Pantheon Infrastructure PLC · LSE:PINT
Pantheon Infrastructure — FY2023 Earnings Presentation
61 slides from Pantheon Infrastructure's earnings presentation, 2024
Slide 1: Annual Results Presentation for the year to 31 December 2023
INFRASTRUCTURE PANTHEON INFRASTRUCTURE PLC ANNUAL RESULTS PRESENTATION For the year to 31 December 2023 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. Market 6. Conclusion Appendix A. Sustainability B. Governance C. The Manager D. Portfolio E. Glossary 3
Slide 4: Highlights
HIGHLIGHTS
Slide 5: PINT’s platform
PINT’s platform Invest in a globally diversified portfolio of high-quality infrastructure assets which generate sustainable attractive returns over STRATEGY the long term which we believe benefit from strong downside protection from inflation and other defensive characteristics Platform £487m 4pps £
Slide 6: Timeline
Timeline (x) Commitment of €28.4mto Delta Fiber - Dutch [x] ‘Commitment of €52.7m fibre company to National Commitment Commitment @ Praised catmot Broadband of $30.2m to of $55.4m to gross proceeds Ireland - © Raised Vertical Bridge Calpine-US through exercise Irish digital £400m gross -US towers po
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 centers • Energy utilities • Fiber • Conventional power Target assets • Towers • Water Macro / Inflation Diversified Defensive Structural Stable pro
Slide 10: Financials
FINANCIALS
Slide 11: Diversified infrastructure assets across sectors, geographies and sponsors
Diversified infrastructure assets across sectors, geographies and sponsors | Geography | Sector Portfolio overview as at 31 December 2023 Europe Digital - Towers 3% 3% 9% 13% North America Digital - Fibre 17% UK Digital - Data Centre 17% 46% Uncommitted 19% Power & Utilities Renewable & Energy Effic
Slide 12: NAV & Portfolio movement
NAV & Portfolio movement FY 2023 | NAV per Share 2023 Movement (GBp/Share) | Portfolio 2023 movement (£m) Source: Pantheon 12
Slide 13: Capital allocation
Capital allocation As of 2 April 2024 Sources Cash & cash equivalents 23.0 Revolving Credit Facility Conservative approach to leverage with Revolving Credit Facility (RCF) 115.0 no current drawings under the RCF and strong liquidity. Debt maturity March Total (A) 138.0 2027 and drawn margin of 285bp
Slide 14: Portfolio
PORTFOLIO
Slide 15: Portfolio characteristics
Portfolio characteristics Diversified portfolio with significant growth potential, inflation protection, and limited volume, financing and commodity risk Inflation Volume Financing Commodity Performance Growth Yield protection protection protection protection v plan Primafrio CyrusOne National Gas T
Slide 16: Key portfolio figures
Key portfolio figures As at 31 December 2023 13.6% 36% 77% £60m Weighted average Weighted average Weighted average Weighted average discount rate gearing hedged debt EBITDA Based on £471.7m of assets invested at 31 December 2023 – undrawn commitments of £15.7m are not included. Weighted average gear
Slide 17: Projected Portfolio cash flows
Projected Portfolio cash flows £m 300 14 250 12 10 200 8 150 6 100 4 50 2 0 - 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Estimated distributions Estimated realisations Estimated remaining investments (right axis) • Estimated liquidity profile of the existing Portfolio, assuming
Slide 18: Portfolio sensitivities
Portfolio sensitivities | PINT NAV sensitivities at 31 December 2023 Discount rate (+/- 0.5%) -4.2 4.6 Inflation (+/- 0.5%) -2.2 2.4 Interest rate (+/- 0.5%) -1.7 1.9 Earnings growth (+/- 10%) -12.4 12.3 Exit value (+/- 10%) -8.6 7.6 Exit timing (+/- 1 year) -1.4 0.1 Opex (+/- 10%) -5.3 5.5 Capex (+
Slide 19: Market
MARKET
Slide 20: Market outlook
Market outlook Persistent inflation has been a net benefit to infrastructure businesses and valuations have been positively 1 Inflation correlated. However, moderating inflation may dampen revenue growth that infrastructure assets have enjoyed recently. 2 Interest rates and capital structure Infrast
Slide 21: 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 22: 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 $18bn 162 assets 169 assets 175 assets 202 assets 187 assets 73 assets Observations1 4% Recovery of digital 18% 18% 9% 22% 25% infrastr
Slide 23: Infrastructure market indicators
Infrastructure market indicators | Deal activity by geography ($bn)1 | Deal activity by sector ($bn)1 CAGR4 +15% 1,043 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 24: Conclusion
CONCLUSION
Slide 25: Summary
Summary 1 Solid full year results delivering 10.4% NAV Total Return, exceeding 8-10% target 2 4p per share dividend in line with targets with progression for FY24 to be announced in due course 3 Strong balance sheet with >£135m of available liquidity and >£45m firepower 4 Diversified, resilient and
Slide 26: Useful links
Useful links FY 2023 Annual Report 2023 Capital Markets 2022 Sustainability QuotedData Q1 2024 and Accounts Day presentation report research 26
Slide 27: Appendix
APPENDIX
Slide 28: 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 29: Sustainability
SUSTAINABILITY
Slide 30: 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 31: 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 Actual plus Carbon footprint tCO2e/GBPm NAV1: estimated Data availability as % of Fund data NAV 1,478 As at 31 December 2022
Slide 32: Governance
GOVERNANCE
Slide 33: 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 34: PINT governance
PINT governance PINT’s Board of Directors have uniquely complementary infrastructure experience Vagn Sørensen Anne Baldock Patrick O’D Bourke Andrea Finegan Chair Senior Independent Director Chair of the Audit Committee Non-Executive Director • Senior and experienced • Senior lawyer with over • Char
Slide 35: The Manager
THE MANAGER
Slide 36: Pantheon has been investing in private markets for 40+ years
