Infratil Limited · NZX:IFT
Infratil — Investor Day (March 2023)
21 slides from Infratil's investor day presentation, Mar 24, 2023
Slide 1: Infratil Investor Day
Infratil Investor Day 24 March 2023 Smales Farm, Auckland
Slide 2: Disclaimer
Disclaimer This presentation has been Information prepared by Infratil Limited (NZ This presentation contains summary information about the Company and its activities which is current as at the date of this presentation. The information in this presentation is of a general nature and does not purpor
Slide 3: Welcome
Welcome Infratil’s 2023 Investor Day Alison Gerry Jason Boyes Phillippa Harford • Independent Director since • Infratil Chief Executive • Infratil Chief Financial July 2014 and Infratil Chair Officer and Director since Officer since May 2015 since May 2022 April 2021 • Joined Morrison & Co in • Memb
Slide 4: Agenda
Agenda 9:15am – 9.25am Welcome & Overview Infratil’s 2023 Alison Gerry, Chair Investor Day 9:25am – 10.00am Portfolio Update & Growth Outlook Jason Boyes, Infratil Chief Executive Phillippa Harford, Infratil Chief Financial Officer 10:00am – 10.15am Update on Healthcare Platform Rachel Drew, Morriso
Slide 5: Agenda
Agenda 1:00pm – 1:10pm Manager Update Infratil’s 2023 Paul Newfield, Morrison & Co Chief Executive Investor Day 1:10pm – 1:25pm Digital & Connectivity Update Lewis Bailey, Morrison & Co Investment Director, Strategy and Research 1:25pm – 2:05pm CDC Data Centres Greg Boorer, CDC Data Centres Chief Ex
Slide 6: Portfolio Update and Outlook
Portfolio Update and Outlook Jason Boyes Infratil Chief Executive Phillippa Harford Infratil Chief Financial Officer
Slide 7: Infratil at a glance
Established Listed on Managed by Infratil is a global 1994 NZX/ASX Morrison & Co infrastructure investor with Market Capitalisation Group Assets FY2023F Investment significant investments in digital $6.3b $9.0b+ $1.0b+ infrastructure, renewables, Track record After tax return FY2023F EBITDAF1 health
Slide 8: Investment Approach
Investment Approach • Infratil invests in infrastructure businesses, targeting returns to shareholders of 11-15% p.a. Our approach has over the long-term remained • Our investment focus is on sectors and businesses with: ✓ strong defensive characteristics consistent ✓ exposure to growth, driven by m
Slide 9: 2022 Investor Day: what we said and what we did
2022 Investor Day What we said we would do – February 2022 What we did Looking back at • Assessing network capital release options for • Vodafone passive mobile tower sale announced what we said we Vodafone • Continuing to evaluate further attractive data in July 2022, alongside investment in FortyS
Slide 10: Portfolio Composition
Portfolio Composition We remain high conviction digital; however, the Digital Renewables Healthcare Airports Longroad 53% 26% 14% 7% valuation uplift highlights the potential for growth embedded within our renewables platform Infratil Investor Day 2023 10
Slide 11: Portfolio Composition
Portfolio Composition Infratil’s global investment proposition continues to grow with a series of increasingly connected assets Infratil now has a presence across 17 countries Infratil Investor Day 2023 11
Slide 12: Sustainability
Sustainability Since inception, • Infratil will release its inaugural sustainability report in 2023 which will include: Infratil has • Climate-related disclosures in accordance with the Aotearoa New Zealand Climate standards invested in assets • Emissions reporting in line with the GHG Protocol and
Slide 13: Portfolio Composition: target portfolio setting
Portfolio Composition We blend lower Target Portfolio Setting and higher risk Infratil Expected Leverage Management Return to and return Portfolio Returns Assumption Costs Shareholders investments to Core Lower Risk 8–10% Per annum achieve our target Average net debt/ 10–15% total capital 30% 1% of
Slide 14: Portfolio Composition
Portfolio Composition 2022 2023 Our portfolio is 20% currently well Core 30% configured to Core+ 11% Development 57% deliver our target 69% 13% return of 11-15% Core Assets (8 –10%) Core Plus/Value Add (10 – 15%) Development Assets (15 – 25%) • Operating Renewable • Data Centres contracted and • Fut
Slide 15: Fundraising & Deal Flow
Fundraising & Deal Flow Infrastructure funds raised in the period, Number of infrastructure deals in the 2022 was a US$bn period Source: Preqin Source: Preqin record year for private infra 76 783 funding, but 721 716 646 678 645 644 606 private market 56 563 570 534 deal processes 44 459 41 40 are t
Slide 16: Portfolio Outlook
Portfolio Outlook Digital infrastructure Attractive pipeline • Existing businesses well placed to benefit from sector growth trends like AI, AR/VR, edge computing, and to address attractive adjacent investment opportunities those trends will of investment generate, e.g. • Vodafone’s 5G roll out and
Slide 17: Portfolio Outlook
Portfolio Outlook Healthcare Plenty to do in • At scale in A/NZ, with high quality diagnostic imaging businesses. Only national offering in New Zealand, PET/CT leader in Australia digital and • Challenging operating environment, bringing forward IT investments and other initiatives to take advantage
Slide 18: Capital Availability
Capital Availability ($Millions) 21 March Well positioned Net bank debt/(cash) (613.7) • Infratil retains significant cash reserves to support continued capital investment; Infratil Infrastructure bonds 1,085.9 for capital Infratil Perpetual bonds 231.9 established through the Tilt Renewables sale i
Slide 19: Guidance
Guidance Proportionate EBITDAF Dividends Guidance has • FY2023 Proportionate EBITDAF guidance range is • The dividend outlook is for modest continued narrowed to $520-$535million growth in cps, reflecting expected growth in been narrowed to • (previously $510-$540 million) Key Guidance Components op
Slide 20: Summary
Summary • Infrastructure remains one of the hottest asset Infratil remains classes globally with record funds raised in 2022; but very well fund raising and deal numbers slowed in the second half positioned, with • Infratil has a strong balance sheet and a portfolio mix strong core currently biased
Slide 21: Questions
Questions Jason Boyes and Phillippa Harford Chief Executive and Chief Financial Officer