Brookfield Infrastructure Partners Lp Limited Partnership · NYSE:BIP
Brookfield Infrastructure Partners Lp Limited Partnership — Brookfield Infrastructure Partners — IPO Roadshow (September 2019)
16 slides from Brookfield Infrastructure Partners Lp Limited Partnership's IPO roadshow presentation, Sep 26, 2019
Slide 1: Expanding Our Investor Base – Introducing BIPC
Expanding Our Investor Base –Introducing BIPC Sam Pollock Managing Partner & CEO Brookfield 46
Slide 2: Making Brookfield Infrastructure available to more investors
Making Brookfield Infrastructure available to more investors! Brookfield Infrastructure Partners L.P. (“BIP LP”) is a category leader, with an exceptional business and financial profile; However we believe there remains an untapped market of investors Brookfield 46
Slide 3: We are launching Brookfield Infrastructure Corporation (BIPC)
47 We are launching Brookfield Infrastructure Corporation (“BIPC”) Structured with the intention of being economically equivalent to BIP Units Brookfield
Slide 4: BIP LP unitholders will receive one BIPC share for every nine units
48 BIP LP unitholders will receive one (1) share of BIPC for every nine (9) units of BIP LP Transaction overview 1.Subject to stock exchange and regulatory approvals. NYSE: BIPC1 TSX: BIPC1 BIPC will be a publicly-listed Canadian corporation, created via an effective stock split We expect to complet
Slide 5: Shares of BIPC intend to have the same economics as BIP LP units
49 Shares of BIPC intend to have the same economics as BIP LP units Identical dividends/distributions Exchangeable to BIP LP units at any time Brookfield We expect BIPC shares and BIP LP units will be considered equivalent as a result of these attributes Brookfield Identical dividends/distributions
Slide 6: We see many benefits in establishing BIPC
50 We see many benefits in establishing BIPC Broader index inclusion Tax advantages for some Expanded investor base BIPC LISTED CORPORATION 50
Slide 7: Expanded investor base
Pre-split Unrestricted AUM LP Restricted AUM Expanded investor base Opportunity to attract new investors that would not otherwise invest in limited partnerships due to tax reporting or other reasons BIPC is expected to expand our universe of potential investors •U.S. retail investors •Index funds /
Slide 8: Broader index inclusion
52 Broader index inclusion 1.Based on preliminary analysis, and subject to approval by index committees. Today, BIP LP’s most notable index memberships include: S&P/TSX Composite Index S&P/TSX 60 Index BIPC shares should be eligible for inclusion into additional indices Russell Indices1 MSCI Indices
Slide 9: Tax advantages
53 Tax advantages BIPC investors will receive: Higher after-tax yield (certain investors) Dividends are expected to be qualified for U.S. investors U.S. federal tax rate of 24% vs. 41% “Eligible” dividends for Canadian investors Common dividend reporting slips Annual Form 1099 (U.S.) Annual Form T5
Slide 10: How will this stock split work?
How will this stock split work? BIPC will be created via a stock split with an initial market capitalization of ~$2B 1.Redeemable Partnership Units held by Brookfield Asset Management. Figures calculated based on NYSE unit price of $47.70 at September 20, 2019. Should have no impact on Brookfield In
Slide 11: BIPC: Questions You May Have
55 BIPC: Questions You May Have Brookfield
Slide 12: Why are we not implementing a full conversion?
56 Why are we not implementing a full conversion? Allows us to issue preferred units at a lower cost of capital Provides Canadian unitholders with higher current after-tax yields Morecost-effective way to hold investments in certain jurisdictionsThe continued existence of BIP LP alongside BIPC provi
Slide 13: Is the BIPC float large enough?
Is the BIPC float large enough? •Estimated initial market float of $2 billion •Investment decisions into BIPC should take into account size of the whole organization (~$20 billion market cap) •BIPC is expected to grow over time with: –Follow-on equity issuances –Potential for additional splits simil
Slide 14: Impact on FFO, NAV, market cap, dividends and fees
58FFO •No change •BIP LP through its control of BIPC will consolidate results going forward NAV •No change on combined basis Market Cap •No change on combined basis Dividends/Distributions •No change on combined basis Fees to BAM •No change on combined basis
Slide 15: BIPC expected to have minimal impact on Brookfield Infrastructure
59 BIPC expected to have minimal impact on Brookfield Infrastructure No incremental tax consequences 1 No change in management oversight or governance 2 No impact to credit ratings expected 3 Immaterialadmin costs to maintain 4 Minimalfinancial reporting implications 5
Slide 16: Notice to Recipients
Notice to Recipients All amounts are in U.S. dollars unless otherwise specified. Unless otherwise indicated, the statistical and financial data in this presentation is presented as of June 30, 2019. DISCLAIMER This presentation has been prepared for informational purposes only from information suppl
Brookfield Infrastructure Partners — IPO Roadshow (September 2019) on 6ix