Pantheon Infrastructure PLC · LSE:PINT
Pantheon Infrastructure — H1 2024 Earnings Presentation
62 slides from Pantheon Infrastructure's earnings presentation, September 2024
Slide 1: Interim results 30 June 2024
INFRASTRUCTURE PANTHEON INFRASTRUCTURE PLC Interim results 30 June 2024 2024
Slide 2: PINT team
PINT team Richard Sem, Partner (joined 2017, 28 years of private markets experience) Richard is a Partner and Head of Europe in Pantheon’s Global Infrastructure and Real Assets Investment Team where he leads its European investment activity and team. He is a member of the Global Infrastructure and R
Slide 3: Contents
Contents 1. Highlights 2. Approach 3. Financials 4. Portfolio 5. Deal flow 6. Conclusion 7. Appendix 3
Slide 4: Highlights
HIGHLIGHTS
Slide 5: Our investment approach
Our investment approach Strategy Investor case Platform Invest in a globally • Targeting an 8-10% • Backed by dedicated team of >30 infrastructure professionals diversified portfolio of NAV p.a. total return • Manager strength >$21bn2 AUM across >1,500 assets high-quality predominantly • Providing p
Slide 6: PINT summary
PINT summary As at 30 June 2024 £526m 113.9p 8.5% 2.1pps committed to NAV per share NAV Total Return first interim dividend 13 assets1 as at 30 June 2023 H1 2023 £458m 101.0p 3.1% 2.0pps committed to 13 assets1 committed to 13 assets1 NAV Total Return first interim dividend as at 30 June 2023 as at
Slide 7: Approach
APPROACH
Slide 8: Essential Characteristics of Infrastructure
Characteristics of Infrastructure Essential The economy to net zero and society at large transition Key driver of Provision of Enabling digital Essential to net economic growth essential services evolution zero transition Essential to As an net zero investor % transition Attractive yields Predictabl
Slide 9: What are we looking for?
What are we looking for? Transaction profile1 Target assets1 Ticket size Embedded Attractive entry £25-50m value point Digital Power & utilities • Data centres • Energy utilities • Fibre • Conventional power Target assets • Towers • Water Macro / Inflation Diversified Defensive structural Stable pro
Slide 10: Background to co-investments
Background to co-investments Co-investments afford the opportunity for investors to invest alongside Sponsors in specific Portfolio Companies, typically on a fee and carried interest-free basis. Investments are typically in the form of a portion of the common equity in the Portfolio Company as a min
Slide 11: Financials
FINANCIALS
Slide 12: Diversified Infrastructure assets across sectors, geographies and Sponsors
Diversified Infrastructure assets across sectors, geographies and Sponsors | Geography | Sector Portfolio overview as at 30 June 2024 Europe Digital - Towers 2% 2% 9% 13% 16% North America Digital - Fibre UK 16% Digital - Data Centre 45% Uncommitted 19% Power & Utilities Renewable & Energy Efficienc
Slide 13: NAV & Portfolio movement
NAV & Portfolio movement June 2024 YTD | NAV per share June 2024 YTD movement (GBP pence/share) | Portfolio June 2024 YTD movement (£m) Source: Pantheon 13
Slide 14: Capital allocation
Capital allocation As of 24 September 2024 Sources Cash & cash equivalents 9.1 Revolving Credit Facility No current drawings Revolving Credit Facility (RCF) 115.0 Strong liquidity 124.1 Debt maturity March 2027 Total (A) Drawn margin of 285bps Commitments Undrawn investment Undrawn investment commit
Slide 15: Portfolio
PORTFOLIO
Slide 16: Key Portfolio figures
Key Portfolio figures As at 30 June 2024 13.6% 36% 78% Weighted 14.0% Weighted 38% Weighted 68% average average average As at 30 June As at 30 June As at 30 June discount rate 2023 gearing 2023 hedged debt 2023 £190m £68m £49m ↑12% ↑33% ↑62% YoY YoY YoY £169m £51m £30m Weighted Weighted Weighted ave
Slide 17: Portfolio characteristics
