International Public Partnerships H1 2025 Earnings Call Transcript

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Provided by Quartr
September 4, 2025

Key Takeaways

  • Positive Sentiment: NAV per share rose 2.8% to 148.7p in H1, marking its first increase in nearly three years and delivering a 5.7% total return including dividends.
  • Positive Sentiment: The company projects a 10.2% net return at current share price—4.6% above 30-year gilt yields—with a 7.1% dividend yield and 2.5% annual dividend growth targeted for the next 20 years.
  • Positive Sentiment: IMPP has realized £345 million of capital since June 2023 and repurchased over £90 million of shares under a £200 million buyback, adding 1.1p per share to NAV while recycling proceeds into higher-return investments.
  • Positive Sentiment: IMPP was named preferred bidder for Sizewell C, committing £250 million over five years for a 3% stake, backed by government protections and offering a fixed 10.8% regulated equity return plus inflation.
  • Neutral Sentiment: The weighted average discount rate remained stable at 9% for the first time in three years, suggesting a potential shift toward stabilization in market discounting conditions.
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Earnings Conference Call
International Public Partnerships H1 2025
00:00 / 00:00

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Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

Welcome to the International Public Partnership's result presentation for the six months ending thirty June twenty twenty five. Thank you for joining us today. I'm Erica Cybrey, Head of Capital Solutions and Investor Relations at Amber. Amber being the investment adviser to IMPP. It's been a strong six months for the company with good continued overall portfolio performance and progress on the company's disciplined approach to capital allocation.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

The team that's outlined on the slide will be taking you through these details shortly. But I wanted to set the scene that today's results reflect both strategic consistency and continued growth in areas that matter to our shareholders. I'm pleased to be joined today by Jamie Hussain, who, you may have already read about in a recent RNS that we issued. Jamie has been appointed to lead, the investor facing engagement for IMPP on behalf of Amber alongside the wider team. Jamie will succeed Chris Morgan, who some of you may remember from previous presentations.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

Chris recently left, Amber to pursue an opportunity outside our organization. And while personally, it's very sad to see Chris go and we wish him every success, we'd also like to thank him for his valuable contribution to the company over the last thirteen years. For those of you who joined our recent sizable c announcement presentation, Jamie will actually be familiar to you as he led that transaction with other senior members of the origination team here at Amber. For additional background, Jamie is a senior investment director at Amber, having been with the team since 02/2006. He spent the majority of his time working on INBP.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

And in addition to sizable c, he's led our off to evaluations oh, sorry, off to transactions, which now form around 20% of the portfolio by investment fair value. Prior to his work with the origination team, Jamie actually led a INPP's valuation and analysis. So he's very familiar with the portfolio, and I might add, roadshowing alongside me with investors. Jamie, together with Mohamed Anwar, INPP's long standing CFO, and Dan Watson, Head of Sustainability, will present today's results. As usual, the whole team will be available to take questions at the end of the presentation.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

So please do use the Q and A chat to register any questions that you might have and we'll address that then. I'll also direct you to the website where a copy of this presentation is available and that's at internationalpublicpartnerships.com. But in the meantime, I'll hand over to Jamie to take you through the results. Thanks so much.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Thanks, Erica, and good afternoon, everyone. So before we dive into today's results, I wanted to just take a moment to step back and reflect on what it is the company seeks to achieve. So IMPP is an investment company focused on delivering long term value for shareholders through responsible investment in social and public infrastructure. Our portfolio and our investment strategy are guided by a few core principles, which remain highly relevant and attractive to investors. These include a focus on essential infrastructure that is cash generative, benefits from inflation linkage and carries a high proportion of contracted or regulated revenues.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Together, these features support a clear dividend policy focused on long term growth. We also believe strongly in active asset management. By making accretive investments and carefully considered divestments, we optimize portfolio performance, maintain diversification and create the potential for capital appreciation. As such, I'm thrilled to step into this role with the IMPP team, which will continue working hard to achieve our investment objectives in the short and the long run. So on the next slide, I wanted to highlight what the investment case for the company currently looks like.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Based on the August share price, the projected net return of 10.2% is, we believe, a compelling one. Compared against the thirty year GILTI yield, the premium for investors is around 4.6%. We think that's attractive when you consider what else is available across the broader equity market with a similar risk and duration profile and also considering 30 gilt yields are at their highest level in almost three decades. It's important to highlight that most of this 10.2% net return comes from the current dividend yield of 7.1%. IMPP has grown its dividend by at least 2.5% every year since inception, and we project these fully cash covered dividends to continue growing at this rate for at least the next twenty years.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Inflation linkage also remains an important and attractive feature of the company. What the 0.7% means is that if inflation were to run 1% above our forecast assumption, we would expect to see a 0.7% increase in returns. We think this inflation linkage provides investors with strong protections against rising inflation rates, particularly those we're currently seeing in The UK. The portfolio currently has over 140 different investments. They are spread across nine stable developed OECD member countries and can be broadly grouped into three segments: regulated assets, PPP projects and operating businesses, all creating a diversified portfolio of low risk infrastructure assets backed by contracted or regulated revenues.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Finally, the company's focus on active asset management that I mentioned a moment ago has yielded very strong operational performance of our assets and the ability to further optimize the performance of individual investments could result in outperformance of the portfolio's projected returns going forward. So moving on to some of the key developments of the portfolio over the first half of the year on Slide seven. Firstly, I'm pleased to report the net asset value or NAV per share has increased by 2.8% to 148.7p, the first increase in almost three years. This was driven primarily by strong portfolio performance and successful execution of asset realizations at a premium to NAV. As you will see in subsequent slides, this NAV growth has not come from a reduction in the portfolio's weighted average discount rate, which remains stable at 9%.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