Pantheon has been investing in private markets for 40+ years Pantheon’s listed Investment Trusts Pantheon Offices 1982 London 2007 2014 2022 New York Seoul2 2021 Chicago Berlin3 2018 2011 Pantheon International Pantheon Infrastructure Dublin Tel Aviv1 2018 1987 2023 Plc (“PIP”) Plc (“PINT”) San Fran
Slide 37: 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/AUA1 Infrastructure & 15.0% RA assets under Investment $22bn management and 33 professionals advice1 13.2% 218 Total Infrastructure Investments2 7 Investment C
Slide 38: Investment Manager
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 39: Investment Manager
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 40: Investment Manager
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 41: Pantheon deal origination: global sourcing, rigorous screening
Pantheon deal origination: global sourcing, rigorous screening 2015 – 2023 | Infrastructure co-investment annual deal flow (2015- | Infrastructure co-investment deal funnel (2015- 2023)1 2023)1 20 Deals screened $88 bn | 863 deals 18 16 CAGR +21% 14 Advanced diligence Deals screened ($bn) 12 $8 bn |
Slide 42: Pantheon Infrastructure realisations
Pantheon Infrastructure realisations ~35% average increase in value for realised companies in year prior to exit | Liquidity events across 2021 – Q2 2023 for Pantheon’s | Average % uplift in TVPI across all realised single asset infrastructure investments1 secondary companies and co-investments in t
Slide 43: Portfolio
PORTFOLIO
Slide 44: Portfolio
Portfolio Netherlands a Delta Fiber Fudura United Kingdom == Nordic National Gas Q SHS GlobalConnect Zenobé + x) © = "= Germany/Austria ireland . = GD Towers NBI ° I-I North America = Spain Primafrio CyrusOne Cartier Energy Calpine Vantage Data Centers Vertical Bridge Key: Ca] DIGITALINFRASTRUCTURE
Slide 45: Portfolio
Portfolio Allocation of Portfolio Portfolio Unfunded foreign Portfolio value Asset value commitments exchange _total return 31.December valuation FX 31December 31 December hedge forthe 2022 Drawn Distributions movement movement. 2023 2023 movements year Asset Region Sponsor (em) em) (em) (em) (em) (
Slide 46: PINT Investments
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 47: PINT Investments
PINT Investments Existing portfolio Vertical Bridge Delta Fiber Cartier Energy The largest private owner and operator of towers Operates more than 50 high-performance data Platform of eight district energy systems located and other wireless infrastructure in the US, with centres representing more th
Slide 48: PINT Investments
PINT Investments Existing portfolio Calpine Vantage Data Centers Fudura Independent power producer with a c.26GW Operates more than 50 high-performance data Platform of eight district energy systems located fleet of principally gas-fired generating capacity, centres representing more than four milli
Slide 49: PINT Investments
PINT Investments Existing portfolio National Broadband Ireland (“NBI”) Fibre-to-the-premises network developer and operator working with the Irish Government to support the rollout of the National Broadband Plan, targeting connection to 560,000 rural homes. Sector Digital – Fibre Geography Ireland S
Slide 50: GD Towers
GD Towers New investments Company name GD Towers Transaction / company overview Sector Digital – Towers • DigitalBridge, alongside Brookfield Asset Management, agreed to buy 51% of GD Towers from Deutsche Telekom for a total Enterprise Value of €17.5bn Geography Europe • GD Towers is one of the larg
Slide 51: GlobalConnect
GlobalConnect New investments Company name GlobalConnect Transaction / company overview Sector Digital • In Q4 2022, EQT Infrastructure III announced a minority stake (15%) sale to Mubadala. PINT invested alongside other co-investors following this Geography Europe transaction, while EQT retained a
Slide 52: Zenobe
Zenobe New investments Company name Zenobe Transaction / company overview Sector Energy Transition • This transaction was driven by the need for additional equity in the company, which was required to support Zenobe’s growth. PINT invested alongside Geography UK Infracapital, with Infracapital retai
Slide 53: Glossary of terms
GLOSSARY OF TERMS
Slide 54: Glossary of terms
Glossary of terms AIC The Association of Investment Companies. AIC Code The AIC Code of Corporate Governance. AUM Assets Under Management are the total market value of investments held under management by an individual or institution. When referring to Pantheon’s AUM, this figure includes assets man
Slide 55: Glossary of terms
Glossary of terms Exit Realisation of an investment, usually through trade sale, sale by public offering (including IPO), or sale to a financial buyer. GIRAC Global Infrastructure and Real Assets Committee. Initial public offering (IPO) The first offering by a company of its own shares to the public
Slide 56: Glossary of terms
Glossary of terms Portfolio investment return Total movement in the valuation of the underlying assets comprising the Portfolio, expressed as a percentage of opening portfolio value. Foreign exchange effects and other expenses are excluded from the calculation. Primaries Commitments made to private
Slide 57: Disclosure and important notice
DISCLOSURE AND IMPORTANT NOTICE
Slide 58: Disclosure – case studies
Disclosure 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 not assume that futur
Slide 59: Important notice
Important notice The information contained in this document is confidential and for the sole use of the recipient and must not be forwarded to any other person. This document does not constitute or form part of, and should not be construed as, an offer, invitation or inducement to purchase or subscr
Slide 60: Important notice (continued)
Important notice (continued) This document may contain certain forward-looking statements. These statements typically contain words such as "expects" and "anticipates" and words of similar import. By their nature forward looking statements involve risk and uncertainty because they relate to events a
Slide 61: Pantheon
i{1 PANTHEON
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