Portfolio characteristics MOIC1 Sector Assets Regions Sponsors Performance v Plan (inception to date) North America KKR 1.4x Above plan Digital – data centres North America Digital Bridge 1.1x On plan Europe Asterion 1.2x Above plan Digital – fibre Europe Stonepeak 1.2x On plan Europe EQT 1.1x Below
Slide 18: NAV & Portfolio movement
NAV & Portfolio movement June 2024 YTD | Portfolio June 2024 YTD movement (£m) • Commitments now fully called on CyrusOne and Delta Fiber through additional investment in period • £4.3m distributions in the period from National Gas and GD Towers – £19.9m shown in income statement includes £15.6m of
Slide 19: Projected Portfolio cash flows
Projected Portfolio cash flows £m 300 No change 250 200 ↑ ~10% 150 No change No change 100 No change ↑ ~10% ↑ ~40% 50 - Dec-23 Jun-24 Dec-23 Jun-24 Dec-23 Jun-24 Dec-23 Jun-24 Dec-23 Jun-24 Dec-23 Jun-24 Dec-23 Jun-24 2024 2025 2026 2027 2028 2029 2030 Estimated distributions Estimated realisations
Slide 20: Deal flow
DEAL FLOW
Slide 21: Co-investment deals pipeline
Co-investment deals pipeline Infrastructure | Recent suitable co-investment opportunities2 co-investment deal funnel (2015-Q2 20241) Geography Sector Stage Ticket available Detail Deals screened $96bn | 932 deals Renewable & European solar development A Global Core plus £50m energy efficiency platfo
Slide 22: Conclusion
CONCLUSION
Slide 23: Summary
Summary 1 Diversified, resilient and prudently funded 13 asset Portfolio, performing well amidst continued macro uncertainty. Thematic approach to investment with exposure to long-term secular trends benefitting from organic and inorganic growth 2 opportunities. Sustained access to highly attractive
Slide 24: Appendix
APPENDIX
Slide 25: Key information
Key information Company Pantheon Infrastructure Plc Listing London Stock Exchange (Main Market, Premium Segment) Structure UK investment trust Investment Manager Pantheon Ventures (UK) LLP, regulated by the FCA The Company seeks to generate attractive total returns (on a risk adjusted basis) for sha
Slide 26: Market
MARKET
Slide 27: Our approach to navigating the infrastructure landscape
Our approach to navigating the infrastructure landscape Leveraging tailwinds and addressing headwinds What we like Concerns Hyperscale Mobile Wholesale Fibre-to-the- Asset-lite/ Debt-funded datacentres towers fibre Home tech risk growth Digital Infrastructure Regulatory Power market Energy Political
Slide 28: Capturing secular growth
Capturing secular growth $15tn infrastructure spending gap projected to 20401 Digital infrastructure2 Renewables & efficiency3 Power & utilities4 Transport & logistics5 • Exponential growth in mobile • Renewables-based electricity • Clean energy transition is • Passenger air has rebounded data usage
Slide 29: Global sector activity and infrastructure asset allocations
Global sector activity and infrastructure asset allocations: Digital infrastructure and transport and logistics were key themes in 2023 $29bn $26bn $37bn $46bn $46bn $38bn Observations1 162 assets 169 assets 175 assets 202 assets 187 assets 152 assets 4% 12% Recovery of digital 18% 18% 9% infrastruc
Slide 30: Infrastructure market indicators
Infrastructure market indicators | Deal activity by geography ($bn)1 | Deal activity by sector ($bn)1 1,043 CAGR4 +15% 1,043 CAGR4 +15% 893 893 755 755 576 553 574 576 553 574 429 429 351 371 351 371 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015 2016 2017 2018 2019 2020 2021 2022 2023 North Amer
Slide 31: Sustainability
SUSTAINABILITY
Slide 32: Potential benefits of Pantheon's Sustainability risk-based approach
Potential benefits of Pantheon’s Sustainability risk-based approach Overview of process Pantheon intends to leverage sustainability resources and expertise to help generate long-term returns through enhanced risk management and value creation Sustainability Framework Risk management Limit Pantheon e
Slide 33: Sponsor sustainability data
