Infratil adds UK opportunity to its Data Centre platform

Infratil Limited 5 Market Lane, PO Box 320, Wellington, New Zealand Tel +64-4-473 3663 www.infratil.com


5 October 2021
Infratil adds UK growth opportunity to its Data Centre platform



Infratil has committed £120-130 million of growth capital to London data centre business Kao Data.
Infratil will obtain a 40% stake alongside current owners, Legal & General Group, one of Europe's
largest asset managers, and Goldacre, founder of Kao Data and part of the Noé Group, a family run
investment and asset management business. They will each retain a 30% stake.
Infratil, together with Legal & General Group and Goldacre, intend to build Kao Data into a £500
million multi-site data centre platform in the medium term.
Kao Data owns a 15-acre data centre campus in Harlow, north of London. Kao has built one data
centre on that campus, with construction of a second to begin this financial year. Once fully
developed, the campus will be home to four energy efficient data centres, all powered by 100%
renewable energy.
The Harlow campus is located in the UK Innovation Corridor between London and Cambridge, home
to world class academic, technology and bioscience institutions and companies. Kao’s technically
advanced data centres are designed to meet their specialist high-performance computing
requirements. Kao’s first data centre houses Nvidia’s Cambridge-1, the most powerful supercomputer
in the UK, which provides computing capacity to healthcare companies such as AstraZeneca and
GSK.
Kao Data has also recently signed an agreement to acquire two UK prime location data centres with a
long-term anchor lease from a large financial services business. This purchase will enable Kao to
deliver multi-site services for its clients and expand potential capacity to c. 55MW, while delivering
long-term trusted operations for clients' mission-critical infrastructure.
Infratil CEO Jason Boyes said, “With global demand for connectivity continuing to rise, this is an
excellent opportunity to expand our digital infrastructure portfolio and build on our successful data
centre platform investment in Australia and New Zealand. We were an early mover into this sector,
acquiring CDC Data Centres in 2016, which has delivered exceptional performance."
Kao Data provides a compelling strategic growth opportunity for Infratil. It is a rare opportunity to
invest in one of the fastest growing data centre markets in the world, alongside blue chip partners.
We will bring our sector experience alongside our partners’ capability and relationships to continue to
scale up this business, with the aim of delivering a sizeable multi-site platform."

2
Vincent Gerritsen, Head of UK and Europe for Morrison & Co, the manager of Infratil Ltd said, "We
look forward to working with the Kao Data management team and existing shareholders to continue
the build out of best-in-class, high-performance, sustainable data centre solutions and scale up the
platform through attractive growth opportunities in the pipeline."
Lee Myall, CEO, Kao Data said, “I welcome today’s announcement of Infratil Limited’s investment in
Kao Data, and on behalf of our management team, we look forward to working with them on the next
stages of this exciting journey. This investment presents a strategic opportunity to accelerate our
mission of supporting the computing requirements of advanced industries, and to do so sustainably.”
Matteo Colombo, Strategic Capital Investment Director at Legal & General Capital said, “Kao is fast
becoming one of the UK’s leading compute providers to the life sciences and financial services sector,
amongst others, delivering critical infrastructure to enable a productive and inclusive society. We’re
thrilled to welcome Infratil with its international experience and significant sector acumen.”
David Bloom, Founding Partner at Goldacre, Noé Group, said, “This is another landmark moment for
Kao Data, both for the continued growth of the firm and for the development of the wider data centre
industry. We saw immense potential in Kao Data back in 2014 and are proud to see the team
continue to go from strength to strength, transitioning into a widely respected market leader. Given the
ever-growing importance of the data industry, we look forward to working with Infratil and our existing
partners to create further opportunities to accelerate the emergence of state-of-the-art infrastructure
and enter new markets around the globe.”

