BBGI INTERIM RESULTS PRESENTATION for the six months ended 30 June - PowerPoint PPT Presentation

BBGI INTERIM RESULTS PRESENTATION for the six months ended 30 June 2018 31 August 2018

AGENDA Section Page Highlights 3 Active asset management 14 Valuation 16 Internal management 23 Market trends, outlook & pipeline 25 Conclusion 31 Appendices 33 2

HIGHLIGHTS

INVESTMENT PROPOSITION BBGI is a global infrastructure investor with a prudent, low-risk investment strategy focused on delivering long-term, predictable shareholder returns STRATEGIC PILLARS INVESTMENT STRATEGY TARGET OUTCOMES Pure-play PPP investment platform Stable, predictable cash flows Strict availability-based investment Secure, highly visible, contracted public LOW-RISK 1 strategy with focus on lower risk roads sector revenues and bridges No demand or regulatory risk exposure Focused exposure to highly- UK/Europe ratedinvestment grade countries GLOBALLY DIVERSIFIED North America Stable, well developed operating Australia environments No NAV-based management or acquisition fees In-house management team, focused on delivering shareholder value Aligned interest resulting in full pricing INTERNALLY MANAGED discipline Incentivised by shareholder returns and NAV per share growth Lowest comparative ongoing charges 2 1 In comparison to other infrastructure asset classes 4 2 In comparison to all LSE-listed equity infrastructure companies as of 30 June 2018

FINANCIAL HIGHLIGHTS NET ASSET VALUE 1 NET ASSET VALUE PER SHARE FY 2019 TARGET MIN DIVIDEND 2 132.5p £700.9m 7.00p Dec 2017: 129.9p (+2.0%) Dec 2017: £622.5m (+12.6%) 2018: 6.75p (+3.7%) ANNUALISED SHAREHOLDER RETURN 4 CASH DIVIDEND COVER 3 ANNUALISED ONGOING CHARGES 5 1.9x 9.4% 0.96% June 2017: 1.7x FY 2017: 10.5% FY 2017: 0.99% 1 On an investment basis / 2 This is a target only and is not a profit forecast. There can be no assurance that this target will be met or that the Company will make any distributions at all 5 3 Net operating cash flows / dividends paid for the period (see detailed explanation in interim report) 4 On a compound annual growth rate basis. This represents the steady state annual growth rate based on share price at 30 June 2018 and after adding back dividends paid or declared since listing 5 Calculated using the AIC methodology and excludes all non-recurring costs. The Ongoing Charges include an accrual for the Short-Term Incentive Plan/Bonuses and the Long-Term Incentive Plan

PORTFOLIO HIGHLIGHTS Stable operational  44 high-quality, availability-based PPP infrastructure assets  Cash receipts ahead of business plan contributing to increase in FY 2019 dividend target performance  Good construction progress on North Commuter Parkway, scheduled to reach operation in October 2018 Value-driven active  Further de-risking of significant assets including Mersey Gateway Bridge and Ohio River Bridges management  Total shareholder value increased through accretive enhancements resulting in 1.4% increase in NAV  Prudent financial Revised hedging strategy aimed to reduce FX sensitivity of NAV to c. 3% for a 10% movement in FX  Accretive £60.8 million equity capital raise, significantly over-subscribed by new and existing investors management  Enhanced £180 million four-year revolving credit facility, with £70 million incremental accordion tranche Selective  Completion of McGill University Health Centre in Canada, the fifth investment made through the continuing North American strategic investment partnership acquisition  Acquisition of a further 33.3% interest in East Down Colleges PPP project in Northern Ireland strategy  Acquisition of 25.0% interest in Stanton Territorial Hospital in Canada post-period end  North American strategic investment partnership provides additional investment opportunities in availability-based PPP Strong, visible assets via right of first offer pipeline  Attractive global pipeline of strictly availability-based assets in highly-rated investment grade countries  Responsible, long-term investor in public infrastructure assets with strong relationships with all significant stakeholders Long-term  Environmental, Social and Governance framework includes reduction of portfolio’s carbon footprint, ecological and custodianship environmental management, waste reduction and a strong support of social initiatives at the asset level 6