So this NAV growth has been very much driven by the underlying performance of the company's investments and the active steps undertaken by the company to enhance shareholder value. It's also worth noting that the NAV is stated post dividends paid in the period, which were 4.19p per share. If added back to the 4p per share of NAV growth, this provides investors with a total return of 5.7% for the first six months of this year. On dividends, the company previously announced an increase in the frequency of dividend payments from semiannual to quarterly payments in order to provide investors with a more regular income stream. This change took effect earlier this year.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

The company has a strong track record of delivering consistent dividend growth. And once again, we've targeted a dividend increase for 2025. The target dividend for this year is 8.58p per share, which is a 2.5% increase on last year's dividend. The company has increased its dividends by at least 2.5% per annum since its IPO in 02/2006, and we see this consistent progressive dividend as an attractive feature of the company. In addition, we've consistently maintained a fully cash covered dividend since the IPO.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

For this H1 period, cash dividend cover was 1.1x, which is comparable to the first half of last year. The ongoing charges for the company have reduced from 1.17% for the first half of last year to 1.12% for the first half of this year. We expect the ongoing charges to come down further as the changes to the management fees, which we've previously announced, flow through, generating greater value for shareholders. And as the UN Sustainable Development Goals remain a really important part of demonstrating the non financial contribution of the portfolio, we've presented some of the key statistics at the bottom of this slide. Moving on to Slide nine.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

As noted earlier, the company invests or investments have delivered strong underlying performance during the period, which has been a key driver of the NAV growth we are reporting today. Investors are increasingly recognizing the long term benefits of the infrastructure asset class, particularly its ability to deliver resilient and stable returns in a complex market environment. This reinforces our view that the opportunity for long term investors remains highly compelling. Although the company's share price, like much of the sector, continues to trade at a discount to NAV, INPP's discount has been among the narrowest in the market. We see this as an encouraging sign of investor confidence, although we continue to believe the shares remain undervalued.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Looking ahead, our priority is to build on the proactive steps we have taken already to reduce the discount and enhance shareholder value. A significant amount has been achieved to date, including during the first half of this year, And we remain committed to taking further action where it can make a meaningful difference. On divestments, since June 2023, the company has realized over £345,000,000 of capital, which is about 13% of the portfolio. Encouragingly, the value realized from these transactions have been either in line or above their most recently published valuations, which we think strongly supports the company's approach to valuation and its NAV. This includes circa GBP 90,000,000 of realizations announced this year, including the recently announced minority divestment in Angel Trains, which has realized circa £32,000,000 at an attractive premium to its December 2024 valuation.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

It has also enabled the continued return of capital to shareholders through a share buyback program of up to £200,000,000 to March 2026. With the shares trading at a discount to NAV, buying back our own shares can be an attractive use of capital. We started the buyback program early in 2024. And to date, we've bought back over GBP 90,000,000 worth of shares, which has driven an extra 1.1p per share of additional value for shareholders. Where it makes sense to do so though, we have reinvested or intend to reinvest some of the realized capital into new investment opportunities instead of just buying back shares alone.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

This is because the strategic benefits and the projected returns from these new investments are expected to be greater than those implied by our share buyback and ultimately should deliver enhanced returns to shareholders. The company is currently preferred bidder on two strategic opportunities. These are the Murray West offshore transmission asset and the Seiswell Sea nuclear project. I'll speak to this in a bit more detail shortly. As mentioned earlier, the company has delivered consistent dividend growth since its IPO on a fully cash covered basis, and further dividend growth is expected with a 2.5% increase targeted for 2025 and a further 2.5% increase targeted for 2026.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

As also mentioned, we have increased the frequency of dividend payments from semiannual to quarterly in order to provide investors with a more regular income stream. And finally, just to highlight, we've undertaken other value add initiatives, which have included fully repaying the company's corporate debt facility, restating the company's target return for new investments to explicitly consider the returns implied by share buyback and creating further cost savings as well as closer alignment with shareholders through amendments to the management fee, which now captures an equal weighting of NAV and market capitalization. We believe the actions we have already undertaken together with our ongoing capital allocation program, place the company in a strong position to deliver on its long term strategy and growth. And with that, I'll now hand over to Mohamed, who will step through the financial performance during the period in a bit more detail.

Muhammad Anwer
Head of Finance & Valuations at Amber Infrastructure Limited

Let me see if I can so, yeah, microphone is off. Thank you, Jamie. As Erica mentioned in the opening remarks, I'm Mohammed Anwar, CFO, INPP, and also have oversight of the valuation process. I have been at Amber for over thirteen years and have been in this role for a significant portion of this time. Although I previously been involved in post presentation q and a's, this is the first time I'm presenting at INPP's reserve session.

Muhammad Anwer
Head of Finance & Valuations at Amber Infrastructure Limited

Let me begin with the NAV bridge that is page 11 in the pack, which shows the key movements in the NAV over the six months period. As Jimmy noted earlier, the NAV has increased by 4p during the period. The first item to call out is the impact of share buybacks. As the shares were repurchased at meaningful discount to the NAV, the program has been NAV accretive on a pence per share basis. Adding circa 0.5p per share to the NAV in the period or circa 1.1p share per share since commencement.

