Earnings Release • Sep 18, 2017
Earnings Release
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Through the combination of the existing portfolio and the contractual investment commitments, the portfolio of TINC will grow over time to € 230 million;
A dividend of € 0,48 per share will be proposed to the annual shareholders' meeting. Compared to the previous financial year, this is an increase of 2,7% (new shares issued in December 2016 are entitled to € 0,2550 per share). This represents a gross dividend yield of 4,36% on the introduction price of € 11 at IPO (compared to the then projected 4,25%);
Manu Vandenbulcke, CEO: "TINC is pleased to present for the second time since the IPO in 2015 strong annual results for TINC. The successful capital increase of December 2016 underpins the financial strength of TINC as a platform offering both institutional and retail investors the opportunity to participate in infrastructure. During the financial year, TINC continued to grow and diversify its portfolio. TINC would like to have its shareholders benefit from this growth through its dividend policy. Going forward and taking into account its growth, TINC has the ambition to have its dividend evolve in line with inflation."
The net profit for the financial year 2016-2017 amounts to € 10,7 million, an increase compared to the net profit of € 11,8 million of the previous financial year which covered a 18 months period. This increase results from additional portfolio investments and the performance of the existing participations.
To the extent that the available cash is further invested in the growth of the investment portfolio, the result is expected to evolve positively. TINC would like to have its shareholders benefit from this growth through its dividend policy. Going forward and taking into account the growth, TINC has the ambition to have its dividend evolve in line with inflation.
A dividend of € 0,48 per share will be proposed for the past financial year. For the new shares issued in the capital increase in December 2016, the dividend is determined pro rata temporis at € 0,2550.
As such, the gross dividend yield as projected at the time of IPO increases from 4,25% to 4,36% (calculated on the introduction price of € 11), an increase of 2,7%.
At the end of the financial year, the investment portfolio includes 15 participations. The fair market value of the portfolio increased with € 49,2 million to € 177,2 million, an increase of 38,4% compared to the previous financial year.
Two new participations were added to the portfolio. In November 2016, TINC made a first investment outside its historical core countries, Belgium and the Netherlands, by acquiring the Irish wind farm Meenwaun. The acquisition and realisation occurs in cooperation with Storm, an experienced developer and operator of wind farms, active in Belgium and Ireland and with whom TINC has a long-standing cooperation dating back to 2011. This new participation demonstrates the implementation by TINC of its strategy to grow and diversify its investment portfolio by, amongst others, taking participations in new geographical markets based on proven partnerships with parties familiar with those markets.
In June 2017, TINC invested in the Via A11 highway in Belgium, a public private partnership which aims at improving access to the port of Zeebrugge and improved traffic flows between the cities of Bruges and Knokke. This highway became operational in September 2017.
TINC also committed to acquire an additional stake in the Dutch public private partnership Princess Beatrix lock under a forward purchase agreement. This partnership involves the renovation and expansion of a lock complex on the Lekkanaal which connects the port of Amsterdam and Rotterdam. TINC already holds a small participation which will now grow to 37,5% once the lock complex is realized. In combination with the A15 highway, also a Dutch public private partnership, TINC had committed by the end of the financial year € 17,2 million under forward purchase agreements.
During the past year, TINC invested € 2,3 million in existing participations under contractual commitments. TINC has a further € 16,1 million of contractual commitments that will be funded in the foreseeable future.
Following the end of the financial year, TINC entered into a joint venture agreement for the realisation of fibre optic networks (FttH) in the Netherlands. Today, the Netherlands still has a number of rural areas where families and businesses do not have broadband internet access. Together with its Dutch partner, which already has a great deal of experience in the construction of fibre-optic networks, TINC wants to make broadband internet possible for families and businesses. The fibre-optic networks will be realised in function of the interest from users and those service providers over the Internet (providers). In this respect, TINC will be making available an investment budget of € 20 million.
Through the combination of the existing portfolio and the contractual investment commitments, the portfolio of TINC will grow over time to € 230 million.
In December 2016, TINC successfully increased its share capital by issuing new shares equal to half of the existing number. The capital increase involved a public offering to subscribe to 6.818.182 new shares in cash with non-statutory preferential rights. The capital increase was fully subscribed at an issue price of € 11,25 per share. TINC raised an amount of € 76,7 million to fund its investment commitments. Also, proceeds of the capital increase enable TINC to implement its strategy to further grow and diversify the portfolio.
Jean-Pierre Blumberg, Chairman of the Board of Directors: "Investing in infrastructure and related assets remain on today's agenda. All over the world, there is awareness that the development and maintenance of infrastructure that meets the needs of modern society contributes to prosperity and progress. TINC enjoys a healthy trend line supporting its investment ambitions and benefits from its increased strength and well-performing investment portfolio. Social relevance, an eye for the infrastructure for the world of tomorrow and sustainable profitability are the important guiding principles. TINC remains committed to this with the support of its staff and the trust of its partners and shareholders."
| Period ending at: | June 30, 2017 | June 30, 2016 |
|---|---|---|
| 12 months | 18 months | |
| Operating income | 13.807.391 | 19.273.835 |
| Dividend income | 3.792.009 | 5.202.704 |
| Interest income | 5.664.080 | 7.866.075 |
| Unrealised gains on investments | 4.022.954 | 5.276.525 |
| Revenue | 328.347 | 928.531 |
| Operating expenses (-) | (2.909.246) | (6.622.735) |
| Unrealised losses on investments | (1.091.495) | (2.373.117) |
| Selling, General & Administrative Expenses | (1.658.805) | (4.247.497) |
| Other operating expenses | (158.946) | (2.121) |
| Operating result, profit (loss) | 10.898.145 | 12.651.100 |
| Finance income | 5.835 | 47.949 |
| Finance costs (-) | (25.740) | (778.096) |
| Result before tax, profit (loss) | 10.878.241 | 11.920.953 |
| Tax expenses (-) | (192.702) | (149.364) |
| Total comprehensive income | 10.685.539 | 11.771.588 |
Notice: the last financial year included 12 months in comparison to the financial year ended at June 30, 2016 which was an extended financial year and included 18 months.
