Infratil 2021 Annual Meeting

Infratil Annual Meeting of Shareholders
19 August 2021

Annual Meeting of Shareholders’ agenda
•Chair’s Introduction
•Chief Executive’s Review
•Presentation of the Annual Report
•Shareholder Questions
•Resolutions
•Close
2

InfratilFull year results presentation 2021
3
Infratil
Annual
Meeting
Online
participation

Chair’s Introduction
Mark Tume

Infratil Annual Meeting presentation -2020
Up for re-election
Mark Tume
Independent Director and
Chairperson of the Meeting
•Independent Director since 2007
•Chair since 2013
•Chair of the Manager Engagement
Committee
•Chair of Nomination and
Remuneration Committee
•Director of RetireAustralia
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Infratil Annual Meeting presentation -2020
6
Alison Gerry
Independent Director
•Independent Director since 2014
•Chair of Audit and Risk Committee
•Member of the Manager
EngagementCommittee
•Member of Nomination and
Remuneration Committee
6

Infratil Annual Meeting presentation -2020
Up for election
7
Jason Boyes
Chief ExecutiveOfficer and
Director
•Chief Executive of Infratil and
Director since 2021
•Executive of
H.R.L. Morrison & Co Group
•Chair of Longroad Energy and
Galileo Green Energy
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Infratil Annual Meeting presentation -2020
Up for re-election
8
Paul Gough
Independent Director
•Independent Director since 2012
•Member of Manager Engagement
Committee
•Member of Nomination and
Remuneration Committee
8

Infratil Annual Meeting presentation -2020
9
Kirsty Mactaggart
Independent Director
•Independent Director since 2019
•Member of Audit and Risk
Committee
•Member of Manager Engagement
Committee
9

Infratil Annual Meeting presentation -2020
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Catherine Savage
Independent Director
•Independent Director since 2019
•Member of Audit and Risk
Committee
•Member of Manager Engagement
Committee
10

Infratil Annual Meeting presentation -2020
11
Peter Springford
Independent Director
•Independent Director since 2016
•Member of Manager Engagement
Committee
11

Chair’s Address
Mark Tume

Chief Executive’s Review
Jason Boyes

InfratilFull year results presentation 2021
•Proportionate EBITDAF from continuing
operations of $398.8 million, up from$370.2 million
in the comparative period (7.7% growth)
•Proportionate capital expenditure and investment
of $1,235 million, including the initiation of a
healthcare platformthrough the investment in
Qscan Group, followed by the Pacific Radiology
investment in May 2021
•Indicative offer from Australian Super provided a
real-time endorsement of the quality of Infratil’s
assets and their attractiveness to sophisticated
investors
•Agreement reached to sell Infratil’s 65.5% stakein
Tilt Renewables for gross proceedsof $2.0 billion
•Strong demand for resilience in digital
infrastructure continues to drive demand for high-
quality data centres assets, reflected in the
increase in the valuation of Infratil’s investment in
CDC Data Centres
•Partially imputed dividends of 17.75 cents per
sharedeclared during the year
•
Full Year
Overview
Our performance
demonstrates
the benefits of
sector and
jurisdictional
diversification
14

InfratilFull year results presentation 2021
CDC Data Centres
•Installed capacity increased to 133MW with the commissioning of Eastern Creek 3 in
FY2021, with a further ​77MW currently under construction
Vodafone New Zealand
•Vodafone New Zealand FY2021 investment of $126 million (Infratil share) was across
5G and regional network upgrades, fixed wireless acceleration and investment in its
digital transformation programme
Wellington Airport
•Growth capital projects suspended at Wellington Airport due to covid, however
runway overlay brought forward given covid-related cessation of international flights
Longroad Energy​
•Completed the construction of 907MW of development projects in FY2021
•Construction completedon the 331MW Prospero 2 solar project & 199MW Sunstream
2 solar project this financial year
•Construction underway on the 26MW Maine Distributed Generation solar project and
294MW Muscle Shoals project
Qscan Group
•On 22 December 2020 Infratil acquired 56% of Qscan Group for A$289.6 million
Pacific Radiology
•On 31 May 2021 Infratil acquired 56% of Pacific Radiology for NZ$313.6 million
Portfolio
Resilience and
Composition
Investment
activity focused
on building
scalable
platforms with
defensive
characteristics
and long-term
demand growth
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InfratilFull year results presentation 2021
Portfolio
Resilience and
Composition
Investment
activity focused
on building
scalable
platforms with
defensive
characteristics
and long-term
demand growth
InvestmentSector
20%
53%
12%
13%
2%
Renewable Energy
Digital Infrastructure
Airports
Social Infrastructure
Other
33%
20%
16%
12%
5%
4%
4%
4%
2%
CDC Data Centres
Vodafone
Trustpower
Wellington Airport
Qscan Group
Pacific Radiology
RetireAustralia
Longroad Energy
Other
16

