3i Infrastructure PLC · LSE:3IN
3i Infrastructure — H1 FY2023 Earnings Presentation
32 slides from 3i Infrastructure's earnings presentation, Nov 8, 2022
Slide 1: Results for the half year to 30 September 2022
Results for the half year to 30 September 2022 8 November
Slide 2: Important information
Important information This disclaimer (and any non-contractual obligations arising out of or in connection with it) is governed by English law and applies to these materials and to their presentation and webcast on behalf of 3i Infrastructure plc (together the “Presentation”). The sole purpose of th
Slide 3: Important information (cont.) - US Persons
Important information (cont.) - US Persons The distribution of this Presentation in certain jurisdictions may be restricted by law. Persons into whose possession this Presentation comes are required to inform themselves about and to observe any such restrictions. Terms used in this disclaimer (inclu
Slide 4: Consistently strong performance against our objectives
Consistently strong performance against our objectives Our strategy Our objectives To maintain a balanced portfolio of To provide shareholders with: infrastructure investments delivering an • A total return of 8% to 10% per attractive mix of income yield and capital annum, to be achieved over the ap
Slide 5: Generating value in the current market: focusing on Core-Plus Infrastructure
Generating value in the current market: focusing on Core-Plus Infrastructure Return Core-Plus Infrastructure Strong market positions Core Infrastructure Supportive megatrends Operational PPPs Our investment focus Exceptional management Risk 5
Slide 6: Consistent growth in NAV per share since IPO
Consistent growth in NAV per share since IPO 325.8 303.3 268.1 254.5 234.7 211.0 169.0 161.0 149.9 121.9 121.1 125.1 126.4 112.9 117.7 109.6 Core-Plus Strategy Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Mar 21 Mar 22 Sep Mar 22 23 1. Annualised growth
Slide 7: Outstanding first half performance
Outstanding first half performance Significantly exceeding our target return of 8-10% p.a. 9.3% 6 month total return on opening NAV Continued strong value growth in real terms 325.8p NAV per share 5.575p On track to deliver the FY23 dividend target, Dividend per share for the half year 6.7% higher
Slide 8: Strong return from a diversified portfolio
Strong return from a diversified portfolio for the half year ended 30 September 2022 1 Total portfolio return 9.2% Attero 27.7% Tampnet 21.8% TCR 20.1% Infinis 13.8% Valorem 11.2% Ionisos 10.2% Joulz 7.9% SRL 7.0% Oystercatcher 6.9% 2 ESVAGT 5.4% 3 Projects (now sold) 1.9% 4 GCX 0.0% DNS:NET -8.9% 1
Slide 9: High quality, diverse and differentiated portfolio
High quality, diverse and differentiated portfolio Portfolio value 6% 14% 8% Energy transition £3.4bn Oystercatcher 7% Digitalisation 11% Total portfolio return for 6 months Globalisation 9.2% 14% 8% Demographic change 5% 5% 4% Urbanisation 8% 10% Note: All numbers are as at 30 September 2022 and in
Slide 10: Discount rate movement
Discount rate movement Approach to calculating discount rate remains consistent 12.7% 12.8% 12.2% 12.3% 11.3% 11.7% 11.6% 11.3% 11.3% 10.8% 10.8% 10.9% 10.5% 10.0% 9.8% 10.0% 4.4% 3.4% 3.6% 3.3% 2.3% 3.1% 1.7% 1.8% 1.0% 1.2% 0.6% 0.6% 0.8% 0.5% 0.0% 0.1% 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 11: Well positioned in the current macro environment
Well positioned in the current macro environment Interest rates Inflation Power prices No material near-term Portfolio returns positively Energy generating assets refinancing risk in the correlated to inflation benefitting from the portfolio current high and volatile Balanced mix of direct power pri
Slide 12: ESVAGT
ESVAGT Wind farm maintenance support vessels and emergency response vessels ESVAGT is the pioneer and market leader in the provision of purpose-built, high performance maintenance vessels (“SOVs”) to offshore wind farms, with nine in operation and one further vessel under construction. They provide
Slide 13: Infinis
Infinis Renewable power generator in the UK Infinis is the largest generator of low carbon electricity from captured methane in the UK, with a portfolio of renewable baseload and low carbon flexible generation across 146 operational sites and a total installed capacity of 460MW. The business benefit
Slide 14: Joulz
Joulz Essential energy infrastructure equipment and services Joulz is a provider of essential energy infrastructure equipment and services in the Netherlands. It was carved out of a regulated, publicly-owned utility. It owns and leases medium voltage electricity infrastructure such as transformers,
Slide 15: Valorem
Valorem Diversified renewable energy developer and producer Valorem is a leading independent European renewable energy developer and power producing company. It is one of the largest onshore wind developers in France, having developed over 1GW of capacity over the last 15 years. Since the beginning
