3i Infrastructure H2 2026 Earnings Report

3i Infrastructure EPS Results

• Actual EPS: GBX 32
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

3i Infrastructure Revenue Results

• Actual Revenue: $409.00 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

3i Infrastructure Announcement Details

• Quarter: H2 2026
• Date: 5/12/2026
• Time: Before Market Opens
• Conference Call Date: Tuesday, May 12, 2026
• Conference Call Time: 2:00AM ET

3i Infrastructure (LON:3IN) is a Jersey-incorporated, closed-ended investment company, an approved UK Investment Trust, listed on the London Stock Exchange and regulated by the Jersey Financial Services Commission. The Company's purpose is to deliver a long-term sustainable return to shareholders from investing in infrastructure. 3i Investments plc, a wholly-owned subsidiary of 3i Group plc, is authorised and regulated in the UK by the Financial Conduct Authority and acts as Investment Manager to 3i Infrastructure plc.

3i Infrastructure H2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: 3i Infrastructure delivered an 8.5% total return, in line with its medium-term target range of 8%-10%, despite a challenging market backdrop and the write-down of DNS:NET.
• Positive Sentiment: The company completed the sale of TCR at a significant premium, its largest-ever exit, generating proceeds of about EUR 1.1 billion and helping drive a sharp improvement in liquidity.
• Neutral Sentiment: NAV rose to 405.2 pence per share, supported by portfolio earnings growth, strong exits, and active capital allocation across the year.
• Positive Sentiment: The board announced a higher dividend target of 14.3 pence per share for the next year, up 6.3%, and said the current dividend is fully covered by net income.
• Neutral Sentiment: The portfolio remains mixed: new investments like the Lefdal Mine Datacenter and bolt-ons at Joulz were highlighted as growth drivers, while DNS:NET was written down after financing for its fiber rollout became unavailable.

Presentation

[Richard Laing, Chairman at 3i Infrastructure]

Well, good morning everybody, and thank you very much for attending our annual results presentation. Welcome to you all. We delivered our targets again this year. Our total return of 8.5% is in line with our target range of 8%-10% over the medium term. This has been a very active year for 3i Infrastructure, with the sale of our largest company, TCR, at a significant premium to carrying value. Transformative M&A at some of our platform companies. The exciting new investment in the data center Campus LMD, offset by the disappointing write-down of one of our smaller investments, DNS:NET. Bernardo will talk through all of this in more detail. Our net asset value at March was 405.2 pence per share. That is another year of growth against a challenging market backdrop.

[Richard Laing, Chairman at 3i Infrastructure]

I will talk more about how consistent our growth has been in a minute. We ended the year with strong liquidity. James will discuss this later. After we complete our agreed transactions, we will have repaid the RCF in full and have around GBP 200 million of cash. We delivered our dividend target again this year. That dividend of GBP 0.1345 per share is fully covered by net income. We are announcing a target dividend for the next year of GBP 0.143 per share, up another 6.3%, continuing the strong growth trend of recent years. I joined 3i Infrastructure as Chair at the start of 2016. Back then, the company had net assets of GBP 1.2 billion, or GBP 1.50 per share, and a recently defined strategic focus on core plus infrastructure.

[Richard Laing, Chairman at 3i Infrastructure]

I'm very proud of our track record of consistent value creation since then. We increased NAV per share every year over the last decade at an outstanding 13% per annum. That is well ahead of our return target and unique in the listed infrastructure market. We achieved this through disciplined capital allocation and active portfolio management from our excellent investment management team. 3IN provided a steadily growing income stream for shareholders. The dividend per share has increased every year over the life of the company, with a growth rate of 6.4% per annum across my time as Chair. Over the last few years, we executed a phased succession plan for the company's board of directors. We now have a broader spread of tenures across the directors, setting us up well as we enter the company's twentieth year.

[Richard Laing, Chairman at 3i Infrastructure]

