Infratil Limited · NZX:IFT
Infratil — Investor Day (March 2024)
23 slides from Infratil's investor day presentation, Mar 5, 2024
Slide 1: Infratil Investor Day March 2024
Infratil Investor Day Managed by March 2024
Slide 2: Disclaimer
Disclaimer Information This presentation contains summary information about the Company and its activities which is current as at the date of this presentation. The information in this presentation is of a general nature and does not purport to be complete nor does it contain all the information whi
Slide 3: Welcome
Welcome Infratil 2024 Investor Day, Sydney 5 March 2024 Alison Gerry Jason Boyes Andrew Carroll • Independent Director since • Infratil Chief Executive • Infratil Chief Financial July 2014 and Infratil Chair Officer and Director since Officer since November since May 2022 April 2021 2023 • Member of
Slide 4: Agenda
Agenda 9:00am – 9.10am Welcome & Overview Infratil 2024 Alison Gerry, Chair Investor Day, 9:10am – 9:40am Portfolio Update & Growth Outlook Jason Boyes, Infratil Chief Executive Sydney Andrew Carroll, Infratil Chief Financial Officer 9:40am – 10.00am Morrison Update Paul Newfield, Morrison Chief Exe
Slide 5: Agenda
Agenda 1:10pm – 1:30pm Digital & Connectivity Update Infratil 2024 Will Smales, Morrison Chief Investment Officer & Global Head of Digital Lewis Bailey, Executive Director, Strategy Investor Day, 1:30pm – 2:20pm One NZ Sydney Jason Paris, One NZ Chief Executive 2:20pm – 3:20pm CDC Greg Boorer, CDC C
Slide 6: Portfolio Update
Portfolio Update Jason Boyes Andrew Carroll Managed by Infratil Chief Executive Infratil Chief Financial Officer
Slide 7: Infratil is a New Zealand established global infrastructure investor
Infratil Investor Day Infratil is a • Infratil invests in infrastructure, with a portfolio of investments across digital New Zealand infrastructure, renewable energy, healthcare and airports, and exposure across New Zealand, Australia and 15 other countries established global • The portfolio is weig
Slide 8: Growth investments complemented by core cash generating businesses
Infratil Investor Day Growth • One NZ is complemented by two other core cash generating businesses, investments Wellington Airport and Manawa Energy • They support target credit and liquidity metrics and reinvestment into higher complemented by returning growth capex options generated by these, and
Slide 9: Portfolio of smaller and earlier stage investments
Infratil Investor Day • UK-based colocation data centre development platform with 3 sites and 20MW of Portfolio of Owned 53% operating capacity. High performance computing, AI, enterprise and hyperscale focussed. 60MW current capacity, with visibility to 150MW+ smaller and earlier • One of New Zeala
Slide 10: Portfolio Composition
Portfolio Composition Our portfolio is centred on investment into Digital Renewables Healthcare Airports four central 64% 20% 11% 5% “ideas that matter” Infratil Investor Day 2024 10
Slide 11: Track Record
Track Record Period Total Shareholder Return1 Infratil targets 5-years 26.2% total shareholder 10-years 21.4% returns of 11 – 15% 30-years 18.7% p.a. over a ten- Year to date 15.9% year rolling period, Returns (%) Accumulation Index ($) 150.0% 175,000 our track record 125.0% 150,000 100.0% 125,000 h
Slide 12: Investment Approach
Investment Approach Active portfolio and asset management generates long-term value Target Digital Renewables Healthcare Other Returns Core 8-10% Stable cash generation and moderate growth Target portfolio returns of Core Plus 10-15% Reinvestment into growth capex and higher returns 11 – 15% p.a. ov
Slide 13: Investment Approach: Growth platforms manufacture core assets
Investment Approach Growth platforms manufacture core assets to support further reinvestment Target Digital Renewables Healthcare Other Returns 64% 20% 11% 5% Core 8-10% Core Plus 10-15% Development 15-25% & Growth 13
Slide 14: What we said last year, and what we did
Investment Approach What we said last year, and what we did 2023 Infratil Investor Day Outlook 2024 Infratil Investor Day Update • Evaluate further attractive data centre and connectivity • Announced a conditional agreement with HKT to establish a strategic partnership to opportunities offshore acce
Slide 15: A Sustainable Approach
A Sustainable Approach Key elements • We released our inaugural sustainability report in August covering: • Infratil’s refreshed sustainability strategy and ESG material issues – good of sustainability governance of ESG issues is a prominent area of focus • Emissions reporting in line with the GHG P
Slide 16: CFO Early Reflections: Growth Potential
CFO Early Reflections Significant growth Growth Potential • There are significant expansion opportunities within existing portfolio potential and companies - "growth" infrastructure value upside. • Heavy bias in portfolio capex investment towards growth returns, reflecting return aspirations Portfol
Slide 17: CFO Early Reflections: Role of Independent Valuations
CFO Early Reflections Independent Role of Independent Valuations • Independent valuations seem to have created a "glass ceiling" and a material valuations don't gap to Infratil’s own valuations always fully value • A large part of the value gap relates to the valuation of growth, of which our larges
Slide 18: CFO Early Reflections: Capital Management
CFO Early Reflections Portfolio and We have many tools to manage future capital demands • Portfolio company performance to drive operating cashflow capital • Control positions provide ability to influence size and timing of cash flows management is a • Future cash flow from today’s growth investment
Slide 19: Key Messages
Key Messages Solid operating performance & outlook, supporting credit & liquidity metrics Portfolio remains • Guidance unchanged well-positioned in • Wellington Airport emerging strongly from COVID and repricing high quality • Healthcare businesses tracking ahead of peers platforms, in Growth tail w
Slide 20: Appendix
Managed by Appendix
Slide 21: Debt Capacity & Facilities
Debt Capacity & Facilities Significant 31 December 30 September 31 March ($millions) 2023 2023 2023 undrawn bank Net bank debt 734.2 609.8 (593.2) Infrastructure bonds 1,241.0 1,241.0 1,085.9 facilities remain Perpetual bonds Total net debt 231.9 2,207.2 231.9 2,082.7 231.9 724.6 available following
Slide 22: Portfolio Company Debt
Portfolio Company Debt We intend Net Debt / 30 September 2023 Gearing1 EBITDA2 • Gearing and credit metrics are monitored to complement CDC3 22.3% - across the portfolio in aggregate and at One NZ 32.1% 3.0 the individual portfolio company level the 6 monthly Fortysouth Kao Data 38.1% 15.9% n/a - •
Slide 23: Asset Valuations
Asset Valuations Enhanced 31 December 30 September ($millions) 2023 2023 • CDC, Longroad Energy, Qscan and Galileo disclosure around CDC One NZ 4,307.9 3,022.8 4,160.6 3,022.8 reflect the midpoint of 31 December independent valuations independent FortySouth Kao Data 205.1 391.1 227.8 391.1 • RHCNZ M