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Sydney Airport CorporAtion

About Sydney Airport

S ydney Airport is Australia’s busiest airport and handles on average 98,000 passengers each day. Sydney Airport is the gateway to Sydney, which is Australia’s largest city, most popular tourist destination and financial capital. A total of 42% of

Australia’s arriving and departing international passengers and 22% of all domestic and regional passengers fly through the airport. Sydney Airport is an integral component of Australia’s national transport infrastructure network, linking Sydney to the world via 46 routes to international destinations and 49 routes to domestic and regional destinations.

The principal activities of Sydney Airport are the provision and management of airport facilities – including retail, commercial and property businesses within the airport. In 1998 Sydney Airport entered into a lease with the Commonwealth of Australia to operate the airport for 50 years, with an option for a further 49 years.

OwnershipIn June 2002 Sydney Airport was privatised by the Commonwealth government. Southern Cross Airports Corporation Holdings Limited (the SCACH Group) is the parent company of Sydney Airport. Current shareholders of the SCACH Group are Australian Securities Exchange-listed Sydney Airport (84.8%), HOCHTIEF AirPort and affiliates (12.1%), and Australian superannuation funds (3.1%).

Liquidity positionAs at 30 June 2012 the SCACH Group had undrawn committed facilities of A$967 million and cash balances of A$241 million.

Debt fundingThe SCACH Group uses a variety of capital market

for further information please contact:

Christine Kelly, Treasurer+61 2 9667 [email protected]

instruments and bank debt for its debt funding. It has on issue Australian credit-wrapped and unwrapped MTNs, Australian credit-wrapped capital-indexed bonds, US 144A/Reg S secured notes and Canadian Maple market secured notes.

At June 30 2012 SCACH Group had net debt of A$6.02 billion. The average maturity of outstanding debt is approximately eight years. The company has no further term debt maturities until Q4 2012.

The SCACH Group is continuing to diversify its debt portfolio and will be continuing to look at opportunities in the international capital markets in addition to bank debt and domestic capital markets. •

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

BOND PROTECTION

GEARING COVENANT Y (ND/EV<75%)

lEVERAGE RATIO N

INTEREST COVER RATIO Y (>1.1x)

CHANGE OF CONTROl Y

COUPON STEP-UP N

KEY DATAFINANCIAl YEAR END 31 DEC

BlOOMBERG TICKER SYD AAU

ASX CODE SYD

KEY FINANCIAlS HY12 FY11 FY10

REVENUES (A$M) 504 973 943

EBITDA (A$M) 411 790 773

NET PROFIT (A$M)1 93 161 150

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.(2) Change in net senior debt/EBITDA is due to redemption of SKIES being the subordinated debt listed in the ASX in January 2012.

OUTSTANDING BONDS**

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

MARGIN AT ISSUE DATE (BPs)

AUD (DOMESTIC)

Dec 06 217 20 Nov 13 FRN* 23/BBSW 23/BBSW

Sep 04 700 20 Nov 14 FRN* 49/BBSW 49/BBSW

Jul 10 175 Jul 15 Fixed 8.00% 8.00%

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%

Dec 06 200 20 Nov 21 FRN* 31/BBSW 31/BBSW

Dec 06 750 11 Oct 22 FRN* 29/BBSW 29/BBSW

Dec 06 659 11 Oct 27 FRN* 33/BBSW 33/BBSW

Dec 06 3421 20 Nov 30 CPI-linked* 3.12% 3.12%

OFFSHORE

Jun 11 C$225 Jul 18 Fixed 4.602% 4.602%

Oct 10 US$500 Feb 21 Fixed 5.125% 5.125%

* Credit-wrapped. ** As at June 30 2011.(1) The face value of the bond increases over time as a portion of interest is capitalised.

7 0 | 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 2

ISSUERPRofIlES

tAbCorp HoldingS

About Tabcorp Holdings

A s a diversified publicly-listed gambling company, Tabcorp Holdings (Tabcorp) conducts a unique combination of wagering, gaming, Keno and media activities across Australia. It manages leading customer brands in Australia including TAB.com.au

Keno, Luxbet, Tabcorp Gaming Solutions, Sky Racing and Sky Sports Radio, serving millions of customers every day. Tabcorp employs about 3,000 people in all states of Australia. Its head office is in Melbourne.

OwnershipTabcorp has been listed on the Australian Securities Exchange as TAH since August 1994. It is one of the top 100 listed companies on the exchange.

Liquidity positionTabcorp aims to retain a strong investment-grade credit rating and conservative balance sheet ratios. During FY12 the company extended existing bank facilities of A$400 million, and issued US$220 million of bonds and A$250 million of Tabcorp subordinated notes. To help reduce liquidity risk the group targets a minimum level of cash and cash equivalents to be maintained, and has revolving facilities in place with sufficient headroom. As at June 30 2012 Tabcorp reported a net debt position of A$1.1 billion, with headroom of A$460 million in existing AUD bank lines.

Debt fundingThe group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans, bonds and notes. The group’s policy is that not more than 33% of debt


Damien Johnston, Chief Financial Officer+61 3 9868 [email protected]

facilities should mature in any 12-month period within the next five years. At June 30 2012 none (2011: 27%) of the group’s debt facilities will mature in less than one year.

