Antin Infrastructure Partners · EURONEXT:ANTIN
Antin Infrastructure Partners — FY2021 Earnings Presentation
35 slides from Antin Infrastructure Partners's earnings presentation, Mar 24, 2022
Slide 1: Full-Year 2021 Results
FULL-YEAR 2021 RESULTS Webcast 24 March 2022
Slide 2: 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 3: Agenda
AGENDA 1 2 3 STRATEGIC UPDATE FINANCIAL PERFORMANCE Q&A ▪ 2021 highlights ▪ 2021 financial results ▪ Business and growth update ▪ Outlook ▪ Fundraising, ESG and operations 3
Slide 4: Strategic Update
INFRASTRUCTURE PARTNERS
Slide 5: 2021: A Milestone Year for Antin
2021: A MILESTONE YEAR FOR ANTIN Highlights ! 1 Mid Cap raise and 2 Strong capital 3 Robust financial 4 Team and operating 5 Progress on 6 Step change with IPO on ESG priorities launch of deployment results platform Euronext Paris NextGen and positioned for investment investment growth strategy perf
Slide 6: 2021 Fundraising, Investments and Exits on Track
2021 FUNDRAISING, INVESTMENTS AND EXITS ON TRACK FUNDRAISING INVESTMENTS GROSS EXITS ~€2.5bn ~€1.7bn ~€1.3bn across 2 funds 3 acquisitions + add-on equity(1) ~€0.5bn at cost, 2 exits(2) ~€3.8bn ~€3.3bn ~€1.6bn incl. co-investments incl. co-investments(1) ~€0.7bn at cost, incl. co-investments(2) Mid
Slide 7: All Funds Performing on or Ahead of Plan
ALL FUNDS PERFORMING ON OR AHEAD OF PLAN Recent fund vintages including Fund III, Fund III-B and Fund IV are performing in line or better than prior funds at their respective point in the fund cycle 2.8 FUND GROSS MULTIPLE EXPECTATION 2.6 2.5x II 2.5x I 2.5x 2.4 II Above plan (+0.3x in 2021) 2.2 Gro
Slide 8: Growth Powered by Strong Investment Performance
GROWTH POWERED BY STRONG INVESTMENT PERFORMANCE FOUNDATION SCALE-UP EXPANSION AUM (€bn) Launch of Mid Cap and NextGen 2.7x Realised 22.7 Gross Multiple 18.3 Launch of first fund 13.3 24% 8.2 6.9 Realised Gross IRR 4.3 4.1 2.4 3.0 1.1 1.1 1.1 0.2 (1) (1) 2008 2010 2011 2012 2013 2014 2015 2016 2017 2
Slide 9: Focused on Growth
FOCUSED ON GROWTH SCALE EXPAND ! GEOGRAPHIC STRATEGY FLAGSHIP MID CAP NEXTGEN M&A EXPANSION EXPANSION Continued Continued Fundraising Continued Launch Diligent scale-up scale-up in progress geographic complementary approach to expansion investment M&A Fund V target of strategies €10-11bn North Ameri
Slide 10: Significant Expansion of Our Fundraising Platform
SIGNIFICANT EXPANSION OF OUR FUNDRAISING PLATFORM ! EXPANSION OF GLOBAL OPENING OF GLOBALISATION OF FUND MID CAP FUND I FUNDRAISING PLATFORM SINGAPORE OFFICE INVESTOR BASE SUCCESS STORY # of employees Share of capital raised (year-end) Expand fundraising outside of Europe €2.2bn reach in the Asia-Pa
Slide 11: Further Advances on Our ESG Priorities
FURTHER ADVANCES ON OUR ESG PRIORITIES OUR SUSTAINABILTY FRAMEWORK ENVIRONMENT PEOPLE & DIVERSITY COMITMENT Act as a responsible Sustainability governance Net-zero transition DEI policy formalised company by striving to improve Established sustainability Strategy to reduce and offset Diversity, equi
Slide 12: Well Positioned to Navigate Risks and Challenges
WELL POSITIONED TO NAVIGATE RISKS AND CHALLENGES Inflation protection a key requirement as per Antin Anticipated impact for Antin portfolio infrastructure test companies ✓ 88% pass-through inflation protection Partial contractual Limited impact INFLATION ✓ Majority of financing with interest rate fi
