Pantheon Infrastructure PLC · LSE:PINT
Pantheon Infrastructure — Q2 2023 Earnings Presentation
47 slides from Pantheon Infrastructure's earnings presentation, Sep 27, 2023
Slide 1: Pantheon Infrastructure PLC Q2 2023: Results presentation
Pantheon Infrastructure PLC Q2 2023: Results presentation PRIVATE & CONFIDENTIAL PRIVATE & CONFIDENTIAL
Slide 2: Pantheon platform
Pantheon platform
Slide 3: PINT's investment platform
PINT’s investment platform Invest in a globally diversified portfolio of high-quality infrastructure assets which generate sustainable attractive Strategy returns over the long term which we believe benefit from strong downside protection from inflation and other defensive characteristics Operating
Slide 4: Pantheon has been investing in private markets for 40+ years
Pantheon has been investing in private markets for 40+ years 134 $93.4bn 40 / 60 >1,000 >625 ~10,000 ~2,000 2007 $60.9bn $32.5bn Investment AUM AUA % of AUM in Institutional Advisory Sponsors in Funds Became a professionals5 commingled / investors board seats Pantheon’s invested in signatory to Asse
Slide 5: 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 15.9% Infrastructure & $20.9bn RA assets under 31 Investment Professionals 14.1% management and advice1 Total Infrastructure 201 Investments2 7 Investment C
Slide 6: 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 25 28 Richard Sem 10 15 6 Partner, Andrea Echberg Kathryn Leaf Richard Sem Head of Europe Partner, Head of
Slide 7: The Economy and Characteristics of Infrastructure
Characteristics of Infrastructure The Economy and Society at large Key driver of Provision of Enabling digital Essential to net economic growth essential services evolution zero transition % As an investor Attractive yields Predictable Cash Portfolio Upfront costs - and total returns Flows Diversifi
Slide 8: PINT's results and portfolio
PINT’s results and portfolio
Slide 9: Portfolio overview
Portfolio overview As of 30 June 2023 £458m invested / committed to 13 assets1 Geography Sector Market segment2 Sponsors 6% 6% 6% 6% 14% 4% 19% 9% 9% 5% 16% 6% 41% 8% 16% 19% 7% 10% 7% 10% 37% 11% 77% 8% 25% 9% 9% Digital Bridge Europe Digital - Towers ECP Contracted North America Digital - Fibre As
Slide 10: NAV & Portfolio H1 2023 movement
NAV & Portfolio H1 2023 movement From 31 December 22 to 30 June 23 NAV per Share H1 ‘23 l Movement (GBp/Share) Portfolio H1 ‘23 movement (£m) Source: Pantheon 9
Slide 11: Key portfolio figures
Key portfolio figures As at 30 June 2023 14.0% 38.4% 68.0% £49.9m Weighted average Weighted average Weighted average Weighted average discount rate gearing hedged debt EBITDA Based on £391m of assets invested at 30 June 2023 – undrawn commitments or assets in legal closing are not included. Weighted
Slide 12: Selected portfolio update
Selected portfolio update As of 30 June 2023 Delta Fiber and TMobile Netherlands entered into a long-term network sharing agreement, which broadens both parties’ coverage and represents a key milestone for the open access business model that targets a greater degree of wholesale business. Calpine co
Slide 13: Balance Sheet update
Balance Sheet update As of 30 June 2023 Sources Cash & cash equivalents 90.8 Revolving Credit Facility (RCF) 115.0 Total (A) 205.8 Commitments Undrawn investment commitments 32.9 Investments in legal closing 35.0 Remaining allocation under share buyback programme 9.0 Total (B) 76.9 Buffers Operating
Slide 14: Market perspectives
Market perspectives
Slide 15: Infrastructure market indicators
Infrastructure market indicators Deal activity by geography ($bn)1 Deal activity by sector ($bn)1 893 893 CAGR4 +14% 755 CAGR4 +14% 755 594 574 594 576 553 574 576 553 429 429 351 371 351 371 2015 2016 2017 2018 2019 2020 2021 2022 Sep-23 2015 2016 2017 2018 2019 2020 2021 2022 Sep-23 Transport Rene
Slide 16: Current inflationary environment
Current inflationary environment Private infrastructure has been defensive in nature and has held value in recessionary environments Current inflationary environment Inflation pass-throughs or linkages have resulted in higher revenues for most assets. 140 12 Revenues Many of the investments that do
Slide 17: 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. 16
Slide 18: Appendix
Appendix
Slide 19: Infrastructure deal characteristics
Infrastructure deal characteristics Deal selection: characteristics and sourcing Emphasis on high-quality assets with downside protection Infrastructure co-investment deal funnel1 1 Top-quality infrastructure sponsors Deals Screened $77.7bn 784 deals 2 Essential service provider Advanced Diligence 3
Slide 20: PINT governance
PINT governance PINT’s Board of Directors have uniquely complementary infrastructure experience Vagn Sørensen Anne Baldock Patrick O’D Bourke Andrea Finegan Chair Senior Independent Director Chair of the Audit Committee Non-Executive Director Senior and experienced board Senior lawyer with over