Muhammad Anwer
Head of Finance & Valuations at Amber Infrastructure Limited

However, in absolute terms, it resulted in a reduction in the NAV approximately £37,000,000 in the period. Since the period end, shares worth £13,000,000 have also been repurchased, bringing the cumulative total, including prior periods, to around £93,000,000 or roughly 46 percent of the stated buyback target. We are making good progress against our stated goals. Moving to the impact of discount rate movements, I would look at the changes in common bond yields and investment risk premium blocks together as they are the two key inputs to our discount rate assumption. Since the shift in monetary policy around three years ago, we have consistently increased discount rates.

Muhammad Anwer
Head of Finance & Valuations at Amber Infrastructure Limited

These movements have primarily been driven by changes in underlying gilt yields as well as our observations of live market transactions. Over the past year, the increase in yields have typically flown through to higher discount rates rather than being fully absorbed through compression in the risk premium. However, over the last six months, we have seen a moderation in this trend with less direct correlation between changes in guilt rates and transaction level discount rates. Therefore, the discount rate has remained flat at 9% in the six months to thirty June twenty twenty five. We continue to monitor the market conditions and assess whether this represents a sustained shift.

Muhammad Anwer
Head of Finance & Valuations at Amber Infrastructure Limited

The next item on the NAV bridge is the reduction of circa £78,000,000 due to dividend payments as the cash generated from investments is distributed to our investors. The dividend payments are in line with INPP's dividend targets. We will cover IMPP's dividend policy in a bit more detail later in this presentation. Moving to FX and macroeconomic assumption changes. Although FX has broadly been neutral, a circa 30,000,000 uplift into the NAV has risen from updates to inflation assumption.

Muhammad Anwer
Head of Finance & Valuations at Amber Infrastructure Limited

The change represents our assessment of inflation outlook as well as observation of valuation assumptions by market participants and insights from our M and A activity. Final element of the NAV bridge is the NAV return block. NAV return reflects the change in investment value driven by passage of time together with updates to underlying cash flows assumptions compared to previous period. The NAV return in the period is broadly in line with our expectations. Changes in investment level cash forecast assumptions broadly net out, which means that the net position is largely an unwind of the discount rate.

Muhammad Anwer
Head of Finance & Valuations at Amber Infrastructure Limited

I'll now move to Page 12 of the pack, which provides an overview of INPP's dividend targets. We have a strong history of delivering consistent and growing dividends. Dividends have increased by at least 2.5% in all periods since 02/2007, including uplifts of 5% in 2023 and three percent in 2024. Based solely on distributions from existing portfolio, we expect to sustain a growing dividend for more than twenty years. As we move to the next page, you can visually see the portfolio distributions, which help service the growing dividends.

Muhammad Anwer
Head of Finance & Valuations at Amber Infrastructure Limited

In addition, as noted in our updates on sizable C, once fully invested, this transaction enhances our ability to service growing dividends for over twenty five years. In the current year, we are also transitioning from semi annual to quarterly dividend payments, giving investors smoother and more predictable cash flows. Looking ahead, our dividend targets of 8.58p per share for 2025 and 8.79p per share for 2026 reflect a continuation of that disciplined 2.5% annual growth rate. I should also add that at current share price, our dividend equates to a strong annual yield of around 7%, underlining the attractiveness of our income proposition. As noted earlier, our strong portfolio distribution helps sustain a growing dividend for more than twenty years as clearly depicted on Page 13.

Muhammad Anwer
Head of Finance & Valuations at Amber Infrastructure Limited

The graph on this page sets out our projected distributions from PPP, regulated and operating investments for the next thirty years. These cash flows are largely inflation linked and several continue beyond 2055. The red line is an illustrative NAV runoff using today's valuation basis. It shows a circa 1,000,000,000 after thirty years. You will notice some lumpiness in certain years.

Muhammad Anwer
Head of Finance & Valuations at Amber Infrastructure Limited

The first thing to call out is that as PPP projects approach end of life, once senior debt is fully repaid, reserve accounts unwind and excess cash can be distributed. That creates a one off spike in those years. A second driver sits in the Ofto portfolio. Ofto's earn availability revenue for keeping the transmission asset available to transmit renewable electricity from offshore wind platforms to onshore grid. So they are not exposed to power price or volume risk.

Muhammad Anwer
Head of Finance & Valuations at Amber Infrastructure Limited

The asset's economic lives are typically thirty to thirty five years, while the initial license is twenty to twenty five years. Although we can model the revenue beyond the initial license, our base case recognizes our residual value as a lump sum at the end of license, which appears as a spike. Stepping back, the chart shows a robust, well diversified distribution profile across the next three decades with significant value beyond the chart horizon illustrated by circa 1,000,000,000 NAV in 02/1955. On this trajectory, the portfolio can support a growing dividend for more than twenty years. As we will highlight later in this presentation, size we'll see further enhances the robustness of these attributes.

Muhammad Anwer
Head of Finance & Valuations at Amber Infrastructure Limited

Turning to valuation discount rates, which you will find on Page 14 of the pack. As we largely use a DCF approach, the discount rate applied is a key driver for our valuations. We determine discount rates through a detailed bottom up process, starting the government bond yields and layering inappropriate risk premiums. These are then cross checked against market evidence both from our own M and A activity and from publicly available transactional data. In addition, our valuations are subject to external review giving board the assurance on both discount rates and underlying cash flow assumptions.

