3i Infrastructure : Full year results announcement (890kb)

11 May 2021

Results for the year to 31 March 2021

3i Infrastructure plc (the 'Company') today announces a 9.2% return for the year, delivery of the FY21 dividend of 9.8 pence and a 6.6% increase in the target dividend for FY22 to 10.45 pence per share.

Richard Laing, Chair of 3i Infrastructure plc, said:

"I am pleased to report that we achieved a return of 9.2% in the year ended 31 March 2021, in line with our target and demonstrating the resilience of our portfolio. This is the seventh consecutive year that we have met or exceeded our medium-term return target; and we have increased the dividend per share in every year of the Company's existence."

Phil White, Managing Partner, Infrastructure, 3i Investments plc, added:

"The portfolio continued to be resilient during the Covid-19 pandemic, outperforming the expectations we set a year ago. We were pleased to announce a new investment in DNS:NET, a successful independent telecommunications provider and our first sizeable investment in the German infrastructure market. Competition for new investments is higher than ever and we remain very selective in pursuing new opportunities."

Performance highlights

	Resilient portfolio consistently meeting or	9.2%
	exceeding target returns
		Total return on opening NAV
			£206m
			Total return for the year
			268.1p
			NAV per share
	New investment, DNS:NET, in high growth sector		€182m
	in Germany
		New investment commitment
	Delivered FY21 dividend target, fully covered and		9.8p
	up 6.5% year-on-year
		Full year dividend per share for FY21
	Further 6.6% increase in FY22 target		10.45p
			Target dividend per share for FY22
	Strong liquidity position to make new investments		£463m
	and to grow and support existing portfolio

Cash position

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For further information, please contact:
Richard Laing, Chair, 3i Infrastructure plc	Tel: [phone]
Thomas Fodor, investor enquiries	Tel: [phone]
Kathryn van der Kroft, press enquiries	Tel: [phone]

For further information regarding the announcement of the results for 3i Infrastructure plc, including a live webcast of the results presentation at 10.00am, please visit www.3i-infrastructure.com. The analyst presentation will be made available on this website during the day.

Notes to the preliminary announcement

Note 1

The statutory accounts for the year to 31 March 2021 have not yet been delivered to the Jersey Financial Services Commission. The statutory accounts for the year to 31 March 2020 have been delivered to the Jersey Financial Services Commission. The auditor's reports on the statutory accounts for these years are unqualified. This announcement does not constitute statutory accounts. The preliminary announcement is prepared on the same basis as set out in the statutory accounts for the year to 31 March 2020.

Note 2

Subject to shareholder approval, the proposed final dividend is expected to be paid on 12 July 2021 to holders of ordinary shares on the register on 18 June 2021. The ex-dividend date for the final dividend will be on 17 June 2021.

Note 3

This report contains Alternative Performance Measures ('APMs'), which are financial measures not defined in International Financial Reporting Standards ('IFRS'). More information relating to APMs, including why we use them and the relevant definitions, can be found in the Company's 2021 Annual report and accounts and in the Financial review section.

Note 4

The preliminary announcement has been extracted from the Annual report and accounts 2021. The Annual report and accounts 2021 will be available on the Company's website today. Printed copies of the Annual report and accounts 2021 will be distributed to shareholders who have elected to receive printed copy communications on or soon after 24 May 2021.

Notes to editors

About 3i Infrastructure plc

3i Infrastructure plc 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.

This statement has been prepared solely to provide information to shareholders. It should not be relied on by any other party or for any other purpose. It and the Company's Annual report and accounts may contain statements about the future, including certain statements about the future outlook for 3i Infrastructure plc. These are not guarantees of future performance and will not be updated. Although we believe our expectations are based on reasonable assumptions, any statements about the future outlook are subject to a number of risks and uncertainties and could change. Factors which could cause or contribute to such differences include, but are not limited to, general economic and market conditions and specific factors affecting the financial prospects or performance of individual investments within the portfolio of 3i Infrastructure plc.

This press release is not for distribution (directly or indirectly) in or to the United States, Canada, Australia or Japan and is not an offer of securities for sale in or into the United States, Canada, Australia or Japan. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or an exemption from registration under the Securities Act. Any public offering to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and will contain detailed information about 3i Group plc, 3i Infrastructure plc, 3i India Infrastructure Fund and management, as applicable, as well as financial statements. No public offering in the United States is currently contemplated.

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Our purpose

Our purpose is to invest responsibly in infrastructure, delivering long-termsustainable returns to shareholders and having a positive impact on our portfolio companies and their stakeholders.

Chair's statement

3i Infrastructure has a clear purpose, and continues to deliver long-term sustainable returns.

"We are confident in our ability to deliver long-term sustainable returns, and to have a positive impact on our portfolio companies and their stakeholders."

Richard Laing

Chair, 3i Infrastructure plc 10 May 2021

The Company aims to provide shareholders with a total return of 8% to 10% per annum, to be achieved over the medium term. I am pleased to report that we achieved a return of 9.2% in the year ended 31 March 2021, in line with our target and demonstrating the resilience of our portfolio. This is the seventh consecutive year that we have met or exceeded our medium-term return target; and we have increased the dividend per share in every year of the Company's existence.

