3i Infrastructure PLC · LSE:3IN
3i Infrastructure — H1 FY2025 Earnings Presentation
40 slides from 3i Infrastructure's earnings presentation, November 2024
Slide 1: Results for the six months to 30 September 2024
Results for the six months to 30 September 2024
Slide 2: Important information
Important information This disclaimer (and any non-contractual obligations arising out of or in connection with it) is governed by English law and applies to these materials and to their presentation and webcast on behalf of 3i Infrastructure plc (together the “Presentation”). The sole purpose of th
Slide 3: Important information (cont.) - US Persons
Important information (cont.) - US Persons The distribution of this Presentation in certain jurisdictions may be restricted by law. Persons into whose possession this Presentation comes are required to inform themselves about and to observe any such restrictions. Terms used in this disclaimer (inclu
Slide 4: Our investment approach
3) Infrastructure plc Si Our investment approach
Slide 5: Our strategy and objectives
Our strategy and objectives Our strategy Our objectives To maintain a balanced portfolio of To provide shareholders with: infrastructure investments delivering an • A total return of 8% to 10% per attractive mix of income yield and capital annum over the medium term; and appreciation for shareholder
Slide 6: Clearly defined and well proven strategy
Clearly defined and well proven strategy Our investment focus Our strategy Return Buyouts High-quality assets with strong market positions Core-plus Supported by long-term growth trends Core / PPPs Exceptional asset management Risk 6
Slide 7: Driving growth
Driving growth De-risk and Accretive growth Define white space and enhance infrastructure capex prepare for exit characteristics Clear strategy at acquisition Prioritise accretive Identify and demonstrate to strengthen downside opportunities that generate white space available to grow protection ret
Slide 8: Delivering top-quartile track record for over 15 years
Delivering top-quartile track record for over 15 years Core-plus strategy 1. Annualised growth rate in NAV per share including ordinary and special dividends 2. IRR calculation based on historic returns of European Infrastructure funds. Source: Pitchbook 8
Slide 9: Consistently achieving a premium at exit
Consistently achieving a premium at exit A deliberate focus on exit is integral to our approach 37% Avg. uplift on realisation2 23% Gross realised IRR 1 2.8x 58% 40% 48% 27% 33% 27% 31% Gross realised MOIC £2.8bn Realised proceeds FY16 FY17 FY17 FY19 FY20 FY24 FY25 Last reported valuation Exit proce
Slide 10: From asset developer to leading independent renewable power producer
From asset developer to leading independent renewable power producer c.31% Uplift since start 5x growth in of sale process1 operational • Operational asset base asset base growth to >850MW c.21% IRR • 4x EBITDA growth • Development pipeline grown to 6.6GW 3.5x Money multiple 1 Pre-sale process carry
Slide 11: Ongoing transition from plant operator and developer to asset-owning platform
Ongoing transition from plant operator and developer to asset- owning platform • Leading European utility • Strategic partnership *JLEN now known as Foresight Environmental Infrastructure 11
Slide 12: Transitioning a pure-play landfill gas business to a development platform
Transitioning a pure-play landfill gas business to a development platform Note: Installed capacity and EBITDA excludes Flexible Generation 12
Slide 13: Portfolio supported by megatrends
Portfolio supported by megatrends Megatrends Investment themes Our portfolio Renewable energy generation Energy transition Electrification / energy transition Shared resources Automation and digital operations Digitalisation Increasing connectivity and demand for bandwidth Demographic Demand for hea
Slide 14: Reinvestment driving strong earnings growth
Reinvestment driving strong earnings growth 14% EBITDA growth 10% EBITDA growth excl. energy companies incl. energy companies Mid-teens Over £400m Unlevered returns Largely self-funded Note: EBITDA reflected is the portfolio companies’ EBITDA (for the twelve months ending 30 June 2024) multiplied by
Slide 15: 3iN is differentiated
3iN is differentiated Diversified portfolio Portfolio of growing businesses Active asset management and exceptional management teams 15
Slide 16: Our performance in HY25
3) Infrastructure plc Si Our performance in HY25
Slide 17: Another period of good performance
Another period of good performance Exceeding our target return of 8-10% per annum 5.1% Total return on opening NAV Continued strong value growth in real terms 374.7p NAV per share Valorem sale proceeds to be used to pay down the RCF €309m Expected Valorem proceeds 6.325p On track to deliver the full
Slide 18: Value driven growth across the portfolio
Value driven growth across the portfolio Asset contributions to total portfolio return (£m) £212m 18
Slide 19: Our Portfolio
3) Infrastructure plc Si Our Portfolio
Slide 20: High quality, diverse and differentiated portfolio
High quality, diverse and differentiated portfolio Portfolio value £4.0bn Energy transition Assets Digitalisation 12 Renewing essential infrastructure Demographic change Note: All numbers are as at 30 September 2024. 20
Slide 21: TCR
