Antin Infrastructure Partners · EURONEXT:ANTIN
Antin Infrastructure Partners — H1 2022 Earnings Presentation
29 slides from Antin Infrastructure Partners's earnings presentation, Sep 14, 2022
Slide 1: Half-Year 2022 Results
HALF-YEAR 2022 RESULTS Webcast 14 September 2022 1
Slide 2: Agenda
AGENDA 1 2 3 HIGHLIGHTS AND FINANCIAL Q&A BUSINESS UPDATE PERFORMANCE ▪ 1H 2022 highlights ▪ 1H 2022 financial results ▪ Activity update ▪ Outlook 2
Slide 3: Highlights and Business Update
HIGHLIGHTS AND BUSINESS UPDATE 3
Slide 4: Highlights of the first half of 2022
HIGHLIGHTS OF THE FIRST-HALF OF 2022 Significant Steady pace of Resilient Solid 1H 2022 Investments in Guidance progress capital investment financial results team and confirmed in fundraising of deployment performance platform position - Flagship Fund V and exit activity - Antin for growth Interim a
Slide 5: Sustained activity in fundraising, investments and exits
SUSTAINED ACTIVITY IN FUNDRAISING, INVESTMENTS AND EXITS In the first half of 2022 FUNDRAISING INVESTMENTS GROSS EXITS ~€0.5bn ~€0.6bn ~€0.7bn raised for NextGen Fund I Investments Gross Exit of Roadchef ~€0.6bn ~€0.8bn ~€0.7bn incl. co-investments incl. co-investments incl. co-investments MID CAP N
Slide 6: Gross multiples of all funds improved in 1H 2022
GROSS MULTIPLES OF ALL FUNDS IMPROVED IN 1H 2022 All funds are performing on plan or ahead of plan II Fund II – Vintage 2013 – Above plan III Fund III – Vintage 2016 – Above plan +0.1x +0.2x 2.5 2.6 2.6 2.4 2.4 1.8 1.7 1.6 1.6 1.5 ~92% ~23% Realised (1) Realised (1) Jun-21 Sep-21 Dec-21 Mar-22 Jun-2
Slide 7: The Antin model: successfully tested through cycles
THE ANTIN MODEL: SUCCESSFULLY TESTED THROUGH CYCLES TEST STATUS COMMENTARY Global Financial Crisis • Fund I and Fund II deployed in resilient businesses and successfully exited Eurozone Crisis • UK investments acquired pre-Brexit and exited post-Brexit at 2.7x Gross Multiple Brexit or above • 12 out
Slide 8: Consistent performance and conservative valuations
CONSISTENT PERFORMANCE AND CONSERVATIVE VALUATIONS 80% of investments returned >2x Gross Multiple. 93% of exits with valuation uplift 31 15 2.7x 23% Flagship investments exits realised Gross Multiple (1) realised Gross IRR (1) DISTRIBUTION OF REALISED INVESTMENT RETURNS (1) HISTORY OF CONSERVATIVE V
Slide 9: Built-in resilience of portfolio companies
BUILT-IN RESILIENCE OF PORTFOLIO COMPANIES Active value creation through transformation Grow, transform and de-risk businesses GROWTH LTM (1) Jul 2021 – Jun 2022 vs. Jul 2020 – Jun 2021 ~85-90% of portfolio companies with pass-through inflation protection Revenues +24% ~70-75% of our portfolio compa
Slide 10: Financial Performance
INFRASTRUCTURE PARTNERS FINANCIAL PERFORMANCE Seeing potential | delivering value
Slide 11: Revenue growth driven by management fees
REVENUE GROWTH DRIVEN BY MANAGEMENT FEES ~95% of revenue from long-term contracted management fees AUM AND FPAUM (€bn) REVENUE (€m) FPAUM Management fees AUM Carried interest and investment income Administrative fees and other revenue Effective management fee rate(1) 1.38% 1.40% +12.8% +14.2% 96.1 2
Slide 12: Revenue bridge: new strategies driving growth
REVENUE BRIDGE: NEW STRATEGIES DRIVING GROWTH From 1H 2021 to 1H 2022 (in €m) +14.2% 5.8 0.6 0.5 96.1 Decrease in FPAUM due to realisations 8.0 (0.2) 84.1 0.3 (2.7) (0.3) (-) Contribution from new strategies Revenue Fund II Fund III Fund IV Fund III-B Mid Cap I (1) NextGen I (1) NextGen I (1) Carrie
Slide 13: Investments in the team to support future growth
INVESTMENTS IN THE TEAM TO SUPPORT FUTURE GROWTH Hiring plan on track. Team well resourced NUMBER OF EMPLOYEES PERSONNEL EXPENSES(1) (€m) Investment professionals Investor relations +47 in last twelve months Support functions +23 in first half of 2022 Fund administration +39.8% +42.7% excl. fund adm
Slide 14: Increase in operating cost consistent with growth, excluding periodic expenses
INCREASE IN OPERATING COST CONSISTENT WITH GROWTH, EXCLUDING PERIODIC EXPENSES OTHER OPERATING EXPENSES AND TAXES (€m) Professional services and others Placement fees (Flagship and NextGen) Travel and representation Rent and maintenance +55.0% +€1.4m due to placement fees, which Taxes +37.0% are per
