Antin Infrastructure Partners · EURONEXT:ANTIN
Antin Infrastructure Partners — H1 2024 Earnings Presentation
32 slides from Antin Infrastructure Partners's earnings presentation, Sep 11, 2024
Slide 1: Half-Year 2024 Results
HALF-YEAR 2024 RESULTS Webcast 11 September 2024 1
Slide 2: Agenda
AGENDA 1 2 3 HIGHLIGHTS AND FINANCIAL Q&A BUSINESS UPDATE PERFORMANCE ▪ 1H 2024 highlights ▪ 1H 2024 financial results ▪ Activity update ▪ Outlook 2
Slide 3: Highlights and Business Update
HIGHLIGHTS AND BUSINESS UPDATE 3
Slide 4: Highlights
HIGHLIGHTS Acceleration of Robust investment Flagship Fund V 1 2 3 investment activity. performance. on track to raise Deployment doubled Last exit of Fund II signed, €10bn+ by year-end. y-o-y supported by top quartile fund returns(1) Among fastest scaling improved large cap infrastructure macroecon
Slide 5: Acceleration of Investment Activity
ACCELERATION OF INVESTMENT ACTIVITY Over the last six months INVESTMENTS(1) (in €bn) DEPLOYMENT CYCLE (years) FUNDRAISING (in €bn) 1.6 Previous vintages 1.2 Flagship II 3.2 0.8 Flagship III 2.1 0.3 Flagship IV 3.5 1H 2023 1H 2024 1H 2023 1H 2024 Current vintages (estimate) Flagship V ~4 Flagship Fun
Slide 6: Fund Performance Continues to Track On or Above Plan
FUND PERFORMANCE CONTINUES TO TRACK ON OR ABOVE PLAN As of 30 June 2024 II FLAGSHIP II – VINTAGE 2013 III FLAGSHIP III – VINTAGE 2016 2.6x 2.6x 2.6x 2.6x 2.6x 1.8x 1.8x 1.8x 1.9x 1.9x ABOVE PLAN ABOVE PLAN ~92% ~37% Realised Realised (Last exit signed Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Jun-23 Sep-23
Slide 7: Robust Portfolio Company Growth Year-on-Year
ROBUST PORTFOLIO COMPANY GROWTH YEAR-ON-YEAR As of 30 June 2024 RESILIENT STRONG PROFIT ROBUST TOP LINE GROWTH AND CAPITAL GROWTH MARGINS STRUCTURES ~73% +12% +19% of portfolio debt revenue growth y-o-y EBITDA growth y-o-y is hedged in portfolio companies(1) in portfolio companies(1) No major refina
Slide 8: Flagship V on Track to Deliver Best-in-Class Growth
FLAGSHIP V ON TRACK TO DELIVER BEST-IN-CLASS GROWTH Largest infrastructure managers globally ranked by fund upsizing(1) €10bn €10bn $28bn $7bn €8bn €20bn $20bn $25bn $15bn $8bn ongoing ongoing ongoing ongoing ongoing ongoing ongoing ✓ ✓ ✓ 2 64% 2 >54% Previous vintage (100%) 40% 37% 1 +45% 33% Targe
Slide 9: Infrastructure Megatrends
INFRASTRUCTURE MEGATRENDS ENERGY TRANSITION DIGITALISATION TRANSPORT DEMOGRAPHICS Transition towards a low Rise of mobile Changing supply chains Demographic and carbon energy economy connectivity, big data and transportation/ societal changes and artificial intelligence logistics requirements WE HEL
Slide 10: Significant Long-Term Growth Potential
SIGNIFICANT LONG-TERM GROWTH POTENTIAL ~€25bn + Largest infrastructure fund globally Strategy expansion Potential for M&A 2.5x €10bn+ Opportunity across North America and Europe €5bn+ Opportunity 5x FLAGSHIP FUND V 4x MID CAP FUND I NEXTGEN FUND I €10bn+ €2.2bn €1.2bn 10
Slide 11: Financial Performance
INFRASTRUCTURE PARTNERS FINANCIAL PERFORMANCE Seeing potential | delivering value
Slide 12: Continued Growth in 1H 2024 Following P&L Step Up
CONTINUED GROWTH IN 1H 2024 FOLLOWING P&L STEP UP IN PRIOR YEAR FEE-PAYING AUM REVENUE UNDERLYING EBITDA DIVIDENDS in €bn in €m in €m in € per share More than 98% 57% management ~100% €20bn margin payout ratio fees CAGR CAGR CAGR CAGR +23.0% +23.7% +32.3% +55.8% 19.7 20.6 146.9 138.1 13.6 82.8 84.0
