3i Infrastructure PLC · LSE:3IN
3i Infrastructure — FY2023 Earnings Presentation
34 slides from 3i Infrastructure's earnings presentation, May 2023
Slide 1: Results for the full year to 31 March 2023
Results for the full year to 31 March 2023
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 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 5: Top-quartile track record
Top-quartile track record 336.2 303.3 268.1 254.5 234.7 211.0 169.0 161.0 149.9 121.9 121.0 125.2 126.4 112.9 117.7 109.3 Core-plus strategy Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 1. Annualised growth rate in NAV per share incl
Slide 6: The dividend has grown every year since IPO
The dividend has grown every year since IPO ▪ Special dividends 3iN: Dividend per share ▪ Ordinary dividends ▪ FY24 dividend target 41.4 6.6% p.a.1 4.6% p.a.1 17.0 10.2% 6.4% 6.5% 6.6% 6.7% 6.7% 8.65 9.20 9.80 10.45 11.15 11.90 5.00 5.30 5.50 5.72 5.94 6.49 6.70 7.00 7.25 7.55 7.85 FY08 FY09 FY10 FY
Slide 7: Our approach
Our approach Return Core-plus infrastructure Strong market positions Core infrastructure Supportive megatrends Operational PPPs Our investment focus Exceptional asset management Risk 7
Slide 8: High quality, diverse and differentiated portfolio
High quality, diverse and differentiated portfolio Portfolio value 6% 13% Energy transition 8% £3.6bn Oystercatcher Digitalisation 7% Assets 11% Globalisation 13 1% Demographic 15% change 8% Renewing social infrastructure 5% 5% 4% 8% 9% Note: All numbers are as at 31 March 2023. 8
Slide 9: Delivering another excellent year
Delivering another excellent year Significantly exceeding our target return of 8-10% p.a. 14.7% Total return on opening NAV Continued strong value growth in real terms 336.2p NAV per share Delivered FY23 dividend target, fully covered 11.15p Setting higher target for FY24 11.90p, up 6.7% 9
Slide 10: Value driven growth across the portfolio
Value driven growth across the portfolio Positioned to continue to outperform Asset contributions to total portfolio return (£m) £501m Projects 1. (now sold) Oyster- catcher (43) 1. Acquired in February 2023. Total portfolio return is not annualised. 10
Slide 11: Growth investment cycle
Growth investment cycle Capex spend is translating into EBITDA growth at portfolio companies High level of portfolio 18% company earnings growth Portfolio aggregate EBITDA growth Portfolio companies Over £400m in FY23 investment in growth capex Largely self-funded Growth capex generating accretive r
Slide 12: Portfolio company leverage
Portfolio company leverage Portfolio companies are conservatively geared Average LTV1: 33% £1,200m Relatively modest levels of £1,089m gearing £1,000m £956m £907m £800m 3iN equity value No material refinancing £600m requirements before 2026 £400m £473m £200m Ample headroom to covenants £0m < 25% 26
Slide 13: Active management strategy
Active management strategy Repositioning for value creation upon exit Exit proceeds 48% % Uplift Last reported valuation 40% 33% 27% 58% Last valuation Last valuation Last valuation Last valuation Last valuation Exit proceeds Exit proceeds Exit proceeds Exit proceeds Exit proceeds AWG Elenia Eversho
Slide 14: Our Portfolio
3) Infrastructure plc Si Our Portfolio
Slide 15: Future Biogas
Future Biogas New investment Future Biogas is one of the largest anaerobic digestion (‘AD’) plant developers and biogas producers in the UK, operating 11 AD plants on behalf of institutional investors under long-term contracts. There is strong political support and growing corporate demand for domes
Slide 16: TCR
TCR Ground support equipment leasing in airports worldwide TCR is the largest independent lessor of airport ground support equipment (“GSE”) and operates at over 190 airports. TCR has defined the market for leased GSE, providing high quality assets under full-service leasing, as well as maintenance
Slide 17: ESVAGT
ESVAGT Wind farm maintenance support vessels and emergency response vessels ESVAGT is the pioneer and market leader in the provision of purpose-built, high performance maintenance vessels (“SOVs”) to offshore wind farms, with nine in operation and two further vessels under construction. SOVs provide
Slide 18: Infinis
Infinis Renewable power generator in the UK Infinis is the largest generator of low carbon electricity from captured methane in the UK, with a portfolio of renewable baseload and low carbon flexible generation across 150 sites and a total installed capacity of 442MW. The business is rapidly transfor
Slide 19: GCX
