3i Infrastructure PLC · LSE:3IN
3i Infrastructure — Non-Deal Roadshow (February 2023)
33 slides from 3i Infrastructure's roadshow presentation, February 2023
Slide 1: February 2023 Update and Proposed Placing of New Shares
February 2023 Update and Proposed Placing of New Shares
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: Proven track record of capital growth
Proven track record of capital growth NAV growth from IPO to 30 September 2022 Share price outperformance to 31 December 2022 325.8 303.3 334p 3iN 268.1 254.5 FTSE 250 234.7 211.0 169.0 161.0 149.9 209p 117.7 121.9 121.1 125.1 126.4 109.6 112.9 Core-Plus Strategy Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 M
Slide 6: Continuous dividend growth
Continuous dividend growth The dividend has grown every year since IPO From 2008 to 2022, dividend growth per annum of 5.4% vs UK CPI inflation of 2.9% ▪ 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
Slide 7: Proven strategy, focusing on Core-Plus Infrastructure
Proven strategy, focusing on Core-Plus Infrastructure Return Core-Plus Infrastructure Strong market positions Core Infrastructure Supportive megatrends Operational PPPs Our investment focus Exceptional management Risk 7
Slide 8: High quality, differentiated portfolio with near-term further investment potential
High quality, differentiated portfolio with near-term further investment potential Portfolio value 6% 14% 8% Energy transition £3.5bn Oystercatcher 7% Digitalisation 11% Total portfolio return for 6 months 1. Globalisation 9.2% 14% 8% Demographic change Highlighted companies demonstrating 5% 5% near
Slide 9: Strong pipeline of further portfolio growth opportunities at accretive incremental returns
Strong pipeline of further portfolio growth opportunities at accretive incremental returns Identified near-term growth Further growth opportunities opportunities requiring in the portfolio funding Solar and battery New contract-linked development offshore wind Green gas investment vessels Expanding
Slide 10: Consistent approach to funding
Consistent approach to funding The Revolving Credit Facility (‘RCF’) is a £900 million facility maturing in November 2025, which was £555 million drawn at 31 December 2022 • As communicated in the Q3 announcement, we are progressing with the potential divestment of Attero through a structured proces
Slide 11: Proceeds used to partially repay RCF and prepare liquidity for future investments
Proceeds used to partially repay RCF and prepare liquidity for future investments before divestment proceeds received Background ▪ Placing conducted to partially pay down drawings under the RCF ▪ Offer will be made to qualifying investors via a non pre-emptive placing under the company’s shareholder
Slide 12: Q3 Performance Highlights
Q3 Performance Highlights Strong portfolio ▪ Overall the portfolio has performed well in the Period, exceeding the expectations we set in performance September 2022, and continues to deliver strong performance ▪ Infinis’s plans to develop solar energy generation and battery storage are progressing w
Slide 13: Strong return from a diversified portfolio
Strong return from a diversified portfolio for the half year ended 30 September 2022 Average Discount Rate 5.6% 1 Total portfolio return 9.2% Attero 27.7% Tampnet 21.8% TCR 20.1% Infinis 13.8% Valorem 11.2% Ionisos 10.2% Joulz 7.9% SRL 7.0% Oystercatcher 6.9% 2 ESVAGT 5.4% 3 Projects (now sold) 1.9%
Slide 14: Well positioned in the current macro environment
Well positioned in the current macro environment Interest rates Inflation No material near-term Portfolio returns positively refinancing risk in the portfolio correlated to inflation Over 85% of portfolio company Mix of direct contract indexation debt is fixed rate or hedged and strong market positi
Slide 15: 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 one further vessel under construction. SOVs provide
Slide 16: TCR
TCR Ground support equipment in airports worldwide TCR is the largest independent lessor of airport ground support equipment (“GSE”) and operates at over 150 airports. TCR has defined the market for leased GSE, providing high quality assets under full-service leasing, as well as maintenance and flee
Slide 17: 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 146 operational sites and a total installed capacity of 460MW. Average electricity
Slide 18: GCX
GCX One of the most comprehensive subsea cable networks globally GCX owns one of the most comprehensive fibreoptic subsea cable networks globally, serving customers in over 180 countries. Its 66,000km of cables and associated landing infrastructure, spanning from North America to Asia, would require
Slide 19: 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 20: DNS:NET
DNS:NET Fibre network owner and developer in Germany DNS:NET is an independent telecommunications provider based in Berlin. It has an existing FTTC network in Berlin and the surrounding areas. In 2019 it moved its focus to rolling out a FTTH network in its home region. It is the largest alternative
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 alongside a metering business which
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 custome
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. 2022 has been a very
Slide 26: 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 27: Appendix
3) Infrastructure plc Si Appendix
Slide 28: Discount rate movement
Discount rate movement Approach to calculating discount rate remains consistent 12.7% 12.8% 12.2% 12.3% 11.3% 11.7% 11.6% 11.3% 11.3% 10.8% 10.8% 10.9% 10.5% 10.0% 9.8% 10.0% 4.4% 3.4% 3.6% 3.3% 2.3% 3.1% 1.7% 1.8% 1.0% 1.2% 0.6% 0.6% 0.8% 0.5% 0.0% 0.1% 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 29: Portfolio summary
Portfolio summary 30 September 2022 (£m) 1. This comprises the aggregate of value movement, foreign exchange translation, allocated foreign exchange hedging and underlying portfolio income in the period. 2. Capitalised interest. 3. Shareholder loan / share premium repayment (non-income cash). 4. ESV
Slide 30: Sensitivities to total return
Sensitivities to total return Discount rate -1% £352m Discount rate +1% £(306m) Inflation rates (next two years) -1% £(37m) Inflation rates (next two years) +1% £37m Inflation rates (full projection periods) -1% £(235m) Inflation rates (full projection periods) +1% £259m Long-term intererest rates -
Slide 31: Predominantly non-UK portfolio hedged back to sterling
Predominantly non-UK portfolio hedged back to sterling 6 months to 30 September 2022 (£m) Other1 FX gain before FX gain after hedging hedging 17% 86 17% 66% EEA UK 5 Note: All numbers are as at 30 September 2022 and include commitments and TCR syndication. 1. ‘Other’ includes United States of Americ
Slide 32: 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 33: 3i Infrastructure plc
3} Infrastructure plc
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