Infratil Limited · NZX:IFT
Infratil — Investor Presentation (June 2024)
40 slides from Infratil's investor presentation, Jun 17, 2024
Slide 1: Infratil Investor Presentation: NZ$1,150 million equity raise
Infratil Investor Presentation NZ$1,150 million equity raise to fund Infratil’s next stage of growth 17 June 2024 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Disclaimer and Important Notice
Disclaimer and Important Notice This presentation has been prepared by Infratil Limited (NZ company number 597366, NZX:IFT; ASX:IFT) (“Infratil”) to provide information in relation to an offer of new shares in Infratil (“New Shares”) by way of (a) a placement to eligible selected investors (“Placeme
Slide 3: Disclaimer and Important Notice
Disclaimer and Important Notice These forward-looking statements include forecast financial information and guidance, statements about Infratil’s expectations about the performance of its businesses, statements about the future performance of Infratil, statements regarding the timetable, conduct and
Slide 4: Disclaimer and Important Notice
Disclaimer and Important Notice Past performance: Investors should note that past performance, including past share price performance of Infratil and pro forma historical information in this presentation, is given for illustrative purposes only and cannot be relied upon as an indicator of (and provi
Slide 5: Overview
Section 1 = Overview
Slide 6: Overview
Overview Infratil is raising equity to fund accelerated growth at CDC, and provide additional balance sheet flexibility to allow Infratil to continue to invest across its portfolio • Demand for data centres continues to accelerate on the back of cloud adoption and significant investments in Generati
Slide 7: Portfolio focussed on four high-conviction platforms
Portfolio focussed on four high-conviction platforms Complementary portfolio of higher return growth platforms supported by core cash generating businesses, centred on “ideas that matter” Digital Renewables Healthcare Airports Infratil focuses on sectors and businesses with strong defensive charac
Slide 8: CDC is positioned for growth
CDC is positioned for growth Unprecedented growth in data centre demand is creating greater opportunities for CDC to win new contracts and accelerate construction Leading ANZ data centre provider with 302MW of existing operating capacity Operating in key Australian and New Zealand markets including
Slide 9: CDC business update
Section 2 CDC business update
Slide 10: The next wave of demand for data centre capacity
The next wave of demand for data centre capacity Significant investment in Generative AI has driven unprecedented demand for high power density data centre regions and computing infrastructure Key Generative AI funding milestones Generative AI revenue (A$bn) 1,304 US$50bn total investments into AI s
Slide 11: CDC’s unique platform offering
CDC’s unique platform offering CDC is the pre-eminent owner / operator and developer of highly secure, connected and sovereign data centre campuses across Australia and New Zealand 14 7 100% >75% >90% ~32 yr Operational data of revenue from AAA 3 0% centres across ANZ (302MW) data centres under cons
Slide 12: CDC is AI ready
CDC is AI ready CDC’s core design principles from 2007 are 100% applicable for AI use – the greater technical complexity and computing power of AI are easily accommodated by an infrastructure deliberately designed to natively support high performance computing CDC has been building data centres capa
Slide 13: CDC growth accelerating
CDC growth accelerating Continued data centre demand growth and a growing pipeline of additional capacity commitments from existing and new customers has accelerated CDC’s capex and funding needs to continue to deliver growth in existing and new regions Marsden Park project overview ~720MW Built cap
Slide 14: CDC growth outlook
CDC growth outlook CDC is experiencing a rapid acceleration of its development activities with seven data centres under construction (representing 388MW of built capacity) across Sydney, Canberra, Melbourne and Auckland. The inclusion of the entire Marsden Park campus contributes to an increase in t
Slide 15: CDC funding strategy
CDC funding strategy CDC has a proven track record in funding and development, and is expected to deliver attractive project returns CDC’s approach to debt / equity mix to fund growth CDC key metrics • Debt sizing consistent with maintaining prudent credit metrics commensurate with an investment gra
Slide 16: Infratil growth outlook and funding
Section 3 Infratil growth outlook and funding
Slide 17: Infratil has a range of growth investment options beyond CDC
Infratil has a range of growth investment options beyond CDC Multiple near-term opportunities to deploy capital while continuing to target 11 – 15% portfolio net returns through Infratil’s renewable and digital development platforms, which are benefitting from structural tailwinds for clean energy,
Slide 18: Debt capacity & facilities
Debt capacity & facilities The equity raise provides increased flexibility to support investment opportunities across the portfolio • The proceeds of the equity raise would initially be used to pay down bank debt, before being 30 June 2024 $millions 31 March 2024 Pro-forma1 deployed to support CDC a
Slide 19: Equity Raising
Le fi ¥ ml Equity Raising eo. | a \ \ WY A YW
Slide 20: Equity raising details