It's now time for our planned Chair transition. I'm looking forward to welcoming Andrew Sykes to the board in July as Chair Designate. He will take over as Chair in January next year. Andrew is an experienced chair and board member with deep financial services expertise. He had a successful executive career at Schroders, including being Head of Alternative Investments and Head of Financial Markets. Since then, he has built a strong portfolio of roles across both private and listed companies, including investment trusts. I'm confident that alongside 3i as our investment manager, the company is in very good hands and well-positioned to continue building on the success we have achieved over the past decade. I'll now hand over to Bernardo after a short video.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Right. Goes with the mic and everything. Brilliant. Thank you. Thank you, Richard. Good morning, everyone. As Richard said, this was a very active year. Within 12 months, we managed to crystallize significant value in the portfolio, generating sufficient proceeds to repay the RCF, make 5 new acquisitions, and leaves us with a sensible net cash position that will give plenty of time and flexibility to make the right decisions through the next natural cycle of investment and divestment activity. That all took a lot of preparation and time. I am very pleased the way the team responded to the challenge. The sale of TCR is the largest exit the company has ever made. The estimated proceeds are 50% above the valuation at the start of the year.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Concurrently, we delivered four bolt-on investments, transforming the wind SOV fleet at ESVAGT, broadening the geography served by Joulz, and adding another AD plant under Future Biogas ownership. We made an exciting new investment in the Lefdal Mine Datacenter campus, diversifying the portfolio into a new sector within our digitalization megatrend. Again, in this case, we worked on this investment for most of the year, bringing it to a conclusion within a week of signing the sale of TCR. The disappointing write-down of DNS:NET weighed on performance, I will cover it now. DNS:NET had been a difficult investment for several years, we took early action to bring in a sector-leading management team, recalibrate the business plan and subcontractor relationships, and focus on connecting homes to the network.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

At our half-year results, we were pleased with progress and were on track to raise additional debt commitments to continue the build-out of the network. Sentiment changed in the lending market for German fiber following the announcement that the largest German Altnet, Deutsche Glasfaser, was in restructuring talks. In that context, we were unable to raise additional debt commitments for DNS:NET, cutting off funding for the business plan and the route to equity value. We concluded that lender sentiment has been damaged for the long term in this sector. We recognized that financing reality quickly, remained disciplined in our approach to capital allocation, and took the difficult decision not to continue equity funding the rollout of the network. Reflecting on lessons learned, I think we and other infrastructure investors found that building a fiber to the home network is a much greater challenge in Germany than expected.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

I think the hurdle for a new investment should have been higher in assessing the management team's ability to connect homes and activate customers. Perhaps the other takeaway is that extended build-out projects that require various rounds of financing over a long period of time will inevitably be exposed to changes in credit cycles along the way, putting at risk the initial investment in platform value. Yet, despite the write-down, we still delivered our target return. The portfolio continued to create significant value, showing the benefits of a diversification, as well as the exceptional return for TCR. We had double-digit returns from Tampnet, Infinis, FLAG, Joulz, Oystercatcher, and Future Biogas. These outweighed further in the performance from SRL and the write-down of DNS:NET I just mentioned. The portfolio value at March was GBP 4.3 billion. This is a high-quality, diverse portfolio.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

We are diversified across megatrends, sectors, countries, and vintages. James will talk more about it later. We are very excited by our new investment in the Lefdal Mine Datacenter campus. It's not just because it looks so cool in photos. This is a large-scale underground datacenter campus located on the west coast of Norway, developed within a repurposed mine. The facility provides critical infrastructure, including power, cooling, and connectivity, enabling customers to operate high-performance computing workloads. With low-cost hydroelectric power and a unique fjord-based cooling system, it delivers industry-leading energy efficiency. Power usage effectiveness of 1.1 is about as good as it gets. That means almost all the power goes to compute, not to running the supporting infrastructure.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

The facility currently hosts a number of data centers, some in operation, others in construction. It has a total of 80 MW of current data center capacity, which is now fully contracted to customers on an availability basis. Remaining contract length is over 10 years on average. The final part of that contracted capacity is currently being built by customers who invest $hundreds of millions in CapEx within the site. On a conservative buy and hold basis with no growth assumed beyond our already secured 80 MW base case, this investment is accretive to our target returns. Beyond that, Lefdal has applied for an increase in capacity to 200 MW, which will more than double current capacity and allow us to develop another level of the mine.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

The mine is vast, comprising six levels, of which only one is in use at the moment. This is all upside value for 3iN. We are confident of the attraction of this facility and of customer demand for this additional capacity, as we've seen with the existing 80 megawatts already sold. The key origination angles into this attractive deal were the previous knowledge of the Lefdal complex through its connection to the Tampnet fiber network and 3i's unique ability to deal with the complexity of the deal situation with multiple stakeholders involved, including existing LP investors, a GP looking to stop investing in private infrastructure and a small team seeking a new home. As I said earlier, this took most of the year to execute. We are very good at doing this kind of difficult and complex deals, given the size and breadth of our own team.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Back in 2019, we did the first privatization of one of the non-regulated businesses of the regional Dutch power grid operators. Since then, we've transformed Joulz, executing our strategy of building it into a broad energy solutions provider from just a basic lessor of medium voltage transformers. This strategy was a success, Joulz started to offer behind the meter power solutions that enable the construction of large industrial and commercial installations in the grid-constrained Dutch market. This year we invested EUR 107 million into the company to fund two international bolt-on acquisitions, carving out divisions from Centrica and Engie. This expands the business into other attractive geographies, Belgium and Italy, and adds heat capabilities to the energy solutions portfolio. The combined businesses add 70% to Joulz's EBITDA from day one, we're now integrating these acquisitions and are pleased with the early progress.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