Any enquiries should be directed to:
Mark Flesher, Investor Relations, Infratil Limited Mark.Flesher@hrlmorrison.com


Kao Data’s Harlow Campus

---

Investment in
Infratil Investor Presentation
5 October 2021

InfratilFull year results presentation 2021
Transaction
summary
•Infratil has agreed to invest £120-130 million growth capital in London data centre business Kao Data
alongside existing owners Legal & General Group and Goldacre, two strong UK-based investors
•Kao Data develops and operates technically advanced, highly sustainable colocation data centres. Kao Data
has developed a 15 acre data centre campus in Harlow, London, with space and power for four data centres.
Kao has built one data centre on that campus, and construction of a second data centre will commence by the
end of the financial year ending 31 March 2022 (FY22)
•Kao Data has also signed a conditional agreement to acquire two UK prime location data centres from a large
financial services business with significant expansion capacity. Subject to conditions precedent, completion is
expected by the end of FY22
•On a combined basis, the portfolio will have12.3MW of installed ICT capacity post completion of the above
conditional acquisition, with capacity to expand to c. 55MW on these existing sites
•The Kao Data investment represents a compelling strategic growth opportunity for Infratil shareholders:
✓Strong management team with experience at leading global data centre and connectivity businesses
✓Differentiated Harlow facility with market leading technical specifications,and significant growth potential
✓Transformational expansion to a multi-site business with the signed acquisition of two data centres in UK
prime locations, with significant expansion capacity
✓Weighted average remaining client contract life of over 9 years (excludingrenewal options)
✓Further value accretive growth potential through pipeline of development opportunities beyond the
existing sites (50MW+)
✓Strong local partners Legal & General and Goldacre to originate, execute and fund those further
development opportunities, jointly targeting a £500m multi-site platform in the medium term
Timing and
Governance
•Infratil has become an initial 20% shareholder and willreach its target 40% shareholding as Kao completes its
acquisition of two data centres by the end of FY22. Legal & General Group and Goldacre will each hold c. 30%
•Infratil’s governance rights over key strategic and financial decisions are consistent with a 40% stake
immediately
Funding
•Infratil’s equity investment is funded through cash on balance sheet
•As at 30 September 2021, Infratil has $1.1 billion in cash and undrawn bank facilities of $695 million. This
follows the recent completion of the Tilt Renewables sale
2
Transaction
Summary
Investment in
London data
centre platform
Kao Data,
withinitial
commitment of
£120-130 million
by Infratil

InfratilFull year results presentation 20213
Investment
Thesis
Rare platform
investment
opportunity in an
attractive UK data
centre market with
a company that
has a desirable
mix of proven
capability and
growth potential
This is an idea
that matters
Differentiated
core offering
Sizeable platform growth
opportunities
•Digital connectivity and data
storage are ‘ideas that matter’
•The pandemic has reinforced the
positive tailwinds around the
exponential growth in data usage
and need for connectivity
•Data centres are high margin, long-
dated assets with strong defensive
characteristics
•Rare platform investment
opportunity in attractive Broader
London data centre market
•Significant value add from Infratil as
experienced strategic partner to
help accelerate growth
•Existing Harlow based campus with
significant growth capacity to
c. 35MW across four buildings
•Located within the “Innovation
Corridor” between London and
Cambridge with c. 88MW of local
demand among research, academic,
AI and life sciences companies
•Technically advanced and highly
energy efficient facility with
abundant fibre connectivity. This
supports demanding use cases such
as High Performance Computing/AI,
as well as enterprise colocation
•Since its 2018 launch, Kao Data has
secured contracts with leading
companies including Nvidia,
European Bioinformatics Institute
and financial services companies
•One of few successful independent
new entrants in the broader London
market in the past 10 years
•Strong operational team with senior
experience from leading data centre
operators serving as an important
credential for demanding customer
procurement processes
•Recently signed acquisition of two
UK prime location data centres
(completion expected by end of
FY22) with further growth capacity
•Attractive well-connected local
partners in Legal & General Group
and Goldacre
•Sizeable pipeline of further
London/UK development and M&A
growth opportunities representing
50MW+ potential capacity
Source: Altman Solon Strategy LLP