Slide 13: Almost All Revenue from Long-Term Contracted Management Fees
ALMOST ALL REVENUE FROM LONG-TERM CONTRACTED MANAGEMENT FEES AUM AND FPAUM (€bn) REVENUE (€m) FPAUM Management fees AUM Carried interest and investment income Administrative fees and other revenue net Effective management fee rate(1) 1.40% 1.32% 1.33% +3.0% +6.4% 30.7 31.7 146.9 138.1 2.9 2.3 22.4 9
Slide 14: Revenue Growth Driven by Flagship Fund V
REVENUE GROWTH DRIVEN BY FLAGSHIP FUND V (in €m) +6.4% Fund V +12.0 incl. catch-up fees +4.7 Fund IV +1.3 Fund III (3.0) Fund III-B (0.4) Fund II (0.7) incl. catch-up fees (2.6) - 0.6 9.2 1.0 146.9 138.1 (2.0) Investment income +0.7 Carried interest +0.3 1H 2023 Flagship Mid Cap NextGen Investment A
Slide 15: Carried Interest Revenue Potential Remains Substantial
CARRIED INTEREST REVENUE POTENTIAL FOR ANTIN REMAINS SUBSTANTIAL SIGNIFICANT CARRIED INTEREST REVENUE POTENTIAL… … DELIVERS UPSIDE TO P&L Committed Antin Current Carried Fund Vintage Capital allocation Gross Interest (in €bn) (in %) Multiple (in €m) (2) Potential for ~€480m in carried interest reven
Slide 16: Increase in Expenses Mainly Driven by Headcount Expansion
INCREASE IN EXPENSES MAINLY DRIVEN BY HEADCOUNT EXPANSION TO SUPPORT GROWTH OPERATING EXPENSES(1) (€m) HEADCOUNT (no. of employees) Personnel expenses France Other operating expenses and taxes United Kingdom +38% of headcount growth United States in the United States over the Asia last 2 years Luxem
Slide 17: Continued Growth Following Earnings Step Change
CONTINUED GROWTH FOLLOWING EARNINGS STEP CHANGE IN PRIOR YEAR UNDERLYING EBITDA (€m) UNDERLYING NET INCOME (€m) Underlying EBITDA margin Underlying earnings per share after dilution (€) 50% 60% 57% 0.17 0.34 0.34 +1.4% 82.8 84.0 +1.5% 60.7 61.7 48.0 30.6 1H 2022 1H 2023 1H 2024 1H 2022 1H 2023 1H 20
Slide 18: Significant Cash Available to Support Growth and Distributions
SIGNIFICANT CASH AVAILABLE TO SUPPORT GROWTH AND FUTURE DISTRIBUTIONS POTENTIAL USE OF CASH Organic growth through 1 seeding and co-investment €392m within capital-light framework €392m in cash in cash & equivalents 2 Strategy expansion through opportunistic M&A Highly No borrowings cash-flow and fi
Slide 19: Significant Capital Distributions to Shareholders
SIGNIFICANT CAPITAL DISTRIBUTIONS TO SHAREHOLDERS DISTRIBUTIONS (in € per share) FOR 1H 2024 €281m cash distribution since IPO QUANTUM €0.34 per share €1.58 per share(1) DISTRIBUTION €60.9 million 0.71 0.42 0.39 PAYOUT ~100% payout ratio 0.34 on the underlying net profit 0.28 0.11 0.32 Ex-dividend d
Slide 20: Outlook
OUTLOOK GROWTH PROFITABILITY DISTRIBUTIONS ▪ Growth in Fee-Paying AUM above ▪ Underlying EBITDA in 2024 ▪ Majority of cash earnings to be that of the infrastructure market at or above prior year level distributed over a fund cycle ▪ Annual dividend to grow over time ▪ Close Flagship Fund V in 2024 a
Slide 21: Q&A
ANTIN INFRASTRUCTURE PARTNERS Q&A HSIN, W/Z Gy 4 Seeing potential | delivering value
Slide 22: Appendix
INFRASTRUCTURE PARTNERS APPENDIX Seeing potential | delivering value
Slide 23: Flagship Fund II Now Fully Exited with Top-Quartile Performance
