Slide 1: HICL Infrastructure PLC Annual Results Presentation
HICL Infrastructure PLC Annual Results Presentation 21 May 2025
Slide 2: Important information
Important information For Investment Professionals (as defined under FSMA 2000). Individuals without professional experience in matters relating to investments should not rely on this information By attending the meeting where this presentation is made, or by reading the presentation slides, you agr
Slide 3: Annual Results Highlights & Investment Proposition
Annual Results Highlights & Investment Proposition hicl.com | 3
Slide 4: HICL at a glance
HICL at a glance 1. 2. 3. Core Active Established positioning management pedigree ▪ Essential infrastructure ▪ Hands-on approach ▪ Specialist management ▪ Inflation protection ▪ Active asset rotation ▪ 19-year track record ▪ Lower end of risk spectrum ▪ Driving outperformance ▪ Global capability Bla
Slide 5: Key themes in the year
Key themes in the year Strategic Solid operating Embedded capital allocation performance long-term growth £244m 1.56x1 / 1.07x £450m+ Divestments completed FY25 dividend cover Growth capex to 2030 £150m 8.50pps £113m Buyback programme expanded New FY27 dividend guidance2 Equity commitments >£200m +1
Slide 6: Underlying performance remains solid amidst a difficult backdrop
Underlying performance remains solid amidst a difficult backdrop 153.1p 7.7% NAV per share Annualised underlying portfolio return1 31 March 2024: 158.2p 31 March 2024: 9.0% £10.0m 8.4% RCF drawings Weighted average discount rate 31 March 2024: £187.2m 31 March 2024: 8.0% Blankenburg Tunnel (The Neth
Slide 7: Balanced portfolio construction drives long-term total returns
Balanced portfolio construction drives long-term total returns Yield investments Growth investments Cash generative Shorter duration Earnings generative Longer duration 500 4.0 c.10% 13yrs £253m +11% +6% 51yrs 10-yr cash yield Weighted 2025 EBITDA1 Y-o-Y 10-yr CAGR Weighted remaining life remaining
Slide 8: Attractive potential long-term real returns from income and capital growth
Attractive potential long-term real returns from income and capital growth 11.1% 12% 2.7% 1.1% OCR3 10.0% 10% 8.4% Entry point below NAV 3.5% 8% Equity risk premium Implied 6% Shareholder 2.5% Implied Net Return 4 Shareholder Return Long-term 4% implied return2 Real risk-free Dividend yield 2.4% 7.3
Slide 9: Financial Performance
Financial Performance hicl.com | 9
Slide 10: Reduction in NAV per share largely attributable to increased discount rates
Reduction in NAV per share largely attributable to increased discount rates 180 p ▼(6.3) Net debt2 170 p ▲0.9 ▼(2.6) £102.2m ▲12.0 ▼(0.8) ▼(8.3) 160 p Fund borrowing %3 150 p 7.4% 163.9 163.9 162.2 140 p 161.4 158.2 158.2 153.1 153.1 OCR4 130 p 1.10% 120 p 31 March 2024 Performance 1 Change in disco
Slide 11: Disciplined focus on maximising shareholder value
Disciplined focus on maximising shareholder value £3,700m Future commitments £3,500m ▲49.9 ▼(226.9) ▲235.5 ▼(126.2) 3,333.4 £3,300m ▼(38.3) ▲1.2 ▼(1.5) 3,227.1 3,156.4 £3,100m 3,268.9 £2,900m Income Statement Revenue 7.7% (3.2)% 0.0% (1.2)% 3,114.2 3,042.0 £2,700m £2,500m 2 31 Mar 2024 Investments C
Slide 12: Inherently defensive portfolio
Inherently defensive portfolio March 2025 Discount Rate +/- 0.5% (7.5) 8.2 HICL’s inflation correlation provides an offset to adverse Inflation -/+ 0.5% (6.7) 7.6 discount rate movements Tax Rate +/- 5% (4.4) 4.4 GDP -/+ 0.5% (2.9) 2.1 Interest Rate (Cash) -/+ 1% (2.2) 2.1 The portfolio is relativel
Slide 13: Limited portfolio refinancing exposure
Limited portfolio refinancing exposure Portfolio debt breakdown Portfolio debt profile 2.4% 70% 1-2 years 3.5% 65% 3-5 years 6-10 years 60% 86% 14% 4.0% >10 years 55% 4.1% 50% 45% Refinancing required Fixed until concession end 40% Mar 25 Mar 30 Mar 35 Mar 40 Average gearing Reduction in of assets w
Slide 14: Portfolio cash generation – solid operational performance to meet dividend target
Portfolio cash generation – solid operational performance to meet dividend target Yield Growth 55% of Portfolio value 45% of Portfolio value Operational cashflows 682 EBITDA 253 Debt service & tax (422) FY 2025 Portfolio Debt service & tax (151) cashflows Lifecycle Costs (143) Capex (80) Reserve mov
Slide 15: Self-funded capex over the next 5 years a foundation of long-term earnings growth
Self-funded capex over the next 5 years a foundation of long-term earnings growth Fortysouth Telecommunications tower company in New Zealand Affinity Water ▪ Plan to deploy 761 new towers by 2030 Water-only company in the UK 6% ▪ Tower upgrade programme, improving 5G capabilities 11% Texas Nevada Tr
Slide 16: Dividend cash cover