GCX One of the most comprehensive subsea cable networks globally GCX owns one of the most comprehensive fibre-optic subsea cable networks globally and is a key infrastructure provider in the rapidly expanding data market. Its 66,000km of cables would be costly and lengthy to replicate and constitute
Slide 20: Ionisos
Ionisos Cold sterilisation facilities across Europe Ionisos is the third largest cold sterilisation provider globally. It has developed a highly diversified customer base and delivers a mission-critical service for the medical, pharmaceutical and cosmetics industries for whom cold sterilisation is a
Slide 21: Tampnet
Tampnet Offshore telecom network Tampnet owns and operates the world’s largest offshore, high-capacity communication network in the North Sea and the Gulf of Mexico. It provides customers with mission-critical reliable communications including high speed, low latency and resilient data connectivity
Slide 22: Joulz
Joulz Essential energy infrastructure equipment and services Joulz is a provider of essential energy infrastructure equipment and services in the Netherlands. It owns and leases medium voltage electricity infrastructure such as transformers, switchgears and cables (Infra Services) alongside a meteri
Slide 23: Oystercatcher
Oystercatcher Oil product storage in Singapore Oystercatcher is the holding company through which the Company holds a 45% interest in Advario Singapore Limited (“ADS”). ADS is a 1.3 million cubic metre facility focused on blending and storing refined petroleum products for a range of blue-chip custo
Slide 24: SRL
SRL Leading lessor of temporary traffic management equipment in the UK SRL is the largest temporary traffic equipment (“TTE”) rental company in the UK. Its market-leading reputation is supported by its network of 30 depots nationwide, providing a 24/7 365 days a year service on which customers rely
Slide 25: Valorem
Valorem Diversified renewable energy developer and producer Valorem is a leading independent European renewable energy developer and power producing company. It is one of the largest onshore wind developers in France, having developed over 1GW of capacity over the last 15 years. It has been a very s
Slide 26: DNS:NET
DNS:NET Fibre network owner and developer in Germany DNS:NET is a Berlin-based telecommunications company that has an existing FTTC network in Berlin and that is now focused on rolling out an FTTH network in the Berlin vicinity and neighbouring regions of Brandenburg and Saxony Anhalt. Its focus is
Slide 27: Attero
Attero Waste treatment and processing in the Netherlands Attero is the leading Dutch player in the waste treatment market. It owns two of the largest and best located energy from waste (“EfW”) plants in Western Europe, anaerobic digestion facilities, composting facilities and landfills. It also oper
Slide 28: Appendix
3) Infrastructure plc Si Appendix
Slide 29: Portfolio summary
Portfolio summary 31 March 2023 (£m) 1. This comprises the aggregate of value movement, foreign exchange translation, allocated foreign exchange hedging and underlying portfolio income in the year. 2. Capitalised interest totalling £95 million across the portfolio. 3. Syndication of investments in E
Slide 30: Sensitivities to total return
Sensitivities to total return Discount rate -1% £343m Discount rate +1% £(296m) Inflation rates (next two years) -1% £(52m) Inflation rates (next two years) +1% £47m Long-term interest rates -1% £175m Long-term interest rates +1% £(182m) Note: Figures show the impact on portfolio value under these d
Slide 31: Flexible funding model
Flexible funding model Balance sheet managed to be symmetrical around zero cash / debt Cash £5m Uninvested cash Revolving Credit Facility £900m RCF £399m undrawn (“RCF”) Maturity: November 2025 with one year extension New equity £100m February 2023 equity raise net of issue costs Realisations Select
Slide 32: Strong return from a diversified portfolio
Strong return from a diversified portfolio For the year ended 31 March 2023 1 Total portfolio return 15.1% Attero 42.1% Valorem 30.5% Tampnet 26.4% TCR 25.3% Ionisos 22.8% Infinis 18.9% Joulz 16.4% Oystercatcher 11.1% ESVAGT 10.9% SRL 10.3% 2 GCX 6.0% Projects (now sold) 3 1.9% 2 Future Biogas 0.6%
Slide 33: Discount rate movement
Discount rate movement Approach to calculating discount rate remains consistent Lowest and highest 3iN WADR (excl. India) discount rates 13.2% 12.7% 12.8% 12.2% 12.3% 11.7% 11.6% 11.3% 11.3% 11.3% 10.5% 10.8% 10.8% 10.9% 10.0% 9.8% 10.0% 10.0% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 F
Slide 34: 3i Infrastructure plc
3) Infrastructure plc