As I said earlier, the sale of TCR was the largest exit the company has ever made, and indeed it's the largest full exit in 3i's history. Since we first invested in 2016, we scaled the company through bolt-on acquisitions, expanded both geographically and in the categories of equipment we leased, and we successfully navigated Covid, the most significant disruption our aviation customers ever experienced. Over a decade, we turned TCR into the leading ground support equipment leasing business in the world and into a unique platform that is now able to export its model to new markets globally. This unique combination of low risk contracted revenues and growth potential made the business very attractive to a broader universe of private infrastructure funds. We saw it was time to crystallize all the latent value in the assets.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Over the last year, we prepared the business for sale, working closely with a full suite of advisors and our superb management team. In the first half of the year, we carefully prepped the bidder universe, building anticipation for the launch of an auction process. We received offers from 10 of the leading and largest private infrastructure managers in the world. The enterprise value at completion will be around EUR 2.7 billion and proceeds to 3iN around EUR 1.1 billion. The return statistics shown here with an IRR of 20% per annum would be excellent private equity returns. This return has been delivered over a full decade, not just four or five years. With the downside protection of a core plus infrastructure investment and the resilience we demonstrated through COVID. This was actually an outstanding risk-adjusted return result.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Looking at the money multiple, we invested in TCR in two phases. First in 2016 alongside DWS, we made 4.6 times our money on that investment. More recently, when we decided to buy out DWS in post-Covid 2022, we made a further 2.2 times our money. Doubling our money in just over three years, that was a good call. The blended money multiple is 3.6 times over the combined investment by 3iN. This isn't a one-off. We have a long track record of realizing exceptional returns for shareholders. I'm showing here the last three years and last three exits on this slide. That's Attero, Valorem, and TCR. Three deals done during a challenging M&A period. These combined return statistics are consistent with the TCR ones at 21% IRR and 3.5 times money multiple.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

In fact, we've turned almost a quarter of the portfolio value at March 2023, that's GBP 869 million, into cash of over GBP 1.5 billion. That's an increase of 76%. At a portfolio level, we invested GBP 490 million of growth CapEx in 2025, largely self-funded by our companies, but also including GBP 114 million from funding from 3iN. This growth CapEx is expected to deliver accretive returns, typically in the mid-teens. CapEx investment is generally against contracted revenues where we control the unit economics, our active asset management approach drives earnings growth. Over the last three years, EBITDA has grown at a compounded rate of 11% per annum. Resilient infrastructure businesses have high EBITDA margins. The average for our portfolio is 43%.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Most of this EBITDA turns to cash, with cash conversion around 86% on average, allowing businesses to generally self-fund growth through CapEx in a sustainable way. With stronger infrastructure credentials and larger earnings, our businesses then become more and more attractive to bigger infrastructure fund managers, as we demonstrated so well with TCR. Moving to other areas of the portfolio now. ESVAGT had an important year, growing its operational wind farm SOV fleet by a third from nine to 12 vessels. Two of these additional vessels were we acquired, showing that target targeted M&A can complement organic growth as we transition this business from oil and gas to wind farm customers. Returns in the year were held back by the delayed delivery of new-build vessels.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

When we have delays, we typically provide another vessel to the customer as a frontrunner, which means foregoing revenues we would otherwise expect. That's a fairly short-term impact. We are excited by the prospects of our new joint venture in Korea, which has started building its fleet with two crew transfer vessels ahead of bidding for SOV contracts. Infinis had another strong year, driven by higher than forecast levels of exported power from its captured methane business. The company is making material progress developing its solar and battery projects, with 20 MW coming online during the year and a further 280 MW in construction. Infinis has transformed the business with declining earnings as the landfill gas resource turned to cash over time into a business with strong growth characteristics. You can see that on this chart.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

EBITDA has grown by 25% over the last two years. We will engage with the U.K. government as we seek clarity on the latest changes to the regulatory regime for energy generators. Moving on to our digital assets. Tampnet outperformed expectations again this year. It exceeded both revenue and EBITDA targets, driven by increased offshore activity, particularly in the Gulf of Mexico, and ongoing demand for bandwidth upgrades. Beyond its core business, the company is pursuing several key growth initiatives, including expansion into new geographies, connectivity solutions for mobile rigs, carbon sequestration projects in the North Sea, and private networks for offshore customers. Tampnet has now secured around 50 private network contracts, which we believe is only 12% of the current addressable market.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