ESG Sponsor scorecard Sponsor sustainability data The results of Pantheon’s proprietary Sponsor scorecard and questionnaire for PINT deals are presented for the first time below. Overall Sponsor Sustainability maturity rating For overall Sustainability maturity, 38% E of the
Slide 34: Company sustainability data
ESG scorecard Company sustainability data Analysis of company-level Sustainability data for PINT, including the portfolio carbon footprint, is outlined below. Carbon footprint Total Carbon footprint tCO2e: Value (2023) Coverage (2023) As at 31 December 20231 602 Scope 1 214,477 100% Scope 2 6,109 10
Slide 35: Governance
GOVERNANCE
Slide 36: PINT governance
PINT governance Appoints Shareholders PINT Board PINT Pantheon Invest via LSE (Oversees) Manages • Experienced Board of independent, non-executive directors • Strong expertise in the following areas: Infrastructure, private equity, governance, legal and regulatory, valuation of private Board of asse
Slide 37: PINT governance
PINT governance PINT’s Board of Directors have uniquely complementary infrastructure experience Vagn Sørensen C C Patrick O’D Bourke C Chair and Nomination Committee Chair Audit and Risk Committee Chair • Senior and experienced board • Chartered accountant with more than member with significant oper
Slide 38: The Manager
THE MANAGER
Slide 39: Pantheon is a leader in infrastructure investing
Pantheon is a leader in infrastructure investing Investment experience | Strong risk adjusted track record4 Dedicated specialist team3 & AUM Infrastructure assets Investment 14.1% $21bn under management 33 professionals 12.3% 219 Total infrastructure investments2 7 GIRAC Partners GIRAC avg. years In
Slide 40: Global team and local expertise enables unmatched deal sourcing, diligence, and asset management
Global team and local expertise enables unmatched deal sourcing, diligence, and asset management 1982 2023 2021 London Geneva Berlin 2022 2018 Chicago 2018 Tokyo Dublin 2007 1987 New York 2014 San Francisco Seoul 1992 2011 Hong Kong 2014 Tel Aviv Bogotá 2023 Singapore Americas coverage European Euro
Slide 41: Investment Manager Global Infrastructure & Real Assets Investment Committee
Investment Manager Global Infrastructure & Real Assets Investment Committee Richard Sem, Partner (joined 2017, 28 years of private markets experience) Richard is a Partner and Head of Europe in Pantheon’s Global Infrastructure and Real Assets Investment Team where he leads its European investment ac
Slide 42: Investment Manager Global Infrastructure & Real Assets Investment Committee
Investment Manager Global Infrastructure & Real Assets Investment Committee Paul Barr, Partner (joined 2021, 22 years of private markets experience) Paul is a Partner in Pantheon’s Global Infrastructure and Real Assets Investment Team and a member of the Global Infrastructure and Real Assets Committ
Slide 43: Investment Manager Global Infrastructure & Real Assets Investment Committee
Investment Manager Global Infrastructure & Real Assets Investment Committee Dinesh Ramasamy, Partner (joined 2016, 13 years of private markets experience) Dinesh is a Partner in Pantheon’s Global Infrastructure and Real Assets Investment Team where he focuses on the analysis, evaluation and completi
Slide 44: Pantheon deal origination: global sourcing, rigorous screening
Pantheon deal origination: global sourcing, rigorous screening 2015 – Q2 2024 | Infrastructure co-investment annual deal flow (2015- | Infrastructure co-investment deal funnel (2015-Q2 Q2 2024)1 20241) 20 Deals screened $96bn | 932 deals 18 16 CAGR +21% 14 Advanced diligence Deals screened ($bn) 12
Slide 45: Pantheon Infrastructure realisations
Pantheon Infrastructure realisations ~37% average increase in value for realised companies in year prior to exit | Liquidity events across 2021 – Q1 2024 for Pantheon’s | Average % uplift in TVPI across all realised single asset infrastructure investments1 secondary companies and co-investments sinc
