Antin Infrastructure Partners · EURONEXT:ANTIN
Antin Infrastructure Partners — H1 2023 Earnings Presentation
29 slides from Antin Infrastructure Partners's earnings presentation, Aug 4, 2023
Slide 1: Half-Year 2023 Results
HALF-YEAR 2023 RESULTS Webcast 4 August 2023 1
Slide 2: Agenda
AGENDA 1 2 3 HIGHLIGHTS AND FINANCIAL Q&A BUSINESS UPDATE PERFORMANCE ▪ 1H 2023 highlights ▪ 1H 2023 financial results ▪ Activity update ▪ Outlook 2
Slide 3: Highlights and Business Update
HIGHLIGHTS AND BUSINESS UPDATE 3
Slide 4: First-Half 2023 Highlights
FIRST-HALF 2023 HIGHLIGHTS Fundraising Three investments Stable investment Strong financial Significant cash progressed announced, performance, performance. position to towards targets. with a strong with resilient Near-doubling of support growth More than focus on portfolio underlying net €30bn in
Slide 5: High Level of Activity Despite Challenging Environment
HIGH LEVEL OF ACTIVITY DESPITE CHALLENGING ENVIRONMENT Over the last six months FUNDRAISING (in €bn) INVESTMENTS (in €bn) GROSS EXITS (in €bn) 1.2 1.1 0.5 0.6 0.7 0.0 1H 2022 1H 2023 1H 2022 1H 2023 1H 2022 1H 2023 FLAGSHIP NEXTGEN exit of lyntia Networks Flagship €8.5bn raised closed in 1Q23 Fund V
Slide 6: Disciplined Capital Deployment with a Proven Investment Framework
DISCIPLINED CAPITAL DEPLOYMENT WITH A PROVEN INVESTMENT FRAMEWORK DISCIPLINED INVESTMENT FRAMEWORK RESILIENT PORTFOLIO COMPANIES ANTIN INFRASTRUCTURE TEST COMPELLING CASES GROWTH (1) Last twelve months 1 HIGH BARRIERS >50 Investment Committee meetings in 1H 2023 TO ENTRY Revenue EBITDA 2 STABLE AND
Slide 7: Broadly Stable Gross Multiples in 1H 2023
BROADLY STABLE GROSS MULTIPLES IN 1H 2023 All funds are performing on plan or ahead of plan II FUND II – VINTAGE 2013 III FUND III – VINTAGE 2016 2.6x 2.6x 2.6x 2.6x 2.6x 1.8x 1.9x 1.8x 1.8x 1.8x ABOVE PLAN ABOVE PLAN ~92% ~38% Realised (1) Realised (1) Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Sep-
Slide 8: Financial Performance
INFRASTRUCTURE PARTNERS FINANCIAL PERFORMANCE Seeing potential | delivering value
Slide 9: Strong Growth Across All Key Metrics
STRONG GROWTH ACROSS ALL KEY METRICS AUM FEE-PAYING AUM REVENUE UNDERLYING EBITDA UNDERLYING NET INCOME >98% More than Close to management 60% Nearly €30bn €20bn margin doubled fees +43.8% +72.5% +98.2% +37.4% +45.1% 30.7 19.7 138.1 82.8 60.7 22.4 13.6 96.1 48.0 30.6 1H 2022 1H 2023 1H 2022 1H 2023
Slide 10: Strong Revenue Growth from Continued Scale-Up of Flagship and Expansion
STRONG REVENUE GROWTH FROM CONTINUED SCALE-UP OF FLAGSHIP AND EXPANSION OF INVESTMENT STRATEGIES (in €m) +43.8% Flagship Fund V 64.0 Flagship Fund IV (21.4) Flagship Fund II (0.9) Flagship Fund III (1.0) Fund III-B (0.5) 0.0 4.5 1.0 138.1 40.3 (3.8) 96.1 Investment income (3.1) Carried interest (0.8
Slide 11: Significant Long-Term Carried Interest Revenue Potential
SIGNIFICANT LONG-TERM CARRIED INTEREST REVENUE POTENTIAL CARRIED INTEREST POTENTIAL REVENUE MIX Carried Committed Antin % Current Target Interest Fund Vintage capital of Carried Gross Gross potential (in €bn) Interest Multiple Multiple (in €m) Flagship ~98% management fee Fund III-B 2020 1.2 20% 1.7
Slide 12: Operating Leverage Embedded in Our Business Model
OPERATING LEVERAGE EMBEDDED IN OUR BUSINESS MODEL OPERATING EXPENSES (1) (€m) HEADCOUNT GROWTH Personnel expenses Professional services and others Other operating expenses and taxes Fund administration +15.0% +13.1% Compared with +43.8% revenue growth 55.3 216 48.0 191 200 15.4 30 26 26 15.7 39.9 17
Slide 13: Materially Increased Earnings Capacity
MATERIALLY INCREASED EARNINGS CAPACITY Net income nearly doubled UNDERLYING EBITDA (€m) UNDERLYING NET INCOME (€m) Underlying EBITDA Underlying earnings per share margin before dilution (€) 50% 60% 0.18 0.35 +72.5% 82.8 +98.2% 60.7 48.0 30.6 1H 2022 1H 2023 1H 2022 1H 2023 13
Slide 14: Balance Sheet Light Model with Capacity to Fund Growth
BALANCE SHEET LIGHT MODEL WITH CAPACITY TO FUND GROWTH As of 30 June 2023 BALANCE SHEET LIGHT (€m) BALANCE SHEET USAGE €425.0m €425.0m 624.5 624.5 Cash and Cash and cash cash equivalents equivalent Non-current 128.1 88.4 Current liabilities assets Non-current 53.0 Other current 71.4 liabilities asse