Dividend cash cover over the medium term expected to be 1.1x plus 1.1x dividend cash cover supports sustainable growth Dividend growth 1.2x continues in FY271 8.50pps 1.1x Dividend cash cover 1.0x 0.9x 0.8x Dividend cover provides free cash 1.1x plus medium term 0.7x for reinvestment 0.6x 2022 2023
Slide 17: Portfolio Performance
Portfolio Performance hicl.com | 17
Slide 18: HICL's core infrastructure focus
HICL’s core infrastructure focus HICL invests in core infrastructure assets with highly defensive qualities, attractive in volatile markets Cash Flow Quality Stable revenues Less operational complexity Market Positioning Defensive positioning High barriers to entry Criticality Essential assets Socia
Slide 19: Highly diversified portfolio
Highly diversified portfolio Contracted Revenues Communications Accommodation Demand-based Revenues Affinity Water 10.8% Regulated Revenues Education A63 Motorway 7.6% 9% 8% Transport 10% Fortysouth 6.3% 26% Electricity 30.4 years & Water Weighted average asset life Texas Nevada Transmission 5.1% 20
Slide 20: Operational update – Affinity Water
Operational update – Affinity Water ∆ Water-only company (non-sewerage) serving over 3.9m customers across London and the South East of the UK; 10.8% of portfolio Leading operator Leading credit ratings ∆ Ofwat’s Final Determination had a positive valuation impact and is 2nd 2nd A3 Moody’s expected
Slide 21: Operational update – demand-based assets
Operational update – demand-based assets A63 Motorway London St. Pancras High Speed (“LSPH”)1 (7.6% of portfolio) (4.9% of portfolio) ∆ Light vehicle traffic up 4% YoY; HGV traffic up 2% YoY; ∆ Eurostar paths up 6% YoY but below valuation assumption due to broadly in line with valuation assumption f
Slide 22: Operational update – modern economy assets
Operational update – modern economy assets Fortysouth Texas Nevada Transmission Altitude Infra (6.3% of portfolio) (5.1% of portfolio) (2.9% of portfolio) ∆ Strong YoY EBITDA growth in line with ∆ Operational performance in line with ∆ Wholesale revenues underpinned by valuation assumption expectati
Slide 23: Operational update – PPP assets
Operational update – PPP assets PPP assets PPP portfolio sensitivities (56.8% of portfolio) March 2025 ∆ Operational performance broadly in line with expectations due to availability-based contracted revenue streams Discount Rate +/- 0.5% (3.0) 3.2 ∆ Over 99% availability achieved over FY251 Tax Rat
Slide 24: Outlook
aN Infrastructure Outlook hickcom| 24
Slide 25: An active market supported by an increased proportion of core fundraising
An active market supported by an increased proportion of core fundraising £509m 1.8x 11% £200m+ Divestments Divestment Last Targeted expected at or processes 24m FY26 above carrying ongoing asset sales MOIC1 Realised IRR1 asset sales value Private Infrastructure Market Remains Active2 Proportion of
Slide 26: Long-term, self-sustaining model
Long-term, self-sustaining model Driven by active management Dividend cover growing – 1.1x+ Surplus cashflow and significant capex delivery over the medium term providing free cash for reinvestment Well-established track record Expecting to achieve at least Asset rotation carrying value on >£200m pi
Slide 27: Resilient performance despite continued external challenges
Resilient performance despite continued external challenges Solid operational performance driving cashflow growth and supporting continued dividend progression Further opportunities to progress strategy through reinvestment and proactive capital allocation New divestments targeted, continuing to ref
Slide 28: Appendix I: Company Information
Appendix I Company Information
Slide 29: HICL's Vision
HICL’s Vision 44% of portfolio Developing strong social foundations 36% of portfolio connecting communities 20% of portfolio supporting sustainable modern economies By value based on the Directors’ Valuation of £3,227.1m at 31 March 2025 hicl.com | 29
Slide 30: Board of Directors I
Board of Directors I Non-executive Directors with a broad range of relevant experience and qualifications Mike Bane Kenneth Reid Rita Akushie Liz Barber Chair Senior Independent Director Audit Committee Chair Risk Committee Chair Mike Bane has been a Guernsey resident for over Ken Reid is a Chartere
Slide 31: Board of Directors II
Board of Directors II Non-executive Directors with a broad range of relevant experience and qualifications Frances Davies Martin Pugh Simon Holden Remuneration Committee Chair Director Director Frances Davies has more than 30 years of Martin Pugh has over 35 years in the infrastructure Mr Simon Hold
Slide 32: Investment Manager