Muhammad Anwer
Head of Finance & Valuations at Amber Infrastructure Limited

Importantly, in the last six months, we have seen several large ticket transactions in the sector together with other recent market announcements. These suggest that most deals are being executed at or above NAV. These are encouraging signs, and we have cross checked the data against our own deal activity to validate discount rates we're applying. Consistent with these developments, we observed signs of stabilization in the discount rate. The weighted average discount rate has therefore been kept flat at 9%, the first time in around three years that we haven't applied an increase.

Muhammad Anwer
Head of Finance & Valuations at Amber Infrastructure Limited

We are monitoring closely to assess whether this reflects a more sustained shift. This page also provides some color around discount rates applied across different subsectors within our portfolio. I would highlight that discount rate net of costs and adjusted for share price implies a double digit net return. When combined with cash use of circa 7%, this underlines the attractive overall proposition INTP is offering its investors. With that, let me hand over to Dan, who will take us through the ESG updates.

Dan Watson
Head of Sustainability at Amber Infrastructure Limited

Great. Thanks, Mohammad. Good afternoon, everyone. Now some of you may have noticed we've made a slight reordering of the presentation for these results. And I actually think it's helpful to cover responsible investment before moving on to the investment update since our approach really runs through everything we do from origination through to asset management.

Dan Watson
Head of Sustainability at Amber Infrastructure Limited

Hopefully, that comes through clearly in our most recent sustainability report, which was released during the period. And alongside the usual EU taxonomy, SFDR, and TCFD disclosures, we've provided a deeper dive into the progress made against our own ESG KPIs. The area where we probably put most effort in is in relation to our net zero KPIs, where we have been supporting our public sector clients in delivering their net zero policy objectives. A good example is the collaboration between INPP and Riburn Valley High which is part of the Calderdale School's portfolio. Together with the school, project company, and facilities management company, we installed 250 kilowatts of solar PV on the school's rooftop.

Dan Watson
Head of Sustainability at Amber Infrastructure Limited

And that system is expected to generate around 235 megawatts megawatt hours of clean electricity every year. And most of it will be consumed on-site, cutting the school's reliance on grid electricity. And based on 2023 tariff rates, the school anticipates annual savings of around £40,000 with a payback period of just six years. Now, clearly, this is beneficial to investors with net zero commitments, but by making financially prudent interventions to decarbonize the company's portfolio, it will also result in more efficient investments over time. Moving on to origination activities, we've spent considerable amount of time assessing the ESG risks and opportunities associated with the Seizeable C project.

Dan Watson
Head of Sustainability at Amber Infrastructure Limited

The positive environmental and social characteristics of this investment will be accretive to INPPs ESG indicators as Seizeable C is expected to avoid 9,000,000 tons of c o two emissions every year. At peak construction, it will create 10,000 new jobs, 1,500 new apprenticeships, and provide opportunities across the supply chain. It will also deliver 19% net gain in biodiversity with 250 hectares of new habitat created. And and through its role in the consortium with board level representation, IMPP via Amber will participate in ongoing oversight of ESG policies, compliance and reporting. Now looking ahead to the next period, we will continue to progress our ESG KPIs and aim to identify further investments where we can roll out the interventions delivered at Riburn Valley High School.

Dan Watson
Head of Sustainability at Amber Infrastructure Limited

We will prioritize projects for net zero engagement based on facts including local authority net zero commitment and ambition, hand back dates and facilities management company capability. We're also planning to update the climate risk review we undertook in 2023, and that review concluded that the company's investments were at low risk from the physical impacts of climate change, which is all very positive. Now we plan to test that against updated models working with our third party provider, RMS Moody's. And once complete, we'll provide an update in the next round of financial reporting. And finally, and hopefully as a neat segue back to Jamie, we're pleased to share that Tideway has issued The UK's first blue bond.

Dan Watson
Head of Sustainability at Amber Infrastructure Limited

Now blue bonds are in a a new addition to sustainable finance and aim to finance projects that benefit marine environments and water resources. The project has already diverted over 7,000,000 cubic meters of wastewater ahead of becoming fully operational at the 2025, which is all really positive stuff. And with that, I will hand over to Jamie.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Great. Thank you very much, Dan. I'll now go through some updates on our assets during the period, starting with the regulated assets, which make up 50% of the portfolio and comprise of 13 different investments, including Tideway, Cadent and a portfolio of 11 off tow assets. Starting with Tideway, which is the new 25 kilometer super sewer built beneath the River Thames. Major construction work was completed in 2024.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

And in February, the system was fully connected, allowing it to start preventing sewage from entering the river. The asset is now in its commissioning phase and is expected to be fully operational by the 2025. As a reminder, Tideway is funded through the regulated asset base, or RAB model. Reaching this commissioning stage is a strong demonstration of the RAB model's effectiveness in delivering large and complex infrastructure. The fixed return and construction protections built into the framework make it a powerful way to attract private capital into essential assets that deliver lasting benefits for both stakeholders and the wider economy.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

