3i Infrastructure PLC · LSE:3IN
3i Infrastructure — FY2022 Earnings Presentation
34 slides from 3i Infrastructure's earnings presentation, May 2022
Slide 1: Results for the full year to 31 March 2022
Results for the full year to 31 March 2022
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: Consistently strong performance against our objectives
Consistently strong performance against our 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, to be achieved over the ap
Slide 5: Generating value in the current market: focusing on Mid-Market Economic Infrastructure
Generating value in the current market: focusing on Mid-Market Economic Infrastructure Asset intensive, resilient Return companies Mid Market Economic Asset bases that are hard to Infrastructure replicate Core Providing essential services Infrastructure Established market positions Operational PPPs
Slide 6: Another excellent year
Another excellent year Exceeding target return of 8-10% 17.2% Strong level of new investment £980m Oystercatcher: 14% IRR Successful realisations European Projects: 20% IRR Delivered FY22 dividend target, fully covered 10.45p Setting higher target for FY23 11.15p, up 6.7% 6
Slide 7: Available liquidity
Available liquidity (£m) 600 103 (300) 98 17 cash 169 (47) undrawn RCF Deferred WIG proceeds European Projects GCX acquisition Final dividend Additional RCF 7
Slide 8: Strong return from a diversified portfolio
Strong return from a diversified portfolio for the year ended 31 March 2022 Total portfolio return 19.8% ESVAGT 18.5% Infinis 15.7% TCR 40.0% Tampnet 11.3% Joulz 8.9% Ionisos 18.3% Oystercatcher 81.5% DNS:NET 6.7% SRL 4.0% Valorem 16.4% Attero 16.2% Projects 20.4% Note: The above chart is not time-w
Slide 9: Our portfolio outperformed expectations
Our portfolio outperformed expectations Projects Portfolio value including commitments 4% 3% 5% 17% £3.2bn 6% 6% Total portfolio return 10% 19.8% Oystercatcher 7% 9% 8% 9% 8% 8% 9
Slide 10: ESVAGT
ESVAGT Wind farm maintenance support vessels and emergency response vessels • 3iN now owns 100% of the business, following the acquisition of AMP Capital’s 50% stake • Won a milestone contract with Ørsted for the world’s first green support vessel, which will operate on the Hornsea 2 wind park in th
Slide 11: Infinis
Infinis Renewable power generator in the UK • Performed strongly on the back of good operational performance, high power prices and price volatility • Positive correlation to UK RPI through the index- linked ROC regime • Growing solar platform: 100MW to start construction in FY23, additional 100MW i
Slide 12: GCX
GCX One of the most comprehensive subsea cable networks globally • Owns one of the most comprehensive subsea cable networks globally, with 66,000km of cables serving customers globally • Benefits from the rapidly expanding data market with data usage forecast to grow exponentially • Operates in a ma
Slide 13: TCR
TCR Ground support equipment in airports worldwide • Performed ahead of expectations despite further travel restrictions in the winter, further demonstrating its resilient business model • New contracts signed across geographies and the pipeline remains very active with a variety of parties, confirm
Slide 14: Tampnet
Tampnet Offshore telecommunications networks • Strong performance in the period as customers upgrade their bandwidth requirements in the North Sea and an important contract with Equinor was renewed, providing long term visibility • Increased momentum due to higher oil prices and a renewed focus on s
Slide 15: Joulz
Joulz Essential energy infrastructure equipment and services in the Netherlands • Financial performance in line with expectations: strong order intake in Infra Services partially offset by churn in Metering • Carve out from Stedin and ERP implementation completed • New head of Metering appointed dur
Slide 16: Ionisos
Ionisos Cold sterilisation facilities across Europe • Strong performance on the back of higher growth than expected and favourable product mix • Construction of a new site in Kleve, Germany, on track, with operations expected to start in Summer 2022 • Looking to expand facilities to meet growing dem
Slide 17: Oystercatcher
Oystercatcher Oil product storage in Singapore • Realisation of the four European terminals at an attractive price: unrealised IRR of 14% and 3x money multiple • Remaining invested in a 45% stake in the Singapore terminal, which benefits from more attractive medium-term market dynamics • Contracts r
Slide 18: DNS:NET