TCR Ground support equipment in airports worldwide Ownership 72% (+28% 3i-managed co-investors) Asset Overview TCR is the largest independent lessor of airport ground support equipment (“GSE”) Date invested July 2016 and October 2022 and operates at over 210 airports across more than 20 countries. M
Slide 22: ESVAGT
ESVAGT Wind farm maintenance support vessels and emergency response vessels Ownership 83% (+17% 3i-managed co-investors) Asset overview ESVAGT is the pioneer and market leader in the provision of purpose-built, high Date invested September 2015 and February 2022 performance maintenance vessels (“SOV
Slide 23: Infinis
Infinis Renewable power generator in the UK Ownership 100% Asset overview Infinis is the largest generator of low carbon electricity from captured Date invested December 2016 and April 2018 methane in the UK, with a portfolio of renewable baseload and low carbon Management team HQ Northampton, UK fl
Slide 24: Tampnet
Tampnet Offshore telecom network Ownership 45% (+45% 3i-managed co-investors) Asset overview Tampnet operates the world’s largest offshore, high-capacity communication Date invested March 2019 network in the North Sea and the Gulf of Mexico. Management team HQ Stavanger, Norway It provides customers
Slide 25: GCX
GCX The largest private subsea cable network globally Ownership c.100% Asset overview GCX owns one of the most comprehensive subsea cable networks globally, serving Date invested September 2022 customers in over 180 countries. Its 66,000km of cables, spanning from North Management team HQ UK America
Slide 26: Joulz
Joulz Essential energy infrastructure equipment and services Ownership c.100% Asset overview Joulz is a provider of essential energy infrastructure equipment and services in the Date invested April 2019 Netherlands. It owns and leases medium voltage electricity infrastructure such as Management team
Slide 27: Ionisos
Ionisos Cold sterilisation facilities across Europe Ownership 96% Asset overview Ionisos is the third largest cold sterilisation provider globally. Date invested September 2019 It has a highly diversified customer base and delivers a mission-critical, non- Management team HQ Civrieux, France discret
Slide 28: Oystercatcher
Oystercatcher Oil product storage in Singapore Ownership 45% Asset overview Oystercatcher is the holding company through which the Company holds a 45% Date invested August 2007 and June 2015 interest in Advario Singapore Limited. Management team HQ Singapore and Hamburg Advario Singapore is a 1.3 mi
Slide 29: SRL
SRL Leading lessor of temporary traffic management equipment in the UK Ownership 92% Asset overview SRL is the market-leading temporary traffic equipment (“TTE”) rental company in Date invested December 2021 the UK. Management team HQ Cheshire, UK Its market-leading reputation is supported by its ne
Slide 30: DNS:NET
DNS:NET Fibre network owner and developer in Germany Ownership 64% Asset overview DNS:NET is an independent telecommunications provider with an existing FTTC Date invested June 2021 network in Berlin and the surrounding areas. In 2020 it moved its focus to rolling Management team HQ Berlin, Germany
Slide 31: Future Biogas
Future Biogas Renewable energy Ownership 81% Asset overview Future Biogas ("FB") is one of the largest anaerobic digestion (“AD”) plant developers Date invested February 2023 and biogas producers in the UK. Management team HQ Guildford, UK Biomethane from AD is a ready-to-use and commercially-viable
Slide 32: Appendix
3) Infrastructure plc Si Appendix
Slide 33: Portfolio summary
Portfolio summary 30 September 2024 (£m) Directors’ Allocated Underlying 1 Directors’ Accrued Foreign valuation 30 foreign portfolio Portfolio valuation 31 Investment Divestment income Value exchange September exchange income in total return Portfolio assets March 2024 in the period2 in the period m
Slide 34: Portfolio company leverage
Portfolio company leverage No material amounts of debt requiring refinancing in the short-term Conservative approach to gearing: 32% average LTV1 Actively extending tenor of portfolio debt Portfolio weighted average cost of drawn long-term debt of 4.8% Targeting investment grade senior debt structur
Slide 35: Flexible funding model
Flexible funding model Proceeds from the expected Valorem sale to pay down the RCF Liquidity £562m Cash and undrawn facilities after Valorem proceeds Revolving Credit £900m RCF Facility Maturity: November 2026 Realisations Selective divestment at the right time 35
Slide 36: Flexible funding model
Flexible funding model Balance sheet managed to be symmetrical around zero cash / debt £23m Average net debt1 Note: Portfolio value as per IFRS Balance Sheet. September 2024 is pro-forma following the expected receipt of the Valorem proceeds. 1 Average of six-monthly reported net cash / (debt) 36
Slide 37: Sensitivities to total return
Sensitivities to total return Note: Figures show the impact on portfolio value under these different scenarios. 37
Slide 38: Discount rate movement
Discount rate movement Approach to calculating discount rate remains consistent 3iN Weighted Average Discount Rate1 2% CPI Long-term inflation assumption for UK and Europe 1. Weighted Average Discount Rate excludes India Infrastructure 38
Slide 39: The dividend has grown every year since IPO
The dividend has grown every year since IPO Special dividends Ordinary dividends FY24 dividend target 6.5% p.a.1 4.8%p.a.1 10.2% 6.4% 6.5% 6.6% 6.7% 6.3% (pence per share) 1. Annualised growth rate in ordinary dividends to FY18, and from FY20 to FY25. 39
Slide 40: 3i Infrastructure plc
3) Infrastructure plc