Slide 13: Financial Performance
FINANCIAL PERFORMANCE
Slide 14: Continued Growth in Fee-Paying AUM and Revenue
CONTINUED GROWTH IN FEE-PAYING AUM AND REVENUE FPAUM (€bn) REVENUE (€m) Management fees (excl. catch-up fees) Catch-up fees Other revenue(1) Effective management fee rate(2) +17.8% excl. catch-up fees 1.39% 1.36% 1.38% +14.4% +0.5% 13.8 179.6 180.6 4.1 9.8 12.0 26.4 8.9 126.1 1.2 149.1 170.8 124.8 N
Slide 15: 2021 Revenue Up +17.8% Excluding Catch-up Fees
2021 REVENUE UP +17.8% EXCLUDING CATCH-UP FEES +17.8% excluding catch-up fees +0.5% €m Decrease in FPAUM post investment period 179.6 incl. catch-up fees 1.5 180.6 4.8 24.2 0.3 26.4 (6.4) (3.0) - 153.2 5.9 (26.4) €2.0bn commitments for final close of Flagship Fund IV in 2020 Revenue Fund II Fund III
Slide 16: Carried Interest and Investment Income
CARRIED INTEREST AND INVESTMENT INCOME CARRIED INTEREST AND INVESTMENT INCOME (€m) CAPITAL INTENSITY Investment income €31m €33m Carried interest of investments on balance sheet of additional uncalled commitments ▪ Carried interest: Flagship €4m carried interest(2) €7m carried interest(2) Fund II, g
Slide 17: 2021 Underlying Profit Lower Due to Investments in Growth
2021 UNDERLYING PROFIT LOWER DUE TO INVESTMENTS IN GROWTH Financials reflect substantial investments in platform to support Antin’s growth plans UNDERLYING EBITDA(1) (€m) UNDERLYING NET INCOME(1) (€m) Underlying EBITDA Underlying net income margin margin 63% 73% 60% 39% 52% 41% +2.6% excluding catch
Slide 18: Evolution of Operating Expenses Reflect Hiring Plan
EVOLUTION OF OPERATING EXPENSES REFLECT HIRING PLAN +53 employees hired in 2021 to support Antin’s growth plans OPERATING EXPENSES(1) (€m) EMPLOYEE DEVELOPMENT(2) (# employees) Personnel expenses Investment professionals Other operating expenses & tax Investor relations Support functions Fund admini
Slide 19: Key Takeaways: A Strong 2021 Performance
KEY TAKEAWAYS: A STRONG 2021 PERFORMANCE BUSINESS UPDATE FY 2021 FINANCIAL PERFORMANCE 2021 DIVIDEND PROPOSAL(1) ~€2.5bn +17.8% €19.2m raised across 2 new investment revenue growth to be paid in 1H 2022 strategies excl. catch-up fees in addition to €48.1m paid in 2021 ~€3.3bn €108m €0.11 per share i
Slide 20: Medium-Term Objectives
MEDIUM-TERM OBJECTIVES GROWTH PROFITABILITY DIVIDEND ▪ Long-term revenue growth in ▪ EBITDA margin >70% ▪ Majority of profits to be excess of infrastructure distributed market ▪ Absolute dividends to grow ▪ Flagship Fund V target over time commitments of €10-11bn ▪ Continued scale-up of Mid Cap 20
Slide 21: Q&A
ANTIN INFRASTRUCTURE PARTNERS Q&A
Slide 22: Appendix
ANTIN INFRASTRUCTURE PARTNERS APPENDIX
Slide 23: Continued Strong Growth in Fee-Paying AUM
CONTINUED STRONG GROWTH IN FEE-PAYING AUM +14.4% 2.8 13.8 - 12.0 - (1.0) FPAUM development in 2021 ▪ Fundraising: Mid Cap Fund I, ▪ Flagship Fund II exits: Eurofiber, Inicea (€bn) NextGen Fund I (first close) ▪ Flagship Fund III strip sale to Fund III-B ▪ Add-on equity 31-Dec-2020 Gross inflows Step
Slide 24: P&L
P&L €m, year ended 31-Dec 2021 2020 COMMENTARY A M anagement fees 170.8 175.5 • Management fee revenue declined by (2.7)% Carried interest and investment income 7.2 2.4 A B in 2021 due to a combination of effects • Increase in fees from Fund III-B and Mid Administrative fees and other revenue 2.6 1.
