Pantheon Infrastructure PLC · LSE:PINT
Pantheon Infrastructure — FY2022 Earnings Presentation
50 slides from Pantheon Infrastructure's earnings presentation, Mar 2, 2023
Slide 1: Pantheon Infrastructure PLC
Pantheon Infrastructure PLC March 2023 PRIVATE & CONFIDENTIAL PRIVATE & CONFIDENTIAL
Slide 2: Agenda
Agenda 1. Platform introduction 2. PINT’s 2022 results & portfolio 3. Market update 4. Appendix 2
Slide 3: Platform introduction
Platform introduction
Slide 4: PINT's investment platform
PINT’s investment platform Invest in a range of diverse, operational infrastructure assets across developed Strategy OECD countries and sub-sectors Operating Model IPO 16 IPO £400m 2pps 16 November 2021 committed to full year dividend 11 assets1 Recycle Buy 8-10% 98.9p £449m Exit Grow Targeting 8-10
Slide 5: Timeline of PINT's investments
Timeline of PINT’s investments Commitment translated to GBP at 31 December 22 Foreign Exchange rate. 5
Slide 6: PINT's investment platform assets totalling £400million
PINT’s investment platform 11 assets totalling £400million Substantial deployment1 Strong investment pipeline Robust opportunity set Digital Infrastructure Renewables & Efficiency Power & Utilities Transport & Logistics Infrastructure High-quality infrastructure assets investment environment Strong
Slide 7: Pantheon has been investing in private markets for 40+ years
Pantheon has been investing in private markets for 40+ years 143 $88.9bn 40 / 60 >960 >585 ~10,000 ~2,000 2007 $56.8bn $32.1bn Investment AUM AUA % of AUM in Institutional Advisory Sponsors in Funds Became a professionals5 commingled / investors board seats Pantheon’s invested in signatory to Assets
Slide 8: Pantheon is a leader in infrastructure investing
Pantheon is a leader in infrastructure investing Investment Experience Dedicated Specialist Strong Risk Adjusted & AUM/AUA1 Team3 Track Record4 Infrastructure & 14.1% $19.0bn RA assets under 30 Investment Professionals management and advice1 12.3% Total Infrastructure 189 Investments2 8 Investment C
Slide 9: Investment manager
Investment manager Senior Pantheon team responsible for managing PINT Global Infrastructure and Real Assets Committee (GIRAC) Pantheon years Private Markets years Selected PINT team members 27 24 27 20 Richard Sem 10 14 5 1 Partner, Head of Europe Andrea Echberg Kathryn Leaf Richard Sem Paul Barr Lo
Slide 10: PINT governance
PINT governance PINT’s Board of Directors have uniquely complementary infrastructure experience Vagn Sørensen Anne Baldock Patrick O’D Bourke Andrea Finnegan Chair Senior Independent Director Chair of the Audit Committee Non-Executive Director Senior and experienced board Senior lawyer with over
Slide 11: PINT's 2022 results & portfolio
PINT’s 2022 results & portfolio
Slide 12: PINT portfolio summary
PINT portfolio summary Portfolio composition broadly in line with IPO sector diversification targets £400m invested / committed to 11 assets1 Geography Sector Market segment2 Strong sponsor partners 10% 9% 10% 10% 14% 10% 6% 11% 10% 11% 10% 46% 18% 7% 11% 44% 30% 12% 17% 80% 24% Europe Digital - Dat
Slide 13: Financial Results 2022: NAV bridge & Cash Management
Financial Results 2022 NAV bridge & Cash Management NAV pence per share movement (31-Dec-21 – 31-Dec-22) Stable NAV since IPO Modest fair value movements - some sponsors are still holding at cost in line with internal accounting policies Effective hedging in place – PINT seeks to limit its unh
Slide 14: Portfolio sensitivities
Portfolio sensitivities Strong inflation and downside protection in an uncertain environment Valuation sensitivity at 31 December 20221 Macroeconomic environment2 Positive correlation to Inflation derived from inflation Discount rate (+/- 0.5%) (2.72) 2.88 linkage from contractual or regulated rev
Slide 15: Key portfolio figures
Key portfolio figures As at 24 February 2023 13.7% 37.7% 5.4 years Weighted average Weighted average Weighted average discount rate gearing debt tenor Based on £400m of assets invested or committed at 24 February 2023. Weighted average debt tenor is based on the ten investments with debt (excluding
Slide 16: Market update
Market update
Slide 17: Capturing secular growth
Capturing secular growth $13Tn infrastructure spending gap projected to 20401 Digital Infrastructure2 Renewables & Efficiency5 Power & Utilities3 Transport & Logistics4 Exponential growth in mobile Renewables-based electricity Clean energy transition is Passenger air has rebounded data usage
Slide 18: Macroeconomic outlook for 2023
Macroeconomic outlook for 2023 Implications for PINT 2023 global real GDP growth forecasts range Supply chain availability; capex; GDP correlation between 0.2% - 2.7% and leverage continue to be key focus areas of diligence Minor recessions widely expected in many Economic major advanced econo
Slide 19: Macroeconomic outlook for 2023 and implications for PINT
Macroeconomic outlook for 2023 and implications for PINT Implications for PINT Global energy shock with security of supply focus Assets with pricing power or contractual given reduction in supply from Russia; driven provisions will continue to pass on higher energy energy prices to record highs
Slide 20: Infrastructure market indicators
Infrastructure market indicators Deal activity by geography ($bn)1 Deal activity by sector ($bn)1 893 CAGR +12% 893 755 CAGR +12% 755 574 576 574 576 553 553 429 429 371 351 371 351 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021 2022 Transport Renewables Power North Ameri
Slide 21: PINT summary
PINT summary Resilient Inflation Diversification cash-flow assets protection Capturing Value-creation Strong ESG secular growth opportunities characteristics There is no guarantee that these objectives will be achieved. 21
Slide 22: Appendix
Appendix
Slide 23: What do we look for in an infrastructure transaction?