Tabcorp’s drawn debt comprises 72% bond and 28% bank debt. Tabcorp has a diversified debt portfolio which includes AUD bank debt, AUD MTNs, AUD retail bonds, Tabcorp subordinated notes and USD bonds. Tabcorp remains well within its existing banking covenants. •

KEY CREDIT METRICSCREDIT RATING BBB (S&P)

BOND PROTECTION

GEARING COVENANT Y

lEVERAGE RATIO N

INTEREST COVER RATIO Y

CHANGE OF CONTROl Y

COUPON STEP-UP N

TARGET GEARING Investment grade

WEIGHTED AVERAGE DEBT MATURITY (SENIOR) 4.8 years (as at Jun 30 2012)

WEIGHTED AVERAGE COST OF DEBT (SENIOR) 7.9% (as at Jun 30 2012)

KEY DATAFINANCIAl YEAR END 30 JUN

BlOOMBERG TICKER TAHAU

ASX CODE TAH

KEY FINANCIAlS FY12

FY11(CONTINUING

BUISNESS)

FY11(REPORTED)

(1) FY10

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

EBITDA (A$M) 725.2 686.8 1,132.7 998.0

NET PROFIT AFTER TAX (A$M) 340.0 N/A 534.8 469.5

DEBT/EBITDA (X) (SENIOR) 1.7 1.4 N/A 2.1

NET DEBT/NET DEBT + EQUITY (%) 43.3 40.3 N/A 50.1

SHARE PRICE (FY END) (A$) 2.93 3.29 N/A 6.33

(1) In June 2011 Tabcorp completed the demerger of its casino business to form the Echo Entertainment group (ASX code EgP).

OUTSTANDING BONDS



AUD (DOMESTIC)

19 Jun 09 150 May 14 FRN 425/BBSW 425/BBSW

30 Apr 09 284.5 May 14 FRN 425/BBSW 425/BBSW

22 Mar 12 250 Mar 37 FRN 400/BBSW 400/BBSW

27 Apr 12 83.5 Apr 19 Fixed nD 384/BBSW

27 Apr 12 127 Apr 22 Fixed nD 357/BBSW

DEBT MATURITY PROFIlE

Drawn bank facilities

USPP

MTNs

Undrawn bank facilities

Tabcorp retail bonds

Subordinated notes (1)

vO

LU

mE

(A

$m

)

600

500

400

300

200

100

0

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY19

SouRCE: TABCoRP holDIngS JunE 30 2012

(1) Subordinated notes mature in march 2037, but illustrated at the first call date in 2017.

284

150

340

250211

60 400

7 1

tAttS groUp

About Tatts Group

T atts Group Limited (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. The group typically achieves

consistent and reliable revenue through using technology solutions to deliver high volumes of low average value transactions through a widely dispersed distribution network. The group 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 in the states in which the company operates, with material licenses ranging in expiry from 2018 to 2100. Tatts employs about 3,300 people in Australia and the UK. Its head office is in Melbourne.

OwnershipTatts has been listed on the Australian Securities Exchange, 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 for the business 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 and pursuit of this policy is characterised by:• Maintaining a gearing ratio that ensures the investment-grade

positioning of the group.• Maintaining appropriate sources of debt funding to ensure an

appropriate maturity profile for the group.• A dividend policy aimed at dividend payout ratios of over

90% on a fully-franked basis.


Nick Cimino, Group Treasurer+61 3 8517 [email protected]

• Investment criteria that consider earnings accretion and risk-adjusted rate of return requirements based on the group’s weighted average cost of capital.• Ongoing cash flow forecast analysis and detailed budgeting

processes which, combined with continual development of banking and investor relationships, is directed at providing a sound financial positioning for the group’s operations and financial management activities.

The group’s operations generate a strong and stable annual 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 A$603 million of undrawn committed debt funding, and cash holdings (excluding prize reserves) of A$133 million.

Debt fundingSince listing in June 2005 with minimal debt, the group has used efficient and effective debt funding strategies to underpin the acquisition of gaming and lottery businesses in Australia and the UK, to grow the business in a profit- and cash-accretive fashion. This has been done so as to maintain the group’s investment-grade positioning and without the need to ask shareholders for more equity.

As at June 30 2012 this has resulted in Tatts having 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 the Tatts Bonds offer. Tatts Bonds was placed in June 2012 and proceeds were used to repay existing debt. The group’s weighted average debt maturity as at June 30 2012 was 3.3 years, with the next material debt maturities, occurring in March and June 2013, totalling A$489 million. •

KEY CREDIT METRICSCREDIT 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)


BlOOMBERG TICKER TTS AU

ASX CODE TTS

KEY FINANCIAlS FY12 FY11 FY10

MARKET CAPITAlISATION (A$M) 3,570.8 3,164.8 2,871.7

REVENUES (A$M) 3,901.9 3,669.3 3,297.9

EBITDA (A$M) 650.2 616.3 542.1

NET PROFIT AFTER TAX (A$M) 319.1 275.4 120.3

NET DEBT/EBITDA (X) (SENIOR) 1.8 2.0 2.3

NET DEBT/NET DEBT + EQUITY (%) 31.3 32.8 35.6

SHARE PRICE (FY END) (A$) 2.62 2.40 2.24

OUTSTANDING BONDS



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


ISSUERPRofIlES

teleCoM CorporAtion oF neW ZeAlAnd

About Telecom Corporation of New Zealand

T elecom Corporation of New Zealand Ltd (Telecom) is the largest provider of telecommunications and IT services in New Zealand by revenue, customers and assets. With effect from December 1 2011, Telecom separated into two entirely separate, publicly-listed

companies: Telecom, a provider of telecommunications services and IT services, and Chorus Limited, a network services operator. Telecom has retained ownership of the mobile network assets, the Public Switched Telephone Network (PSTN), telecommunications network equipment, the national transport network, international submarine cables and spectrum associated with the supply of mobile services.

OwnershipThe ordinary shares of Telecom are listed on the NZX and ASX. Telecom’s shares were listed on the NYSE in the form of American depositary shares (ADS). On July 19 2012 the ADS were delisted from the NYSE and now trade OTC.

Liquidity positionTelecom’s liquidity policy is to maintain unused committed facilities and available cash of at least 100% 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 2012 Telecom had an undrawn committed standby facility of NZ$600 million and a committed two- and three-year bank facility totalling NZ$400 million, of which NZ$100 million was undrawn.