InfratilFull year results presentation 20214
Market
Approach
Kao Data has a
focused strategy
within an
attractive London
data centre market
London data
centre market
•Strong demand growth outlook, high utilisation rates expected to increase further inthe next 10
years due to ongoing high demand growth despite announced new market supply.
•Land and power constraints, London prime market becoming more land and power constrained
•Large and diverse market, four largest players are 40-50% of total supply,long tail of mid-sized and
smaller players
•Sustainability credentials becoming an increased focus of clients, with an industry trend towards
companies measuring emissions along its supply chain
Kao Data’s
strategy
•Build an ecosystem of high-performance colocation clients representing the most innovative,
research driven and high growth organisations from the local area and Broader London/UK incl.
research, academic, AI and life sciences companies
•Use best-in-class performance and sustainability credentials to expand into broader enterprise
colocation markets (e.g., financial services)
•Enhance strength of offering through multi-site, providing diverse data centre alternatives,
including additional prime locations and offer redundancy solutions to existing and future clients
London: Largest data centre market in Europe / Annual uptake >80MW
692
1,130
1,753
316
764
2024
60
99
20292019
128
851
1,574
2,800
283
Hyperscale
Enterprise
High Performance Computing (HPC)
UK market demand (MW)
23%
10%
17%
13%
Compounded annual
growth rate
Source: Altman Solon Strategy LLP, CBRE

InfratilFull year results presentation 2021
Multi-site
Footprint
Acquisition of two
additional data
centres represents
an opportunity to
broaden its client
offering and
export its strong
operational track
record at the
Harlow campus
Harlow campus
5
Case study: Nvidia’s Cambridge-1 supercomputer
•UK’s most powerful supercomputer
•Hosted within Kao Data’s Harlow campus and
launched in July 2021
•With a range of life sciences and research
organisations as founding partners (e.g. Astra Zeneca,
GSK), Cambridge-1 will accelerate UK healthcare
research into areas such as drug discovery and
genome sequencing
Acquisition of two UK prime location data centres
Strategic benefits
•Becoming a multi-site platformthrough this acquisition has major benefits from an investor and client perspective –
offering clients’ redundancy and increasing Kao Data’s addressable market to include those who favour prime UK
locations and/or have multi-site as a key purchasing criteria
•Long term lease with large financial services business reflects current industry trend of the financial services sector
evaluating their strategy with regard to insourcing vs outsourcing data centre services. Being entrusted with this critical
infrastructure is a significant endorsement of Kao Data
Situated in high growth innovation corridor
•Freehold site located in Harlow, less than 20 miles from
central London in “innovation corridor” between
London and Cambridge
Market leading technology and Sustainability
•Engineered to cater for high density use cases such as
High Performance Computing and AI
•Designed to be highly energy efficient (<1.2 Power
Usage Effectiveness, or PUE), positioning it as one of
the most efficient (and therefore low cost) facilities
•Powered by 100% renewable energy
•Removal of fossil fuels from back up generators,
replaced with HVO (Hydrotreated Vegetable Oil),
reduces CO
2
emissions by 90%

InfratilFull year results presentation 2021
6
Highly
Qualified
Management
Team
Strong
experience
across data
centres and
connectivity
Lee Myall, CEO
•Joined in 2020
•Senior VP at Interoute, a leading European fibre networks and cloud services platform, for over 14
years -where he pioneered its IaaS/cloud computing business units
•Most recently was CCO at Epsilon, a provider of cloud centric connectivity provider that directly
connects enterprises with cloud platforms
Paul Finch, COO
•Joined in 2016
•Senior Director roles at Digital Realty and CBRE with responsibilities spanning EMEA and APAC
•Recognised global authority in data centre cooling, sitting on global technical committees
(ASHRAE, TechUK)
Gerard Thibault, CTO
•Joined in 2017
•VP of Design at Digital Realty (EMEA) for 11 years, where he undertook the design and implementation
of over 150MW of data centre space across 24 sites
•Director role at CBRE for 6 years, focused on data centre building consulting
Spencer Lamb, VP Sales & Marketing
•Joined in 2020
•15 years data centre experience, having previously worked at Infinity SDC and Verne Global in sales
and business development roles
•Track record of delivering Contract Value across all customer verticals (hyperscale, telco, financial
services, enterprise etc.)
Matthew Harris, CFO
•Has led the finance function since inception, including reporting and investment analysis
•Previously Managing Director at Goldacre, investment manager of the current shareholder NoéGroup
•A chartered accountant with previous experience including Financial Controller roles