This is one of the key reasons IMPP has committed to the Cy12C nuclear project, which also uses the RAB model. Like Tideway, it provides similar protections and clear visibility of returns. I'll come back to Site-1C in a bit more detail shortly. Before moving on, I wanted to reiterate our confidence in the statutory and the regulatory protections that support Tideway in the event of any change in circumstances at Thames Water, which is responsible for collecting Tideway's revenues from customers. Even if Thames Water's status were to change, this is not expected to have a material impact on Tideway.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Moving on to Cadent. So Cadent is a gas distribution business that facilitates the distribution to around 50% of The UK population, including over 11,000,000 residential homes and businesses through its extensive network of 130,000 kilometers of gas pipelines. The business has continued to perform strongly during the period, delivering stable cash generation and supporting distributions in line with expectations. In July 2025, Ofgem published its draft proposals for Cadence next five year regulatory period, which will run between April 2026 and March 2031. These proposals outline how much revenue Cadent can earn.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

And while still subject to consultation, they are broadly in line with the company's expectations. Ofgem has also reemphasized that the regulatory framework will remain stable with protections in place to balance the interests of both consumers and investors. A final decision is due in December 2025. Turning now to the Offshore Transmission or Ofto assets, which transmit renewable electricity generated from offshore wind farms to the onshore national grid. In April 2025, we reported that the Beatrice Ofto asset was operating at half of its physical capacity due to an offshore cable outage.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

This was repaired in July, and evidence gathered to date indicates that the cable outage was likely beyond the reasonable control of the Ofto. Assuming Ofgem agree with this assessment, the Ofto can expect to be fully protected against the revenue penalties caused by the outage through the regulatory protections in its transmission license. A quick word on Ofgem's consultation around extending Ofto revenue periods beyond the usual twenty to twenty five years. In July, Ofgem confirmed its aim is to align the lifetimes of generation and transmission assets where it makes sense to do so. They see incumbent Oftos as best place to operate in any extension period with a preference for bilateral negotiations with those incumbent oftos.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

This is very much in line with our expectations and therefore, further revenue potential for the company beyond the initial contracts. So moving on to PPP assets, which are our public private partnership projects, which deliver a lot of the social and some of the transport infrastructure projects the company has invested in. So these include things like schools and community hospital projects. IMPP has invested in over 120 PPP assets, which make up 37% of the portfolio, and they continue to perform very well. PPP asset availability for the period was 99.7% and performance deductions were only 0.2%.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Any deduction is typically passed to a third party facilities management contractor. So these limited deductions are not something that would typically impact the company directly anyway, but it is a helpful tool for us to monitor how our assets are performing. During the period, the company announced two capital recycling transactions relating to its PPP portfolio. The first includes the divestment of the company's minority interests in seven UK education PPPs to an existing co shareholder for roughly eight million pounds This was contractually agreed in March and is expected to reach full financial close shortly. Secondly, we announced a debt financing to release £49,000,000 of capital from a portfolio of education assets comprising of assets from the Priority Schools Building Aggregates Program and 13 Building Schools for the Future or BSF investments.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

This transaction reached financial close in July 2025. Both realizations were in line or above their respective December 2024 valuations. I also just wanted to touch on handbags, which we've talked about before. But as a reminder, when a PPP comes to its contract end, it is typically required to hand back the asset to the local authority in a certain condition. The company's first PPP handback is the Hereford and Worcester Courts project, which is progressing well and is underway to being handed back later this year.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

It's worth noting that the rest of INVP's PPP concessions span the next twenty five years, So these handbacks will be spread over a considerable period of time. Moving on to the third segment of assets within the portfolio, the operating businesses, which comprise of four different investments and represent 13 of the portfolio. On Angel Trains, which is a leading UK rolling stock leasing business, IMPP recently announced a small divestment of 1.6% at a sales price at an attractive premium to the December valuation. Following the disposal, the company retains an 8.4% stake in the business and access to board representation through its investment adviser, Amber. On Benex, which is our German rail business, during the six months to June 30, Benex safely transported approximately 60,000,000 passengers serving over seven forty stops.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Benex now has services across 14 of the 16 German states, providing a total of approximately 65,000,000 train kilometers of transportation services per annum. Finally, on IMPP's investments in digital assets, of which there are two, which represent 3% of the portfolio. These are and Community Fiber. Both continue to perform well, building out their respective fiber networks in different areas of the country, with Tube now connecting over 93,000 customers across England and Community Fiber connecting over 390,000 customers, making it London's largest 100% full fiber broadband provider. Importantly, both businesses are also achieving higher rates of customer sign up, reflecting strong demand for their services.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Moving on to the next slide. Perhaps one of the most exciting developments for the company and the demonstration of its disciplined approach to capital allocation was the announcement of being appointed preferred bidder on the Cytos C nuclear project. A dedicated webinar of the investment was run shortly following the public announcement on the July 22, a recording of which can be found on the company's website. As has been well reported, C is a key component in the UK government's policy to strengthen energy security. Once operational, Cytl C will generate approximately 3.2 gigawatts of baseload low carbon electricity, forecast to meet 7% of The UK's electricity needs.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