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

Debt fundingTelecom has a US$2 billion EMTN programme and a domestic bond programme. As at June 30 2012 Telecom’s reported debt totalled NZ$1 billion. All Telecom’s 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. As at June 30 2012 net debt to EBITDA was 0.8 times. To reduce refinancing risk, the maximum term debt maturing in any financial year is not to exceed NZ$400 million. Telecom’s intention is to target a weighted average life of net debt of greater than 2.5 years. •

KEY CREDIT METRICSCREDIT 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)


BlOOMBERG TICKER TEL NZ

NZX CODE TEL


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

REVENUE AND OTHER GAINS (NZ$M) 4,576 5,004 5,177

EBITDA (NZ$M) 1,079 761 916

NET PROFIT AFTER TAX (NZ$M) 311 (79) 6

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

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

SHARE PRICE (FY END) (NZ$) 2.39 2.462 1.892

(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)

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%

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%

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%


Domestic bondsCP Bank funding GBP EMTN

vO

LU

mE

(N

Z$

m*)

500

400

300

200

100

0

Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Jun 20* After applying relevant cross-currency interest rate swaps.

SouRCE: TElECom CoRPoRATIon of nEw ZEAlAnD JunE 30 2012

312

95 100

200

150

64 46

73

3

7 3

telStrA CorporAtion

About Telstra Corporation

T elstra Corporation Limited (Telstra) is Australia’s leading telecommunications and information services company offering a full range of services. It also operates in New Zealand, Hong Kong and other overseas countries.

Telstra’s main activities include the provision of 4G and 3G mobile services, fixed voice services to most homes and businesses in Australia, fixed broadband services, as well as a comprehensive range of data and IP services. In addition, Telstra provides services that include the supply of equipment, the management of business and government customers’ network services, wholesale services to other carriers, carriage service providers and ISPs, and directories, advertising and search services through Sensis® – these include popular information services such as Yellow™, White Pages® and Whereis®.

Telstra has a unique geographical coverage through both its fixed and mobile network infrastructure. This underpins the carriage and termination of the majority of Australia’s domestic and international voice and data traffic.

National Broadband NetworkThe National Broadband Network (NBN) is a government-legislated initiative to provide all Australians with access to high-speed broadband. The network is planned to be built over approximately 10 years, starting in 2011. The NBN will be built, operated and maintained by NBN Co, a government business enterprise wholly owned by the Commonwealth. On June 23 2011 Telstra signed definitive agreements with NBN Co and the Commonwealth to participate in the rollout of the NBN.

OwnershipTelstra has been listed on the Australian Securities Exchange

as TLS since 1997. It is one of the top 20 companies on the exchange with a 100% free float.

Liquidity positionIn its FY12 results Telstra reported free cash flow of A$5.2 billion for the financial year. This figure represented a 5.1% decrease on the free cash flow of A$5.5 billion at the end of FY11. The decline in free cash flow was driven by an improvement in cash generated from the company’s operations being more than offset by an increase in cash used by Telstra for investment activities.

Debt fundingThe net debt position at June 30 2012 was A$13.3 billion (FY11: A$13.6 billion). Telstra’s effective interest rate on average net debt was 7.0% in FY12 (FY11: 7.2%). The average maturity of outstanding debt was 4.75 years (FY11: 4.3 years). Telstra continues to look at executing long-term borrowings across a diverse range of debt markets in FY13.

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) 45,914 35,960 40,440

SAlES REVENUES (A$M) 25,232 24,983 24,813

EBITDA (A$M) 10,234 10,151 10,847

NET PROFIT AFTER TAX (A$M) 3,424 3,250 3,940

NET DEBT/EBITDA (X) 1.3 1.3 1.3

GEARING: NET DEBT + EQUITY (%) 53.2 52.5 51.7



vO

LU

mE

(A

$B

N)

3.002.752.502.252.001.751.501.251.000.750.500.250.00

FY13 FY19FY14 FY20FY15 FY21FY16 FY22FY17 FY23FY18 FY24

SouRCE: TElSTRA CoRPoRATIon JunE 30 2012

2.9

7

1.19

2.1

8

1.41

2.0

7

1.56

1.35

2.1

0

1.25

0.1

0 0.2

8

0.1

5

> > C O N T I N U E D O N P 74


ISSUERPRofIlES


Cliff Davis, Corporate Treasurer +61 3 8647 9708 [email protected]

Phil Wallis, Manager, Funding and Investments+61 3 8647 [email protected]/abouttelstra/investor/treasury/

Given the size of its funding requirements and solid credit ratings, Telstra has a longstanding presence in global debt capital markets and is able to access multiple debt markets on standard 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 Singapore Stock Exchange. In March 2012 Telstra completed a €1 billion, 10.5-year September 2022 benchmark bond issue. The company also established a new benchmark €750 million, May 2022 bond issue in November 2011. These long-term borrowings have strengthened the company’s financial position by extending its debt maturity profile and enabling greater market access.

Outstanding borrowingsTelstra’s long-term debt portfolio comprises a combination of public bonds, bank loans and private placements. •

BANK lOANS BY CURRENCYFACE VAlUE (M) YEARS TO MATURITY

AUD

1,000 Various to 2012

USD

600 Various to 2013

PRIVATE PlACEMENTS BY CURRENCYFACE VAlUE (M) YEARS TO MATURITY

AUD

334 Various to 2023

USD

150 Various to 2015

JPY

48,000 Various to 2020

HKD

330 Various to 2020

EUR

75 Various to 2023

PUBlIC BONDS BY CURRENCYFACE 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%

1,000 Sept 22 Fixed 3.50%

CHF

250 Oct 12 Fixed 4.00%

300 Apr 13 Fixed 2.50%

225 Dec 18 Fixed 1.75%

GBP

200 Aug 14 Fixed 6.125%

7 5

toll HoldingS

About Toll Holdings

T oll Holdings Limited (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 55 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 (ASX) 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 2012 Toll had undrawn committed facilities of A$396 million and cash balances of A$569 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 2012 Toll’s net debt


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

was A$1.14 billion and the average maturity of debt facilities was 2.3 years.

