Infratil Limited · NZX:IFT
Infratil — Investor Day (March 2023)
20 slides from Infratil's investor day presentation, Mar 24, 2023
Slide 1: Infratil Investor Day Presentation
Infratil Investor Day Presentation 24 March 2023 Paul Gaynor Chief Executive Officer
Slide 2: Background and LTM Achievements
Background and LTM Achievements Background LTM Achievements • Vertically integrated developer, • 1.3 GW project closings owner, operator, established 2016 • US$3 billion total capital raised • US wind, solar, and storage • US$500 million equity raise; • ~160 people MEAG introduced as new investor •
Slide 3: Market Fundamentals Are Strong
On the Path to US$500 million run-rate Opco EBITDA Solar +63 GW Wind +38 GW Storage +20 GW/78 GWh Source: BNEF Solar (ex. Residential) Projects Our Job…. To grow Opco Capital Equipment Wind (onshore) EBITDA to US$500 Sourcing million run-rate Market Fundamentals Are Strong COPYRIGHT © LONGROAD ENERG
Slide 4: 600 GW Total Market to 2030 ~ 65 GW Annually
Game Changing Legislation: Inflation Reduction Act 2022-2030 Solar Build Features of the IRA 2022 301 + 63 (IRA) = 364 GW • 10-year PTC 2022-2030 Wind Build • 10-year ITC • Solar PTC 109 + 38 (IRA) = 147 GW • Stand-alone Storage ITC 2022-2030 Storage Build • Made in America 87 + 20 (IRA) = 107 GW •
Slide 5: The Inflation Reduction Act Economic Impact
The Inflation Reduction Act Economic Impact Potential Value 1 +Unlev PPA Price • 110% multiplier for PTC IRR% Discount Domestic • +10 percentage points adder to ITC $/MWh • FSLR procurement of US-made modules for under-construction solar-only Content projects Adder • Additional OEMs (modules, tracke
Slide 6: Current Opco: 2.4 GW / Projects
Current Opco: 2.4 GW / 30 Projects Longroad Sold, Owned (Operating + In-Construction), and LES-Managed Assets GW 3.8 Developed 0.5 Acquired 4.3 Total (1.9) Sold 2.4 Net Owned (30 Projects) 401+ MW 201 – 400 MW Solar Assets Sold Solar Operating/In-Construction + Wind Assets Sold Wind Operating/In-Con
Slide 7: On the Path to US$500 million run-rate Opco EBITDA
On the Path to US$500 million run-rate Opco EBITDA Longroad Project Run-Rate Opco EBITDA $600 8.5 GW $500 EBITDA ($ in millions) Avg. 1.5 GW/yr $400 $300 $200 2.4 GW $100 -- 2021 Adjusted 2022 2023 2024 2025 2026 2022 Projects MW 2023 Projects MW 2024 Projects GW 2025 Projects GW 2026 Projects GW Pi
Slide 8: Total Pipeline Growth
Total Pipeline Growth January 2022 to January 2023, YOY Pipeline Change 20,000 17.8 GW 16,000 +38% 12.9 GW 12,000 8,000 Weaver 4,000 - 2022 2023 CAISO AZ PAC SCPPA/LA NVE MTN West HI ISONE SPP MISO PJM ERCOT Other COPYRIGHT © LONGROAD ENERGY HOLDINGS, LLC. STRICTLY CONFIDENTIAL. 8
Slide 9: Pipeline Breakdown by Year (GW)
Pipeline Breakdown by Year (GW) Pipeline Breakdown by Project Total MW and FNTP Year 4.5 GW 8 Projects 18,000 16,500 15,000 50 Active Projects 6.1 GW Out to 2027+ 16 Projects 13,500 12,000 10,500 9,000 3.6 GW 13 Projects Weaver 7,500 6,000 2.6 GW 4,500 11 Projects 3,000 1.1 GW 2 Projects 1,500 0 202
Slide 10: Near Term Plan Projects (2023-2025)
Near Term Plan Projects (2023-2025) Longroad 2023-2025 Near Term Plan Projects GW 1.1 2023 (2) 1.5 2024 (6) 2.1 2025 (7) 4.6 Total (15) 401+ MW Solar Development 201 – 400 MW Wind Development 0 – 200 MW Storage Development Longroad Office Solar+Storage Development (1) Reflects total installed capaci
