Antin Infrastructure Partners · EURONEXT:ANTIN
Antin Infrastructure Partners — FY2023 Earnings Presentation
32 slides from Antin Infrastructure Partners's earnings presentation, Mar 7, 2024
Slide 1: Full-Year 2023 Results
FULL-YEAR 2023 RESULTS Webcast 7 March 2024 1
Slide 2: Agenda
AGENDA 1 2 3 HIGHLIGHTS AND FINANCIAL Q&A BUSINESS UPDATE PERFORMANCE ▪ 2023 highlights ▪ 2023 financial results ▪ Activity update ▪ Outlook ▪ Leadership evolution and update on sustainability 2
Slide 3: Highlights and Business Update
HIGHLIGHTS AND BUSINESS UPDATE 3
Slide 4: 2023 Highlights
2023 HIGHLIGHTS > €31bn AUM 4 investments 100% of funds + 48% growth in ~100% dividend > €20bn FPAUM announced on or above plan underlying EBITDA payout ratio NextGen Fund I Disciplined Resilient + 60% growth in > €420m of cash raised at target capital performance underlying net to support growth de
Slide 5: Fundraising Progress and Disciplined Capital Deployment
FUNDRAISING PROGRESS AND DISCIPLINED CAPITAL DEPLOYMENT FUNDRAISING (in €bn) INVESTMENTS (in €bn) GROSS EXITS (in €bn) 8.2 2.7 2.0 2.2 1.8 0.0 2022 2023 2022 2023 2022 2023 Flagship Fund V Flagship Fund V Flagship Fund III Hesley Group €9bn +40% 90% (closed in 4Q23) to date upsizing of target NextGe
Slide 6: Expanding and Diversifying a Loyal Fund Investor Base
EXPANDING AND DIVERSIFYING A LOYAL FUND INVESTOR BASE RETURNING AND GROWING INCREASED GLOBALISATION NUMBER OF FUND INVESTORS OF FUND INVESTOR BASE Client mix Growth Americas Asia €bn of commitments for No. of fund investors €bn of commitments €bn of commitments Flagship Fund V +60% 3.5x 1.9x 320+ 2.
Slide 7: Continued Focus on Asset Management and Financial Performance of Portfolio Companies
CONTINUED FOCUS ON ASSET MANAGEMENT AND FINANCIAL PERFORMANCE OF PORTFOLIO COMPANIES RESILIENT STRONG PROFIT ROBUST TOP LINE GROWTH AND CAPITAL GROWTH MARGINS STRUCTURES +4% ~€8bn revenue growth +11% of debt raised in portfolio companies EBITDA growth or refinanced in 2023 in portfolio companies No
Slide 8: Broadly Stable Gross Multiples in 2023
BROADLY STABLE GROSS MULTIPLES IN 2023 All funds are performing on plan or ahead of plan II FUND II – VINTAGE 2013 III FUND III – VINTAGE 2016 2.6x 2.6x 2.6x 2.6x 2.6x 1.8x 1.8x 1.8x 1.8x 1.8x ABOVE PLAN ABOVE PLAN ~92% ~38% Realised (1) Realised (1) Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Dec-22 Mar-23
Slide 9: Flagship Funds III & IV Performance Consistent with Historic Gross Multiple Evolution
FLAGSHIP FUNDS III & IV PERFORMANCE CONSISTENT WITH HISTORIC GROSS MULTIPLE EVOLUTION 43 16 2.6x 22% Investments (1) exits realised Gross Multiple (2) realised Gross IRR (2) GROSS MULTIPLE UPLIFT OVER TIME VALUATION UPLIFT AT EXIT 2.8x 2.6x 2.4x II I ~90% of portfolio exits achieved 2.2x a valuation
Slide 10: A New Generation of Managing Partners as Part of a Leadership Evolution
A NEW GENERATION OF MANAGING PARTNERS AS PART OF A LEADERSHIP EVOLUTION CO-FOUNDERS NEW MANAGING PARTNERS Angelika Alain Rauscher Mark Crosbie Mélanie Biessy Stéphane Ifker Schöchlin Kevin Genieser CEO and Chairman Vice-Chairman of Chief Operating Global Sponsor for Global Sponsor for Head of the of
Slide 11: New Advances in Sustainability in 2023
