Spark Infrastructure : North America and Asia Roadshow Presentation 2019

Investor Roadshow Presentation

North America & Asia - October / November 2019

D E L I V E R I N G F U T U R E E N E R G Y

SPARK INFRASTRUCTURE - AT A GLANCE

ASX-listed owner of leading essential service infrastructure

$3.6bn MARKET CAPITALISATION(1)

S&P/ASX 100

$6.2bn REGULATED AND

CONTRACTED ASSET

BASE (Proportional)

$17bn

TOTAL ELECTRICITY

NETWORK ASSETS(2)

SUPPLYING

5.6m

HOMES AND BUSINESSES

OVER

5,300

EMPLOYEES

Distribution	Transmission	Renewables
VictoriaPowerNetworks	TransGrid	BomenSolarFarm
andSA PowerNetworks

49%	15%	100%
SPARK INFRASTRUCTURE	SPARK INFRASTRUCTURE	SPARK INFRASTRUCTURE
OWNERSHIP	OWNERSHIP	OWNERSHIP
$10.50bn	$6.95bn	$0.19bn
REGULATED ASSET	REGULATED AND	CONTRACTED ASSET BASE
BASE	CONTRACTED ASSET BASE	AT COMPLETION

82%	15%	3%	WAGGA
			WAGGA

SKI PROPORTIONAL	SKI PROPORTIONAL	SKI PROPORTIONAL
ASSET BASE(3)	ASSET BASE(3)	ASSET BASE(3)

(1) As at 9 October 2019. Balance sheet and other information as at 30 June 2019 (2) Spark Infrastructure has interests in $17bn of total electricity network assets (3) Pro forma

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D E L I V E R I N G F U T U R E E N E R G Y

HY2019 - FINANCIAL HIGHLIGHTS

Adjusted standalone operating cash flow(1)

$144m

Up 10.8%

HY2019

Distribution

7.50cps

Down 6.3%

FY2019 Distribution guidance

15.0cps

at least

Regulated	Contracted
asset base(3)	asset base(4)

$6.1bn	$509m
Up 3.0%	Up 27.3%
	Net debt/
Efficiency	Regulated
benchmarking(2)	& Contracted
No. 1	asset base(3)
74.3%

(1) Includes repayment of shareholder loans and adjusted to exclude one-off acquisition costs and prior year tax paid in HY2019

1. AER Annual Benchmarking Report 2018; CitiPower No.1 on total productivity; Powercor No.1 on opex productivity; and SA Power Networks No.1 on a state-by-state comparison
2. On an aggregated proportional basis to Spark Infrastructure
3. On 100% TransGrid basis

Distribution Reinvestment Plan (DRP) reactivated for HY2019 - at 2% discount, 28.4% take-up raising $35.8m

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D E L I V E R I N G F U T U R E E N E R G Y

OUR STRATEGIC VISION AND PRIORITIES

Delivering essential services infrastructure

O B J E C T I V E

Delivering long-term value through capital growth and distributions to Securityholders from our portfolio of high-quality,long-life essential services infrastructure businesses

By building sustainable businesses and harnessing their evolving growth potential we will continue to create long-term value for Securityholders

B U S I N E S S M O D E L

Value Enhance

Managing our portfolio for performance and organic growth through efficient investment

Value Build

Developing adjacent business platforms

ELECTRICITY	RENEWABLE	ELECTRICITY	GAS NETWORKS /	WATER NETWORKS /	DATA
NETWORKS	ENERGY	STORAGE	GAS STORAGE	WATER STORAGE	NETWORKS

Value Acquire

Growing through disciplined acquisitions

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D E L I V E R I N G F U T U R E E N E R G Y

DELIVERING FUTURE ENERGY

Spark Infrastructure remains focused on maintaining our sector leading efficiency delivering reliable and affordable electricity to consumers and on leading the transition to renewable and distributed energy

1	Our networks are leaders	• Most efficient network assets with high levels of utilisation
in efficiency, reliability	• Strong track record of outperformance post privatisation
	and safety	• Well placed to benefit from industry structural change to new energy future
2	Strong performance	• Delivered 12.8% underlying standalone operating cash flow growth in HY2019
metrics and balance sheet	• Adjusted earnings (EBTDA) growth of 2.7% to balance standalone operating cash flow growth
		• Investment grade credit ratings
3	Cash yield	• 7.5cps interim distribution paid for FY2019
of 7.1%(1)	• Forecast DPS of at least 15.0cps in FY2019
		• Franking credits are expected to be distributed to Securityholders in the future, to the extent possible
4	Supportive	• High cash flow visibility to 2020
characteristics	• Regulatory stability to 2020 (SA Power Networks, Victoria Power Networks) and 2023 (TransGrid)
		• Inflation-linked regulatory regime; increases in interest rates reflected in higher regulated revenues
5	Growth opportunities	• Technology, customer preferences and generation mix are transforming the role of networks
in the new energy future	• Distributed renewable generation, reliability requirements and efficient wholesale energy market
		operation reinforce role of the grid
		• Large-scale transmission interconnection options rapidly progressing; substantial government support
6	First step into renewable	• Logical and prudent investment aligned with Spark Infrastructure's investment strategy
energy - Bomen Solar	• High-quality project located in Wagga Wagga NSW in strong grid location
	Farm	• Highly contracted revenue stream with long-term agreements with high-quality counterparties

(1) Based on 9 October 2019 closing price of $2.12 and FY2019 distribution guidance of at least 15.0cps

Spark Infrastructure I Investor Presentation I 2019

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