DNS:NET Leading independent telecommunications provider in Germany • Performing in line with expectations: roll-out initially slower than anticipated but accelerating, two new contractors signed up to secure capacity, consumer take up remaining high • Market fundamentals continue to be favourable: 3
Slide 19: SRL
SRL Leading lessor of temporary traffic management equipment in the UK • UK’s leading lessor of temporary traffic management equipment • Sound market fundamentals through the increasing emphasis placed on health and safety, and a growing propensity to rent rather than own equipment £191m • Performin
Slide 20: Valorem
Valorem Renewable energy operator and developer • Fully owned capacity now 663MW, compared to 179MW at inception • Core business in French onshore wind performing in line with expectations despite low wind conditions in the year • Milestone Viatti project in Finland (c.10x larger than £80m the large
Slide 21: Attero
Attero Waste treatment and processing in The Netherlands • Outperformance driven by higher waste volumes, gate fees and power prices • Renewed and extend key contracts, locking-in current high electricity prices • Organics and Plastics also outperformed, whilst Minerals suffered from lower construct
Slide 22: European projects
European projects Sale of European PPP projects Investment Performance (£m) 1.7x 20% IRR 129 25 104 75 Cost Total Return Valuation/ Proceeds 12% Cash income* * Cash income includes allocation of FX hedging 22
Slide 23: Sustainability - Actions we are taking
Sustainability - Actions we are taking 23
Slide 24: Appendix
3) Infrastructure plc Si Appendix
Slide 25: The dividend has grown every year since IPO
The dividend has grown every year since IPO ▪ Special dividends ▪ Ordinary dividends ▪ FY23 dividend target 41.4 4.2% p.a.1 10.2% 6.4% 6.5% 6.6% 6.7% 17.0 7.55 7.85 8.65 9.20 9.80 10.45 11.15 5.00 5.30 5.50 5.72 5.94 6.49 6.70 7.00 7.25 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY2
Slide 26: Share price has outperformed the market
Share price has outperformed the market 370 3iN FTSE 250 350 3iN NAV 330 310 290 270 250 Mar 21 Jun 21 Sep 21 Dec 21 Mar 22 3iN TSR of 13.1% p.a. has outperformed FTSE 250 TSR of 7.1% p.a. since IPO Note: 1. FTSE 250 rebased to 3iN opening share price at 1 April 2021. 2. TSR stated is per annum sour
Slide 27: Portfolio summary
Portfolio summary 31 March 2022 (£m) 1. This comprises the aggregate of value movement, foreign exchange translation, allocated foreign exchange hedging and under lying portfolio income in the period. 2. Capitalised interest totalling £55 million. 3. New investment in ESVAGT of £258 million plus £12
Slide 28: Portfolio analysis
Portfolio analysis Megatrends Portfolio value by sector Energy transition Utilities 8% 3% Communications 8% Digitalisation 9% 26% Transportation / 17% logistics Globalisation 44% 16% Natural Resources / energy Renewing social infrastructure Healthcare 24% 22% 23% Demographic Social infrastructure ch
Slide 29: Sensitivities to total return
Sensitivities to total return Inflation linkage 5% Sensitivity +1% point -1% point Directly linked to inflation Change in inflation over £43m £(45)m underlying assumption for next 2 years Partly linked to inflation 95% Foreign exchange 4% 7% GBP 36% Sensitivity +5% -5% EUR/SGD NOK Change in foreign
Slide 30: Discount rate movement
Discount rate movement The weighted average discount rate increases to 10.9% 11.3% 10.8% 10.8% 10.9% 10.5% Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 30
Slide 31: Hedging programme mitigates volatility
Hedging programme mitigates volatility (£m) FX gain before FX gain after hedging hedging 1 8 ▪ Hedged assets (€/SGD/DKK/NOK) 1 ▪ Unhedged assets (£/rupee) 6 Note: SGD exposure is within Oystercatcher, a euro denominated investment. 31
Slide 32: Introduction and Background
Introduction and Background Experienced and well resourced team established in 2006 Phil White Managing Partner Co-heads Bernardo Scott Sottomayor European Moseley Partner Infrastructure Partner Stephane Jim Stoner Thomas James Aaron Anna Matt Tim Grand- John Cavill Head of Fodor Dawes Church Dellis
Slide 33: Governance and fees
Governance and fees • Independent Chair, five independent non-executive directors and one 3i Group appointed non-executive director • Committed to observe requirements of the AIC Code of Corporate Governance Board of • Responsibilities include: Directors – overall supervision of 3i Investments plc a
Slide 34: 3i Infrastructure plc
3} Infrastructure plc