Toll’s drawn debt as at June 30 2012 comprises 16% USPP notes and 84% 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


MARKET CAPITAlISATION (A$M) 2,854.2 3,444.1 3,851.7

REVENUES (A$M) 8,707.2 8,224.5 6,944.0

EBITDA (A$M) (1) 681.3 689.5 625.2

NET PROFIT AFTER TAX (A$M) (1) 274.2 294.8 284.4


DEBT/EBITDA (X) (SENIOR) (1) 2.5 2.2 2.4



(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

)

1,000900800700600500400300200100

0

FY13 FY14 FY15 FY16 FY17 FY18 FY18FY19 FY19

SouRCE: Toll holDIngS JunE 30 2012

172

186

117

100

100

75

39

779

283

252


ISSUERPRofIlES

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 p52) and Mighty River Power (see p54) 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 p60) and Vector (see p80). As system operator, Transpower is also the provider of coordination functions for the New Zealand power system.

Ownership Transpower 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.

Liquidity position The 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 two committed standby facilities in place (undrawn), totalling NZ$500 million, and fully-drawn 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 domestic CP programmes. As at October 9 2012, long-term debt stood at NZ$2.4 billion, with an average maturity of 6.49 years. With the exception of a most-favoured lender covenant and a 15% cap on priority indebtedness and sale of assets,


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

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)

6.49 years (as at Oct 9 2012, to Apr 6 2019)

WEIGHTED AVERAGE COST OF DEBT (SENIOR) 7.36% (from Jul 1 2011 to Jun 30 2012)


BlOOMBERG TICKER TPFNZ

NZDX CODE TRP


REVENUES (NZ$M) 794 737 734

EBITDA (NZ$M) 341 425 434

NET PROFIT AFTER TAX (NZ$M) 85 79 65

DEBT/EBITDA (X) (SENIOR) 6.8 4.5 3.8



NZD (DOMESTIC)

30 Nov 11 75 3 Dec 15 FRN N/A

3 Sep 12 100 3 Dec 15 FRN N/A

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%

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%

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%

CAD (MAPlE)

20 Mar 12 250 20 Mar 12 Fixed 3.00%

7 7

trAnSUrbAn groUp

About Transurban Group

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

OwnershipTransurban is a public company, listed on the Australian Securities Exchange as TCL.

Liquidity positionAs at June 30 2012 Transurban had A$390 million of undrawn debt facilities.


Gary West, Treasurer+61 3 9612 [email protected]


BlOOMBERG TICKER TCL AU

ASX CODE TCL


PROPORTIONAl RESUlT (1)

DEBT (A$M) 6,755.1 6,326.7 5,989.3

TOll FEE & OTHER REVENUES (A$M) 1,047.2 973.0 880.3

EBITDA (A$M) 784.0 737.3 629.9

DEBT/EBITDA (X) 8.6 8.6 9.5

NET DEBT/NET DEBT + EQUITY (%) 45 46 50

STATUTORY RESUlTS

TOll FEE & OTHER REVENUES (A$M) 846.2 799.2 751.1

EBITDA (A$M) 636.9 603.9 527.5



(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) 9.6 years (as at Jun 30 2012)

WEIGHTED AVERAGE COST OF DEBT (TRANSURBAN GROUP) 6.9% (AUD) 5.2% (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 June 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 56.98 14 Nov 16 Fixed 5.71%

7 Dec 04 38.9 7 Dec 16 Fixed 5.17%

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%

14 Nov 06 162.2 14 Nov 21 Fixed 5.95%

14 Nov 06 67.39 14 Nov 26 Fixed 6.06%

* Credit-wrapped.


AUD MTNsUSPP EMTN Term bank debt

Working capital facility

vO

LU

mE

(A

$m

)

700

600

500

400

300

200

100

0

SouRCE: TRAnSuRBAn JunE 30 2012

Corporate debt fundingTransurban has a medium- to long-dated corporate debt profile, diversified by both sources of debt and maturities. At June 30 2012 there was A$450 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. •

2013 20192014 20202015 20212016 2022 20232017 202520242018 2026 2027

130

220

250

100

136

315 5

00

129

160

133

125

300

165

233

254

219

20

6

159

94


ISSUERPRofIlES

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$2.5 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 13,200 small parcel shareholders, as well as 9,600 bondholders.The main shareholders are Infratil (50.5%) (see p43), a specialist investor in infrastructure and utility assets, and the Tauranga Energy Consumer Trust (33.0%), a consumer-elected trust board based in Tauranga.

Liquidity positionTrustPower maintains conservative levels of committed credit facilities. Including subordinated bonds, the group currently has around NZ$1.5 billion of committed debt funding in place. TrustPower has recently announced that it will proceed to construct the 270 MW Snowtown stage 2 wind farm in South Australia at an expected cost of A$439 million.

Debt fundingAt March 31 2012 net debt was NZ$762 million. The average maturity of outstanding debt as at March 31 2012 was 2.6 years. TrustPower’s current cash advance facilities mature between July


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

2013 and July 2016, while its bonds – including subordinated bonds – mature between September 2012 and December 2017. TrustPower refinanced NZ$108.6 million of subordinated bonds that matured in September 2012 with a NZ$140 million, seven-year subordinated bond maturing September 2019. •


BOND PROTECTION

GEARING COVENANT N

lEVERAGE RATIO Y (net debt/TTA <= 50%)


CHANGE OF CONTROl N

COUPON STEP-UP N

TARGET GEARING N/A

WEIGHTED AVERAGE DEBT MATURITY (SENIOR) 2.6 years (as at Mar 31 2012)

KEY DATAFINANCIAl YEAR END 31 MAR

BlOOMBERG TICKER TPWNZ

NZX CODE TPW


MARKET CAPITAlISATION (NZ$M) 2,289 2,273 2,286

REVENUES (NZ$M) 807.1 766.0 759.3

EBITDA (NZ$M) 300.1 274.4 273.9

NET PROFIT AFTER TAX (NZ$M) 131.7 112.4 119.4





AUD (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 BONDS

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 MTNs

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 mARCh 31 2012

140

55

75

100

65 75

11

261

11 1511

239

11 711

136

11

7 9

United energy

About United Energy

U nited Energy distributes electricity to more than 644,000 customers across east and south-east Melbourne and the Mornington Peninsula. Ninety per cent of customers are residential. The company manages a network of 209,000 poles and over 13,000

kilometres of wires. Electricity is received via 78 sub-transmission lines at 45 zone stations, where it is transformed from sub-transmission voltages to distribution voltages.