NEW ADVANCES IN SUSTAINABILITY IN 2023 Climate Human capital Corporate Ethics and Responsible change management citizenship governance investment Capital invested in portfolio companies 44% 9 57% 100% women employees charities supported independent Board investments incorporating 12% with Science Ba
Slide 12: Financial Performance
INFRASTRUCTURE PARTNERS FINANCIAL PERFORMANCE Seeing potential | delivering value
Slide 13: Strong Growth Across All Key Metrics
STRONG GROWTH ACROSS ALL KEY METRICS FEE-PAYING AUM REVENUE UNDERLYING EBITDA UNDERLYING NET INCOME DIVIDENDS in €bn in €m in €m in €m in € per share More than >98% >60% >45% ~100% €20bn management margin margin payout fees Loyal and global Contracted 10-year Margin expansion Margin expansion From c
Slide 14: Strong Revenue Growth Driven by Flagship Scale-up and NextGen Success
STRONG REVENUE GROWTH DRIVEN BY FLAGSHIP SCALE-UP AND NEXTGEN SUCCESS (in €m) +32.1% Flagship Fund V 91.4 Flagship Fund IV (22.5) Flagship Fund II (1.5) Flagship Fund III (3.6) Fund III-B (1.2) 62.5 - 6.7 2.8 282.9 (3.3) 214.2 Investment income (2.5) Carried interest (0.8) Minor contributions early
Slide 15: Significant Long-Term Carried Interest Revenue Potential
SIGNIFICANT LONG-TERM CARRIED INTEREST REVENUE POTENTIAL CARRIED INTEREST POTENTIAL REVENUE MIX Carried Committed Antin % Current Target Interest Fund Vintage Capital of Carried Gross Gross potential (in €bn) Interest Multiple Multiple (in €m) Flagship ~98% management fee Fund III-B 2020 1.2 20% 1.6
Slide 16: Growth in Operating Costs Mainly Driven by Increased Headcount and Inflation
GROWTH IN OPERATING COSTS MAINLY DRIVEN BY INCREASED HEADCOUNT AND INFLATION PERSONNEL EXPENSES (1) (€m) OTHER OPERATING EXPENSES (1) (€m) Professional services and others Travel and representation Headcount 174 193 Administration fees Rent and maintenance excluding the +19 in 2023 Placement fees Ta
Slide 17: Material Increase in Profitability
MATERIAL INCREASE IN PROFITABILITY UNDERLYING EBITDA (€m) UNDERLYING NET INCOME (€m) Underlying EBITDA Underlying earnings per share margin after dilution (€) 55% 62% 0.44 0.73 +48.2% +60.6% 175.5 127.9 118.5 79.7 2022 2023 2022 2023 17
Slide 18: Nearly All Net Income Distributed to Shareholders
NEARLY ALL NET INCOME DISTRIBUTED TO SHAREHOLDERS DISTRIBUTIONS (€ per share) CAPITAL-LIGHT MODEL €0.71 per share (1) QUANTUM • €0.32 per share in November 2023 • €0.39 per share in June 2024 +69.0% €127.2 million DISTRIBUTION 0.71 • €57.3 million in November 2023 • €69.9 million in June 2024 0.42 ~
Slide 19: Outlook
OUTLOOK GROWTH PROFITABILITY DISTRIBUTIONS ▪ Growth in Fee-Paying AUM above ▪ Underlying EBITDA in 2024 ▪ Majority of cash earnings to be that of the infrastructure market at or above prior year level distributed over a fund cycle ▪ Annual dividend to grow over time ▪ Close Flagship Fund V in 2024 a
Slide 20: Key Takeaways
KEY TAKEAWAYS ✓ Strong financial performance in 2023 with significant growth and operating leverage • Revenue +32.1% • Underlying EBITDA +48.2% • Underlying Net Income +60.6% ✓ High cash flow generation with increasing distribution to shareholders • Dividend payout ratio close to 100% • Cash >€420m
Slide 21: Q&A
ANTIN INFRASTRUCTURE PARTNERS Q&A HSIN, W/Z Gy 4 Seeing potential | delivering value
Slide 22: Appendix
INFRASTRUCTURE PARTNERS APPENDIX Seeing potential | delivering value
Slide 23: Strong Growth in AUM and FPAUM Over the Last Twelve Months