Slide 15: Lower underlying profit reflecting investments in future growth
LOWER UNDERLYING PROFIT REFLECTING INVESTMENTS IN FUTURE GROWTH UNDERLYING EBITDA(1) (€m) UNDERLYING NET INCOME(1) (€m) Underlying EBITDA Underlying net income margin margin 61% 50% 43% 32% (6.4)% (14.4)% 51.3 48.0 35.8 30.6 1H 2021 1H 2022 1H 2021 1H 2022 Notes: (1) Excluding the non-recurring effe
Slide 16: Strong balance sheet providing flexibility
STRONG BALANCE SHEET PROVIDING FLEXIBILITY As of 30 June 2022 STRONG BALANCE SHEET (€m) BALANCE SHEET USAGE Invest in Antin’s Funds 556.7 556.7 42.6 Current liabilities Non-current assets 122.4 61.4 Non-current liabilities 20% ~1% of carried interest Co-investments Other current 42.0 allocated to An
Slide 17: Medium-term objectives confirmed
MEDIUM-TERM OBJECTIVES CONFIRMED GROWTH PROFITABILITY DIVIDEND ▪ Long-term growth above that of ▪ Medium-term underlying EBITDA ▪ Majority of cash profits to be infrastructure market margin at >70% distributed with the absolute quantum of annual dividends to ▪ Flagship Fund V target grow over time a
Slide 18: Q&A
ANTIN INFRASTRUCTURE PARTNERS Q&A HSIN, W/Z Gy 4 Seeing potential | delivering value
Slide 19: Appendix
INFRASTRUCTURE PARTNERS APPENDIX Seeing potential | delivering value
Slide 20: Fee-paying AUM largely stable
FEE-PAYING AUM LARGELY STABLE +1.3% 1.0 - 13.6 13.4 FPAUM - development (0.8) Last Twelve Months ▪ Fundraising: NextGen Fund I (€bn) ▪ Add-on equity ▪ Flagship Fund II: Amedes, Roadchef ▪ Flagship Fund III: Almaviva 30-Jun-2021 Gross inflows Step-downs Exits FX and other 30-Jun-2022 (1.3)% 0.6 13.8
Slide 21: Income statement on an underlying basis
INCOME STATEMENT ON AN UNDERLYING BASIS (€m) 1H 2022 1H 2021 Management fees 91.8 80.1 Carried interest and investment income 3.0 3.2 Administrative fees and other revenue 1.3 0.8 TOTAL REVENUE 96.1 84.1 Personnel expenses (32.3) (22.6) Other operating expenses & tax (15.8) (10.2) UNDERLYING EBITDA
Slide 22: Income statement: from underlying to IFRS
INCOME STATEMENT: FROM UNDERLYING TO IFRS (€m, 1H 2022) Underlying basis Non-recurring items IFRS basis Management fees 91.8 - 91.8 Carried interest and investment income 3.0 - 3.0 Administrative fees and other revenue 1.3 - 1.3 TOTAL REVENUE 96.1 - 96.1 Personnel expenses (32.3) (49.2) (81.5) Other
Slide 23: Balance sheet
BALANCE SHEET (€m) 30-Jun-2022 31-Dec-2021 Property, equipment and intangible assets 12.0 5.8 Right-of-use assets 53.9 31.0 Financial assets 37.4 34.8 Deferred tax assets and other non-current assets 19.0 25.2 TOTAL NON-CURRENT ASSETS 122.4 96.9 Other current assets 42.0 29.3 Cash and cash equivalen
Slide 24: Cash flow statement
CASH FLOW STATEMENT (€m) 1H 2022 1H 2021 Operating cash flow before changes in working capital 37.2 46.4 (Increase) / decrease in working capital requirement (4.9) (14.0) NET CASH INFLOW / (OUTFLOW) RELATED TO OPERATING ACTIVITIES 32.3 32.4 Purchase of property and equipment (6.7) (0.8) Net change o
Slide 25: Key stats by fund (1/2)
KEY STATS BY FUND (1/2) As of 30 June 2022 (€bn) Fee-paying Committed Fund Vintage AUM % invested % 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) (2) 2016 6.6 2.7 3.6 89% 23% 1.8x Above plan Fund IV 2019 10.4 6.5 6.5 61% 0% 1.3
Slide 26: Key stats by fund (2/2)
KEY STATS BY FUND (2/2) As of 30 June 2022 (€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 3.7 0.3 Fund III (1) (2) 2016 2.7 3.6 3.2 0.2 3.0 5.8 1.1 4.7 Fund I
Slide 27: 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 28: Definitions
DEFINITIONS Antin: Umbrella term for Antin Infrastructure Partners S.A. Antin Funds: Investment vehicles managed by Antin Assets Under Management (AUM): Operational performance measure representing both the assets managed by Antin from which it is entitled to receive management fees or a carried int
Slide 29: For further information
FOR FURTHER INFORMATION ABOUT ANTIN INFRASTRUCTURE PARTNERS Antin Infrastructure Partners is a leading private equity firm focused on infrastructure. With over €22bn in Assets under Management across its Flagship, Mid Cap and NextGen SHAREHOLDER investment strategies, Antin targets investments in th
Antin Infrastructure Partners — H1 2022 Earnings Presentation on 6ix