IMPP's appointment as preferred bidder is the outcome of a decade long consultation process, during which we have helped shape Sizewall Seed's financing model to suit IMPP's investment criteria and private investors more broadly. IMPP benefits from enhanced protections through a negotiated government support package, which insulates the company from remote material risks associated with nuclear generation and given the complexity of greenfield construction, also protects against material construction and cost overruns. These protections have helped create a robust regulatory and contractual framework in which IMPP can invest in Sizewell C with a license granted for sixty years of operations following construction. We've deliberately structured the Seizwell equity commitment over five years at approximately £50,000,000 per annum, representing a total equity commitment of approximately £250,000,000 This provides a 3% shareholding along with suitable governance rights and board representation. IMPP's commitment will be funded through semiannual cash payments, principally using cash proceeds from ongoing divestments, which remain well on track.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

This investment is designed to deliver a powerful combination of immediate cash yield during construction and significant capital growth as the project matures through construction and into operations. The returns profile during the construction period is highly compelling with a fixed regulated equity return in real terms of 10.8%. This means once you add a reasonable assumption for CPIH, which is the inflation index used by Sizwell, you can derive a return in the low teens. It's worth noting that CPIH is currently running at 4.2%. So this regulated equity return is fixed for the duration of the construction period and into early operations, which is projected to be in the early 2040s based on the regulatory construction case.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

When assessing the investment case for Sizelc, the Board has diligence the returns profile relative to a share buyback in line with the target return policy introduced last year. To confirm, the return profile I've just mentioned is significantly above the return implied by share buyback. And with the opportunity to take the project through construction, we also expect to see additional NAV growth over time. This compelling combination of cash yield and capital growth speaks to the heart of what Sizwell C for IMPP is all about, providing IMPP with attractive regulated risk adjusted returns significantly above the equivalent IRR generated on a share buyback. We have included some further details on the investment in the appendix on this deck, including a projected cash flow graph, forecast NAV profile and a projection of the impact on IMPP's key metrics.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

As mentioned, a replay of the initial webinar is available on our website for those who would like more detail. We will continue, of course, to update the market as the project progresses, including following financial close, which is expected in quarter four this year. Moving on to the next slide, which gives a summary of the company's approach to capital allocation. As I've touched on most of these points already, I won't dwell too long here, but let me just reiterate a few key points. First, the divestment program, which since June 2023, has realized more than GBP $345,000,000 of capital at valuations either in line or above previously recorded NAV.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Second, the share buyback increased to target up to GBP 200,000,000 by March and which has already repurchased over £90,000,000 of shares to date, adding 1.1p per share to the NAV. And third, the investment commitments the Board has made, which will continue to be principally funded through divestments and capital recycling. Finally, the Board remains confident in delivering the already well progressed divestment pipeline with the investment adviser progressing multiple opportunities that remain well on track. And with that, let me turn to the final slide, which summarizes the company's investment case and why it is well positioned to deliver. Firstly, it has a projected net return of over 10% at the current share price, supported by both income and capital growth.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

This represents a premium of more than 4.5% above the thirty year GILT yield. Second, a dividend yield of over 7%, fully cash covered and underpinned by a long dated infrastructure portfolio that gives clear visibility on cash flows. Third, meaningful inflation linkage, providing natural protection against macroeconomic volatility. Fourth, a consistent dividend growth rate. At least 2.5% per annum is targeted over the next twenty years, continuing the company's track record since its inception in 02/2006.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

And underpinning all of this is a portfolio of low risk essential infrastructure with income derived largely from contracted or regulated revenues. That ensures resilient and predictable cash flows. Finally, this is complemented by a robust pipeline of new investments expected to deliver double digit returns with strong cash yields and NAV growth, enhancing long term value for shareholders. And with that, I'll now hand back to Erica for some Q and A. Thank you.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

Fantastic. Thanks, Jamie. And I'll invite my colleagues back on the line as well. I can see a range of Q and A, some of them pre submitted and others have been coming in during the presentation. So thanks so much.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

There are a number, so we'll endeavor to crack on and get through as many as we can. Also just like to apologize, we had a bit of a technical issue and I think the slides were flicking around which was annoying to us I'm sure to you as well. But apologies for that, I think we sorted it out in the end. So Jamie, just turning to the first question that's been asked around our investments in Australia, not only why we have investments in, you know, place it as so far flung as my home country, A shout out to all the Australians out there as well. But given the distance and time zones, are we spreading ourselves quite thinly as a team?

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

How do we monitor and manage this properly? And how is that really offering value to investors? I'm taking some liberties with the question because it's quite long. Thank you.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Sure. Certainly. So well, it's interesting to note that actually IMPP has been invested in Australia since its inception in 2006 and has continued to grow its portfolio in Australia and indeed globally as well with seven other countries outside of The UK. And we see this geographic diversification as a really strong component to the company's offering, providing access to attractive assets that meets the company's core objectives of providing resilient long term inflation and cash flows. In terms of addressing the point as to are we stretching ourselves thinly?

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Well, the short answer is no. The company's investment adviser, Amber, actually has one of the largest dedicated infrastructure teams in the sector with over a 180 professionals and with a presence in 12 countries or more than 12 countries, including Australia. So this provides a very much local presence and allows us to actively manage the assets in Australia and indeed in other parts of the world. So we're able to monitor and manage the investments closely. And crucially, the investment adviser is paid through a management fee, which I mentioned, which is based on an equal weighting of its of the investments value, so it's NAV and the company's own market capitalization.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

So the location of any assets does not affect the fee that is paid by the company to its investment advisor. So overall, I think we see this as a we see this geographic diversification as a really strong part of the portfolio.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

Fantastic. Thanks, Jamie. Maybe one for Dan. A question around how we're actively managing the environmental sustainability of our investments. I think you gave a really nice pricey of what's been happening during the year, but you might like to just elaborate on that a little more, Dan.