Equity raising details Infratil is raising NZ$1,000 million via a Placement and NZ$150 million via a Retail Offer to fund accelerated growth of CDC, and provide additional balance sheet flexibility to allow Infratil to continue to invest across its portfolio Offer structure and size ▪ Placement to r
Slide 21: Equity raising timetable
Equity raising timetable Key Dates1 Placement Date Trading halt and Placement bookbuild Monday, 17 June 2024 Announcement of results of Placement and trading halt lifted Tuesday, 18 June 2024 ASX settlement Thursday, 20 June 2024 NZX settlement Friday, 21 June 2024 Allotment & commencement of tradin
Slide 22: Concluding remarks and Q&A
Concluding remarks and Q&A We have a fantastic opportunity at CDC to capture the rapid growth in AI-driven data demand and are excited to support the CDC team to continue delivering world class data centres We remain excited about the substantial ongoing investment opportunities in our renewables an
Slide 23: Supplementary materials
Appendix A Supplementary materials
Slide 24: Portfolio composition
Portfolio composition Focus on four high-conviction platforms, across a geographically diverse portfolio of companies FY24 Proportionate EBITDAF by segment1 (NZ$m) Portfolio asset value2 by geography (NZ$bn) Portfolio asset value2 by investments (NZ$bn) 8% 6.0% 6% 3% 3% 12% 4% 15.0% 31% 37.0% 4% 7%
Slide 25: Target Returns
Target Returns Portfolio well positioned to meet Infratil’s target return of 11-15% per annum after fees and tax Infratil Leverage Management Return to Target Returns Portfolio1 Assumptions Costs Shareholders ▪ Operating renewable generation ▪ Established data centres 8-10% Core ▪ One NZ and Welling
Slide 26: Total shareholder returns
Total shareholder returns Infratil has delivered a total shareholder return of 21.7% for FY24 and a 18.7% average annual return over 30 years after fees and tax 1994-2004: 22.4% 2004-2014: 9.6% 2014-2024: 22.0% 180,000 160,000 Period TSR1 1 - year 21.7% 140,000 5 – year 24.6% 10 – year 22.0% 120,000
Slide 27: Asset values
Asset values Value of Infratil’s subsidiaries and associates is recorded in Infratil’s financial statements in accordance with NZ IFRS Overview Year ended 31 March ($Millions) 2023 2024 CDC $3,678.7 $4,419.7 CDC, One NZ, Kao Data, Longroad Energy, Galileo, Gurīn Energy, Qscan, RHCNZ Medical One NZ
Slide 28: CDC financial and operating performance
CDC financial and operating performance Profitable growth to continue as customers are onboarded into facilities and increased capacity under construction is delivered to meet increasing customer demand Revenue (A$m) Rack utilisation2 WALE – evolution over time (yrs)3 356 31.6 83% 75% 280 66% 24.0 2
Slide 29: CDC footprint
CDC footprint CDC has a unique platform with additional land and power secured at current and new campuses, positioning CDC for the next phase of growth Sydney Marsden Park Operational data centres across 14 Australia and New Zealand MP1 MP2 MP3 Canberra Hume Hume One: MP4 MP5 MP6 HU1 HU2 HU3 7 Data
Slide 30: Data centre demand – additional growth drivers
Data centre demand – additional growth drivers While GenAI continues to be the largest near-term driver for demand, the adoption of new technology and the continued growth in cloud is forecast to drive additional data centre growth Adoption of critical technologies by Australian businesses Advanced
Slide 31: Key risks
Appendix B = Keyrisks
Slide 32: Key risks
Key risks Key risk considerations related to the equity raising This section comments on the risks that Infratil has identified in connection with the equity raise. Like any investment, there are risks associated with an investment in Infratil shares. This section does not (and does not purport to)
Slide 33: Foreign selling restrictions
Appendix C Foreign selling restrictions
Slide 34: Foreign selling restrictions
Foreign selling restrictions International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of Infratil in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not
Slide 35: Foreign selling restrictions
Foreign selling restrictions No prospectus has been, or will be, filed in the Provinces with respect to the offering of New Shares or the resale of such securities. Any person in the Provinces lawfully participating in the offer will not receive the information, legal rights or protections that woul
Slide 36: Foreign selling restrictions
Foreign selling restrictions Section 138 of the Securities Act (Ontario) provides that no action shall be commenced to enforce these rights more than: (a) in the case of any action for rescission, 180 days after the date of the transaction that gave rise to the cause of action; or (a) in the case of
Slide 37: Foreign selling restrictions
Foreign selling restrictions Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Securities and Futures Commission in Hong Kong pur
Slide 38: Foreign selling restrictions
Foreign selling restrictions Switzerland The New Shares may not be publicly offered, directly or indirectly, in Switzerland within the meaning of Swiss Financial Services Act ("FinSA") and no application has been or will be made to admit the Securities to trading on any trading venue (exchange or mu
Slide 39: Foreign selling restrictions
Foreign selling restrictions United States This document is not for distribution or release in the United States. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States or any other jurisdiction in which such an offer would be il
Slide 40: Si Infratil
Si Infratil