Slide 16: Attero
Attero Waste treatment and processing in the Netherlands Attero is the leading Dutch player in the waste treatment market. It owns two of the largest and best located energy from waste (“EfW”) plants in Western Europe, anaerobic digestion facilities, composting facilities and landfills. It also oper
Slide 17: GCX
GCX One of the most comprehensive subsea cable networks globally GCX owns one of the most comprehensive subsea cable networks globally, serving customers in over 180 countries. Its 66,000km of cables, spanning from North America to Asia, would require large upfront investments and a multi-year lead
Slide 18: Tampnet
Tampnet Offshore telecom network Tampnet operates the world’s largest offshore, high-capacity communication network in the North Sea and the Gulf of Mexico. It provides customers with mission-critical reliable communications including high speed, low latency and resilient data connectivity offshore
Slide 19: DNS:NET
DNS:NET Fibre network owner and developer in Germany DNS:NET is an independent telecommunications provider based in Berlin. It has an existing FTTC network in Berlin and the surrounding areas. In 2020 it moved its focus to rolling out a FTTH network in its home region. It is the largest alternative
Slide 20: TCR
TCR Ground support equipment in airports worldwide TCR is the largest independent lessor of airport ground support equipment (“GSE”) and operates at over 150 airports. TCR has defined the market for leased GSE, providing high quality assets under full-service leasing, as well as maintenance and flee
Slide 21: Oystercatcher
Oystercatcher Oil product storage in Singapore Oystercatcher is the holding company through which the Company holds a 45% interest in Advario Singapore Limited. Advario Singapore is a 1.3 million cubic metre facility focused on storage and blending of refined clear petroleum products for a range of
Slide 22: Ionisos
Ionisos Cold sterilisation facilities across Europe Ionisos is the third largest cold sterilisation provider globally. It has developed a highly diversified customer base and delivers a mission-critical, non-discretionary service for the medical, pharmaceutical and cosmetics industries for whom cold
Slide 23: SRL
SRL Leading lessor of temporary traffic management equipment in the UK SRL is the market leading temporary traffic equipment (“TTE”) rental company in the UK. Its market-leading reputation is supported by its network of 30 depots nationwide, providing a 24/7 365 days a year service on which customer
Slide 24: Appendix
3) Infrastructure plc Si Appendix
Slide 25: The dividend has grown every year since IPO
The dividend has grown every year since IPO ▪ Special dividends ▪ Ordinary dividends ▪ FY23 dividend target 41.4 4.2% p.a.1 10.2% 6.4% 6.5% 6.6% 6.7% 17.0 7.55 7.85 8.65 9.20 9.80 10.45 11.15 5.00 5.30 5.50 5.72 5.94 6.49 6.70 7.00 7.25 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY2
Slide 26: Portfolio summary
Portfolio summary 30 September 2022 (£m) 1. This comprises the aggregate of value movement, foreign exchange translation, allocated foreign exchange hedging and underlying portfolio income in the period. 2. Capitalised interest. 3. Shareholder loan / share premium repayment (non-income cash). 4. ESV
Slide 27: Extended maturity of £900m RCF to November 2025
Extended maturity of £900m RCF to November 2025 (£m) 599 29 cash (338) 193 (50) 404 570 undrawn RCF Available liquidity TCR acquisition TCR syndication Interim dividend Pro-forma at 30 September 22 liquidity 27
Slide 28: Sensitivities to total return
Sensitivities to total return Discount rate -1% £352m Discount rate +1% £(306m) Inflation rates (next two years) -1% £(37m) Inflation rates (next two years) +1% £37m Inflation rates (full projection periods) -1% £(235m) Inflation rates (full projection periods) +1% £259m Long-term intererest rates -
Slide 29: Predominantly non-UK portfolio hedged back to sterling
Predominantly non-UK portfolio hedged back to sterling (£m) Other 1 FX gain before FX gain after hedging hedging 17% 86 17% 66% EEA UK 5 1. ‘Other’ includes United States of America and Singapore 29
Slide 30: Introduction and Background
Introduction and Background Experienced and well resourced team established in 2006 Bernardo Co-Heads Scott Moseley Sottomayor Managing Managing European Partner Partner Infrastructure Stephane Thomas Anna Tim Jim Stoner James Dawes Grand- John Cavill Aaron Church Fodor Dellis Short Head of Legal CF
Slide 31: Governance and fees
Governance and fees • Independent Chair, five independent non-executive directors and one 3i Group appointed non-executive director • Committed to observe requirements of the AIC Code of Corporate Governance Board of • Responsibilities include: Directors – overall supervision of 3i Investments plc a
Slide 32: 3i Infrastructure plc
3} Infrastructure plc