STRONG GROWTH IN AUM AND FPAUM OVER THE LAST TWELVE MONTHS +1.7% 2.4 (1.6) 30.6 (0.3) 31.1 - AUM DEVELOPMENT Incl. ~€1.6bn for Flagship Fund V, lyntia Networks (€BN) ~€0.2bn for NextGen Fund I, and Hesley ~€0.6bn of co-investment 31-Dec-22 Gross inflows Step-downs Exits Revaluations 31-Dec-23 +5.8%
Slide 24: Income Statement on an Underlying Basis
INCOME STATEMENT ON AN UNDERLYING BASIS (€m) 2023 2022 Management fees 278.4 209.2 Carried interest and investment income (1.2) 2.1 Administrative fees and other revenue net 5.7 2.8 TOTAL REVENUE 282.9 214.2 Personnel expenses (74.2) (64.5) Other operating expenses & tax (33.2) (31.2) UNDERLYING EBI
Slide 25: Income Statement: From Underlying to IFRS
INCOME STATEMENT: FROM UNDERLYING TO IFRS (€m, FY 2023) Underlying basis Non-recurring items IFRS basis Management fees 278.4 - 278.4 Carried interest and investment income (1.2) - (1.2) Administrative fees and other revenue net 5.7 - 5.7 TOTAL REVENUE 282.9 - 282.9 Personnel expenses (74.2) (60.8)
Slide 26: Balance Sheet
BALANCE SHEET (€m) 31-Dec-2023 31-Dec-2022 Property, equipment and intangible assets 20.6 19.0 Right-of-use assets 49.8 50.6 Financial assets 53.4 41.6 Deferred tax assets and other non-current assets 17.1 17.2 TOTAL NON-CURRENT ASSETS 140.9 128.4 Cash and cash equivalents 423.9 422.0 Accrued income
Slide 27: Cash Flow Statement
CASH FLOW STATEMENT (€m) 2023 2022 INFLOW / (OUTFLOW) RELATED TO OPERATING ACTIVITIES 125.8 103.9 Of which (increase) / decrease in working capital requirement (43.3) (6.0) INFLOW / (OUTFLOW) RELATED TO INVESTING ACTIVITIES (17.8) (23.9) Of which investment in financial assets (18.7) (8.7) Of which
Slide 28: Key Stats by Fund (1/2)
KEY STATS BY FUND (1/2) As of 31 December 2023 (€bn) Fee-paying Committed Fund Vintage AUM % committed % realised Gross Multiple Expectation AUM capital Flagship Fund II 2013 0.6 0.3 1.8 87% 92% 2.6x Above plan Fund III (1) 2016 5.6 2.0 3.6 89% 38% 1.8x Above plan Fund IV 2019 10.9 4.6 6.5 87% - 1.3
Slide 29: Key Stats by Fund (2/2)
KEY STATS BY FUND (2/2) As of 31 December 2023 (€bn) COST OF INVESTMENTS VALUE OF INVESTMENTS Fee-paying Committed Fund Vintage Total Realised Remaining Total Realised Remaining AUM capital Flagship Fund II 2013 0.3 1.8 1.6 1.3 0.3 4.1 3.8 0.3 Fund III (1) 2016 2.0 3.6 2.9 0.7 2.3 5.9 2.0 3.9 Fund I
Slide 30: Definitions
DEFINITIONS Antin: Umbrella term for Antin Infrastructure Partners S.A. Antin Funds: Investment vehicles managed by Antin Infrastructure Partners SAS or Antin Infrastructure Partners UK Assets Under Management (AUM): Operational performance measure representing both the assets managed by Antin from
Slide 31: Disclaimer
DISCLAIMER IMPORTANT NOTICE This document has been prepared by Antin Infrastructure Partners S.A (“Antin IP”) solely for use for communications with its shareholders. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, comple
Slide 32: For Further Information
FOR FURTHER INFORMATION ABOUT ANTIN INFRASTRUCTURE PARTNERS Antin Infrastructure Partners is a leading private equity firm focused on infrastructure. With over €30bn in Assets under Management across its Flagship, Mid Cap and NextGen SHAREHOLDER investment strategies, Antin targets investments in th
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