FLAG is also performing well, driven by strong demand for subsea fiber capacity fueled by hyperscaler needs, AI-driven workloads, and the expansion of global cloud infrastructure. During the year, FLAG acquired new capacity on the India-Asia-Xpress and India-Europe-Xpress systems. This investment enhances its network redundancy and connectivity in the core Europe to Middle East to Asia routes. That increases the appeal of the overall network to our customers, especially when considering the current period of instability in the region. Demand for our most recent acquisition of capacity in the Trans-Pacific Echo Cable System is also looking very promising. Ionisos performed slightly behind expectations, although we still saw revenue growth of 7% year-on-year. The shortfall came from the delayed start of operations at the new French X-ray site and also the German plant capacity expansion at Kleve.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

We recently appointed a new CEO, Arnaud Corsat, who joined from STERIS, one of Ionisos' larger competitors. He brings great experience in commercial and operational improvements. Completing the picture with our smaller assets, Future Biogas outperformed again this year with higher exported gas volumes and yields. We grew the portfolio of own sites with the purchase of the Burton Agnes Anaerobic Digestion plant in Yorkshire, which Future Biogas already operated. We have four new sites with planning consent, so we're well set for continued growth. As trailed in the pre-close, SRL performed behind expectations during the year caused by a slowdown in activity from local authorities and the telecom sector, combined with competitive pressure impacting rental rates. The increase in costs seen across the U.K. labor market, including from minimum wage and national insurance increases, has also put significant cost pressure on the business.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

A new CEO joined the business this month alongside a new CFO at the start of the year. This new management team is focused on strengthening SRL's commercial offering and building greater resilience to competitive pressures alongside optimizing the company's cost base. REMOS, the company's remote monitoring solution, has progressed from pilot deployments into early commercial rollout and remains a strategically important initiative. While adoption has been slower than initially anticipated, customer engagement remains strong. However, we remain cautious given the challenges we've seen and have reflected this in our cash flow projections. Finally, Oystercatcher had a fantastic year. We've seen record revenues with contract renewal rates secured at a higher storage rate level and with longer tenors, alongside higher customer activity driving ancillary revenues. This delivered a 23% return in the year.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

I'll come back in a few minutes to tell you why I'm so excited about the outlook for 3iN as we start the new financial year. For now, I will hand over to James. Thank you.

[James Dawes, CFO at 3i Infrastructure]

I'll go around the front.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

How do we do this?

[James Dawes, CFO at 3i Infrastructure]

Thanks, Bernardo. I'm gonna start by talking about diversification. We've seen the benefits of that this year. We achieved our target return despite writing down the full equity value of one of our portfolio companies. A portfolio of 10 companies may initially appear to be the most concentrated out of the larger listed infrastructure companies. I would argue that we're more diversified across a range of underlying risk factors than the others. We have some power price exposure through Infinis, although we hedge it to an extent. Our other energy transition companies, ESVAGT and Joulz, for example, do not have material power price exposure. Their long-term growth is linked to the growing demand for electricity, energy transition, and security of supply. Our digital assets, Tampnet and FLAG, are exposed to different customer bases, geographies, and demand dynamics within an overall underpinning from the growth in digitalization.

[James Dawes, CFO at 3i Infrastructure]

Ionisos has a range of sterilization technologies in use at facilities across Europe to meet ever-growing demand for healthcare products. DNS:NET was exposed to a financing risk specific to the German fiber to the home sector. We are not seeing that issue across any of our other assets. We have limited GDP exposure with our businesses providing essential services that continue through the economic cycle. All of our companies are underpinned by the long-term growth mega trends that we've all talked about before. On this slide, I'm showing how the results of this diversification have played out over the last 5 years. That's a period that encompasses COVID, 2 energy price shocks, political and regulatory volatility, and significant changes in the inflation and interest rate environment. We've grown 3IN's NAV consistently through this volatile period. You can see that on the left-hand chart.

[James Dawes, CFO at 3i Infrastructure]

Alongside our excellent exit track record that Bernardo talked about, the NAV development comes from underlying earnings growth and improving prospects at most of our companies, not from changing long-term macro assumptions or discount rates. On the right-hand chart, I've got the comparison with the four other large listed infrastructure companies. The ones over GBP 1 billion market cap. That's two renewables trusts in green and two core infra in orange. These companies have many more underlying assets than we do, arguably the underlying exposures are not more diversified than ours. The underlying assets were often exposed to the same risk factors, such as power prices or bond yields, which led to NAV reductions from time to time. Maintaining diversification to underlying risk factors is something we're acutely aware of.