InfratilFull year results presentation 2021
Tilt
Renewables
An industry
leading platform
that delivered
outstanding
returns
•Through Trustpower and then Tilt Renewables,
Infratil was an early investor in wind powered
generation in New Zealand and Australia,
resulting in $2,150 million of capital expenditure,
building out 1,106MW of capacity
•Tilt Renewables ultimately entered into a Scheme
Implementation Agreement (‘SIA’) under which Tilt
Renewables shareholders received $8.10 per share
in cash
•Material shareholder value recognised through
the SIA, with the NZ$8.10 offer price equivalent to
a 106.6% premium above the Tilt Renewables
share price prior to the announcement of Infratil’s
strategic review
•On 3 August,Infratilreceivednet proceeds of
$1,958.3 million after transaction costs
•On completionInfratilapplied ~$842 million of
the proceeds to fully repay its drawn bank
facilities
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InfratilFull year results presentation 2021
Notes:
1.Infratil’s Absolute Return Target set 1 April 2018
2.Based on composition of existing Infratil portfolio
Leverage
Assumption
Expected
Returns
Infratil
Portfolio
Management
Costs
Return to
Shareholders
Core
Lower Risk
Core Plus /
Growth
Development
Higher Risk
8–10%
Per annum
10–15%
Per annum
15–25%
Per annum
Average net debt/
total capital 30%
at6% p.a.
interest rate
1% of assets
Per annum
11–15%
Per annum
++
–
=
Portfolio
Target
Returns
Portfolio
composition and
active
management
approach
designed to
deliver
targetedreturns
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InfratilFull year results presentation 2021
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
201020112012201320142015201620172018201920202021
Infratil Share Price
Total Shareholder Return
PeriodTSR
1 April –18 August 20212.6%
1 Year
1
91.9%
5 Year
1
23.2%
10 Year
1
20.1%
Inception –27 years
1
18.8%
1
Total shareholder returns are to 31 March 2021 based on a closing share price of $7.13
Share Price
Performance
Outstanding
returns delivered
over the medium
and long-term
$7.20
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InfratilFull year results presentation 2021
1
Gearing calculated as total net debt / total capital based on share price
2
Undrawn Infratil Corporate facilities
Debt Capacity
& Facilities
Infratil’s balance
sheet strength
reflects the
repayment of all
bank debt and a
net cash position
of $1.2 billion
31 March ($Millions)31 March 202116 August 2021
Net bank debt/(cash)
328(1,200)
Infratil Infrastructure bonds
1,1551,164
Infratil Perpetual bonds
232232
Total net debt1,715 196
Market value of equity5,1515,205
Total capital6,8665,401
Gearing
2
25.0%3.6%
Undrawn bank facilities
1
353 795
100% subsidiaries cash14 1,200
Liquidityavailable3671,995
•On 3 August 2021, Infratil announced the
completion of the sale of its 65.15% stake in
Tilt Renewables. On completion Infratil
received net proceeds of $1,958.3 million
after transaction costs
•Prior to completion Infratil also received a
fully imputed dividend from Tilt of
$16.1 million
•On completion Infratil applied
$841.8 million of the proceeds to fully repay
its existing drawn bank facilities, including
the bridge facility put in place to fund the
acquisition of Pacific Radiology
•As at 16 August 2021, Infratil had cash on
hand and term deposits of ~$1.2 billion and
undrawn bank facilities of $795 million
•Infratil’s next bank maturities are $65 million
in February 2022
•Infratil’s next two bond maturities are
$93.7 million of IFT190 bonds (6.85%) in
June 2022 and $100.0 million of IFT240
bonds (5.65%) in December 2022
20
65
450
180
100
-
194
122
848
232
-
200
400
600
800
1,000
FY22FY23FY24FY25-31>FY31
Debt Maturity Profile as at 16 August 2021 (NZ$millions)
Wholly owned bank facilitiesBonds