Slide 46: Portfolio
PORTFOLIO
Slide 47: Portfolio
Portfolio Based on assets invested and committed at 30 June 2024. Source: Investment Sponsors and Pantheon. 47
Slide 48: Portfolio
Portfolio Based on assets invested and committed at 30 June 2024. Source: Investment Sponsors and Pantheon. 48
Slide 49: Portfolio
Portfolio Based on assets invested and committed at 30 June 2024. Source: Investment Sponsors and Pantheon. 49
Slide 50: PINT Investments Existing portfolio
PINT Investments Existing portfolio Primafrio CyrusOne National Gas Specialised temperature-controlled Operates more than 50 high-performance data The owner and operator of the UK’s sole gas transportation and logistics company in Europe centres representing more than four million sq ft transmission
Slide 51: PINT Investments Existing portfolio
PINT Investments Existing portfolio Vertical Bridge Delta Fiber Cartier Energy The largest private owner and operator of towers Owner and operator of fixed telecom infrastructure in Platform of eight district energy systems located and other wireless infrastructure in the US, with the Netherlands, p
Slide 52: PINT Investments Existing portfolio
PINT Investments Existing portfolio Calpine Vantage Data Centers Fudura Independent power producer with a c.26GW of Leading provider of wholesale data centre Dutch market-leading owner and provider of principally gas-fired generating capacity, infrastructure to large enterprises and medium-voltage e
Slide 53: PINT Investments Existing portfolio
PINT Investments Existing portfolio National Broadband Ireland (“NBI”) GD Towers GlobalConnect Fibre-to-the-premises network developer and Largest tower operator and telecom Leading pan-Nordic wholesale and retail operator working with the Irish Government to infrastructure network in Western Europe
Slide 54: PINT Investments Existing portfolio
PINT Investments Existing portfolio Zenobe Zenobē provides essential infrastructure that contributes to international power and transport sector decarbonisation targets. Renewables & Energy Sector Efficiency Geography UK Sponsor Infracapital Website www.zenobe.com Date of commitment: 07.09.2023 PINT
Slide 55: Portfolio sensitivities
Portfolio sensitivities | PINT NAV sensitivities at 30 June 2024 Source: Investment Sponsors and Pantheon. Based on assets invested and committed at 30 June 2024. 55
Slide 56: Glossary of terms
GLOSSARY OF TERMS
Slide 57: Glossary of terms
Glossary of terms AGM Annual General Meeting. Commitment The amount of capital that the Company agrees to contribute to an investment when and as called by the Sponsor. AI Artificial intelligence. (The) Company Pantheon Infrastructure Plc or ‘PINT’. AIC The Association of Investment Companies. Exit
Slide 58: Glossary of terms
Glossary of terms Multiple of A common measure of private equity performance, RCF Revolving credit facility invested capital MOIC is calculated by dividing a fund’s cumulative (MOIC or cost distributions and residual value by the paid-in multiple) capital. NAV Total This is expressed as a percentage
Slide 59: Disclosure and important notice
DISCLOSURE AND IMPORTANT NOTICE
Slide 60: Disclosure and important notice
Disclosure and important notice 1 – case studies These case studies provide information about certain investments made by PINT. It should NOT be regarded as a recommendation. Pantheon makes no representation or forecast about the performance, profitability or success of such investments. You should
Slide 61: Disclosure and important notice (continued)
Disclosure and important notice (continued) Important notice (continued) In particular, this document and the information contained herein, are not for publication or distribution, directly or indirectly, to persons in the United States (within the meaning of Regulation S under the US Securities Act
Slide 62: Pantheon
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