United Energy employs about 165 people and its head office is in Melbourne.

OwnershipThe DUET Group owns, in aggregate, 66% of United Energy with SPI (Australia) Assets Pty Ltd (see p66) holding the remaining shares.

Liquidity positionAs at June 30 2012 United Energy had undrawn facilities of A$348 million, and cash at bank of A$46 million, with cash flow from operating activities of A$276 million.

Debt fundingAs 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. •


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) 440.5 405.2 370

EBITDA (A$M) 275.5 273.7 263.4

NET PROFIT AFTER TAX (A$M) (31.3) (2.4) 33.9

NET SENIOR DEBT/REGUlATED ASSET BASE (%) 89 95 99

OUTSTANDING BONDSISSUE DATE VOlUME (M) MATURITY FORMAT

AUD (DOMESTIC)

31 Oct 05 500 23 Oct 14 FRN

11 Apr 12 200 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

)700

600

500

400

300

200

100

0

FY14 FY15 FY16 FY17 FY18

SouRCE: unITED EnERgY JunE 30 2012

AMI facility

Working capital facility

144A notes USPP

AUD MTNs Senior corporate facility

380

77

50

500

279

200

402

120

30


ISSUERPRofIlES

About vector

V ector is a multi-infrastructure utility with operations primarily spread across electricity distribution networks in Auckland, natural gas distribution inAuckland 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, lease of meters 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 2012 Vector reported that it continued to have comfortable headroom with cash on balance sheet of NZ$82 million and undrawn credit facilities of NZ$325 million. The company continues to have a strong liquidity position with operating cash flow increasing 4.7% to NZ$392.3 million and net interest cover of 2.7 times for the year ended June 30 2012.

Debt fundingVector’s debt portfolio has a spread of maturities extending out to 2022, with an average maturity of 6.25 years. At June 30 2012 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 February 2012 Vector refinanced the maturing undrawn NZ$50 million senior credit facility with a new bilateral NZ$150 million senior credit facility that matures in February 2015. In June the NZ$307 million capital bonds were successfully rolled for a further five-year term, with the next election date set for June 2017. •

KEY CREDIT METRICSCREDIT RATING BBB+ (S&P)

AVERAGE DEBT MATURITY 6.25 years (as at Jun 30 2012)


BlOOMBERG TICKER VCT NZ

NZX CODE VCT


MARKET CAPITAlISATION (NZ$M)) 2,668 2,529 2,151

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/EBITDA (X) 3.91 3.79 4.43



(1) Includes nZ$30.1 million one-off contribution from a Transpower agreement.(2) Includes nZ$20.9 million one-off, non-cash decrease in deferred tax liability due to 2010 government budget changes.

OUTSTANDING BONDS



NZD (DOMESTIC)

27 May 09 150 15 Oct 14 Fixed 7.80% ND

26 Oct 05 250 26 Oct 15 FRN N/A ND

4 Apr 07 160 4 Apr 17 FRN N/A ND

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

26 Oct 05 400 26 Oct 17 FRN N/A ND

26 Oct 05 350 26 Oct 20 FRN N/A ND

USD (USPP)

16 Sep 04 15 16 Sep 12 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 2012

NZD MTNs

USPP

GBP MTNs

Working capital facility Senior credit facility

Capital bonds Credit-wrapped FRNs

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23

23 12

550

150

150

99

160

307

40

0

296

286

350

251

250

8 1

WAterCAre SerViCeS

About Watercare Services

W atercare Services Limited (Watercare) provides water and wastewater services to 1.3 million residents of Auckland. Each day it collects, treats and supplies around 350 million litres of drinking water from dams, bores, springs and

four river sources. Watercare collects, treats and disposes of wastewater at 20 treatment plants and operates 7,500km of sewers. Watercare also works with 1,700 business customers on the transfer, treatment and disposal of trade waste. Watercare has been operating water and wastewater infrastructure in the Auckland region since 1991, initially as a wholesaler supplying services to local network operators that served the public. From November 1 2010, following legislative change, Watercare also became responsible for retail water and wastewater services.

OwnershipWatercare is 100% owned by Auckland Council, which also provides an explicit guarantee over Watercare’s borrowings and interest rate hedges.

Liquidity positionWatercare’s liquidity position is underpinned by the stability and predictability of its primary revenues. Refinancing risk is mitigated by the financing policy, which requires sufficient committed funding to be in place to cover at least the next six months’ borrowing requirements, including debt maturities. As at June 30 2012 Watercare had NZ$261.5 million of available headroom under committed bank funding facilities.