[James Dawes, CFO at 3i Infrastructure]

In addition to careful consideration of where we allocate capital, we can also manage portfolio risk by syndicating some of our exposures to third-party investors. This is capital that we manage alongside 3iN, maintaining our controlling stakes in portfolio companies and balancing risk across the 3iN portfolio. As Bernardo said earlier, this was a very busy year. I'll walk you through how that affects liquidity in a minute. We do have capital available to add one or more companies to the portfolio. We will remain disciplined in what we invest in, and we keep an eye on diversification. While we're talking about portfolio risk, let's cover the impact of hostilities in the Middle East. Our portfolio has limited direct exposure. We saw a similar level of resilience in previous macro shocks like COVID. Indirect effects may come through energy market disruption, higher inflation, and wider economic uncertainty.

[James Dawes, CFO at 3i Infrastructure]

While cost pressures may affect some assets, inflation-linked revenues and resilient demand for essential infrastructure may help offset downside risks. Of course, our energy generators benefit from higher energy prices, although in the short term, much of the exposure is hedged, as I just said. Our net asset value is GBP 3.7 billion. This chart shows the progression in NAV for the year. Working from the left-hand side, you can see our opening NAV was GBP 3.5 billion, or GBP 3.799 per share. That's after paying the final dividend for last year. We delivered a capital return of GBP 127 million alongside income of GBP 218 million. We had an FX gain of GBP 29 million after hedging. Our hedging program insulates the company from FX volatility.

[James Dawes, CFO at 3i Infrastructure]

After we deduct costs of GBP 79 million and the interim dividend of GBP 62 million, the NAV is GBP 3.7 billion, or GBP 4.052 per share. The final dividend of GBP 0.06725 per share meets our target for the year, as Richard announced. That will be paid to shareholders on the 10th of July, and we'll go ex-div on the 11th of June. Our dividend is fully covered for the year, and we're confident in our new dividend target for FY 2027, up another 6.3%. We are consistent in our valuation approach. You've heard me talk about this many times before. Here's the chart showing the progression in discount rates. I've shortened it to just show the last decade. The weighted average discount rate today is 11.1%.

[James Dawes, CFO at 3i Infrastructure]

The slight drop is because the DCF valuations for TCR and DNS:NET both use discount rates above the average. This March, TCR is valued at a 2.5% discount to expected proceeds. While we obtain regulatory approvals before completion. DNS:NET is valued at 0, as previously announced. Our discount rates are consistent with our other long-term assumptions of inflation at 2% or 2.5%, for CPI and RPI respectively, and long-term cost of debt at a consistent spread over inflation. Another part of our very active year was in refinancing our portfolio company debt. We successfully refinanced three of our portfolio companies in the year. The debt market for quality infrastructure companies is strong at the moment.

[James Dawes, CFO at 3i Infrastructure]

As I said earlier, we do not see wider implications in our portfolio from the issue in the German fiber market. We've added the prior year-end as a comparison to this chart, adjusted to remove TCR and DNS:NET so it's like for like. This shows clearly how we've proactively extended the tenor of our debt facilities. We're on track to close a further refinancing for Tampnet shortly. That will remove the debt maturing by March 2027. Looking ahead, we have no significant refinancing requirements in the next three financial years. Our average loan-to-value ratio is down slightly from last year at 34%. The average cost of debt remains 4.8%. Almost all of the drawn debt is fixed rate or hedged. Turning now to capital allocation. We're doing what we said we would do. This has transformed our liquidity position.

[James Dawes, CFO at 3i Infrastructure]

Our net debt at year-end is GBP 531 million. That's 12% of portfolio value. Proceeds from the sale of TCR will repay the RCF in full, with an expected cash inflow of EUR 1.1 billion in the summer. That's GBP 994 million. Our next priority for capital is to invest through our portfolio. We did that very effectively during the year with the bolt-on M&A that Bernardo talked through. That's already included in the year-end net debt figure. We've diversified the portfolio again by adding a new investment in a new sub-sector, underpinned by the digitalization mega-trend and with different underlying risk factors from our connectivity assets. We expect this cash outflow of around EUR 300 million also in the summer. That's around GBP 262 million.