Slide 11: 2023 EPC Execution Plan – Three Corners
2023 EPC Execution Plan – Three Corners Three Corners Solar 152 MWdc Kennebec County, Maine COPYRIGHT © LONGROAD ENERGY HOLDINGS, LLC. STRICTLY CONFIDENTIAL. 11
Slide 12: 2023 EPC Execution Plan – Sun Streams 3
2023 EPC Execution Plan – Sun Streams 3 Sun Streams 3 Solar & Storage 285 MWdc PV 215 MWac / 860 MWh storage Maricopa County, Arizona COPYRIGHT © LONGROAD ENERGY HOLDINGS, LLC. STRICTLY CONFIDENTIAL. 12
Slide 13: 2023 EPC Execution Plan – Umbriel Solar
2023 EPC Execution Plan – Umbriel Solar Umbriel Solar 202 MWdc (150 MWac) Polk County, Texas COPYRIGHT © LONGROAD ENERGY HOLDINGS, LLC. STRICTLY CONFIDENTIAL. 13
Slide 14: 2023 EPC Execution Plan
2023 EPC Execution Plan Longroad 2023 EPC Execution Plan Pittsfield (2022), 7 Highlights Three Corners (2022), 150 • Approximately US$3 billion of EPC execution and pre-construction now Milford Repower (2022), underway 305 • Longroad execution team currently 17 – Sun Streams 3 (2022), acquiring reso
Slide 15: EPC Execution Plan 2024-2026
EPC Execution Plan 2024-2026 • Anticipating ~US$10 billion of additional EPC execution of FNTP projects during this period • IRA requires prevailing wages to capture credits, driving upward wage pressure. Mitigated by industry-wide apprenticeship program • US-sourced inputs should substantially hedg
Slide 16: Capital to Fund 2023-26 Plan (~6 GW)
Capital to Fund 2023-26 Plan (~6 GW) Equity Funding Requirement $1.0 B 2026 NTP Projects $2.0 B 2023-26 Plan: 6 GW Project Debt • ~$8 billion capex plan Financing $3.0 B • 85% to 90% via tax equity 2025 NTP Projects $2.6 B and debt financing • 10 – 15% funded via equity Project Tax Equity 2024 NTP P
Slide 17: Raising Capital in New World of IRA
Raising Capital in New World of IRA • Longroad has raised US$10 billion since inception • 2023-2026 development plan will require ~US$8 billion of capex investment • Expect 85-90%, or US$7 billion, of capex to be funded via non-recourse project financings (i.e., tax equity and debt financings); ̶ ~U
Slide 18: Thinking More Creatively Given Long Development Horizon
Executing on Growth: Development • Have ramped up investment in longer term pipeline as interconnection queues have extended project timelines • Increased greenfield wind development activity • Continued focus on M&A to further deepen pipeline and access to different markets • Creating some “big pla
Slide 19: Valta Investment Overview
Valta Investment Overview • Longroad committed US$100 million of cash and credit to acquire a ~32% interest in Valta Energy, a C&I platform, with an Valta Operating and Near‐Term option to increase this stake over time ~232 MW • Provides access to fast-growing and lucrative C&I and Operating, Develo
Slide 20: Conclusion
Conclusion • Strong and durable market fundamentals • Longroad targeting US$500 million run-rate Opco EBITDA by 2026 • Actively developing and acquiring projects in order to hit this goal • IRA not priced into recent capital raise • Bringing financing track record to bear in order to raise required