Debt fundingWatercare’s objective is to maintain a balance between continuity of funding and flexibility through the use of MTNs, term loans, a revolving credit facility, the CP programme, and a bank overdraft. Providers of bank funding and holders of MTNs and CP receive a negative pledge undertaking from Watercare. As at June 30 2012 Watercare had NZ$461.2


Jason Isherwood, Treasury Manager+64 9 539 [email protected]

million of inter-company loans from Auckland Council, down from the NZ$691 million of loans inherited as part of the November 1 2010 integration of Auckland region local government and water and wastewater providers. Watercare may undertake additional borrowings from Auckland Council in future. •

KEY CREDIT METRICSCORPORATE CREDIT RATING AA- (S&P)

BOND RATING AA (S&P)

BOND PROTECTION

GEARING COVENANT Y (shareholders’ funds >= NZ$500M)

lEVERAGE RATIO Y (total liabilities/TTA <= 60%)

INTEREST COVER RATIO Y (EBITDA/funding costs >= 1.75x)

CHANGE OF CONTROl Y

COUPON STEP-UP Y (on some facilities)

TARGET GEARINGWatercare targets interest serviceability rather than a gearing ratio. Funds from operations/interest cover is maintained above 2.5x




BlOOMBERG TICKER WATERC GOVT

NZX CODE NOT LISTED


REVENUES (NZ$M) 441.95 373.11 198.12

EBITDA (NZ$M) 253.16 216.57 109.39

NET PROFIT AFTER TAX (NZ$M) (45.31) (12.33) (26.67)



OUTSTANDING BONDS


NZD (DOMESTIC)

15 May 09 130 15 May 14 Fixed 6.785%

15 May 09 40 15 May 14 FRN 200/BKBM

8 Dec 09 40 15 May 14 Fixed 6.79%

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%

26 Oct 11 75 26 Oct 18 Fixed 5.685%

13 Dec 11 50 26 Oct 18 Fixed 5.685%


Term loan facility

Inter-company loans

MTNs CP Revolving credit facility

vO

LU

mE

(N

Z$

m)

300

250

200

150

100

50

0Jun 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

130

220

150

150

125

87

77

133

80

30

17 28

14

2 5 10

22


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. The airport has three main airline customers: Air New Zealand, Qantas (including Jetstar) and Virgin.

Wellington Airport opened in 1959 and it now has approximately 1,500 people working there on any given day, of which Wellington International Airport Limited (WIAL) employs approximately 90. Passenger numbers are forecast to double over the next 20 years, with international passenger numbers having grown by 5.4% per year and domestic passengers by 3.4% per year over the last 15 years.

Approximately 20 hectares of airport land have been developed for non-aeronautical use.

OwnershipWellington Airport was privatised in 1998 and is now 66% owned by NZ Airports – which is wholly owned by Infratil (see p43), a company publically listed on the New Zealand Exchange – 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 2012 WIAL has ample funding headroom with standby credit facilities of NZ$90 million. WIAL completed a major capital expenditure project for its terminal redevelopment and expansion in November 2010. While other capital developments are planned, there are funding facilities in place to cover these projects.


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

Debt fundingAll of the airport’s non-bank debt funding is by way of medium-term bonds with maturities in 2013 and 2017. This form of long-dated debt suits the nature of 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 2012 NZ$7 million of these facilities was drawn. Various standard banking and bond covenants are in place. •

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) 3.9 years (as at Mar 31 2012)

WEIGHTED AVERAGE COST OF DEBT (SENIOR) 6.87% (as at Mar 31 2012)


BlOOMBERG TICKER IFTNZ

NZX CODE WIA010

HY12 (1) FY12 (2) FY11

REVENUES (NZ$M) 47.6 99.5 114.7

EBITDA (NZ$M) 34.8 75.5 72.3

NET PROFIT/(lOSS) AFTER TAX (NZ$M) (11.8) 3.8 (18.9)



(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 fY12 represents parent company accounts only.

OUTSTANDING BONDS


NZD (DOMESTIC)

2 Dec 08 100 15 Nov 13 Fixed 7.5%

1 Aug 07 150 1 Aug 17 FRN 25/BKBM

MATURITY PROFIlE (BONDS)

vO

LU

mE

(N

Z$

m)

160

140

120

100

80

60

40

20

0FY13 FY17

SouRCE: wEllIngTon AIRPoRT SEPTEmBER 2012

100

150

8 3

WeSFArMerS

About Wesfarmers

W esfarmers has grown into one of Australia’s largest listed companies and employers, with over 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 2012 cash at bank and on deposit available for immediate debt reduction totalled A$598 million, while the company had committed undrawn facilities of A$2.2 billion.

Debt fundingBy the end of FY12 Wesfarmers had gross debt of A$5.5 billion and net debt of A$4.9 billion, with an average debt maturity profile of 2.5 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. On August 2 2012 Wesfarmers issued €650 million (A$764 million) of 10-year bonds. This bond issue had the effect of extending the debt maturity profile to 3.8 years. The proceeds from this issue were used to repay existing bank debt and maturing bonds.


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

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 markets. All the group’s bank and capital market debt benefits from cross guarantees from the major operating subsidiaries of the group. As at June 30 2012 the A$1.6 billion of short-term debt maturities was amply covered by A$598 million in cash and A$2.2 billion of committed undrawn bank facilities.

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. •

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

BOND PROTECTION

GEARING COVENANT N

lEVERAGE RATIO N


CHANGE OF CONTROl Y (subject to certain conditions)

COUPON STEP-UP Y (subject to certain conditions)

WEIGHTED AVERAGE DEBT MATURITY (SENIOR) 2.5 years (as at Jun 30 2012) (1)

(1) Excludes the €650 million 10-year bonds issued on August 2 2012.


BlOOMBERG TICKER WESAU

ASX CODE WES



REVENUES (A$M) 58,080 54,875 51,827

EBITDA (A$M) 4,544 4,155 3,786

NET PROFIT AFTER TAX (A$M) 2,126 1,922 1,565

NET DEBT/EBITDA (X) 1.1 1.0 1.1

NET DEBT/ EQUITY (%) 19.1 17.1 16.3

CASH INTEREST COVER (X) 10.8 9.5 6.8


OUTSTANDING BONDS



AUD (DOMESTIC)

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

4 Nov 11 500 4 Nov 16 Fixed 6.00% 150/swap

28 Mar 12 500 28 Mar 19 Fixed 6.25% 165/swap

USD (144A)

10 Apr 08 650 10 Apr 13 Fixed 6.998% 425/UST

18 May 11 650 18 May 16 Fixed 2.983% 115/UST

EUR (EMTN)**

10 Mar 10 500 10 Jul 15 Fixed 3.875% 135/mid-swaps

* Issued in the name of Coles myer (before wesfarmers’ acquisition of Coles).** Excludes the €650m 10-year bonds issued on August 2 2012.


