International Public Partnerships Ltd · LSE:INPP
International Public Partnerships — FY2024 Earnings Presentation
46 slides from International Public Partnerships's earnings presentation, March 2025
Slide 1: 2024 Annual Results Presentation
2024 ANNUAL RESULTS PRESENTATION IMAGE March 2025 BeNEX, Germany Photo credit: Cantus
Slide 2: Important Information
IMPORTANT INFORMATION The information in this document has been prepared at the direction of International Public Partnerships Limited (“INPP” or the Potential investors should be aware that any investment in the Company is speculative, involves a high degree of risk, and could "Company") solely for
Slide 3: Overview
OVERVIEW IMAGE Tideway, UK Photo credit: Tideway
Slide 4: Delivering Long-Term Benefits
DELIVERING LONG-TERM BENEFITS OUR PURPOSE IS TO INVEST RESPONSIBLY IN SOCIAL AND PUBLIC INFRASTRUCTURE THAT DELIVERS LONG-TERM BENEFITS FOR ALL STAKEHOLDERS SOURCE AND STRUCTURE OPTIMISE DELIVER ▪ Portfolio of cash generative, ▪ Active asset management ▪ Consistently growing dividends essential infr
Slide 5: Investment Case
INVESTMENT CASE IMAGE Tideway, UK Photo credit: Tideway PREDICTABLE, LONG-TERM, DIVERSIFIED PORTFOLIO OF LOW-RISK ACTIVE AND RESPONSIBLE INFLATION-LINKED CASH FLOWS INFRASTRUCTURE ASSETS INVESTMENT MANAGEMENT 10.7% Portfolio Optimisation ABILITY TO OUTPERFORM PROJECTED NET RETURN1 REGULATED PPP OPER
Slide 6: 2024 Highlights
2024 HIGHLIGHTS IMAGE Dudgeon OFTO Photo credit: Jan Arne Wold/Equinor 144.7p 8.37p 1.1x 1.14% NAV PER SHARE1 FY2024 DIVIDEND PER SHARE2 CASH DIVIDEND COVER3 ONGOING CHARGES4 31 December 2023: 152.6p per share 2023: 8.13p per share 2023: 1.1x 2023: 1.17% SUSTAINABILITY HIGHLIGHTS5 >181,000 37,000,00
Slide 7: Strategic Developments
STRATEGIC DEVELOPMENTS IMAGE Durham Regional Courthouse, Ontario, Canada Photo credit: WZMH Architects
Slide 8: Recent actions taken to optimise the portfolio
RECENT ACTIONS TAKEN TO OPTIMISE THE PORTFOLIO 1 Divestments Realisations of c.£260m over the 18 months to 31 December 2024, across several subsectors, at prices in line with the most recently published valuations 2 Capital returns c.£55m of shares acquired to date generating 0.5p of additional valu
Slide 9: New measures to further optimise the portfolio
NEW MEASURES TO FURTHER OPTIMISE THE PORTFOLIO RECENT ACTIONS TAKEN NEW MEASURES 1 Additional divestments Divestment processes ongoing to fund Realisations of c.£260m at prices in line with the most recently published valuations the increase in capital returns. Next divestment scheduled for Q2 2025
Slide 10: Financial Performance
FINANCIAL PERFORMANCE IMAGE BeNEX, Germany Photo credit: ODEG
Slide 11: Delivering year-on-year dividend growth
DELIVERING YEAR-ON-YEAR DIVIDEND GROWTH 2024 DIVIDEND GROWTH1 2025 AND 2026 TARGET DIVIDEND YIELD2 SUSTAINABLE FUTURE DIVIDEND GROWTH1 DIVIDEND GROWTH3 3.0% 2.5% 7.6% >20 years 1. Future profit projection and dividends cannot be guaranteed. Projections are based on current estimates and may vary in
Slide 12: Predictable, long-term investment receipts
PREDICTABLE, LONG-TERM INVESTMENT RECEIPTS PROJECTED INVESTMENT RECEIPTS AND NAV 1 Peaks in the projected cash flow profile are generally due to: ▪ Cash released towards the end of a PPP project (e.g. in 2036); and ▪ Value ascribed to assets which will be owned by the Company at the end of a fixed c
Slide 13: Valuation discount rate overview
