3i Infrastructure PLC · LSE:3IN
3i Infrastructure — Investor Day (October 2023)
57 slides from 3i Infrastructure's investor day presentation, Oct 11, 2023
Slide 1: Capital Markets Day
Capital Markets Day 11 October 2023 3i Infrastructure plc
Slide 2: Introduction
Introduction Bernardo Sottomayor Managing Partner & Co-Head of European Infrastructure
Slide 3: Today’s agenda
Today’s agenda 2:00 Agenda and introduction Bernardo Sottomayor Managing Partner & Co-Head of European Infrastructure, 3i 2:05 Review of investment in Attero Aaron Church Partner, 3i Tim Short Partner, 3i 2:15 Future Biogas Philipp Lukas CEO, Future Biogas 3:00 Coffee break Scott Moseley Managing Pa
Slide 4: Review of investment in Attero
Review of investment in Attero Aaron Church Partner, Infrastructure
Slide 5: Another exceptional exit
Another exceptional exit 2.7x 2.7x €274m Money multiple c.23% IRR €215m €215m c.11% €100m Average annual cash yield €100m €59m c.30% Investment Proceeds Uplift on March 2023 NAV Investment Distributions Estimated net sales proceeds 7
Slide 6: Consistent track record of successful exits
Consistent track record of successful exits Gross IRR: Realised assets¹ 40% 41% 31% 27% 23% 22% c.21% Weighted average 16% gross IRR on realised assets¹ Attero WIG XLT Elenia AWG Eversholt PPPs 1. Excludes India Infrastructure Fund, Junior debt portfolio, T2C and Novera. 8
Slide 7: Buying well
Buying well • Completed a review of the waste sector • Identified Attero as one of our preferred targets in the sector ✓ Leading Dutch player ✓ Diversified business lines ✓ Supportive megatrends • Acquired the business through bilateral process with the previous owner 9
Slide 8: Active asset management
Active asset management • Partnered with management to diversify and grow the business, and position for future • Selected achievements include: ✓ Diversified sources of waste imports ✓ Refinanced with long-term, portable debt before interest rate cycle turned ✓ Growth: materially increased electric
Slide 9: Why sell now?
Why sell now? • Delivered initial value creation plan • Major strategic review completed in 2022 • Focussed on growing carbon neutral energy production, and recycling • Identified significant growth potential across all (and new) business lines • Over €1 billion of capex by 2030 • Exciting growth pl
Slide 10: Selling well
Selling well • Extensive preparation and pre-marketing • Structured auction sales process • Portable debt helpful in current market • Believe winning bidder will be a strong partner for the business 12
Slide 11: 3i Infrastructure is proud to have supported Attero
3i Infrastructure is proud to have supported Attero
Slide 12: Future Biogas
Future Biogas Tim Short Partner, Infrastructure
Slide 13: Introducing Future Biogas
Introducing Future Biogas • A leading developer and operator of anaerobic digestion (“AD”) plants across the UK • Biomethane from AD is the most economical solution for hard to decarbonise industrial sectors – essential in supporting energy transition • Highly experienced management team with a stro
Slide 14: Decarbonising industry and farming without subsidy
Decarbonising industry ~~ and farming without Subsidy... 3i Infrastructure Plc, Capital Markets Day October 2023
Slide 15: UK Leader in Anaerobic Digestion
° @ UK Leader in Anaerobic Digestion aa, 0.51 green gas generated p.a. 160 biogas experts f= 3 me} £ > © 2 fo) G2 5 § o a Py is) > = a ¢ S el 5 fr Ls — 4 a. £200m n backed by g assets under I 3i infrastructure plc management
Slide 16: Volatility in the gas market, policy costs and carbon taxes
Volatility in the gas market, policy costs and carbon taxes and green gas price increases are key commercial drivers for long-term unsubsidised green gas agreements Green Gas price increases : Unhedged Risk : £ Py mwh Policy costs & Carbon taxes Volatility in the market Unsubsidised Green Gas CO, En
Slide 17: Decarbonising Farming
2 a Decarbonising Farming Farming is central to everything we do Decarbonising Industry Benefit to farmer: Benefit to AD Plant: Benefit to Environment: Benefit to UK: * Long-term offtake * Feedstock security * Restore soil health * Deliver Net Zero by 2050 «Transparent, stable pricing * Predictable
Slide 18: Building Resilience
f=) o Building Resilience Long and diverse crop rotations offer numerous environmental and agronomic benefits: Future Biogas | Decarbonising Industry a sag Winter 2nd Winter Winter Forage Wheat Wheat Wheat Maize 4 . ’ Conventional » Oilseed Regenerative Winter Improve soil Protect Maximise Rotation
Slide 19: Project Carbon Harvest
