Infratil Limited · NZX:IFT
Infratil — Investor Day (February 2022)
19 slides from Infratil's investor day presentation, Feb 15, 2022
Slide 1: Investor Day
Investor Day 15 February 2022
Slide 2: Disclaimer
Disclaimer Information This presentation has been prepared This presentation contains summary information about the Company and its activities which is current as at the date of this presentation. by Infratil Limited (NZ company The information in this presentation is of a general nature and does no
Slide 3: Welcome: Infratil's 2022 Investor Day
Welcome Infratil’s 2022 Investor Day Mark Tume Jason Boyes Phillippa Harford • Independent Director since • Infratil Chief Executive Officer • Infratil Chief Financial Officer November 2007 and Infratil and Director since 1 April 2021 since May 2015 Chair since October 2013 • Joined Morrison & Co in
Slide 4: 2022 Investor Day Agenda
2022 Investor Day 10.30am - 11.10am Introduction and Welcome, Portfolio Update & Growth Outlook Agenda Mark Tume, Infratil Chair, Jason Boyes, Chief Executive and Phillippa Harford, Chief Financial Officer 11.10am - 11.25am Renewable Energy Platform Vimal Vallabh, Morrison & Co Global Head of Energy
Slide 5: Portfolio Update and Growth Outlook
Portfolio Update and Growth Outlook Jason Boyes (CEO) and Phillippa Harford (CFO)
Slide 6: Overview
Established Listed on Managed by Overview Morrison Infratil is an infrastructure 1994 NZX ASX & Co investor with significant Market Capitalisation Group Assets 2022F Investment investments in Digital Infrastructure, $5.5b $8.5b + $1.3b Renewables and Social Track record After tax return 2022F EBITDA
Slide 7: Investment Approach
Investment Approach • Infratil invests in infrastructure businesses, targeting returns to shareholders of 11-15% p.a. over the long Our successful, term high conviction • Investment is focused on sectors and businesses with ✓ strong defensive characteristics approach has ✓ exposure to growth, driven
Slide 8: 2021 Investor Day: What we said we would do and what we did
2021 Investor Day What we said we would do What we did Looking back at • Undertake the strategic review of Infratil’s • Successful sale of Tilt Renewables completed in what we said we investment in Tilt Renewables August 2021, generating a return of 35% p.a. • Rebuild scale in renewables post-Tilt,
Slide 9: Portfolio Overview
Portfolio Overview Four significant investment platforms with Digital Renewables Social Airports business, sector Infrastructure Infrastructure and geographic 56% 21% 14% 9% diversification Infratil Investor Day 2022 9
Slide 10: Portfolio Composition
Portfolio Composition 2021 2022 1% High conviction in 1% 13% 16% Digital Infrastructure, Renewable Energy 8% 8% resulting from strong Digital Infrastructure 41% 10% performance and Airports Tilt Renewables exit. Social Infrastructure 42% Growth in Other 60% Renewables and Healthcare 3% 3% 3% underwa
Slide 11: Portfolio Composition and Target Returns
Portfolio Composition 2021 2022 Earlier stage 13% investments in Core 20% 35% development Core+ 45% expected to Development 35% grow. Room to 52% add core cash generation to Target Portfolio Return support that Infratil Portfolio Expected Returns Leverage Assumption Management Costs Return to Shareh
Slide 12: Portfolio Strategy: Long-term mega trends
Portfolio Strategy Long-term mega • Long-term mega trends driving Infratil’s chosen sectors of Digital Infrastructure, Renewables and Healthcare are still early trends driving • Further backed by long-term tailwinds for infrastructure investment, which continues to grow rapidly, Infratil’s chosen gl
Slide 13: Portfolio Strategy: Early moves in growth sectors
Portfolio Strategy Infratil’s early • Infratil’s early move into growth infrastructure sectors - Digital Infrastructure, Renewables and Healthcare – and sustainable investing has positioned it well moves in growth ➢ The valuation of those investments has increased, as has competition for new investm
Slide 14: Portfolio Outlook
Portfolio Outlook • Digital Infrastructure Focussed on ➢ Already at scale in A/NZ – CDC Data Centres continues to experience strong organic growth, capitalising on early assessing network capital release options for Vodafone starts, building ➢ Continuing to evaluate further attractive data centre an
Slide 15: Sustainability
Sustainability Since inception, • Over the last 12 months the Infratil board has been setting our long-term sustainability strategy Infratil has • The strategy establishes a sustainability vision for the business together with long-term environmental, social invested in assets and governance objecti
Slide 16: Capital Availability
Capital Availability ($Millions) 14 February Well positioned Net bank debt/(cash) (804.2) • Upon completion of the Tilt Renewables disposal, Infratil fully repaid its drawn for capital Infratil Infrastructure bonds 1,163.7 bank debt facilities, leaving a cash Infratil Perpetual bonds 231.9 balance o
Slide 17: Guidance
Guidance Proportionate EBITDAF Dividends Guidance range • FY2022 Proportionate EBITDAF guidance range • The dividend outlook is for modest continued narrowed and is narrowed to $500-$520 million (previously $500-$530 million) growth in cps, reflecting expected growth in operating earnings from CDC D
Slide 18: Inflation
Inflation Infratil’s portfolio • A material portion of the Group’s revenue is derived through contracts which provide for revenue adjustments for Consumer Price Inflation or via an alternative % increase, therefore cushioning is relatively well inflationary impacts • For some portfolio companies a f
Slide 19: Conclusions
Conclusions • Infrastructure is one of the hottest asset classes Infratil is very well globally experiencing strong long-term tailwinds, alongside the long-term mega trends supporting our positioned, with three focus sectors: Digital Infrastructure, Renewables and Healthcare multiple growth • CDC Da