VALUATION DISCOUNT RATE OVERVIEW NAV PER SHARE 1 WEIGHTED AVERAGE DISCOUNT NAV SENSITIVITY TO -/+100BPS RATE 2 DISCOUNT RATE CHANGES 144.7p 9.0% 14.4p / (12.1p) 31 December 2023: 152.6p 31 December 2023: 8.4% 31 December 2023: 15.1p / (12.6p) Variance: (7.9p) Variance: 60bps Variance: (0.7p) / 0.5p
Slide 14: NAV Movements
NAV MOVEMENTS INVESTMENT RISK PREMIA FOREIGN EXCHANGE RATES MACROECONOMIC ASSUMPTIONS Changes to the investment risk premia GBP strengthened against five of the six currencies the Changes include small reductions in short-term inflation are designed to ensure the valuations Company was exposed to du
Slide 15: 2024 Portfolio Review
2024 PORTFOLIO REVIEW IMAGE Westermost Rough OFTO, UK Photo credit: GEO-4D
Slide 16: 2024 Updates - Regulated Investments
2024 UPDATES - REGULATED INVESTMENTS1 ▪ Cadent continued to perform in line with expectations during 2024, delivering strong cash yield Cadent The UK’s largest gas ▪ The business remains well-positioned to play a critical role in energy distribution network, decarbonisation for decades to come and b
Slide 17: 2024 Updates - PPP Projects
2024 UPDATES - PPP PROJECTS1 ▪ Diversified portfolio of over 120 PPPs continues to perform strongly with availability of 99.8%2 and performance deductions of only 0.2% during the year Performance Solid performance ▪ The UK Government is expected to publish its 10-year National Infrastructure continu
Slide 18: 2024 Updates - Operating Businesses
2024 UPDATES - OPERATING BUSINESSES1 ▪ Angel Trains continued to perform well during 2024 with its trains on lease to TOCs across the UK as planned Angel Trains ▪ Government plans to nationalise TOCs and establish GBR are not expected to A rolling stock leasing have a material impact on Angel Trains
Slide 19: Responsible Investment Progress
RESPONSIBLE INVESTMENT PROGRESS THE COMPANY CONTINUES TO DEMONSTRATE ITS LEADERSHIP IN RESPONSIBLE INVESTMENT AND MADE GOOD PROGRESS AGAINST ITS ESG POLICY OBJECTIVES DELIVERED IN 2024 PLANNED FOR 2025 ▪ The Company identified a voluntary approach to the UK Sustainability Disclosure ▪ The Company is
Slide 20: Looking Forward
LOOKING FORWARD IMAGE Gold Coast Light Rail, Australia Photo credit: TransLink, Department of Transport and Main Roads
Slide 21: Commitment to delivering shareholder value
COMMITMENT TO DELIVERING SHAREHOLDER VALUE While the Company currently prioritises the return of capital to shareholders given the market environment, it will carefully consider opportunities to reinvest divestment proceeds into new and follow-on investment opportunities 1. ENHANCED DIVESTMENT PROGR
Slide 22: Strong investment case; well-positioned for 2025
STRONG INVESTMENT CASE; WELL-POSITIONED FOR 2025 ATTRACTIVE PROJECTED DIVERSIFIED PORTFOLIO OF LOW-RISK ACTIVE AND RESPONSIBLE RETURNS INFRASTRUCTURE ASSETS INVESTMENT MANAGEMENT 10.7% Portfolio Optimisation PROJECTED NET RETURN WHICH IS 5.6% MORE THAN A 30-YEAR UK GOVT BOND1 ABILITY TO OUTPERFORM R
Slide 23: Appendices
APPENDICES IMAGE Liverpool Library, UK Photo credit: Bob Wheeler Photography
Slide 24: Portfolio Overview and Valuation
PORTFOLIO OVERVIEW AND VALUATION IMAGE Angel Trains, UK Photo credit: Angel Trains
Slide 25: Valuation Methodology
VALUATION METHODOLOGY NAV CALCULATION1 ADDITIONAL VALUE DRIVERS ▪ Sum-of-the-parts’ aggregation of the present value of each of the We believe additional value may exist relative to that captured in our valuation Company’s investments plus other balance sheet items process. These items are not captu
