect. Average daily traffic volume up to the end of Quarter was 70% of CA forecast Seoul Subway Line 9, Section 1 Average daily initial boarding* (passengers / day) 211, , % Average daily revenue (1,000 won) 158, , % * Excludes inter-charge passengers Seoul Subway Line 9, Section 1 has commenced its toll operation from 24 July Average daily initial boarding up to the end of Quarter was 103% of CA forecast. The higher revenue growth than initial boarding growth is due to the fare increase of KRW 150 from 25 February 2012 in line with Seoul Metropolitan City(SMC) fare increase policy. Incheon Grand Bridge Average daily traffic (vehicles / day) 26,179 25, % Average daily revenue (1,000 won) 132, , % Incheon Grand Bridge has commenced its toll operation from 19 October Average daily traffic volume up to the end of Quarter was 62% of CA forecast 9