CDC Independent Valuation - 30 September 2024

Infratil Limited 5 Market Lane, PO Box 320, Wellington, New Zealand Tel +64-4-473 3663 www.infratil.com
4 October 2024

CDC Independent Valuation - 30 September 2024

The 30 September 2024 independent valuation of Infratil’s investment in CDC shows an
increase of A$287 million over the three months since the 30 June 2024 valuation.
This implies that Infratil’s 48.17% investment in CDC is now valued at between A$4,386 million
and A$5,248 million (with a midpoint of A$4,811 million), up from A$4,159 million to A$4,940
million (with a midpoint of A$4,524 million) at the end of June 2024.
The increase in valuation reflects a continued high level of interest from customers,
resulting in the advancement of customer discussions for capacity across all regions in
which CDC operates and acceleration in construction and development activity. CDC’s
forecast build capacity to FY2034 has increased 409MW since June 2024, primarily
reflecting increased demand signals for capacity in Melbourne and Auckland. This increase
in future build capacity reflects both an upsizing of current planned sites, as well as the
introduction of future sites expected to come online over the latter part of the 10-year
capacity forecast outlined in the table below. The overall operating and under construction
capacity remains unchanged since June 2024, with CDC’s first data centre development in
Melbourne (Brooklyn 1) performing well in its first full quarter of operations. Positive
progress continues to be made in relation to the 400MW+ of capacity under advanced
negotiations (communicated at the Infratil equity raising in June).
Region
Status
Build Capacity
(MW) to FY34,
as at
30 June 2024
Build Capacity
(MW) to FY34,
as at
30 September 2024
Canberra
Operating 117 117
Sydney
Operating 123 123
Melbourne
Operating
34 34
Auckland
Operating
28 28
Total Operating Capacity 302 302
Canberra Under Construction 39 39
Sydney
Under Construction 158 158
Melbourne
Under Construction 121 121
Auckland
Under Construction 70 70
Total Under Construction Capacity 388 388
Canberra Future Build 90 93
Sydney Future Build
872 879
Melbourne Future Build 157 472
Australian Expansion Future Build 36 36
Auckland Future Build 42 126
Total Future Build Capacity 1,197 1,606
Total Capacity 1,887 2,296

The blended cost of equity used in the valuation has increased from 11.50% to 12.40% between
June and September 2024. This reflects an increase in the valuer’s estimated asset-specific risk
premium driven by an expansion of the development pipeline. An increase in the asset beta has
also contributed to the increase in the cost of equity, reflecting general movement in the asset
betas of listed peers since June 2024. The risk-free rate has remained constant at 3.90%.

2
This valuation reflects a minor increase in the funding estimate provided as part of Infratil’s June
2024 equity raising, with Infratil’s pro-rata share of equity contributions to CDC assumed to be
approximately A$700 million (an increase of $100 million) over the next two to three years. The
increase in total equity contributions is driven by the growth in CDC’s planned pipeline
highlighted earlier in this announcement. CDC intends to continue accessing a range of debt
markets to provide further funding for its expanded development pipeline.

Enquiries should be directed to:

Mark Flesher
Investor Relations
Email: mark.flesher@infratil.com

3
Appendix 1 – Independent Valuation Summary 30 September 2024
Valuation Methodology 30 June 2024 30 September 2024
Primary valuation
methodology
DCF using FCFE (with a cross check to comparable companies and
precedent transactions), surplus and underutilised land at cost
Forecast period
15 years (2039) 30 years (2055)
Enterprise value
A$12,723 million A$13,441 million
Equity value
A$9,376 million
(IFT share: A$4,524 million)
A$9,987 million
(IFT share: A$4,811 million)
Net debt
1

A$3,347 million A$3,454 million
Key Valuation Assumptions
Risk free rate 3.90% 3.90%
Asset beta 0.55 0.575
Cost of equity
(blended rate) reflecting the
assessed risk of the spectrum of
CDC’s activity, from operating data
centres with contracted revenues
through to developing projects
without contracted revenues.
11.50% 12.40%
Terminal growth rate 2.5% 2.5%
Long term EBITDA margin 85% (2039) 85% (2039); 83% (2055)
Capex
Future capex reflects CDC’s
published development pipeline
Valuation assumes no
development beyond 2033
Valuation assumes no
development beyond 2040


1
Net debt includes accrued RMS payments to management shareholders