[James Dawes, CFO at 3i Infrastructure]

That leaves us with pro forma net cash of around GBP 200 million after these transactions complete. We've made the most of our flexible funding model this year. We aim to be symmetrical around zero cash over time. I'll come back to that in a moment. We actively managed our available credit facilities during the year. With the sale of TCR, we will see an inflow of almost GBP 1 billion in the summer. We want to maintain balance sheet efficiency and avoid sitting on excess cash. We exercised the GBP 300 million accordion feature in our RCF. With GBP 1.2 billion of committed facilities, we have the flexibility to invest some of the proceeds in advance of getting the cash.

[James Dawes, CFO at 3i Infrastructure]

Private company deals often take several months to complete, it's very useful not to have to wait for the cash to come in before being able to commit it to a new investment. We did exactly that the following week, in fact, with the EUR 300 million commitment to buy Lefdal Mine Datacenter. We also extended the original GBP 900 million of commitments by another year, so the base facility matures in June 2029. The EUR 300 million accordion matures in March 2027, and it's on the same sector-leading margin and other terms. Here's the symmetrical around zero slide. We started with the position at March 2018. After our most recent return of capital to shareholders through a special dividend, we retained cash for investment and the level of cash increased through asset sales and equity issuance in 2020.

[James Dawes, CFO at 3i Infrastructure]

We invested that cash, and for the last few years we've been drawn into our RCF. We're now showing the pro forma cash position at March 2026, which is about GBP 200 million or 5% of the portfolio value. The average over that whole period is net cash of GBP 16 million. For a company of this size, I think that's pretty close to symmetry around 0. With that, I'll hand back to Bernardo. Thank you.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Thanks, James. I just really wanted to finish this presentation by telling you why we're so excited about the position and prospects of 3iN. Post all the investment and divestment activity of the period, the portfolio is well-balanced in terms of individual asset exposures. The pie chart shows the portfolio you are buying now. We have a new exciting asset in the portfolio, offering plenty of upside alongside the latent value embedded in the remaining high-quality assets. The new investment in the Lefdal Mine Datacenter campus has strong downside protection in our underwriting case, with fully let availability-based capacity with market-leading performance metrics for customers. The potential upsides are considerable, coming from expanding the power capacity and growing into one or more additional levels in the mine.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Considering the quality of the portfolio and the new investments made with no further exposure to DNS:NET, I believe the prospects are more skewed to the upside. Our liquidity position has been transformed. Repaying the RCF gives us time and flexibility to make the right capital allocation decisions to support our portfolio company's growth plans and to further diversify the portfolio. We also have the flexibility around what to realize next and when, and we are not holding excess cash. Finally, the new financial year started well. We've got a great result from refinancing Tampnet, and FLAG has got most of its investment in the Echo Cable back already, with around half the capacity we bought still available to sell.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

At Joulz, the combined business, including the recent bolt-ons, is already delivering new commercial opportunities. We have aligned and incentivized management teams all working hard to deliver continued growth for our shareholders. Thank you for your attention. Before we move to Q&A, Richard, I just wanted to say thank you for your great leadership over the past decade. It's been a great pleasure working with you. You guided the company through a very long period of consistent growth and performance. I think the track record you presented to us earlier demonstrates exactly that, the great work that we've done together. On behalf of 3i, big thank you. Now on to Q&A. I think as usual, we'd ask people to say their name and firm, and then we'll.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Should we do ladies first?

[Colette Ord, Director of Investment Companies Research at Deutsche Numis]

Thank you. Colette Ord from Deutsche Numis. A few from me, please. Can you talk about the anticipated pace of divestments going forward? It has obviously been a very busy year for you. Obviously it is all in your control, of course. Could we expect the next sort of year or two to be more about consolidating the bolt-ons and the business plans you have got ongoing at the moment rather than divestments? Second is a few on the mine investment. What are the milestones for the additional 120 MW of growth, which as you say is not in your base case? When can we expect that to start to come through and benefit the portfolio? How is this spread across the 6 levels? Can you give any color on the sort of current customer mix there?

[Colette Ord, Director of Investment Companies Research at Deutsche Numis]

I've got a couple of project specific ones, which I'll leave for now. At portfolio level, are you able to quantify the underlying facilities available across the portfolio companies? Obviously, with your refinancing activities, have you got an aggregate number to give a sense of that health, to fund your ongoing growth CapEx? Thank you.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Right. Should we take the last two? I'll take the first two. Yeah. In terms of new investments going forward, as I was saying, I think we now have, you know, the funding position allows us plenty time to make the right decisions. We've just converted, you know, what was nearest term in our pipeline. We've done four add-ons, one acquisition, one disposal. We continue working on the pipeline. We might have some follow-ons in the portfolio, but nothing new in the next few months. We'll continue developing the pipeline. As I was saying, well whatever was more mature in the pipeline has just been converted, so we'll take a pause to breathe.