What do we look for in an infrastructure transaction? Emphasis on high-quality assets with defensive characteristics 1 Top-quality infrastructure sponsors 2 Essential service provider 3 Operational portfolios in OECD geographies 4 Long-term contracts with low customer churn 5 Assets benefitting from
Slide 24: ESG at Pantheon
ESG at Pantheon Deep and long-standing commitment to ESG Pantheon was one of the first private Pantheon has classified PINT as an As an Article 8 Fund, PINT targets equity investors to sign up to the Article 8 “light green” product). We investments with strong Principles of Responsible Investment ne
Slide 25: PINT governance
PINT governance Experienced Board of independent, non-executive directors Strong expertise in the following areas: Infrastructure, private equity, governance, legal and regulatory, valuation of private assets, ESG Board of The Board is ultimately responsible for the Company’s activities includ
Slide 26: Pantheon infrastructure co-investment model
Pantheon infrastructure co-investment model Pantheon Primary Sponsors Require Pantheon Co-invest Fund Strategy Co-investment Partner Strategy $70bn co- $3.9bn $8.9bn AUM investment committed in Funds opportunities across 47 co- since 20091 screened investment since 20152 assets3 Pantheon develops
Slide 27: Global sourcing and rigorous screening with highly selective conversion rate
Global sourcing and rigorous screening with highly selective conversion rate Infrastructure co-investment deal funnel1 Annual infrastructure co-investments screened2 Deals Screened $70.1bn 728 deals 16.0 Deals Screened ($bn) CAGR $13.8 14.0 +15% $12.4 Advanced Diligence $11.9 12.0 $6.5bn 75 deals $9
Slide 28: Board of Directors
Board of Directors Strong and diverse infrastructure industry expertise Vagn Sørensen - Chair Mr Vagn Sørensen is an experienced non-executive chair and director of listed and private companies. After attending Aarhus Business School and graduating with a MSc degree in Economics and Business Adminis
Slide 29: Board of Directors
Board of Directors Strong and diverse infrastructure industry expertise Patrick O’D Bourke – Chair of the Audit Committee Mr Patrick O’Donnell Bourke is an experienced board member with more than 25 years of experience in energy and infrastructure. After graduating from Cambridge University, Mr O’Do
Slide 30: Term sheet - Company
Term sheet - Company Company Pantheon Infrastructure Plc Listing London Stock Exchange (Main Market, Premium Segment) Structure UK investment trust Investment Manager Pantheon Ventures (UK) LLP, regulated by the FCA The Company seeks to generate attractive total returns (on a risk adjusted basis) fo
Slide 31: Investment Manager: Investment Committee
Investment Manager Global Infrastructure & Real Assets Investment Committee Kathryn Leaf, Partner (joined 2008, 24 years of private markets experience) Kathryn is a Partner and Global Head of Real Assets, which includes infrastructure, real estate and other real assets. She is a member of Pantheon’s
Slide 32: Investment Manager: Investment Committee
Investment Manager Global Infrastructure & Real Assets Investment Committee Evan Corley, Partner (joined 2004, 17 years of private markets experience) Evan is a Partner in Pantheon’s Global Infrastructure and Real Assets Investment Team and a member of Pantheon’s Global Infrastructure and Real Asset
Slide 33: Investment Manager: Select PINT team members
Investment Manager Select PINT team members Richard Sem, Partner (joined 2017, 27 years of market experience) Alex Denny, Managing Director (joined 2022, 19 years of market experience) Alex is a Managing Director, European Private Wealth focusing on the distribution of Pantheon’s investment trusts a
Slide 34: Case Studies
Case Studies
Slide 35: Diversified infrastructure portfolio construction
Diversified infrastructure portfolio construction Deployment on track following IPO guidance Amount Portfolio Announcement # Status Sponsor Sector Description Region Invested / Company Date Committed1, 2 Transport & Specialised, temperature-controlled transportation and logistics 1 Invested Primafri
Slide 36: Primafrio
Primafrio Company name Primafrio Transaction / company overview Sector Transport & Logistics Pomodoro Holdings Ltd (Primafrio) was founded in 2007 and is a specialised, Geography Europe temperature-controlled transportation and logistics company in Europe primarily focused on the export of fresh f