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 2012 the property investment portfolio consisted of interests in 109 shopping centres in Australia, New Zealand (NZ), the US, the UK and Brazil with a gross value of around A$61.7 billion. Total consolidated assets were A$33.7 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 NZ 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 2012 Westfield’s undrawn committed bank facilities and cash totalled approximately A$7.1 billion.

Debt fundingWestfield has a diversified funding base made up of international bonds, syndicated bank facilities, bilateral bank


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

facilities and secured mortgages. In the capital markets Westfield has previously issued bonds in USD, GBP, EUR and AUD. At June 30 2012 interest-bearing liabilities, on a statutory consolidation basis, totalled A$10.9 billion – including bonds totalling the equivalent of A$8.5 billion. •


BOND PROTECTION

SECURED DEBT Y (<45%)

UNENCUMBERED lEVERAGE Y (>125%)

lEVERAGE RATIO Y (<65%)


COUPON STEP-UP N

TARGET GEARING Not specified

WEIGHTED AVERAGE MATURITY (BANK FACIlITIES)

3.4 years (as at Jun 30 2012 adjusted for financing in July)

WEIGHTED AVERAGE MATURITY (BONDS & MORTGAGES)

5.1 years (as at Jun 30 2012 adjusted for financing in July)


BlOOMBERG TICKER WDC AU

ASX CODE WDC

KEY FINANCIAlS HY12 FY11 HY11 FY10

MARKET CAPITAlISATION (A$M) 21,474.8 17,987.4 19,945.0 22,063.9*

REVENUES (A$M) 1,213.4 4,006.0 1,358.4 3,625.6

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*

* Post establishment of westfield Retail Trust in December 2010.

OUTSTANDING BONDS


USD (144A)

28 Sep 06 600 1 Oct 12 Fixed 5.40% 85/UST

2 Jun 09 700 2 Jun 14 Fixed 7.50% 548.9/UST

2 Nov 04 1,400 15 Nov 14 Fixed 5.125% 115/UST

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


MortgagesBonds Undrawn facilities

SouRCE: wESTfIElD gRouP 2012

vO

LU

mE

(A

$B

N)

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0

2012 20182013 20192014 20202015 20212016 20222017

0.1

0.1

0.1

0.6

0.3

0.4

0.7

0.5 1.

20

.4

2.1

1.2

1.2

1.01.1

1.5

2.3

0.1

0.9

0.9

0.6

0.6

0.6

8 5

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 in excess of A$13.5 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 52 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. WRT was established in November 2010 and commenced trading on the ASX the following month.

Liquidity positionAt June 30 2012 Westfield Retail Trust’s undrawn committed bank facilities and cash totalled approximately A$500 million.

Debt fundingWestfield Retail Trust has a diversified funding base made up of bilateral bank facilities with domestic and international banks 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 years. In April 2011 Westfield Retail Trust issued A$900 million of 5.5-year MTNs in the domestic market. In the second half of 2011 Westfield Retail Trust raised A$1.5 billion in new forward-starting bilateral facilities. These facilities were used to


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

refinance the A$1.34 billion Westfield Sydney facility. In July 2012 Westfield Retail Trust issued A$30 million of 10-year fixed rate AUD MTNs.

Westfield Retail Trust has a common borrowing and credit structure for all unsecured, unsubordinated lenders who 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%)


UNENCUMBERED lEVERAGE Y (>125%)

COUPON STEP-UP N

TARGET GEARING Not specified



BlOOMBERG TICKER WRT AU

ASX CODE WRT

KEY FINANCIAlS HY12 FY11*

MARKET CAPITAlISATION (A$M) 8,704 7,605

REVENUES (A$M) 251 480

EBITDA (A$M) 361 712

NET PROFIT AFTER TAX (A$M) 417 974

DEBT/EBITDA (X) (SENIOR) 4.0 3.8

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

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

* The first year of operation for westfield Retail Trust was for the year ended Dec 31 2011.

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

* At 30 June 2012 and includes A$30 million mTns issued July 2012.

DEBT MATURITY PROFIlE*

MTNsBilateral bank facilities drawn

Bilateral bank facilities undrawn

vO

LU

mE

(A

$m

)

1,000

800

600

400

200

0

2012 2013 2014 2015 2016 2017 2018+H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H1H2 H2

SouRCE: wESTfIElD RETAIl TRuST JunE 30 2012

5

16

30

709

176

420

300

125

390

335

90

0


ISSUERPRofIlES

WoodSide petroleUM

About Woodside Petroleum

W oodside Petroleum (Woodside) is the biggest operator of oil and gas production in Australia and Australia’s largest independent dedicated oil and gas company. 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 3,800 staff around the world.

OwnershipWoodside has been a public company listed on the Australian Securities Exchange since November 1971 as WPL. It is one of the top 20 listed companies on the exchange. Shell Australia owns 24%.

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 December 31 2011 Woodside had US$2.2 billion in cash and undrawn debt facilities.

Debt fundingAt December 31 2011 Woodside had US$2.65 billion outstanding in bonds and US$2.49 billion outstanding in other


Don Spector, Vice President, Tax and Treasury+61 8 9348 [email protected]

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


BlOOMBERG TICKER WPLAU

ASX CODE WPL

KEY FINANCIAlS HY12 FY11 FY10


REVENUES (US$M) 2,655 4,802 4,193

EBITDA (US$M) 1,741 2,837 3,003

NET PROFIT AFTER TAX (US$M) (1) 812 1,507 1,575

DEBT/EBITDA (X) (SENIOR) N/A N/A 1.63


SHARE PRICE (HY END) (A$) 31.02 30.62 42.56

(1) After significant items.