Slide 25: Understanding Our Underlying 2021 P&L
UNDERSTANDING OUR UNDERLYING 2021 P&L Free Share Underlying IPO-related COMMENTARY €m, year ended 31-Dec Plan & related IFRS basis basis expenses costs Management fees 170.8 170.8 • A IPO expenses Carried interest and inv estment income 7.2 7.2 • €20.1m expenses related to the preparation Administra
Slide 26: Understanding the Effects of the Free Share Plan on the P&L
UNDERSTANDING THE EFFECTS OF THE FREE SHARE PLAN ON THE P&L PERSONNEL EXPENSES RELATED TO THE FREE SHARE PLAN 2021 (€m) COMMENTARY Compensation expense Social charges A • Compensation expense • 7,447,629 shares granted at a total value of €182.4m(1) • €24.1m out of €182.4m recognised in 2021 €4.0m €
Slide 27: Balance Sheet
BALANCE SHEET €m, year ended 31-Dec 31-Dec-21 31-Dec-20 COMMENTARY Property, equipment and intangible assets 5.8 1.4 A Right-of-use assets 31.0 20.3 • Increase in right-of-use assets due to new A B Financial assets 34.8 19.4 lease and lease modifications for the office premises in Paris, with a new
Slide 28: Cash Flow Statement
CASH FLOW STATEMENT €m, year ended 31-Dec 2021 2020 % change COMMENTARY Inflow / (outflow) related to operating activities 72.0 77.8 (7.4)% o/w (increase) / decrease in working capital requirement (16.8) (11.0) +52.1% • Refurbishment of Paris offices A Inflow / (outflow) related to investing activit
Slide 29: Key Stats by Fund (1/2)
KEY STATS BY FUND (1/2) FY 2021 update €bn Committed Fund Vintage AUM Fee-paying AUM % invested % realised Gross multiple Expectation capital Flagship Fund II 2013 2.2 0.9 1.9 86% 76% 2.5x Above plan Fund III 2016 6.8 2.9 3.6 88% 24% 1.6x Above plan Fund IV 2019 9.5 6.5 6.5 60% 0% 1.2x On plan Fund
Slide 30: Key Stats by Fund (2/2)
KEY STATS BY FUND (2/2) FY 2021 update €bn COST OF INVESTMENTS VALUE OF INVESTMENTS Fee-paying Committed Fund Vintage Total Realised Remaining Total Realised Remaining AUM capital Flagship Fund II 2013 0.9 1.9 1.6 1.0 0.6 4.0 2.9 1.1 Fund III 2016 2.9 3.6 3.6 0.2 3.4 5.8 0.6 5.2 Fund IV 2019 6.5 6.5
Slide 31: Illustrative Management Fee Model
ILLUSTRATIVE MANAGEMENT FEE MODEL Illustrative single fund view FUND ~75% INVESTED INVESTMENT PERIOD POST-INVESTMENT PERIOD • Fees charged from first close with management • Once approximately 75% of total commitments have been invested fee “catch-up” charged to investors from • Remaining undrawn co
Slide 32: Illustrative Carried Interest Model
ILLUSTRATIVE CARRIED INTEREST MODEL 20% share of total carried interest to the Manager in Fund III-B, Mid Cap Fund I and future funds ILLUSTRATIVE CARRIED INTEREST EXAMPLE 1% 1% carried carriedinterest interest investment investment • 20% funded by the Manager, • 20% funded by the Manager, STEP 3: A
Slide 33: Carried Interest Pay-off Profile
CARRIED INTEREST PAY-OFF PROFILE Revenue expected to remain predominantly management fee-driven ILLUSTRATIVE CARRIED INTEREST PAY-OFF PROFILE FOR FUTURE FUNDS Net carried interest value (€m) Carried interest 80% (Fund Investors) / catch-up 20% (Manager/professionals) • For the earlier Antin Funds, c
Slide 34: Investment Income
INVESTMENT INCOME Co-investment by the manager Illustrative cash flow distribution • Co-investment in the funds by the Investment period Post-investment period Manager in addition to carried interest commitments • Starting with Fund III-B and Mid Cap Fund I, and for future funds, Antin will co-inves
Slide 35: Definitions
DEFINITIONS Antin: Umbrella term for Antin Infrastructure Partners S.A. Antin Funds: Investment vehicles managed by Antin Assets Under Management (AUM): Operational performance measure representing both the assets managed by Antin from which it is entitled to receive management fees or a carried int
Antin Infrastructure Partners — FY2021 Earnings Presentation on 6ix