InfratilFull year results presentation 20217
Investment
Partners
Existing
shareholders
selected Infratil
as preferred
strategic partner
with proven
experience to
grow sizeable
data centre
platform
Background
•Invested in Kao Data in 2019
•One of the UK's leading financial services groups
and a major global investor
•Experienced investment team within the company’s
principal investment group
•NoéGroup, a family office investment house with 40
years of investing experience, purchased the Harlow
site in 2012
•Goldacre is an investment manager that is part of
the NoéGroup that has been the driving force
behind developing Kao Data from the start
Expertise
and Reach
•L&G has 50 years experience investing in real assets,
with strong relationships with local councils through
its housing investments
•Able to leverage its significant network of
relationships with UK and international corporates
and financial services companies
•Successful track-record in real estate development
and investment, amongst others
•Significant market expertise with site sourcing,
financing and acquisition for real estate, data centre
and alternative land use purposes
Scale
•Market cap of c.£15.5 billion
•Over £1.3trillion of assets under management
•Manage over £22 billion in real estate investments
•Access to £80 billion+ of annuity capital offering low
cost project funding
•£2.5 billion of assets under management
•Key markets include UK, Europe, Israel and India
Joint intention among Infratil and the other shareholders to deliver a >£500m data centre platform

InfratilFull year results presentation 20218
Growth
opportunity
Attractive
risk/return
envelope
Value accretive
expansion
opportunities
Existing
platform:
Key metrics
Additional
growth
potential
•Other value accretive development pipeline growth opportunities at various stages of progression represent
sizeable further investment opportunity (50MW+)
•Legal & General Group and Goldacre bring unique networks and reach in originating further proprietary
development and acquisition opportunities
•Scaling up and de-risking a sizeable data centre platform can attract a significant valuation premium in the
market
Current
1
Target capacity (existing sites)
12.3MW
Installed
capacity
1 data centre
on Harlow
campus
2 UK prime
location data
centres
(signed, subject to
completion)
c. 55MW
Installed
capacity
4 data
centres on
Harlow
campus
2 UK prime
location data
centres
Contracted run-rate rental revenue of £13.3m
(pro forma incl. acquisition of two data centres).
Close to zero net debt
Breakeven EBITDA expected within two years
(FY22 forecast EBITDA loss of less than £5m).
Targeting attractive mid-teen IRR based on building out and filling up the existing sites only.
Over £250m of growth capital expenditure across the sites
1. Pro forma for acquisition of two UK prime location data centres

A Global Digital Platform

InfratilInvestor Day –16 February 2021
Global demand for digital infrastructure is accelerating
Infratil has exposed shareholders early to this emerging trend
10
•Invested in 2016
•US$50 million commitment to
California based ClearvisionVentures
•Focused on gaining exposure to, and
gaining insights from start-up ventures
of relevance to Infratil’score sectors
•Invested in 2019
•One of New Zealand’s leading
digital services and connectivity
companies with more than
3 million connections
•Extensive network of mobile
towers, spectrum, IoT networks
and fibre assets
•Invested in 2016
•Largest privately owned and
operated data centre business in
Australasia
•Operating nine data centres,
powered by 133MW, across three
campuses in Sydney and Canberra
•During 2022 growth to in excess of
200MW across four campuses and
13 data centres
Data CentresIntegrated TelcoMobile TowersSmall Cell NetworksFixed NetworksSatellitesSubsea Cables
Investable Ideas
•Invested in 2021
•Multi-site data centre
platform in the UK, with
12.3MW of installed capacity
across three sites (pending
acquisition completion)
•Opportunity to grow total
installed capacity to c. 55MW
under expansion plans

“Ideas That Matter”