OUTSTANDING BONDS*


USD (144A)

3 Nov 03 250 15 Nov 13 Fixed 5.00% ND

24 Feb 09 400 1 Mar 14 Fixed 8.125% ND

3 Nov 09 700 10 Nov 14 Fixed 4.50% ND

24 Feb 09 600 1 Mar 19 Fixed 8.75% ND

10 May 11 700 10 May 21 Fixed 4.60% ND

* As at June 30 2011.

debt facilities. In May 2011 Woodside issued US$700 million in the US 144A bond market. The company’s average cost of debt at December 31 2011 was approximately 3.2% 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. •


Bonds and notes

Bank

vO

LU

mE

(U

S$

m)

2,000

1,600

1,200

800

400

0

2012 2013 2014 2015 2016 2017 20192018 2020 -2023

SouRCE: wooDSIDE PETRolEum JunE 30 2012

1,858

817250

583

83 83

1,100

483

600

700

33383 83

8 7

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 870 supermarket stores in Australia and more than 160 stores in New Zealand. It also has buying offices in Hong Kong and Shanghai. Woolworths’ 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 200,000 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 24 2012 undrawn committed bank debt facilities totalled A$3.38 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 and capital markets in Australia, Asia and the US. Woolworths’ debt


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

facilities comprise domestic Australian CP and MTNs, USPP and 144A issuance, syndicated and revolving bank facilities, and step-up, deferrable, subordinated notes. In October 2011 Woolworths arranged a A$1.2 billion syndicated facility across two tranches, followed by A$700 million of retail hybrid securities in November 2011. Woolworths also issued a seven-year A$500 million MTN in the AUD domestic institutional market in March 2012. •


KEY DATAFINANCIAl YEAR END 24 JUN 2012 (1)

BlOOMBERG TICKER WOWAU

ASX CODE WOW


REVENUES (A$M) 56,700.1 54,142.9 51,694.3

EBIT (A$M) 2,956.7 3,276.4 3,082.1

EBITDA (A$M) 3,852.6 4,134.3 3,879.8

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

GEARING (%) (2) 33.76 33.83 27.16


(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 05 425 Nov 15 Fixed 5.55%

Sep 10 500 Sep 15 Fixed 2.55%

Sep 10 750 Sep 20 Fixed 4.00%

Apr 11 300 Apr 16 Fixed 3.15%

Apr 11 550 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

0FY12 FY13 FY14 FY16 FY20FY18 FY22+FY15 FY19FY17 FY21

SouRCE: woolowoRThS JunE 24 2012

Excludes A$2.2bn in revolving bank facilities which are typically rolled on an annual basis.

127381

700

620

580

290

530

581

500 500127

794

532


ISSUERPRofIlES

Z energy

About Z Energy

Z Energy is the company which now owns and operates the downstream fuels business in New Zealand previously owned by Shell New Zealand. In April 2010 listed infrastructure company Infratil (see p43) and the New Zealand Superannuation Fund purchased the

Shell business in New Zealand. Z Energy sells around a third of New Zealand’s total liquid

fuel volume to retail and commercial customers, and bitumen to roading contractors. Z Energy’s operations also include a 17.1% stake in the New Zealand Refining Company (NZRC), a 25% stake in Loyalty New Zealand – which runs the Fly Buys loyalty programme – over 200 retail service stations, 94 truck stops, a part interest in the two coastal tankers which transfer refined product from NZRC around New Zealand, pipelines, terminals and bulk storage infrastructure around New Zealand.

The New Zealand liquid fuel distribution sector is dominated by four vertically-integrated companies and new entrants have only entered segments of the market. The New Zealand industry does not have a competitive refining market, as is the case in Australia, hence all new entrant retailers procure fuel from one of the four vertically-integrated companies.

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 50% owned by the New Zealand Superannuation Fund and 50% owned by Infratil. As at March 31 2012 the shareholders had equity of NZ$652 million with a gearing ratio of 37%.

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 is able to make value decisions, under both normal


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

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 is subject to clean down (reduce to zero or below) at least three consecutive business days per four-month period, and other covenant requirements. As at March 31 2012, Z Energy had NZ$16.5 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 from 2010 following an initial bond issue and subsequent issues in 2011 and 2012. As at August 31 2012 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 expire at the end of June 2014, in relation to the revolving debt, and May 2014, in relation to the working capital facility. The average duration of Z Energy’s debt as at August 31 2012 is approximately 5.8 years. •


BOND PROTECTION

GEARING COVENANT N

lEVERAGE RATIO Y


CHANGE OF CONTROl Y

COUPON STEP-UP N

TARGET GEARING 35-45%

WEIGHTED AVERAGE DEBT MATURITY 5.8 years (as at Aug 31 2012)

WEIGHTED AVERAGE COST OF DEBT 8.5% (as at Mar 31 2012)


BlOOMBERG TICKER NOT LISTED


REVENUES (NZ$M) 3,179 2,795 2,152

EBITDA (NZ$M) (NZ CURRENT COST) 172 157 138

NET PROFIT AFTER TAX (NZ$M) 100 226 N/A

DEBT/EBITDA (X) (SENIOR) 2.34 2.18 N/A

NET DEBT/NET DEBT + EQUITY (%) 37 35 N/A

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

SUbSCribetodAy

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KangaNews is a one-stop information source on the AUD and NZD bond markets.Each issue provides all the information market participants need to keep up to date with the deals and trends making headlines in the markets; in-depth issuer and investor insights; deal and league tables; and statistics. Subscribers also have access to email updates on breaking deals and news from the KangaNewsAlert service, as well as all the data on www.kanganews.com

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