Slide 21: 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 22: Diversified infrastructure portfolio construction
Diversified infrastructure portfolio construction Deployment on track following IPO guidance Portfolio Announcement Amount # Status Sponsor Sector Description Region Company Date Invested1 Transport & Specialised, temperature-controlled transportation and logistics 1 Invested Primafrio Apollo Mar-22
Slide 23: Valuation process
Valuation process Valuation process PINT / Investment team monitoring Annual and quarterly valuation statement, PINT team review of sponsor valuation and financial statements and portfolio reports portfolio valuation reports received from sponsors Quarterly performance/valuation review Assess accoun
Slide 24: Pantheon / PINT Valuation approval process
Pantheon / PINT Valuation approval process 1 Operations team prepares draft valuation Valuations are evaluated and prepared by the Operations Team in accordance with Pantheon Valuation Policies Capital Statements, Fund Reports reviewed and processed Back testing of Capital Statements to audited
Slide 25: Valuation review
Valuation review PINT / Investment team review and input Work papers reviewed Company Financial Metrics Information Information Discount Rate PINT / Investment Portfolio ValComm Team sensitivities Revenue/ EBITDA/NET Company level Financial reporting Debt knowledge review Key valuation drivers Feedb
Slide 26: Case studies
Case studies
Slide 27: 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 28: 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 29: National Gas
National Gas Company name National Gas Transaction / company overview Sector Power & Utilities – Gas utility National Gas is the owner and operator of the UK’s sole gas transmission network, and metering regulated by Ofgem; and an independent, highly contracted metering business Geography Europe
Slide 30: 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 North America wireless infrastructure in the United States, with ~7,000 owned towers across the country. Spons
Slide 31: 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 the Geography Europe Netherlands, providing broadband, TV, telephone and mobile services to B2C, Sponsor Stonepeak B2B customers and wh
Slide 32: 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 33: 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 34: 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 35: 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 36: 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 37: GD Towers
GD Towers Company name GD Towers Transaction / company overview Sector Digital – Towers DigitalBridge, alongside Brookfield Asset Management, agreed to buy 51% of Geography Europe GD Towers from Deutsche Telekom for a total Enterprise Value of €17.5bn Sponsor DigitalBridge GD Towers is one of th
Slide 38: GlobalConnect
GlobalConnect Company name GlobalConnect Transaction / company overview Sector Digital In Q4 2022, EQT Infrastructure III announced a minority stake (15%) sale to Geography Europe Mubadala. PINT invested alongside other co-investors following this transaction, while EQT retained a majority (contro
Slide 39: Zenobe
Zenobe Company name Zenobe Transaction / company overview Sector Energy Transition This transaction was driven by the need for additional equity in the company, which was required to support Zenobe’s growth. PINT invested alongside Geography UK Infracapital, with Infracapital retaining a co-contro
Slide 40: Glossary of terms
Glossary of terms
Slide 41: Glossary of terms
Glossary of terms AIC The Association of Investment Companies. AIC Code The AIC Code of Corporate Governance. AUM Assets Under Management are the total market value of investments held under management by an individual or institution. When referring to Pantheon’s AUM, this figure includes assets man
Slide 42: Glossary of terms
Glossary of terms Exit Realisation of an investment, usually through trade sale, sale by public offering (including IPO), or sale to a financial buyer. GIRAC Global Infrastructure and Real Assets Committee. Initial public offering (IPO) The first offering by a company of its own shares to the public
Slide 43: Glossary of terms
Glossary of terms Portfolio investment return Total movement in the valuation of the underlying assets comprising the Portfolio, expressed as a percentage of opening portfolio value. Foreign exchange effects and other expenses are excluded from the calculation. Primaries Commitments made to private
Slide 44: Disclosure and important notice
Disclosure and important notice
Slide 45: 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 46: 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 47: 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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