FLAGSHIP FUND II NOW FULLY EXITED WITH TOP-QUARTILE PERFORMANCE FLAGSHIP FUND II PERFORMANCE(2) Vintage €2.0bn 2.6x €4.2bn realised Gross gross 2013 of commitments Multiple distributions TOP QUARTILE PERFORMANCE(3) Sector (1) Geography(1) Distribution of Gross Multiples at Exit(4) 8% 64% 19% 35% 17%
Slide 24: Income Statement on an Underlying Basis
INCOME STATEMENT ON AN UNDERLYING BASIS (€m) 1H 2024 1H 2023 Management fees 143.9 136.7 Carried interest and investment income 0.1 (0.9) Administrative fees and other revenue net 2.9 2.3 TOTAL REVENUE 146.9 138.1 Personnel expenses (44.3) (39.9) Other operating expenses & tax (18.5) (15.4) UNDERLYI
Slide 25: Income Statement: From Underlying to IFRS
INCOME STATEMENT: FROM UNDERLYING TO IFRS (€m, 1H 2024) Underlying basis Non-recurring items IFRS basis Management fees 143.9 - 143.9 Carried interest and investment income 0.1 - 0.1 Administrative fees and other revenue net 2.9 - 2.9 TOTAL REVENUE 146.9 - 146.9 Personnel expenses (44.3) 0.3 (44.1)
Slide 26: Balance Sheet
BALANCE SHEET (€m) 30-Jun-2024 31-Dec-2023 Property, equipment and intangible assets 21.0 20.6 Right-of-use assets 47.4 49.8 Financial assets 60.3 53.4 Deferred tax assets and other non-current assets 14.4 17.1 TOTAL NON-CURRENT ASSETS 143.1 140.9 Cash and cash equivalents 392.1 423.9 Accrued income
Slide 27: Cash Flow Statement
CASH FLOW STATEMENT (€m) 1H 2024 1H 2023 INFLOW / (OUTFLOW) RELATED TO OPERATING ACTIVITIES 43.1 55.9 Of which (increase) / decrease in working capital requirement (36.9) (21.7) INFLOW / (OUTFLOW) RELATED TO INVESTING ACTIVITIES (8.5) (0.6) Of which investment in financial assets (5.1) (6.1) Of whic
Slide 28: Key Stats by Fund (1/2)
KEY STATS BY FUND (1/2) As of 30 June 2024 (€bn) Fee-paying Committed Fund Vintage AUM % committed % realised Gross Multiple Expectation AUM capital Flagship Fund II 2013 0.5 0.3 1.8 87% 92% 2.6x Above plan Fund III (1) 2016 5.8 2.0 3.6 89% 37% 1.9x Above plan Fund IV 2019 10.4 4.6 6.5 86% - 1.3x On
Slide 29: Key Stats by Fund (2/2)
KEY STATS BY FUND (2/2) As of 30 June 2024 (€bn) COST OF INVESTMENTS VALUE OF INVESTMENTS Fee-paying Committed Fund Vintage Total Realised Remaining Total Realised Remaining AUM capital Flagship Fund II 2013 0.3 1.8 1.6 1.3 0.3 4.1 3.8 0.3 Fund III (1) 2016 2.0 3.6 2.9 0.7 2.3 6.1 2.0 4.1 Fund IV 20
Slide 30: Definitions
DEFINITIONS Antin: Umbrella term for Antin Infrastructure Partners S.A. Antin Funds: Investment vehicles managed by Antin Infrastructure Partners SAS or Antin Infrastructure Partners UK Assets Under Management (AUM): Operational performance measure representing both the assets managed by Antin from
Slide 31: Disclaimer
DISCLAIMER IMPORTANT NOTICE This document has been prepared by Antin Infrastructure Partners S.A (“Antin IP”) solely for use for communications with its shareholders. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, comple
Slide 32: For Further Information
FOR FURTHER INFORMATION ABOUT ANTIN INFRASTRUCTURE PARTNERS Antin Infrastructure Partners is a leading private equity firm focused on infrastructure. With over €31bn in Assets under Management across its Flagship, Mid Cap and NextGen SHAREHOLDER investment strategies, Antin targets investments in th
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