Infratil Independent Valuation Update - 30 June 2024

1994
2024
As at 30 June 2024
Infratil Independent Valuation Update

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Overview
A number of Infratil's investments have independentvaluations completedas at 30 June,withthoseresults summarised below.
CDC, Longroad, Galileo, Mint, Qscan and RetireAustralia values below reflect the midpoint of the 30 June independent valuations. CDC’s key valuation
methodologies and assumptions were presented as part the NZX valuation announcement on 4 July 2024.
Key valuation methodologies and assumptions underpinning the remaining independent valuations are summarised on the following page and remain
consistent with the 31 March 2024 valuations
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, except for Longroad (refer below), and an update for the inclusion of storage for Galileo.
The decrease in the Longroad independent valuation is largely attributable to an increase in discount rates outweighing minor positive updates to operating
forecasts.
Independent Valuation Update
Portfolio Companies (NZ$Millions)31 March 202430 June 2024
CDC$4,419.7$4,950.0
Longroad Energy$1,952.0$1,831.0
Galileo$240.7$241.9
Mint Renewables$2.0$13.3
Qscan Group$411.9$424.6
RetireAustralia$464.4$492.9
1. Valuation methodologies and assumptions for 31 March 2024 included here: Infratil FY24 Annual Results Presentation (nzx.com)

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Primary valuation methodology: Sum-of-the-parts
reflecting:
–DCF using FCFE for operating assets, under-
construction projects, and near-term development
projects (projects that are expected to achieve
FNTP within the next 3 calendar years)
–Multiples approach for long-term development
projects (discounted on FNTP year)
–An element of platform value (goodwill)
Forecast period: ~40 years (2065)
Enterprise value: US$6,380m
Equity value: US$2,999m
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Key valuation assumptions
Risk free rate​: 4.6% (Mar 24: 4.4%)
Asset beta: 0.39 - 0.37 (Mar 24: 0.33 / 0.33)
Cost of equity​: 8.75 – 9.00% (Mar 24: 8.25% / 8.5%)
for operating and under-construction assets with an
additional premium risk premium of 0.75% – 1.75%
applied to near-term development assets and 15% for
long-term development pipeline and platform
Terminal value: N/A (finite life assets)
Near-term (3 years) development pipeline: 3,859MW
(Mar 24: 3,859MW)
Long-term development pipeline (5 years): 21,039MW
(Mar 24: 20,052MW)
Multiple for long-term development projects:
US$150/kW (Mar 24: US$175/kW)
Remaining platform value assessed to be around
~8% of total enterprise value
Longroad (37.3%) – US$1,113m

(NZ$1,831m)
Galileo (40%) – €138m (NZ$242m)
Primary valuation methodology: Transaction
multiples for more advanced projects and cost
for entry-stage projects
Equity value: €343.9m
Key valuation assumptions
Risk free rate​: n/a (DCF methodology not
adopted)
Asset beta: n/a (DCF methodology not adopted)
Multiples for development projects that are
‘ready to build’ range from €50-400k/MW
depending on country and technology type (i.e.
solar, wind or standalone battery storage)
The valuer assigns a discount (~10-95%) to the
multiple that it considers appropriate as the
project moves towards ‘ready to build’ stage. For
projects that are early to mid-stage of the
development lifecycle, only a small percentage
of the ‘ready to build’ value is captured with the
majority of value being recognised as projects
get close to ‘ready to build’ stage.
Platform premium of ~1% applied
Independent valuation summary
FX Rates: NZD/USD: 0.6080 NZD/EUR: 0.5687 NZD/AUD: 0.9139 NZD/GBP: 0.4814
1. Longroad Equity Value adjusted for committed but uncalled capital included in the independent valuation
Qscan (57.6%) – A$388m (NZ$425m)RetireAustralia (50%) – A$450m (NZ$493m)
Primary valuation methodology: DCF using
FCFF (with a cross check to comparable
companies and precedent transactions)
Forecast period: 40 years (2064)
Enterprise value: A$1,111.0m
Equity value: A$900.9m
Key valuation assumptions
Risk free rate​: 3.95%
Asset beta: 0.89
Weighted average cost of capital​: 11.55%
(blended rate)
The valuer adopts different discount rates for
each segment (i.e. existing, brownfield and
greenfield developments) having regard to the
different risk profiles
Terminal growth rate: 2.5%
Primary valuation methodology: DCF using
FCFE (with a cross check to comparable
companies and precedent transactions)
Forecast period: 10 years (2034)
Enterprise value: A$915.9m
Equity value: A$673.4
Key valuation assumptions
Risk free rate​: 3.95%
Asset beta: 0.80
Cost of equity​: 13.85%
Terminal growth rate: 3.1%