[Colette Ord, Director of Investment Companies Research at Deutsche Numis]

On divestments, the pace of divestments.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

The pace of divestments Oh, sorry. I didn't get that. Again, time to sell the right thing at the right time. It doesn't mean that we don't continuously analyze, for each company in the portfolio, actually, we discuss the departure sort of path, the exit path. We discuss often, you know, what are the milestones that each company needs to sort of deliver on before it's ready to be considered for an exit. There's always active work in achieving those milestones, those can be various. Can be commercial, can be a refinancing, can be a succession plan. Even this week, we, the partners, had that sort of review of the portfolio.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

It's sometimes also about developing the quality of information, getting the company ready for an exit, there's always work going on. An exit is planned typically a year or two years ahead, there's always a bit of work to do across the portfolio. It's hard to point which one will we exit next and when. I just think we have time to make the right decision. On the mine and the milestones, Let me try answer, but Oscar here, Oscar Tylegård sitting here, and he led the acquisition, and he can chip in. Essentially, the mine has six levels. We have the 80 megawatts developed across only one of those levels.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

The upgrade to 200 MW would be done in a new level, where we would install the basic infrastructure of that involves the cooling system, the power supply, and the fiber connectivity. Let the new tenants sort of take on the different caverns alongside the sort of the main avenue, if you like, of the new level. The way it works is you apply to the National Grid for the power upgrade, and Lefdal has done that long some time ago. We've been climbing up sort of, if you like, the queue in Norway. We have some visibility to, as to projects that are, in theory, ahead of us, but are probably not gonna convert things like hydro, hydrogen projects and things like that.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

We hope to get that sort of upgrade approved in the next, you know, one to three years really. It's also a matter of building the grid connection down to the mine, which includes installing more transformers and reinforcing cables. We might not get the full 120 on from one day to the other. It might go in steps and increments, and we'll look to be contracting the capacity as we go. Typically that's how they built the 80 as well, was developing as you contract new capacity with customers. You've also asked the question about the kind of customers we serve, that's where I would maybe let Oscar shine a bit.

[Oscar Tylegård, Partner at 3i Infrastructure]

Hi, everyone. Yeah, on the customer side of things, it's financial institutions that are the customers. For us it was an important, I think, distinction in the market as well, where you have what we call colocation customers in the HPC space, which is the high performance compute, which this data center is. As Bernardo said when he presented before, the new contracts that the company signs is typically a 15 year. That's a real commitment, I would guess, from these type of customers that they are there for the long term.

[James Dawes, CFO at 3i Infrastructure]

I'm going to answer the financing, the question in a slightly roundabout way, 'cause I don't have an aggregate total undrawn, but it's not really a fixed number, or at least I don't view it as a fixed number. Tim, and his team, are always looking to refinance. We're in the process of finalizing a refinancing of Tampnet. Just to give you a sense of the scale, we disclosed the 2025 growth CapEx number of GBP 419 million. Now some of that, a bit of equity went in. I think in the past we've talked about maybe a run rate of 10% equity funding. Generally it's cash flow from the portfolio companies and their undrawn facilities funding that level of CapEx. That gives you an indication.

[James Dawes, CFO at 3i Infrastructure]

I think it was 300 and something last year when we gave that number. When the companies are drawing into their CapEx facilities, we'll then, as the decent way through it, we'll then look to refinance. We'll add that drawn amount to the long-term debt pile. We extend the term of the debts that we've got already. Then that refreshes their CapEx facility. I don't view it as a fixed number. It's always changing. You know, every few months, they close some level of refinancing. There'll be more this year.

[Oscar Tylegård, Partner at 3i Infrastructure]

All right.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Iain is next.

[Iain Scouller, Analyst at Canaccord Genuity]

Good morning. It's Iain Scouller from Canaccord. Just coming back on the refinancings, was there much change in the debt cost for these companies? What is the expiry period on that debt?

[James Dawes, CFO at 3i Infrastructure]

Should I do that?

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Do you wanna do that?

[James Dawes, CFO at 3i Infrastructure]

The average cost of debt remained the same. It does depend obviously company by company, but as I mentioned, there is still strong demand. I don't think we're seeing margin expansion really across the portfolio. I'm looking at Tim, who's in charge of-

[Tim Short, Partner at 3i Infrastructure]

No, the opposite. We've seen across our portfolio, we've seen margins tightening really reflecting as the businesses become more mature.