Slide 37: CyrusOne
CyrusOne Company name CyrusOne Transaction / company overview Sector Digital – Data Centre In Q4 2021, KKR and Global Infrastructure Partners acquired 100% of Geography North America the outstanding common equity of CyrusOne which comprises a portfolio of more than 50 high-performance data centres
Slide 38: National Gas
National Gas Company name National Gas Transaction / company overview Sector Power & Utilities – Gas utility and metering National Gas is the owner and operator of the UK’s sole gas transmission network, regulated by Ofgem; and an independent, highly contracted Geography Europe metering business S
Slide 39: Vertical Bridge
Vertical Bridge Company name Vertical Bridge Transaction / company overview Sector Digital – Towers Vertical Bridge is the largest private owner and operator of towers and other Geography wireless infrastructure in the United States, with ~7,000 owned towers across the North America country. Spons
Slide 40: Delta Fiber
Delta Fiber Company name Delta Fiber Transaction / company overview Sector Digital – Fibre Delta Fiber is an owner and operator of fixed telecom infrastructure in Geography Europe the Netherlands, providing broadband, TV, telephone and mobile Sponsor Stonepeak services to B2C, B2B customers and wh
Slide 41: Cartier Energy
Cartier Energy Company name Cartier Energy Transaction / company overview Sector Power & Utilities – District Platform of eight district energy systems located across the Northeast, Mid-Atlantic, Heating and Midwest of the US Geography North America Provides diversified energy services such as steam
Slide 42: Calpine
Calpine Company name Calpine Corporation Transaction / company overview Sector Power & Utilities – Electricity ECP raised a $1.6bn continuation vehicle to acquire indirect interest in Calpine (~20% Generation equity) Geography North America Calpine provides exposure to one of the largest electri
Slide 43: Vantage Data Centers
Vantage Data Centers Company name Vantage Data Centers Transaction / company overview Sector Digital – Data Centre Vantage Data Centers is a leading provider of wholesale data centre infrastructure Geography North America to large enterprises and hyperscale cloud providers Sponsor DigitalBridge
Slide 44: Fudura
Fudura Company name Fudura Transaction / company overview Sector Renewables & Energy Efficiency Fudura is a Dutch market leading business-to-business owner and provider of medium- Geography Europe voltage electricity infrastructure, with a focus on transformers, metering devices and related data s
Slide 45: National Broadband Ireland
National Broadband Ireland Company name National Broadband Ireland (NBI) Transaction / company overview Sector Communications NBI is a Fibre-to-the-Premises network developer and operator working with the Irish Geography Ireland government to support the rollout of the National Broadband Plan. Thi
Slide 46: GD Towers
GD Towers Company name GD Towers Transaction / company overview Sector Digital – Towers In July 2022, DigitalBridge, alongside Brookfield Asset Management, agreed to buy Geography Europe 51% of GD Towers from Deutsche Telekom for a total Enterprise Value of €17.5bn Sponsor DigitalBridge GD Tower
Slide 47: Disclaimers
Disclaimers
Slide 48: Disclosure – case studies
Disclosure 1 – case studies These case studies provide information about certain investments made by PINT. It should NOT be regarded as a recommendation. Pantheon makes no representation or forecast about the performance, profitability or success of such investments. You should not assume that futur
Slide 49: Important Notice
Important Notice The information contained in this document is confidential and for the sole use of the recipient and must not be forwarded to any other person. This document does not constitute or form part of, and should not be construed as, an offer, invitation or inducement to purchase or subscr
Slide 50: Important Notice (Continued)
Important Notice (Continued) This document may contain certain forward-looking statements. These statements typically contain words such as "expects" and "anticipates" and words of similar import. By their nature forward looking statements involve risk and uncertainty because they relate to events a
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