Investment Manager Senior InfraRed team, experienced in making and managing infrastructure investments HICL’s Investment Committee HICL’s Senior Leadership HICL’s Investment Committee is the principal executive decision making body for HICL within InfraRed and is comprised of: Edward Hunt Chris Gill
Slide 33: Appendix II: The Investment Manager
Appendix II The Investment Manager
Slide 34: InfraRed Capital Partners - Established infrastructure manager with international reach
InfraRed Capital Partners - Established infrastructure manager with international reach Germany1 London New York Madrid Seoul KEY - InfraRed Office - InfraRed Managed Investments Sydney II InfraRed III IV VI infrastructure InfraRed InfraRed Infrastructure Fund III V InfraRed I Fund II Environmental
Slide 35: InfraRed Capital Partners – Mid-market specialist driving financial performance
InfraRed Capital Partners – Mid-market specialist driving financial performance Longevity One team Investment portfolio 25 years 160+ 240+ Investing in infrastructure Partners and staff across six Current investments making regional offices an impact on societies1 (inc. 30+ in-house asset managers)
Slide 36: InfraRed Capital Partners - Strong platform driving two complementary strategies
InfraRed Capital Partners - Strong platform driving two complementary strategies Value-add Core (unlisted) (listed / unlisted) International Complete Strategy Strategy reputation combined LP solutions Exit driven with local developer relationships across risk-return spectrum Buy & hold Exits / Deals
Slide 37: Appendix III: The Investment Portfolio
Appendix III The Investment Portfolio
Slide 38: HICL's Top Assets
HICL’s Top 10 Assets Sector: Electricity & Water Affinity Water (UK) % of portfolio: 10.8% (March 2024: 8.3%) HICL holding: 33.2% 1 Affinity Water Limited is the largest water-only supplier in the UK by revenue and population served covering an area of 4,515 square kilometres. Concession life remain
Slide 39: HICL's Top Assets II
HICL’s Top 10 Assets II Sector: Health Southmead Hospital (UK) % of portfolio: 3.9% (March 2024: 3.9%) HICL holding: 62.5% 6 Southmead Hospital PFI project is an 832-bed acute hospital concession on a single site at Southmead in North Bristol. Concession life remaining: 21 years Status: Operational
Slide 40: Portfolio Diversification
Portfolio Diversification HICL’s Portfolio, as at 31 March 20251 REVENUE TYPE GEOGRAPHIC LOCATION ▲ Contracted Revenues 63% ▲ UK 66% ▲ Demand-based Revenues 14% ▲ Europe (exc UK) 21% ▲ Regulated Revenues 23% ▲ North America 7% ▲ Australia / New Zealand 6% INVESTMENT STATUS SECTOR ▲ Fully operational
Slide 41: Track record of highly selective divestments
Track record of highly selective divestments Disposal track record: 27 >£1bn 9.8p Asset disposals Total proceeds since NAV outperformance since IPO IPO since IPO Disposal methodology: Result in an overall positive impact on HICL accretion metrics; Disposal process only Improve sector or geographic d
Slide 42: Sustainability highlights
Sustainability highlights Operating in a sustainable and responsible manner is central to HICL’s business model Environment Communities ▲ Initial analysis to better understand natural resource-related risks ▲ Nine initiatives run by HICL portfolio companies recognised as Gold and dependencies, drawi
Slide 43: Appendix IV: Valuation assumptions and metrics
Appendix IV Valuation assumptions and metrics
Slide 44: Key Valuation Assumptions
Key Valuation Assumptions 31 March 2025 31 March 2024 Discount Rate Weighted Average 8.4% 8.0% 3.00% p.a. to March 2025, UK (RPI2 & RPIx2) 3.00% p.a. to March 2026, 2.75% p.a. to March 2026, 3.25% p.a. to March 2030, 2.5% p.a. thereafter 3.25% p.a. to March 2030, 2.5% p.a. thereafter 2.25% p.a. to M
Slide 45: Weighted average discount rate of 8.4%
Weighted average discount rate of 8.4% 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar 06 06 07 07 08 08 09 09 10 10 11 11 12
Slide 46: Appendix V: Summary financial statements
Appendix V Summary financial statements
Slide 47: Summary Income Statement and Balance Sheet
Summary Income Statement and Balance Sheet Income Statement Year ended 31 March 2025 Year ended 31 March 2024 Investment Basis1 £m £m Total investment income 97.1 105.4 Fund expenses (35.4) (38.6) Finance costs (15.7) (36.2) Tax (0.1) (0.1) Total return 45.9 30.5 Earnings per share 2.3p 1.5p Ongoing
Slide 48: Summary Cash Flow Statement
Summary Cash Flow Statement Figures presented on an Investment Basis 31 March 2025 31 March 2024 £m £m Opening net (debt) (303.9) (147.6) Net cash flow before capital movements 177.3 175.6 Cost of new investments - (435.1) Investment disposal proceeds 230.0 269.4 Shares repurchased (61.1) - Net cash