Slide 15: Most of Cash Earnings Distributed to Shareholders
MOST OF CASH EARNINGS DISTRIBUTED TO SHAREHOLDERS Interim dividend more than doubled year-on-year, reflecting strong performance DISTRIBUTIONS (€ per share) ON BEHALF OF HALF-YEAR 2023 QUANTUM €0.32 per share (1) 2.3x DISTRIBUTION €57.3 million 0.32 94% pay-out ratio 0.14 PAYOUT on the underlying ne
Slide 16: Outlook
OUTLOOK GROWTH PROFITABILITY DISTRIBUTIONS ▪ Long-term growth in FPAUM ▪ Significantly increase the ▪ Majority of cash profits to be above that of infrastructure underlying EBITDA in 2023 distributed market compared with 2022 ▪ Annual dividend to grow over ▪ Raise ~€10bn for Flagship ▪ Underlying EB
Slide 17: Closing Remarks
CLOSING REMARKS ✓ Infrastructure super cycle driven by the energy transition and digitalisation ✓ Infrastructure is a fast-growing asset class with investor allocations well below targets ✓ #1 pure-play infrastructure private equity firm in Europe and among top 10 globally ✓ Top tier investment perf
Slide 18: Q&A
ANTIN INFRASTRUCTURE PARTNERS Q&A HSIN, W/Z Gy 4 Seeing potential | delivering value
Slide 19: Appendix
INFRASTRUCTURE PARTNERS APPENDIX Seeing potential | delivering value
Slide 20: Strong Growth in AUM and FPAUM Over the Last Twelve Months
STRONG GROWTH IN AUM AND FPAUM OVER THE LAST TWELVE MONTHS +37.4% 9.3 (1.6) 0.6 30.7 - 22.4 AUM DEVELOPMENT (€BN) lyntia Networks Incl. ~€8.5bn for Flagship Fund V and ~€0.3bn for NextGen Fund I 30-Jun-22 Gross inflows Step-downs Exits Revaluations 30-Jun-23 +45.1% 9.6 (2.9) (0.6) 19.7 - FPAUM 13.6
Slide 21: Income Statement on an Underlying Basis
INCOME STATEMENT ON AN UNDERLYING BASIS (€m) 1H 2023 1H 2022 Management fees 136.7 91.8 Carried interest and investment income (0.9) 3.0 Administrative fees and other revenue net 2.3 1.3 TOTAL REVENUE 138.1 96.1 Personnel expenses (39.9) (32.3) Other operating expenses & tax (15.4) (15.8) UNDERLYING
Slide 22: Income Statement: From Underlying to IFRS
INCOME STATEMENT: FROM UNDERLYING TO IFRS (€m, 1H 2023) Underlying basis Non-recurring items IFRS basis Management fees 136.7 - 136.7 Carried interest and investment income (0.9) - (0.9) Administrative fees and other revenue net 2.3 - 2.3 TOTAL REVENUE 138.1 - 138.1 Personnel expenses (39.9) (40.2)
Slide 23: Balance Sheet
BALANCE SHEET (€m) 30-Jun-2023 31-Dec-2022 Property, equipment and intangible assets 20.3 19.0 Right-of-use assets 50.4 50.6 Financial assets 38.5 41.6 Deferred tax assets and other non-current assets 19.0 17.2 TOTAL NON-CURRENT ASSETS 128.1 128.4 Other current assets 71.4 46.4 Cash and cash equival
Slide 24: Cash Flow Statement
CASH FLOW STATEMENT (€m) 1H 2023 1H 2022 INFLOW / (OUTFLOW) RELATED TO OPERATING ACTIVITIES 55.9 32.3 Of which (increase) / decrease in working capital requirement (21.7) (4.9) INFLOW / (OUTFLOW) RELATED TO INVESTING ACTIVITIES (0.6) (9.9) Of which purchase of property and equipment (3.9) (6.7) Of w
Slide 25: Key Stats by Fund (1/2)
KEY STATS BY FUND (1/2) As of 30 June 2023 (€bn) Fee-paying Committed Fund Vintage AUM % committed % realised Gross multiple Expectation AUM capital Flagship Fund II 2013 0.6 0.3 1.8 87% 92% 2.6x Above plan Fund III (1) 2016 5.5 2.4 3.6 89% 38% 1.8x Above plan Fund IV 2019 11.3 4.4 6.5 84% - 1.3x On
Slide 26: Key Stats by Fund (2/2)
KEY STATS BY FUND (2/2) As of 30 June 2023 (€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 2.4 3.6 2.9 0.6 2.4 5.9 2.0 3.9 Fund IV 20
Slide 27: 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 28: 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 29: For Further Information
FOR FURTHER INFORMATION ABOUT ANTIN INFRASTRUCTURE PARTNERS Antin Infrastructure Partners is a leading private equity firm focused on infrastructure. With over €30bn in Assets under Management across its Flagship, Mid Cap and NextGen SHAREHOLDER investment strategies, Antin targets investments in th
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