3i Infrastructure PLC · LSE:3IN
3i Infrastructure — H1 FY2022 Earnings Presentation
30 slides from 3i Infrastructure's earnings presentation, Nov 9, 2021
Slide 1: Results for the half year to 30 September 2021
Results for the half year to 30 September 2021 9 November 2021
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: A strong first half driven by excellent performance of the portfolio
A strong first half driven by excellent performance of the portfolio 10.6% Total return on opening NAV Resilient portfolio consistently meeting or exceeding target return 291.2p NAV per share 3.0x Money multiple Sale of Oystercatcher’s European terminals 13.9% Unrealised IRR 5.225p On track to deliv
Slide 6: Generating value in the current market: focusing on Mid-Market Economic Infrastructure
Generating value in the current market: focusing on Mid-Market Economic Infrastructure Asset intensive, resilient Return companies Mid Market Economic Asset bases that are hard to Infrastructure replicate Core Providing essential services Infrastructure Established market positions Operational PPPs
Slide 7: Resilient portfolio, outperforming expectations
Resilient portfolio, outperforming expectations for the half year to 30 September 2021 Total portfolio return 14.4% Infinis 4.0% TCR 34.2% Oystercatcher 73.9% Tampnet 6.5% Joulz 3.2% ESVAGT 13.0% Ionisos 6.4% DNS:NET 5.7% Valorem 5.6% Attero 1.9% Projects 6.5% India Fund 150.0% *Returns are not annu
Slide 8: A balanced portfolio of infrastructure investments focused on long-term performance
A balanced portfolio of infrastructure investments focused on long-term performance Projects Portfolio value by sector Attero Infinis Utilities Transportation / 4% Valorem 5% 4% logistics 10% 14% Communications 10% 34% 5% Healthcare DNS:NET 18% 7% Natural Resources / TCR energy 24% 12% Social infras
Slide 9: Infinis
Infinis Renewable power generator in the UK • Infinis performed ahead of expectations and continues to support our yield • It took advantage of a higher power price environment to hedge its short-term production at attractive prices • Longer term power price forecasts have decreased, lowering the va
Slide 10: TCR
TCR Ground support equipment in airports worldwide • TCR performed strongly ahead of expectations in the period, providing further evidence of the resilience of its model • Executed long-term contracts with new customers, including Finnair and Gate Group, and is seeing increased interest from potent
Slide 11: Oystercatcher
Oystercatcher Oil product storage in Singapore • The realisation of the four European terminals was an excellent outcome for shareholders • Our valuation includes net proceeds of €55 million received in October 2021 • We continue to own a 45% stake in the Singapore terminal, which benefits from more
Slide 12: Tampnet
Tampnet Offshore telecommunications networks • Demonstrated continued resilience in the period as customers upgrade their bandwidth requirements in the North Sea • In the Gulf of Mexico, installations have been delayed by Covid-19 and weather conditions, but the contract pipeline continues to grow •
Slide 13: Joulz
Joulz Essential energy infrastructure equipment and services in The Netherlands • Joulz outperformed in its core businesses, with order intake for Infrastructure Services being especially strong • The integration of the EV charging and solar rooftop businesses is delivering benefits for customers as
Slide 14: ESVAGT
ESVAGT Wind farm maintenance support vessels and emergency response vessels • The offshore wind market is gathering further momentum in both Europe and the USA, positioning ESVAGT to continue its growth in the offshore wind segment • Operations started successfully for 3 new SOVs under long term cha
Slide 15: Ionisos
Ionisos Cold sterilisation facilities across Europe • Ionisos performed strongly during the period, particularly in its pharmaceutical and testing segment • Capacity was expanded through the completion of construction of a new facility in Bautzen, Germany in April • A further site in Kleve, Germany
Slide 16: DNS:NET
DNS:NET Leading independent telecommunications provider in Germany • Our investment completed in the period and the company has performed in line with expectations • Germany lags behind most other European countries in the deployment of FTTH and DNS:NET is uniquely positioned to capitalise on this o
Slide 17: Valorem
Valorem Renewable energy operator and developer • Valorem had a good first half of the year, thanks to strong wind conditions and good turbine availability • Construction activity is progressing well: 90MW of wind and solar projects entered into operation during the period • The development of Viiat
Slide 18: Attero
Attero Waste treatment and processing in The Netherlands • Waste supply volumes continued to recover during the period, allowing Attero to run its plants at full capacity without drawing on its waste buffer • The Organics business benefitted from favourable weather and new contracts, enabling Attero
Slide 19: Sustainability - Actions we are taking
Sustainability - Actions we are taking 19
Slide 20: Appendix
3) Infrastructure plc Si Appendix
Slide 21: Share price has outperformed the market
Share price has outperformed the market 350 3iN 300 FTSE 250 250 3iN NAV 200 150 100 Sep 16 Sep 17 Sep 18 Sep 19 Sep 20 Sep 21 3iN TSR of 12.4% p.a. has outperformed FTSE 250 TSR of 7.9% p.a. since IPO Note: 1. FTSE 250 rebased to 3iN opening share price at 1 October 2016. 2. TSR stated is per annum
Slide 22: FY22 target dividend growth of 6.6%
FY22 target dividend growth of 6.6% Dividend growth since IPO (pence per share) ▪ Special dividends ▪ Ordinary dividends ▪ FY22 dividend target 41.4 1 4.2% p.a. 10.2% 6.4% 6.5% 6.6% 17.0 7.00 7.25 7.55 7.85 8.65 9.20 9.80 10.45 5.00 5.30 5.50 5.72 5.94 6.49 6.70 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY
Slide 23: Portfolio summary
Portfolio summary 30 September 2021 (£m) Directors' Directors' Foreign Underlying Portfolio total Investment in Divestment in Accrued income Value valuation Allocated foreign Portfolio assets valuation exchange portfolio income return in the the period the period movement movement 30 September excha
Slide 24: Good liquidity
Good liquidity (£m) Immediate liquidity 109 47 (47) 653 Cash 253 Oystercatcher Interim Deferred WIG proceeds proceeds dividend RCF 400 24
Slide 25: Discount rate movement
Discount rate movement The weighted average discount rate remains at 10.8% Portfolio weighted average discount rate 11.3% 10.5% 10.8% 10.8% 10.8% Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Sep-21 25
Slide 26: Sensitivities to total return
Sensitivities to total return Inflation linkage Assets with revenues: 10% Sensitivity +1% point -1% point Directly linked to inflation Change in inflation over £29m £(27)m underlying assumption for next 2 years Partly linked to inflation 90% Foreign exchange 4% 7% GBP 36% Sensitivity +5% -5% EUR/SGD
Slide 27: Hedging programme mitigates volatility
Hedging programme mitigates volatility (£m) FX gain before FX gain after hedging hedging 1 ▪ Hedged assets (€/SGD/DKK/NOK) ▪ Unhedged assets (€/rupee) 11 1 3 Note: SGD exposure is within Oystercatcher, a euro denominated investment. 27
Slide 28: The 3i Group team managing the Company
The 3i Group team managing the Company Experienced and well resourced team established in 2006 Phil White Managing Partner Co-heads Bernardo Scott Sottomayor Economic Moseley Partner Infrastructure Partner Stephane Jim Stoner Thomas James Aaron Anna Matt Tim Grand- John Cavill Senior Fodor Dawes Chu
Slide 29: Governance and fees
Governance and fees • Independent Chair, four 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 30: 3i Infrastructure plc
3} Infrastructure plc