Project Carbon Harvest Future Biogas is developing the UK's first subsidy-free renewable gas from sustainable and regenerative agriculture, combining the power of AD and BECCS Feedstocks from regenerative agriculture Soil Carbon Replaces artificial fertilisers - Helps build soil organic matter CO: c
Slide 20: AstraZeneca inks £100m biomethane deal
AstraZeneca inks £100m FiMiTrossury deal to source " biomethane from Announcement from @AstraZeneca today KJ Lincolnshire BECCS project Their partnership with @FutureBlogas means less carbon emitted gas imported to heat our homes, helping the UK towards home grow! a ainable energy. Life scienc ust t
Slide 21: Future Biogas
Druturediogas 10-12 Frederick Sanger Road Guildford, GU2 7YD +44 (0)1483 375920 [email protected] www.futurebiogas.com OOO
Slide 22: Global Cloud Xchange (“GCX”)
Global Cloud Xchange (“GCX”) Scott Moseley Managing Partner & Co-Head of European Infrastructure
Slide 23: Introducing Global Cloud Xchange (“GCX”)
Introducing Global Cloud Xchange (“GCX”) Carl Grivner, CEO 27
Slide 24: Subsea Connectivity & Managed Services
SUBSEA CONNECTIVITY & MANAGED SERVICES
Slide 25: Agenda
AGENDA 1 Carl Grivner - Who am I ? Who / What is GCX ? Why is Subsea important? What's next for GCX? Summary
Slide 26: Background
2 BACKGROUND XO Communications Owned by Carl Worldport Icahn, sold to Verzion for $2B Sold for $625M US Marine Corp cash to Energis Officer AFC ($100M initial investment) IBM Took public in 1997, had greater Pacnet market cap than Sold to Telstra General Motors $750M on Day 1 Colt GCX Owned by Fidel
Slide 27: Who we are
3 WHO WE ARE GCX is a GLOBAL SUBSEA NETWORK & SECURE GLOBAL MANAGED SERVICE PROVIDER Our goal is to make our customers world of data more scalable, resilient and secure Our global presence is underpinned by our network – the world's largest private submarine network Our rapidly expanding portfolio c
Slide 28: Our history: FLAG (subsea)
4 OUR HISTORY: FLAG (SUBSEA) Over 31 years of heritage
Slide 29: Our history: managed services
5 OUR HISTORY: MANAGED SERVICES Over 35 years of experience delivering cutting edge solutions
Slide 30: 3i Advantages
6 3i ADVANTAGES • Global recognition − Customers loved the announcement • Synergies within portfolio − Tampnet − Possible new customer opportunities 12 PRIORITIZED ESG KPIs Climate change mitigation Diversity, equity & inclusion (energy efficiency & renewable energy) • Capital raising Climate change
Slide 31: Who we are: managed services
8 WHO WE ARE: Customer First >35 > 500 customers >100,000 MANAGED Years managing private networks +60% customers with 15+ years of relationships Internet circuits (xDSL etc.) delivered SERVICES Technical Expertise >50 250 150 Network technologies currently NNIs with 3rd party providers Connectivity
Slide 32: Customer vertical snapshot
9 CUSTOMER VERTICAL SNAPSHOT TRADITIONAL ISP / OTT FINANCIAL SERVICES ENTERPRISE MARKET CARRIERS WHOLESALE CARRIER / OTTs FINANCE AND ENTERPRISE
Slide 33: Who we are: global subsea network
WHO WE ARE: GLOBAL SUBSEA NETWORK 10 Our global presence is underpinned by our network - the world’s largest private network footprint. 66,000KM 46 Landing Stations 164 Countries >198,000 Gbps design capacity Submarine Cables In 27 Countries Terminating Services 100Gbps capable routes globally
Slide 34: Hawk – Mediterranean network
11 HAWK – MEDITERRANEAN NETWORK Hawk is an express cable route between Europe and the Middle East with unique diversity across Egypt.
Slide 35: Falcon – Middle East network
12 FALCON – MIDDLE EAST NETWORK Falcon is the only self-healing, optical system in the Middle East landing in more points in the region that any other.
Slide 36: Mediterranean Express – Egypt bypass
13 MEDITERRANEAN EXPRESS – EGYPT BYPASS MEDEX is a fully diverse and unique route connecting Middle East / Asia to Europe through Jordan using FEA the only submarine cable system landing there.
Slide 37: GET – Gulf to Europe transit
14 GET – GULF TO EUROPE TRANSIT Germany FRANKFURT Kuwait KUWAIT CITY GET provides dual path across Iraq and provides dual path across Turkey and EU.
Slide 38: FNAL – Protected Asia loop
15 FNAL – PROTECTED ASIA LOOP FNAL provides fully protected connectivity between HK, Taiwan, S. Korea and Japan. This includes lowest latency path between HK and Korea.
Slide 39: FA1 – Transatlantic network
16 FA1 – TRANSATLANTIC NETWORK FA1 is a dual fiber loop providing fully-protected services to ensure maximum network uptime. Dedicated landings in NY, UK and France with the lowest latency between NY and Paris. Seamlessly integrated with group company Tampnet North Sea and Nordic network.