InfratilFull year results presentation 2021
Infratil
Guidance
For the year
ended
31 March 2022
•Infratil’s FY2022 Proportionate EBITDAF
guidance range from continuing operations of
$505-$550 million remains unchanged
•This assumes a full-year contribution from
Trustpower’s retail business, a 10-month
contribution from Pacific Radiology and no
contribution from Tilt Renewables
•Guidance is based on Infratil management’s
current expectations and assumptions about the
trading performance, is subject to risks and
uncertainties, and dependent on prevailing
market conditions continuing throughout the
outlook period
•There are a number of operational impacts at
CDC Data Centres, Qscan Group, RetireAustralia
and Wellington Airport as a result of the current
covid situation in Australia. The implications in
New Zealand are still emerging and being
assessed
•These are not currently forecast to materially
impact FY2022 guidance but will continue to be
evaluated
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Portfolio Entities

InfratilFull year results presentation 2021
•CDC recently obtained Certified Strategic Status,
the highest certification under the Australian
Government’s Hosting Certification Framework,
reinforcing CDC’s coveted credentials across its
client base
•Recent contract wins and renewals have increased
the whole of portfolio weighted average lease
expiry (‘WALE’) from 8.1 years to 9.4 years and
from 14.4 years to 22.4 years including options
•Continued execution of development pipeline,
with four new facilities delivering 77MW of
capacity expected to be delivered in 2022
•Auckland facilities (20MW) progressing positively,
with CDC continuing to broaden its sales focus
and presence in New Zealand. The impact of
Auckland being in lockdown is being closely
monitored
•Development activity at Eastern Creek 4 (37MW)
and Hume 5 (20MW) was on schedule leading into
the lockdowns in Sydney and Canberra. Delivery
timetables are being closely monitored as a result
of the current covid disruptions
CDC
Data Centres
Unique
operating model
and proven track
record continues
to lead to
attractive sales
and growth
opportunities
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InfratilFull year results presentation 2021
Vodafone
New Zealand
Commercial
performance and
underlying
quality of
earnings
continuing to
improve
•Targeted initiatives, especially in Post-Pay Mobile,
Enterprise and ICT underpin improving quality of
earnings
•Key Enterprise and ICT partnerships established
and driving results
•Cost out and transformation programme
continues to deliver significant value, allowing re-
investment in network and providing trading
improvements
•Second phase of 5G rollout and 4G improvements
underway, with growth continuing to underpin
Fixed Wireless Access acceleration
•Internal IT system modernisation and IT system
separation from Vodafone Group continuing
•Operating model rewired and changes bedded in,
ongoing investments in organisational health and
high performance culture leading to improved
productivity
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InfratilFull year results presentation 2021
Wellington
Airport
Domestic
passengers
showing strong
demand while
Trans-Tasman
travel is
currentlypaused
•Domestic business continues to trend well with
increasing capacity and passenger traffic
(July 2021 capacity 94% and passengers 93% of
pre-covid levels)
•International travel currently paused with the
Trans-Tasman bubble, and is a reminder of the
ongoing threat of covid
•Strong cost control across both operating and
capital expenditure remains a focus
•Baseline capital expenditure for FY2022 is
$25 million and comprises committed, essential
and regulatory related projects
•Pricing consultation (PSE 4) with new aeronautical
pricing was issued 1 April 2021
•In June 2021, S&P revised Wellington Airport’s
outlook from “negative” to “stable”, reflecting its
strong recovery
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InfratilFull year results presentation 2021
Trustpower
Continuing to
drive operational
excellence in
generation with
a renewed focus
on new
opportunities
•Trustpower has agreed terms with Mercury for a
sale of its retail business which is expected to
complete late 2021 or early 2022, subject to the
conditions of the sale being satisfied
•The sale will enable the Trustpower Board and
leadership team to drive operational excellence in
the generation business and focus on new
generation and related opportunities
•Work on splitting out the retail business and
standing up the remaining generation business is
proceeding well
•Trustpower has, after consultation, chosen
Manawa (meaning ‘heart’ or ‘breath’) Energy as its
name post completion
•Total generation production of 432GWh in Q1
FY2022 was up 2% on the on Q1 FY2021
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InfratilFull year results presentation 2021
Longroad
Energy
Leading
renewables
business
capitalising on
significant
industry tailwinds
•Longroad continues to strengthen its position as a
leading U.S. renewables developer, owner &
operator
•Current operating/under construction portfolio of
over 1.3GWs, a pipeline in excess of 6GWs and
providing services to 3.5GWs of operating assets
•In FY2021, 907MW of development projects were
completed including El Campo (243MW), Little Bear
(215MW) and Prospero I (379MW), with 50% of the
equity in these projects sold
•Construction has been completed on the 331MW
Prospero 2 solar project & 199MW Sunstream 2
solar project this financial year
•Construction is underway on the 26MW Maine
Distributed Generation solar project and 294MW
Muscle Shoals solar project
•Strong tailwinds from a policy perspective with the
Biden administration progressing $1 trillion
bipartisan infrastructure plan, re-entering the Paris
Agreement and pushing for a zero carbon power
sector by 2035
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InfratilFull year results presentation 2021
Galileo Green
Energy
Pan-European,
multi-technology,
renewable energy
developer, owner
and operator
•Galileo Green Energy (‘GGE’) is focussed
ongreenfielddevelopment,acquisitions and
strategicco-development opportunities, aiming to
achieve both geographic andtechnological
diversification
•Initial capital commitment is EUR220 million of
which Infratil’s share is EUR88 million, with
EUR8.3 million invested by Infratil to date
•Key milestones to date include:
•A 50% stake in an Irish wind development joint
venture with a 400MW pipeline for potential
development over 3 to 4 years
•The establishment of GGE Nordics, an 80:20 joint
venture with an initial focus is on wind projects in
Scotland and Sweden. The target size of the
pipeline is over 1,000MW
•A development agreement with experienced wind
developer TEN Project and a target pipeline of
300MW of onshore wind projects in south Italy
•To date GGEhas attracted a screening pipeline of
over 7GWs across six key European territories
28