Slide 26: Historic NAV Performance
HISTORIC NAV PERFORMANCE NAV PER SHARE – LAST FIVE YEARS 31 Dec 20 31 Dec 21 31 Dec 22 31 Dec 23 31 Dec 24 NAV1 PER SHARE 147.1p 148.2p 159.1p 152.6p 144.7p NAV PER SHARE – SINCE INCEPTION 180.0 160.0 NAV Per Share Share Price 140.0 120.0 100.0 80.0 60.0 40.0 20.0 - 1. The Company’s approach to calc
Slide 27: Top 10 Investments
TOP 10 INVESTMENTS % INVESTMENT % INVESTMENT STATUS AT % HOLDING AT FAIR VALUE AT FAIR VALUE AT PRIMARY SDG NAME OF INVESTMENT LOCATION SECTOR 31 DEC 2024 31 DEC 20241 31 DEC 2024 31 DEC 2023 SUPPORTED Gas UK Operational 7% Risk Capital 16.1% 16.2% Distribution UK Waste Water Under Construction 18%
Slide 28: Investments at Fair Value
INVESTMENTS AT FAIR VALUE INVESTMENTS INVESTMENTS AT FAIR VALUE PORTFOLIO RETURN1 FOREIGN EXCHANGE RATES An increase of £107.8m The rebased investments at fair value The Portfolio Return captures broadly During the year, Sterling strengthened against owing to new investments is presented to allow an
Slide 29: Portfolio Analysis as at 31 December 2024
PORTFOLIO ANALYSIS AS AT 31 DECEMBER 2024 1. The majority of projects and businesses benefit from availability-based or regulated revenues. ‘Other’ includes Health (4%), Family Housing for Service Personnel (‘FHSP’) (3%), Judicial (2%) and Digital (2%) among other assets. 2. Risk Capital includes bo
Slide 30: Revenue Type and Service Providers
REVENUE TYPE AND SERVICE PROVIDERS PORTFOLIO BY REVENUE TYPE1 INPP SERVICE PROVIDERS1 OTHER ROLLING OPERATING STOCK & DIGITAL BUSINESSES2 INFRABEL INFRASTRUCTURE4 DOWNER & SPOTLESS 8% 12% 12% 6% HUNT MILITARY COMMUNITIES PPPs WITH 3% REVENUE RISK MECHANISMS3 BOUYGUES 11% 3% REGULATED INVESTMENTS 3%
Slide 31: PPP Hand-back - Overview
PPP HAND-BACK - OVERVIEW HAND-BACK REMAINS IN SHARP FOCUS ACROSS THE INDUSTRY AS INPP HAND-BACK DATES SPREAD OVER NEXT 25 YEARS SCHEMES BEGIN TO BE HANDED-BACK TO THE PUBLIC SECTOR INPP PPP hand-back dates1 ▪ Authority rights 10.00% ▪ Survey the property to assess condition relative to hand-back req
Slide 32: Valuation Sensitivities and Discount Rate Trends
VALUATION SENSITIVITIES AND DISCOUNT RATE TRENDS ESTIMATED IMPACT OF CHANGES IN KEY VARIABLES TO 31 DECEMBER 2024 BASED ON PORTFOLIO INFLATION- NAV OF 144.7 PENCE PER SHARE LINKAGE1 0.7%p.a. (31 December 2023: 0.7% p.a.) HISTORICAL WEIGHTED AVERAGE RISK CAPITAL DISCOUNT RATE 10% 8% 6% 4% 2% 0% Dec-1
Slide 33: High levels of protection to increasing base rates
HIGH LEVELS OF PROTECTION TO INCREASING BASE RATES ASSET LEVEL DEBT HEDGED FOR THE FULL TERM (PPPS & OFTOS; 57%) ▪ Asset level debt is non-recourse to the Company ▪ Generally fixed-term, fixed-rate debt ▪ Weighted average asset leverage of c.69%1 ▪ Principal generally amortises to nil over the conce
Slide 34: Macroeconomic Assumptions
MACROECONOMIC ASSUMPTIONS 31 DECEMBER 2024 31 DECEMBER 2023 UK RPI: 3.25% until Dec 2025, RPI: 4.50% until Dec 2024, 3.00% until Dec 2026, 3.00% until Dec 2025, 2.75% thereafter1 2.75 thereafter1 CPIH: 2.25% CPIH: 3.25% until Dec 2024, 2.25% until Dec 2025, 2.00% thereafter Australia 2.75% until Dec
Slide 35: Projected Cash Flows Under a +100bps Inflation Scenario
PROJECTED CASH FLOWS UNDER A +100BPS INFLATION SCENARIO PROJECTED ANNUAL CASH FLOWS AVAILABLE FOR DIVIDENDS (+100BPS INFLATION) 1 (£m) 500 400 300 200 100 0 2028 2045 2025 2026 2027 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2046 2047 2048 2049 2050 2051 2052 205