Dan Watson
Head of Sustainability at Amber Infrastructure Limited

Sure. Thanks, Erica, and thanks very much for the question. I think probably the way I'll answer this is just sort of work through the how we view things here. I think fundamentally, we view the company's investments as really positive from an environmental perspective. You look at the impact that Tideway is having on on the Thames and removing wastewater spillages.

Dan Watson
Head of Sustainability at Amber Infrastructure Limited

Looking at the off toes, transmitting clean energy to The UK and and supporting from that perspective. So, you know, we do try and look at that and quantify it in line with the UN sustainable development goals. But I think that the company's always taking the approach of what is was one thing investing in things which are positive for the environment, but also we want to manage them in a in a in a in a environmentally responsible way as well. So we look at environmental sustainability through various lenses. I think the EU taxonomy is a really good one.

Dan Watson
Head of Sustainability at Amber Infrastructure Limited

So EU taxonomy, you have to demonstrate a substantial contribution to, for example, climate change. But then to be fully aligned with the EU taxonomy, you need to pass a number of tests in terms of doing no significant harm, and that includes on the environment and that various policies and processes are in place. Now we have our own view on what environmental sustainability stewardship should look like, and and so we've developed some ESG KPIs, which I mentioned in the presentation. And that looks at things like, you know, net zero, fiscal climate risk, looks at environmental management systems that are in place, looking at a a range of other aspects. So I'd encourage you to have a look at that.

Dan Watson
Head of Sustainability at Amber Infrastructure Limited

And I think some of the examples I was trying to bring out in the presentation, I think, ones that we're we're quite proud of. So, you know, PFIs are have traditionally been quite tricky to retrofit things like Solar onto because of the various parties involved, but we're really pleased with the the progress that the asset management team have made in working with various stakeholders to to make that happen. So that's something we're committed to doing is, you know, in line with share. So I'll I'll probably pause there, but do have a look at the sustainability report. And if you have further questions, then feel free to follow-up after this.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

Fabulous, Dan. Thanks for that. And, yeah, the report is definitely worth a read. Just on a query around the sorts of investments we're making and whether we would invest in energy efficiency and energy storage projects as we've seen some of our peers in the market do, particularly given the tailwinds in that market. Jamie, perhaps a good one for you to cover off.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

G storage are very key areas that we see opportunities in, and we follow those areas very closely. Having said that, to date, the company hasn't invested in any of those specific opportunities, and that's really because the investment opportunities we have seen have, for whatever specific reasons, looked more attractive. But that doesn't mean to say that we might we may not invest in those areas in the future. And it might just be worth adding that whilst the company has not invested in those projects to date, its investment adviser, Amber, has got a very active working knowledge on those sectors having developed a number of energy efficiency and storage projects.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

Yeah. That's great. Yeah. Definitely other more interesting opportunities from our perspective, but certainly something we keep an eye on. There's a question around the recent Angel Trains divestments and whether we might sell the residual holding in Angel Trains to fund sizable C commitment.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

Just wondered, Jamie, perhaps you can take that in the first instance.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Sure. Thanks. So we yes, we're pleased with the divestment, the small divestment stake we've made in Angel. But that doesn't necessarily mean we will divest the rest. I think what we're keen to say is we consider divestment opportunities for the company very carefully.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

It's important for us to continue delivering on IMPP's core mission of delivering those kind of long term stable cash flows and delivering on the yield we pay to shareholders. And therefore, when we do consider divestments, we need to think about how they impact the portfolio and how that capital is reinvested. And so for Sizeable C, we are working on multiple divestment and capital realization work streams. So we don't envisage any issues in meeting the capital commitments for Sizwell. And indeed, it is one of the key reasons why we did, as part of our negotiations with the government, structure the investment profile to be over five years to give IMPP the opportunity to have clear visibility over those investments and therefore, to size and manage that divestment work stream to meet those investments.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

I might just add one other thing, which is just to say the dividend is cash covered, something I noted earlier, at 1.1x. So that 0.1% or 10% means that cash coming from underlying investments that isn't distributed directly to shareholders through dividends is being used to reinvest as well. And that's why it's not just divestments that will drive the investments into upcoming opportunities like Si as well.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

The second part of that question relates to the discounts to NAV that the shares continue to trade at and what our expectation is to the extent that this environment continues for longer, I. E, the higher interest rate environment and the implications for our capital allocation program, which you obviously stepped through in some detail. So maybe we can deal with that briefly.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Yes. Thanks. I think there was a slide, I think, I covered off a few of the or some of the key activities that the company has undertaken, repaying its corporate debt facility, undertaking a divestment capital realization program and returning that capital to shareholders through share buybacks, but also looking for accretive new investments that beat the implied return of a share buyback alone. And as also mentioned, that is explicitly part of the Board's consideration when they are thinking about new investment opportunities. And so very much there is a cycle of divestments or realizing lower returning assets and investing those into high returning assets like Sizwell, which is projected to provide a return in the low teens.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

And that really is how we are looking to drive shareholder value and narrow the discounts to NAV.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