InfratilFull year results presentation 2021
Qscan Group
Priority on
providing patient
services and
keeping staff
safe while
navigating the
current covid
outbreaks
•Qscan is tracking to the investment case, subject
in the short term to prolonged covid restrictions
in core markets
•Despite lockdowns and quarantining requirements
impacting some staff, Qscan has continued to
serve its patients and referring doctors
•Qscan’s value proposition has proven to be
attractive to prospective recruits in an extremely
tight radiologist labour market
•Execution of the PET-CT rollout strategy
continues, with three new PET-CT clinics due to
open in CY2021 (2 in NSW, 1 in WA) pending
covid disruptions
•A steady pipeline of future growth options
continue to present in the Australian market
29

InfratilFull year results presentation 2021
Pacific
Radiology
Group
New Zealand’s
largest private
provider of
radiology
services
•Completion of the acquisition of Pacific Radiology
occurred on 31 May 2021, adding immediate scale
to Infratil’s healthcare platform
•Infratil shareholding is 53.5% following strong
interest in equity ownership across the radiologist
cohort
•Pacific Radiology has had a strong first quarter,
with both revenue and EBITDA ahead of the
investment case
•Significant progress made towards key transition
priorities within the first two months of ownership
including expanding the doctor equity ownership
scheme
•Two new clinics opened in Juneand July in
Rolleston and Wellington with continued
investment in leading high-tech medical
equipment
30

InfratilFull year results presentation 2021
•Subsequent waves of covid outbreaks have led to
some disruption to operations, however
RetireAustralia is well prepared and taking the
necessary action to protect residents and staff
•To date, RetireAustralia residents and staff have had
no cases of covid-19
•Favourable economic conditions, including an uplift
in HPI continue to drive performance, with strong
resale and development settlements across all
geographies
•The June quarter results were well ahead of budget
and included 124 resales settlements and 22
development sales. The FY2022 budget is based on
367 resales and 75 development sales
•Construction contracts have recently been entered
into for two developments on the New South Wales
Central Coast for Stage 3 of The Rise at Wood Glen
(34 ILAs) and 22 additional ILUs at Forresters Beach
•Construction will be commencing shortly on Stage 2
of The Verge located on the Gold Coast (66 ILAs)
and for The Green Tarragindi, a 94-unit
development in metropolitan Brisbane
Retire
Australia
The number one
priority remains
the health and
wellbeing of
residents and
staff
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InfratilFull year results presentation 2021
Outlook
Infratil is
uniquely
positioned to
redeploy a
significant
amount of
capital
•Infratil is a high conviction investor with
significant positions in our preferred sectors
•Focus remains on maintaining a balanced
portfolio of scaled platforms that can
generate attractive non-correlated returns
•The strength of the Company’s balance
sheet reflects the sale of Tilt Renewables,
and repayment of all bank debt
•Infratil is uniquely positioned to redeploy
this capitalwith a strong pipeline of
opportunities within existing platforms and
other adjacencies a priority
•We have a vision for Infratil to be a leader in
sustainable infrastructure investment, and
we believe our current portfolioreflects this
32