PROJECTED PORTFOLIO CASH FLOW Stable, predictable returns 1  Long-term stable cash flows  Public sector (backed) counterparties and contracted nature of long-term cash flows increase predictability  Index-linked provisions provide positive inflation correlation 1 This illustrative chart is a target only, as at 30 June 2018, and is not a profit forecast. There can be no assurance that this target will be met. The hypothetical target cash flows do not take into account any unforeseen 7 costs, expenses or other factors which may affect the portfolio assets and therefore the impact on the cash flows to the Company. As such, the graph above should not in any way be construed as forecasting the actual cash flows from the portfolio. The inclusion of this graph should not be construed as forecasting in any way the actual returns from the portfolio

SUMMARY OF CASH FLOW Six months Six months £ million ended ended 30 June 2018 30 June 2017 Cash and cash equivalents at 1 January 20.7 22.1 Distributions from investments 32.5 26.2  Highly cash generative with Operating costs (6.4) (5.6) strong cash receipts of £32.5m Net financing costs (1.9) (0.8) from investments in H1 2018 (H1 2017: £26.2m; +24%) Net operating cash flows 24.2 19.8 Equity investments (54.7) -  Strong cash dividend cover of Deposit made on cash collateral account of a project - (19.7) 1.9x (30 June 2017: 1.7x; Repayment of loans and borrowings (11.7) (45.2) +12%) Proceeds of capital raise 1 59.8 57.7 Dividends paid (12.7) (11.9)  Ongoing charges reduced to Proceeds from drawdowns 1 87.2 (0.2) 0.96%, with the potential to 0.4 0.0 reduce further Impact of FX gain/(loss) on cash and cash equivalents 113.2* 22.6 Cash and cash equivalents at 30 June *Cash position reduced to c. £29m Ongoing charges 0.96% 0.98% as of 28 August 2018 Cash dividend cover 1.9x 1.7x 1 Net of issue costs 8

DIVIDEND GROWTH Proven progressive dividend policy  FY 2018 interim dividend of 3.375 pps - in line with revised dividend target 1 of 6.75 pps (+3.8%)  FY 2019 dividend guidance of 7.00 pps 1 , up 3.7%  Average annual dividend increase of 3.5% from 2012 to 2018 Paid or declared Target 1 This is a target only and is not a profit forecast. There can be no assurance that this target will be met or that the Company will make any distribution at all 9

RETURN TRACK RECORD BBGI Total Shareholder Return 120% 100% 80% Total Shareholder Return 1 (TSR)  60% since IPO of 80.0% 40% 20%  Annualised shareholder return of 0% 9.4% 2 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun 18  4.5% accounting return per share BBGI FTSE ALLSHARE for the six months ended 30 June 2018 3 170 BBGI Share Price Performance Share price (rebased to 100) 160  Reliable, attractive dividend yield 150 relative to market of 4.8%, 140 compared to FTSE All-Share Index 130 of 3.7% 120 110 100 90 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 BBGI FTSE ALLSHARE Sources: Datastream 1 Based on share price at 30 June 2018 and after adding back dividends paid or declared since listing 10 2 On a compound annual growth rate basis. This represents the steady state annual growth rate based on share price at 30 June 2018 and after adding back dividends paid or declared since listing 3 Based on NAV per share growth and dividend paid

GROWTH TRACK RECORD History of accretive and disciplined growth, not just for growth’s sake NAV and number of assets  Demonstrated ability to grow 800 responsibly 44 700 43 £ million 600 39  Strategic discipline in acquisition 38 strategy and portfolio 500 36 26 composition, with no style drift 400 701 623 545 300 480 465 449 20 19 200 220 208 100 2011 2012 2013 2014 2015 2016 2017 June 2018 11

PORTFOLIO OVERVIEW Based on portfolio value at 30 June 2018 Investment Type Geographical Split USA 5% Cont. Europe 7% Canada 38% Availability- Australia based PPP 15% 100% UK 35% 100% availability-based PPP revenue stream with no exposure to Geographically diversified in stable, developed demand or regulatory risk assets countries with AAA-AA country credit rating Sector Split Investment Life >25 years Other Education 31% 2% 13% Health Breakdown >10 years and Justice ≤20 years UK acute 16% 31% hospital , 1% LIFT Transport healthcare, 44% 8% Healthcare in Canada and >20 years and Australia , ≤25 years 16% Health 38% 25% Long investment life with 69% of portfolio by value enjoying a concession Well-diversified sector exposure with large allocation to lower risk length >20 years; average life of 21.6 years; average portfolio debt availability-based road & bridge assets 1 , and limited acute health maturity of 18.6 years 1 This includes one rail project in Canada 12