Slide 36: ESG Reporting Framework
ESG REPORTING FRAMEWORK INPP seeks to provide ESG KPIs and disclosures, which have been designed to support investor reporting requirements and to highlight the positive impact of the Fund’s approach to ESG DISCLOSURE FRAMEWORK KPIs AND DISCLOSURES REPORTING CATEGORY POSITIVE Sector-specific disclos
Slide 37: Portfolio Information
PORTFOLIO INFORMATION INVESTMENTS MADE DURING 2024 Investment activity during the year which totalled £107.8m, included the acquisition of Moray East OFTO, a further investment into BeNEX and funding into long- standing investment commitments to Flinders University Health and Medical Research Buildi
Slide 38: Portfolio Information Continued
PORTFOLIO INFORMATION CONTINUED PROJECTS UNDER CONSTRUCTION AS AT 31 DECEMBER 2024 During the year, construction works completed on the Flinders University Health and Research Building (‘HMRB’) and in June 2024, Flinders University’s Vice- Chancellor Professor Colin Stirling was joined by Prime Mini
Slide 39: Future Opportunities
FUTURE OPPORTUNITIES The Company does not need to make additional investments to deliver current projected returns. Further investment opportunities will be assessed against the Company’s relevant strategic KPIs and will only be considered where the overall level of returns are judged to be signific
Slide 40: Cash Generation and Operating Costs
CASH GENERATION AND OPERATING COSTS Year to 31 December Year to 31 December SUMMARY OF CASH FLOWS 2024 2023 £(m) £(m) Opening cash balance 128.6 92.8 Increase reflects the continued growth and inflation-linkage of Cash from investments 359.9 307.1 the portfolio as well as cash proceeds from realisat
Slide 41: About Amber Infrastructure
ABOUT AMBER INFRASTRUCTURE IMAGE Tideway, UK Photo credit: Tideway
Slide 42: Amber at a Glance
AMBER AT A GLANCE AMBER PLATFORM EXPERIENCED INFRASTRUCTURE FUND MANAGER 8 ~180 Investing in transport, energy, digital and public infrastructure Local presence across Europe, Australia and North America FUNDS MANAGED GLOBAL OR ADVISED1 PROFESSIONALS Specialist team across investment origination, as
Slide 43: Amber's Managed or Advised Funds
AMBER’S MANAGED OR ADVISED FUNDS AMBER MANAGES OR ADVISES EIGHT FUNDS AND OTHER MANAGED ACCOUNTS FUND SIZE OVERVIEW GEOGRAPHY SECTORS VINTAGE INVESTMENTS FTSE 250-listed investment Company investing Public/social infrastructure and £2.7bn1 OECD 2006 >140 in long-term public infrastructure assets low
Slide 44: Amber's International Track Record and Presence
AMBER’S INTERNATIONAL TRACK RECORD AND PRESENCE AMBER HAS OFFICES AND PERSONNEL ACROSS EUROPE, NORTH AMERICA, AUSTRALIA AND NEW ZEALAND Represents Amber office locations or local presence EUROPE Federal German Ministry of Education & Research Headquarters Dublin Courts (Ireland) | Diabolo Rail Link
Slide 45: Contacts
CONTACTS IMAGE Shirley Boys' and Avonside Girls' Schools, New Zealand
Slide 46: Contact Details
CONTACT DETAILS AMBER FUND MANAGEMENT (INVESTMENT ADVISER) FTI CONSULTING (PR & COMMUNICATIONS) Senior Investment Director: Chris Morgan Mitch Barltrop, Jenny Boyd Telephone: +44 (0)20 7939 0550 Telephone: (0) 7807 296 032 / (0) 7971 005 577 Email: Chris.Morgan@amberinfrastructure.com INPP.SC@fticon
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