Presentation of the Annual Report

Shareholder Questions

Resolutions

InfratilFull year results presentation 2021
Resolution 1
Re-election of
Mark Tume
Re-election of Mark Tume:
That Mark Tume be re-elected as a director of Infratil
ForAgainstDiscretionary
244,744,711
(90.09%)
19,296,230
(7.10%)
7,642,213
(2.81%)
36

InfratilFull year results presentation 2021
Resolution 2
Re-election of
Paul Gough
Re-election of Paul Gough:
That Paul Gough be re-elected as a director of Infratil
ForAgainstDiscretionary
283,081,949
(97.33%)
91,698
(0.03%)
7,666,119
(2.64%)
37

InfratilFull year results presentation 2021
Resolution 3
Election of
Jason Boyes
Election of Jason Boyes:
That Jason Boyes be elected as a director of Infratil
ForAgainstDiscretionary
283,011,104
(97.31%)
140,518
(0.05%)
7,692,900
(2.64%)
38

InfratilFull year results presentation 2021
Resolution 4
Payment of
FY2020
Incentive Fee
by Share Issue
Payment of FY2020 Incentive Fee by Share Issue:
That Infratil be authorised to issue to Morrison & Co Infrastructure
Management Limited (Morrison & Co), within the time, in the
manner, and at the price, prescribed in the Management
Agreement, such number of fully paid ordinary shares in Infratil
(Shares) as is required to pay all or such portion of the third
instalment of the 2020 Incentive Fee (if payable) as the Board elects
to pay by the issue of Shares (2020 Scrip Option), and the Board be
authorised to take all actions and enter into any agreements and
other documents on Infratil’s behalf that the Board considers
necessary to complete the 2020 Scrip Option.
ForAgainstDiscretionary
247,206,473
(85.65%)
33,287,168
(11.53%)
8,133,361
(2.82%)
39

InfratilFull year results presentation 2021
Resolution 5
Payment of
FY2021
Incentive Fee
by Share Issue
Payment of FY2021 Incentive Fee by Share Issue:
That Infratil be authorised to issue to Morrison & Co Infrastructure
Management Limited (Morrison & Co), within the time, in the
manner, and at the price, prescribed in the Management Agreement,
such number of fully paid ordinary shares in Infratil (Shares) as is
required to pay all or such portion of the second instalment of the
2021 Incentive Fee (if payable) as the Board elects to pay by the
issue of Shares (2021 Scrip Option), and the Board be authorised to
take all actions and enter into any agreements and other documents
on Infratil’s behalf that the Board considers necessary to complete
each of the 2020 Scrip Option and the 2021 Scrip Option.
ForAgainstDiscretionary
247,151,624
(85.63%)
33,332,445
(11.55%)
8,139,693
(2.82%)
40

InfratilFull year results presentation 2021
Resolution 6
Auditor’s
remuneration
Auditor’s remuneration:
That the Board be authorised to fix the auditor’s remuneration
ForAgainstDiscretionary
277,921,490
(95.56%)
5,194,863
(1.79%)
7,725,963
(2.65%)
41

www.infratil.com
Thank You

InfratilFull year results presentation 202143
Glossary
5GFifth generation mobile network
FWAFixed Wireless Access (the delivery of high-speed broadband over mobile networks)
GWGigawatt (a unit of power equivalent to 1,000MW)
GWhGigawatt hours (used as a measure of the output of large electricity power stations)
HPIHouse Price Inflation
ICT Information and Communications Technology
ILAIndependent living apartment
ILUIndependent living unit
MWMegawatt (a unit of power)
PET-CT
A procedure that combines the pictures from a positron emission tomography (PET) scan and a computed
tomography (CT) scan to provide detailed pictures of areas inside the body
Proportionate
EBITDAF
Proportionate EBITDAF is an unaudited non-GAAP (‘Generally Accepted Accounting Principles’) measure
of financial performance, presented to provide additional insight into management’s view of the
underlying business performance.
PSEPrice setting event
S&P Standard and Poor's
TSRTotal Shareholder Return
WALEWhole of portfolio weighted average lease expiry