[James Dawes, CFO at 3i Infrastructure]

In terms of the term, we've got the chart. It was in the presentation, so it'll be in your hard copy of the term. As said, we've moved some of that out this year, and we've given you the sort of prior year comparison. It's into the 2030s in terms of the bulk of the debt.

[Iain Scouller, Analyst at Canaccord Genuity]

Okay, thank you.

[Alex Wheeler, Financial Planner at RBC Brewin Dolphin]

Morning. Alex Wheeler, RBC. Two from me, please. Firstly, just a couple of small ones, follow-ups on the mine. Is there a valuation tailwind in how you think about valuing the asset from the portion of the 80 MW, which is currently under construction? When it becomes operating, is that a tailwind that comes through in the numbers? My second one was just on, in terms of the application for the more capacity, is that a public consultation that we can see when it's approved? You know, will that be something that's announced by the TSO or otherwise? Just one question slightly broader on digital infrastructure.

[Alex Wheeler, Financial Planner at RBC Brewin Dolphin]

When you talk about the strong demand for some of these digital infrastructure assets, are we at a point now with these assets where there's a structural tailwind on the demand side that would allow you to outperform, you know, the base case valuation, you know, given where the market is going? I guess what I'm trying to get with that question is how active do you actually have to be in these assets to outperform your base case, or is it now a point where the market demand is just so strong that, you know, that's a tailwind for owning these assets?

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Good question. I think on the mine, so on the, on your first question, the valuation tailwinds, as I said, we currently value the 80 megawatt capacity, which is sort of two-thirds through. That will bring growth in EBITDA in itself, so we're discounting that. What you will have is the roll forward, if you like, of the value as we get closer to that, and then we will start incorporating tangible moves towards the 200 megawatts. That might be, yeah, getting the authorization, getting the first bit of capacity built, the first contracts signed. In the meantime, team might work some, might outperform on the debt side of things, but we don't know that yet.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

We'll have to test the market. That's how I see the valuation, sort of moving forward.

[Oscar Tylegård, Partner at 3i Infrastructure]

In terms of the public.

[Oscar Tylegård, Partner at 3i Infrastructure]

The consultation, I think it's probably I'm looking at Oscar, the queue. I think what Alex is talking about, whether anyone can see where the project is on the queue. It's publicly available. Yeah. The general demand for data tailwind and how we, I think we always have to proactively, you know, position the businesses to benefit from it. Then I'm just trying to think out loud. You know, on FLAG, the FLAG team is constantly looking to, you know, acquire new capacity, new nodes and add to it. They're saying that customers do value the redundancy and the networking, the connectivity of the network. Adding You see the market tailwind by positioning the business to do that.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

I don't think it just fills in the capacity. I mean, there's a part of that. There's demand, there's people calling. At this, you gotta position the business to do that. Even on Tampnet, it's the same thing. The AI-driven sort of demand aspect of it is there, but you need to offer the connectivity solutions to your oil shipper customers. We are. Yeah, it's never just sitting there and waiting for it to come through. You need to position yourself.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Thank you. Oh, Colette's got a follow-up.

[Colette Ord, Director of Investment Companies Research at Deutsche Numis]

Yes, sorry. Thanks. On Infinis, has anything changed on the construction program, the 280 MW, as a result of the recent regulatory tinkering in the U.K.? Is that all on track, on plan? I noticed there was some valuation adjustments made for the various CMS and other changes. Anything to think about there?

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

I'll let Tim respond. I don't think so.

[Tim Short, Partner at 3i Infrastructure]

Yeah, they've got.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Mike

[Tim Short, Partner at 3i Infrastructure]

five sites. Five solar sites totaling 270 MW currently under construction. That is all on schedule. All five of those sites have, now, for now 20-year CFDs. There's no direct regulatory impact from the recent changes.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Any more?

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

Any more? Okay.

[Richard Laing, Chairman at 3i Infrastructure]

All right. Well, thank you very much. Thank you for coming today, and thank you for your attention.

[Tim Short, Partner at 3i Infrastructure]

We'll see you soon.

[Bernardo Sottomayor, Managing Partner and Head of European Infrastructure at 3i Infrastructure]

See you soon.

Participants

Executives

• Bernardo Sottomayor, Managing Partner and Head of European Infrastructure
• James Dawes, CFO
• Oscar TylegÃ¥rd, Partner
• Richard Laing, Chairman
• Tim Short, Partner

Analysts

• Alex Wheeler, Financial Planner at RBC Brewin Dolphin
• Colette Ord, Director of Investment Companies Research at Deutsche Numis
• Iain Scouller, Analyst at Canaccord Genuity