The Covid-19 pandemic has had a profound impact on many businesses across the world and I am proud of how our portfolio companies have responded, keeping essential infrastructure operating smoothly and supporting employees, suppliers, customers and their communities. Our companies continued to power businesses and households, treat waste, keep cargo moving around the world and sterilise medical equipment. At the same time, the management teams have worked with our Investment Manager to establish sustainability strategies for each portfolio company and developed their ability to measure and report on carbon emissions.

I am grateful to shareholders and the Board of Directors for their support during the year, as well as to the Investment Manager for its hard work in a year when office life and business travel remained restricted. We continued to engage meaningfully with each other through our new ways of working.

Our purpose

We have updated our purpose, which is to invest responsibly in infrastructure, delivering long-term sustainable returns to shareholders and having a positive impact on our portfolio companies and their stakeholders. This is set out above, and the key elements of our purpose are used to help structure our Strategic report.

Responsible investing has always been integral to our business model, and that of our Investment Manager. Sustainability is central to our purpose and we create value for all stakeholders by investing in, developing and actively managing essential infrastructure which responds to public needs, fosters sustainable growth and improves the lives of communities. This is not new for the Company, but we hope this report provides an insight into how we look at these themes, how we are developing our approach to them, and how we and our portfolio companies are making a positive impact.

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Performance

The Company generated a total return of £206 million in the year ended 31 March 2021, or 9.2% on opening NAV, in line with the target of 8% to 10% per annum to be achieved over the medium term. The NAV per share increased to 268.1 pence. We delivered a Total Shareholder Return ('TSR') of 23.8% in the year (FTSE 250: 45.2%). Since IPO, the Company's annualised TSR is 12.5%, comparing favourably with the broader market (FTSE 250: 7.6% annualised over the same period).

New investment

I was delighted that on 1 April 2021 the Company agreed to invest c.€182 million to acquire a 60% stake in DNS:NET, a leading independent telecommunications provider in Germany. This is a high growth asset that will further diversify our portfolio, giving the Company sizeable exposure to the German infrastructure market for the first time.

The Company made a further investment in ESVAGT to support the build out of three new vessels for the wind sector. In addition, we acquired further stakes in our Dutch PPP projects from our co-shareholders on attractive terms, which also simplifies the governance of those assets.

Dividend

Following the payment of the interim dividend of 4.9 pence per share in January 2021, the Board is recommending a final dividend for the year of 4.9 pence per share, meeting our target for the year of 9.8 pence per share, 6.5% above last year's total dividend. We expect the final dividend to be paid on 12 July 2021. As an investment trust, the Company is permitted to designate dividends wholly or partly as interest distributions for UK tax purposes. The Board is designating 2.9 pence of the 4.9 pence final dividend as an interest distribution. Consistent with our progressive dividend policy, we are announcing a total dividend target for the year ending 31 March 2022 of 10.45 pence per share, representing an increase of 6.6%.

Corporate governance

The Company's Annual General Meeting ('AGM') was held on 9 July 2020 as a closed meeting (due to the Government's stay-at-home restrictions in place at the time), with the minimum number of shareholders present in order to be quorate. All resolutions were approved by shareholders, including the re-election of the existing Directors and the election of Samantha Hoe-Richardson as a Director to the Board. I was encouraged by the high level of shareholder engagement via proxy voting at that meeting.

This year's AGM will be held on 8 July 2021. At the time of writing, it is unclear whether social distancing measures will still be in place at the time of the AGM. We therefore intend to hold the AGM as a formal meeting simply to conduct the business of the meeting and without presentations or refreshments. We strongly urge shareholders to vote by proxy (electronically or by post) in advance of the meeting and to refrain from attending in person.

An online shareholder engagement event including presentations from the Investment Manager and me will take place in advance of the AGM. In line with AGM best practice guidance from the Financial Reporting Council issued in October 2020, shareholders will be given the opportunity to listen to those presentations and ask questions before, during and after the event. Further details will be provided in the notice of AGM and on the Company's website, www.3i-infrastructure.com. We very much hope to welcome shareholders in person again at the AGM in 2022.

Directors' duties

The Directors have a duty to act honestly and in good faith with a view to the best interests of the Company and to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. In accordance with the AIC Code of Corporate Governance, the Board does this through understanding the views of the Company's key stakeholders and carefully considering how their interests and the matters set out in section 172 Companies Act 2006 of England and Wales have been considered in Board discussions and decision making. More detail can be found in the Directors' duties and Section 172 Statement sections later in this document.

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Outlook

The past year has seen significant volatility in both equity and credit markets and in oil and power prices. In this environment, the infrastructure sector has performed relatively well, demonstrating its value as an asset class. Against this backdrop, the Company has remained disciplined in its investment approach, maintaining a strong cash position and an appropriate level of gearing in the Company's portfolio. Our portfolio consists of defensive businesses providing essential services to their customers and the communities they serve, often benefitting from long-term sustainable trends.

We remain confident in our business model. We have strong liquidity to take advantage of investment opportunities as economies start to recover as well as to continue to support and grow our portfolio companies.

Richard Laing

Chair, 3i Infrastructure plc 10 May 2021

2007 to 2021

In the 13 years since the initial public offering ('IPO')

the Company has delivered an annualised total shareholder return of

12.5%

per annum

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