| Period ending at: | June 30, 2017 | June 30, 2016 |
|---|---|---|
| I. NON-CURRENT ASSETS | 179.080.558 | 129.835.563 |
| Investments at fair value through profit and loss | 177.203.967 | 128.031.244 |
| Deferred taxes | 1.876.591 | 1.804.319 |
| II. CURRENT ASSETS | 60.290.045 | 28.405.834 |
| Trade and other receivables | 1.619.686 | 78.169 |
| Cash and short-term deposits | 58.670.359 | 28.327.665 |
| TOTAL ASSETS | 239.370.603 | 158.241.396 |
| Period ending at: | June 30, 2017 | June 30, 2016 |
|---|---|---|
| I. EQUITY | 238.792.421 | 157.718.091 |
| Issued capital | 122.622.636 | 81.748.317 |
| Share premium | 71.334.673 | 35.504.445 |
| Reserves | 1.884.907 | 2.994.415 |
| Retained earnings | 42.950.204 | 37.470.914 |
| II. LIABILITIES | 578.182 | 523.305 |
| A. Non-current liabilities | - | - |
| B. Financial Liabilities | 578.182 | 523.305 |
| Trade and other payables | 387.117 | 385.106 |
| Income tax payables | 191.065 | 137.113 |
| Other liabilities | (0) | 1.086 |
| TOTAL EQUITY AND LIABILITIES | 239.370.603 | 158.241.396 |
| Issued capital |
Share premium |
Reserves | Retained earnings |
Equity | |
|---|---|---|---|---|---|
| As per June 30, 2016 | 81.748.317 | 35.504.445 | 2.994.415 | 37.470.914 | 157.718.092 |
| Total comprehensive income |
- | - | 10.685.539 | 10.685.539 | |
| Capital increase | 40.874.319 | 35.830.228 | - | - | 76.704.548 |
| Dividends to shareholders | - | - | (4.738.636) | (4.738.636) | |
| Other changes | - | (1.109.508) | (467.614) | (1.577.122) | |
| As per June 30, 2017 | 122.622.636 | 71.334.673 | 1.884.907 | 42.955.200 | 238.792.421 |
| Issued capital |
Share premium |
Reserves | Retained earnings |
Equity | |
|---|---|---|---|---|---|
| As per January 1, 2015 | 39.222.942 | - | 5.508.750 | 27.479.320 | 72.211.012 |
| Total comprehensive income |
- | - | 11.771.588 | 11.771.588 | |
| Capital increase | 42.525.375 | 35.504.445 | - | - | 78.029.820 |
| Dividends to shareholders |
- | - | (1.636.364) | (1.636.364) | |
| Other changes | - | (2.514.335) | (143.631) | (2.657.965) | |
| As per June 30, 2016 | 81.748.317 | 35.504.445 | 2.994.415 | 37.470.914 | 157.718.092 |
| Period ending at: | June 30, 2017 | June 30, 2016 |
|---|---|---|
| 12 months | 18 months | |
| Cash at beginning of period | 28.327.665 | 1.436.360 |
| Cash Flow from Financing Activities | 69.486.180 | 36.136.127 |
| Proceeds from capital increase | 76.704.548 | 78.029.820 |
| Capital repayment / decrease | - | - |
| Proceeds from borrowings | ||
| Repayment of borrowings | - | (34.585.800) |
| Interest paid | (20.915) | (50.710) |
| Dividends to shareholders | (4.738.636) | (1.636.368) |
| Other cash flow from financing activities | (2.458.817) | (5.620.815) |
| Cash Flow from Investing Activities | (36.387.890) | (6.905.243) |
| Investments | (47.515.921) | (31.576.738) |
| Repayment of investments | 1.428.905 | 10.777.132 |
| Interest received | 5.372.326 | 7.844.132 |
| Dividend received | 3.929.500 | 5.065.189 |
| Other cash flow from investing activities | 397.300 | 985.042 |
| Cash Flow from Operational Activities | (2.755.596) | (2.339.579) |
| Management Fee | (2.168.676) | (2.138.747) |
| Expenses | (586.921) | (200.832) |
| Cash at end of period | 58.670.359 | 28.327.665 |
The statutory auditor stated that the Consolidated Financial Statements give a true and fair view of the consolidated net equity and financial position as at 30 June 2017, as well as its consolidated results and its consolidated cash flows for the year then ended in accordance with the International Financial Reporting Standards as adopted by the European Union ("IFRS") and with applicable legal and regulatory requirements in Belgium.
Manu Vandenbulcke, CEO TINC T +32 3 290 21 73 – [email protected] Bruno Laforce, Investor Relations TINC T +32 3 290 21 73 – [email protected]
TINC is an investment company, listed on Euronext Brussels, with a focus on participations in companies which realise and operate infrastructure. TINC holds a diversified investment portfolio of 15 participations in various infrastructure located in Belgium, the Netherlands and Ireland. This portfolio generates cash flows of a long term sustainable nature, which are the basis for TINC's dividend policy.
For more information please visit www.tincinvest.com
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