Slide 40: Why is subsea important?
17 WHY IS SUBSEA IMPORTANT? • Carries 99% of all intercontinental data • A data centre without connectivity is a warehouse • It is and will be the highest and fastest bandwidth for next 25 years
Slide 41: The drivers for future growth
18 THE DRIVERS FOR FUTURE GROWTH CLOUD APPLICATIONS GROWTH - More data centres - Crazy Growth in the Middle East and Asia - Data centres need power, cooling and CONNECTIVITY ARTIFICIAL INTELLIGENCE (AI) - Different chips - Decentralised data centres (edge) - Infrastructure needs are 10x Cloud RIGHT
Slide 42: Tech giants are fuelling the growth of the subsea cable sector
TECH GIANTS ARE FUELING THE GROWTH 19 OF THE SUBSEA CABLE SECTOR Tech giants like Google, Meta, and Microsoft have already INVESTED $2 BILLION IN CABLES FROM 2016 TO 2022, contributing to 15% of the global total. Over the next three years, they PLAN TO INJECT AN ADDITIONAL $3.9 BILLION , accounting
Slide 43: Generative AI implications for digital infrastructure
20 GENERATIVE AI IMPLICATIONS FOR DIGITAL INFRASTRUCTURE The recent key moments include the (1) rapid adoption of ChatGPT, (2) the impact of generative AI on companies like NVI DI A, and (3) the emergence of its first m ains tream use cases. TIME TO 1 MILLION USERS (IN NVIDIA – DC REVENUES MICROSOFT
Slide 44: Generative AI implications for digital infrastructure
GENERATIVE AI IMPLICATIONS 21 FOR DIGITAL INFRASTRUCTURE Key infrastructure trends driven by generative Al include increased data centre demand globally, growth of well-suited edge locations and increased bandwidth demand. Increased data centre demand to train and run generative Al applications Grow
Slide 45: International connectivity – correlation to data centre demand
INTERNATIONAL CONNECTIVITY – 22 CORRELATION TO DATA CENTRE DEMAND DC’s & international connectivity Hyperscaler requirement driving international growth Case Study: International capacity demand profile Diversity & capacity requirements driving connectivity expansion Capacity TB/S 10 9 8 7 6 5 GCP l
Slide 46: Large cap telecom – recognition of subsea as key
LARGE CAP TELECOM – RECOGNITION OF SUBSEA AS KEY 23 Digital InfraCo Growth Investment Telefonica Infra Yield Investment Growth Investment PCCW Global Source: Singtel, Telefonica and Infratil company information 51
Slide 47: Hyperscale data centre demand
HYPERSCALE DATA CENTRE DEMAND 24 (IN GW, 2022 AND 2030) +440% +338% 9.6 9.5 +438% 5.9 29.3 29 17.9 8.9 7.1 4.4 2022 2030 2022 2030 2022 2030 AMERICAS EMEA APAC Across the globe, demand for data centre capacity is expected to grow substantially, with around 30% of growth driven by AI workloads.
Slide 48: What is an edge / de-centralised data centre
25 WHAT IS AN EDGE / DE-CENTRALISED DATA CENTRE • Decentralised facility equipped with power and cooling infrastructure • Provides compute and storage close to the end user BENEFITS OF AN EDGE / DE-CENTRALISED DATA CENTRE • Low latency • Greater bandwidth • Reduced operating costs • Security • Data
Slide 49: What is next for GCX?
26 WHAT IS NEXT FOR GCX? • Network expansion plan • Why these markets (ME/India/SEA/Transpac) – maintaining high pricing for connectivity and high growth markets etc… • Edge Datacentres – what, where and why? AI will need edge for the latency critical applications… Largest network presence in the Gu
Slide 50: Proposed edge / de-centralised data centre
PROPOSED EDGE / 27 DE-CENTRALISED DATA CENTRE Cooling Units Gas Fire Suppressant Air Lock UPS A UPS B Total Footprint : approx. 230sqm
Slide 51: Osprey – India to Genoa
& GCX OSPREY — INDIA TO GENOA
Slide 52: Phoenix – India to Singapore
A ry GCX PHOENIX — INDIA TO SINGAPORE
Slide 53: Transpacific
S&S GCx TRANSPACIFIC
Slide 54: Global presence
GLOBAL PRESENCE
Slide 55: Summary
32 SUMMARY FUTURE INVESTMENTS A look at the future for GCX Expand our subsea platform that both extends the economic value of our existing assets as well as investing in the latest cable routes and solutions for our customers: - Europe to India - Europe to ME - India to Singapore - Transpacific - Af
Slide 56: www.globalcloudxchange.com
www.globalcloudxchange.com [email protected]
Slide 57: 3i Infrastructure plc
3) Infrastructure plc