I would also say that from an investor relations perspective, this is a question that comes up a bit later. People are asking around the sort of the composition of our investor base and how much retail component there is. We we have an active investor relations program and really trying to tap into new pools of capital to support interest in the share, you know, in the company and therefore the share price as well. So I would say that the company is taking active measures on a range of different fronts to to support the share price. I think that one covers off a couple of different questions that have come up and we're trying to aggregate some of your questions just for time.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

There's a question around, and again I think this is somewhat implicit in terms of your recent response Jamie, but can investors assume that the implied return of a share buyback is 10.1% and the same as the stated projected net return to investors at the current share price? I think, you know, I think the the investors trying to get at whether returns that we're generating from new investments are higher than that of a buyback, which I think is indeed the case.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Yes. I just to be explicit or just confirm, yes. So new investments that the board and the company consider is in relation the projected returns are in relation to that of share buyback and those projected returns beat share buyback alone. And that's certainly the case in Sizeable C. As mentioned, it's a we're projecting a low teen return, which is fixed during the period of construction into early operations projected to be in twenty early twenty in the early 2040s.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

Yeah. There's a question on the composition of the share register and how much of it is retail. And I guess related to my comment earlier about tapping into new pools of capital, we have made active measures to reach a range of different capital sources, including institutional. But, certainly, our board is very focused on engaging in a in a meaningful way with retail investors both through intermediated agencies, but also through platforms and retails investors directly. And I would say that as a proportion that's increased of late, I think, due to those efforts and also due to sort of the attractiveness of the asset.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

I would say just over half is probably either coming through private wealth channels or that those sort of platform and or direct channels to give you a feel for for the composition of the register. There's a question around what our USP is relative to some of our direct competitors. I think this is a bit of a tricky one for us to answer directly. But, Jamie, would you like to have a little bit of a stab at what you think our USP relative to our most direct competitor might be?

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Sure. So well, look, I think from INTP's perspective, I think the key thing for us is that the theme that runs through our investments is that government backed protections and, in many cases, revenue as well. And I think that's perhaps the key thing. I don't think there is a great deal of demand based revenue in our portfolio, and it's generally either contracted or is backed by regulated revenues. And we think that's a key reason why we can be very confident in our cash flow projections over the next twenty plus years as we've provided in our share graph sorry, our cash flow graph, I should say.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

I mean beyond that, I think we do have an attractive mix of assets that we've outlined. And I would also say the dividend growth to date, 2.5% at least every year since its IPO. And the projected dividend growth, fully cash covered, I should add, over at least the next twenty years. And as mentioned, once Sizwell is within the portfolio, we project that to increase to twenty five years into the future. So yes, I'll probably highlight those key features.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

Fantastic. Thank you. I'm conscious of time. We might take one more question. There's been a last minute flurry of questions, so we may not get around to answering all of them.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

I would say that a few questions that have popped up been around dividend timings, assumptions that we're making in our model. Most of that information is either in this pack or on the website, so I direct you there in the first instance. But just perhaps to cover off the question that's come up a couple of times about the assumptions we're making on the useful life of the off tow assets, Jamie, and the value that might be there from a NAV perspective depending on the outcome of that consultation.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

Yes, thanks. So on the off toe residual value point, so the it's first worth pointing out that INPP is a significant investor in off toes with about 20 of the portfolio. And we see these as really attractive and core assets to our INTP's mission with those inflation linked projected cash flows for the long term. We do assume a residual value at the end of the contracted period. And that is a very balanced view on the where we expect the continued use of the transmission assets.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

And indeed, given our position as a key investor in the sector, we've been engaging heavily with Ofgem through its multiyear and multi round consultation process as it shapes the regime following the end of the contracted periods on these offtows. And I'm pleased to say, actually, things are moving very much in the right direction for us, supporting the expected extended use of these assets and therefore, extended revenue from these assets. Ofgem has recognized that the incumbent Ofto, so that would be IMPP, is likely to be best placed to continue operating the asset. And therefore, it's, as I mentioned earlier in the presentation, expects to engage in bilateral negotiations with the incumbent Ofto to agree the future revenue forecast. I think it's worth pointing out that the contracted revenue period for these for the offtows tends to be twenty to twenty five years.

Jamie Hossain
Investment Director at Amber Infrastructure Limited

But the technical life of a lot of the assets, both on the wind farm itself that's generating as well as the offtow's transmission assets extends significantly beyond that. So from a technological perspective, we don't expect any issues in continuing to manage and operate the assets. And clearly, given the transition to net zero and the general tailwinds that support that, we see a very compelling case for Ofgem to agree suitable extensions for the use of those off toes. And we, therefore, are very confident in the in realizing those residual values.

Erica Sibree
Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited

Thanks so much, Jamie. Now we've kind of really pipped over the hour, so we may well leave you to your afternoons. But thank you so much for joining us, and I'll hand back to Investor Meet if there's anything additional that they would like to advise.

Operator

That's great. Well, you very much for updating investors today. Could I please ask investors not to close the session as you now be automatically redirected to provide your feedback and all the management team can better understand your views and expectations. On behalf of the management team of International Public Partnerships, we'd like to thank you for attending today's presentation, and good afternoon to you all.

Analysts
    • Erica Sibree
      Head of Capital Solutions & Investor Relations at Amber Infrastructure Limited
    • Jamie Hossain
      Investment Director at Amber Infrastructure Limited
    • Muhammad Anwer
      Head of Finance & Valuations at Amber Infrastructure Limited
    • Dan Watson
      Head of Sustainability at Amber Infrastructure Limited
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