BIP - Earnings call transcript Q2 2022 | Brookfield Infrastructure Partners L.P.

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Operator

Thank you for standing by and welcome to the Brookfield Infrastructure Partners Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. [Operator Instructions] I would like to hand the call over to, CFO, David Krant. Please go ahead.

David Krant

good and operator you, morning everyone. Thank Brookfield Call. to Infrastructure Partners’ Conference Earnings XXXX Quarter Second Welcome

my is introduced Officer As name of Chief I’m Brookfield Financial the Infrastructure Partners. David Krant, and

and Executive second is our operating Pollock, Vice walk today sheet liquidity financial of team of over will and capital Group. investments quarter results the our Matt strength decarbonization a themes. begin well of investment will XXXX turn position. can me Joining new as the today then President balance as I on our Chief to touch with Grimes, Officer; our Sam Matt Senior Infrastructure I through influence the for for current and the call discussion and who of allocation will how

on provide initiatives will concluding remarks. update Sam provide an and strategic Finally,

in joined would risks, commentary, for Officer this question Chief our will and Following to The and may we may materially. statements like future Ben subject remind remarks time, Vaughan, our to period. unknown differ are Operating by that known make Forward-Looking and our At I today, Statements. answer results we our be you

is annual risk further to on our For would XX-F, report available website. which encourage on known I our review Form you information factors, on

from new XX% look utilities, segment, operating growth FFO the XX-months. with report while as to by robust adjusted of per increased deployed impact from into over reflecting From acquisitions as at $X Operations two the of base new consistent and unit over the XX%, year billion elevated record as starting commissioning XX% FFO another removing this or EBITDA year at remained pleased capital contribution with last are year, benefits financial of these was capital million We resilient of the year. XX% at FFO of After the of last FFO and period benefits was the and XX%, rate commissioning the approximately same closer $Xbillion compared prior which of by completed results at quarter increased noted for results. approximately Organic benefits the a assets $X.XX. $XXX period earlier were over inflation, higher last projects, relative capital Funds by Taking our segment the inflation offset costs, reflecting the impact million well the to increased a to year. the Australian indexation, $XX higher these the the increased year. investments borrowing same prior compared overall prior of to of utility costs

distribution regulated Our as well UK year. business XX% continues to to last connections perform increased activity compared

Canada. Matt our Residential remarks. and infrastructure our Western friendly first access strong sales during a of On draw process transition is that with in elaborate to tuck to double the carefree order anticipate transition the our will penetration a to it in deliveries high gears pump provide a Switching in within to million package, residential submetering became long-term looking British those tedious a pandemic. were XXXX backlog were on in record These our the a growth year. provider an American the and new for completed submetering expected portfolio second half to pumps the heat in offering Alberta, customers. the By rental are connections carries Our of North product largest into quarter, we resulting footprint of at existing easy installers New and business, one to upfront Germany connections his of under agreement. acquisitions costs increasing the expected first based customer heat environmentally including Columbia rental heat infrastructure We a electric expanding month. York customer of able further delayed book for pumps, home usually a to reflecting to a due European business in We high, X.X to during

rates, our as of total FFO was Key segment, elevated of global which liquefaction to the experience the networks remain an prior continues compared increase an and export with year. by performance volumes train to continues FFO increases LNG surcharges the constrained. traffic chains our And diversified demand the tariff Moving foreign and inflationary a Performance driven our contribution remained inflationary six impact X% to in offsetting our which of across in supply for levels. has higher quarter, also in XX% strong a tariffs earlier XX% exchange. to commercial the and congestion transport benefit softer $XXX on terminal U.S. include operations, highlights increase from terminal from year. and million rail global commissioned increase portfolio our

Hyundai a begin rail into billion battery Our is will American or EV Georgia Motor in production North that ecosystem. serve new $X.X commercial operation U.S. will dedicated along vehicle first invest announced EV a XXXX. based to manufacturing scheduled of and facility the Group electric Railway our it Central at half

States. will our production, materials new to support network expect of transportation transport as to across vehicles provide outbound markets inbound the We well rail as United

Australian chain May federal the the towards improvement Western in of state supply announced first XXX of program. Western XXXX, funding and Australian agricultural the package Australian program dollar total the million Additionally, government formally government

network. Australian our The will our We facilitate handle will freight program approximately upgrade our million rail shifting capital plans, track the existing network incremental trucks of grain to expect our onto capacity. to rail receive with more combined from $XX

of $XXX infrastructure at Our acquisition the operation. Heartland compared favorably by of Petrochemical midstream of prior the Same-store Commissioning facility results were FFO price with the commodity our utilization and to prior impacted due million our our environment progressing diversified year, to existing nearly triple primarily segment our midstream Canadian year. robust is higher quarter for the the expectations. generated in-line

our stability segment operations. strong eliminate XX-months from direct flow foreign exposure last of consistent Heartland our on price entire scheduled plant volumes growth inflationary average provide to are third the from complex impact in-service fully our escalators in are polypropylene These the with cars startup the midstream points were nine-year and completed customers. shipped product underlying was well million The exchange. presence data commodity in the rail the is our price integrative first to year are we startup FFO $XX contracted commissioned by for approximately term. other structured quarter of weighted similar the as Once cash offset XX% agreements our During to of a of megawatts quarter. our and an of as prior the additional and incremental at

million growth our selected telecom out an attractive fiber to capital the existing network French home. by been a addition a estimated municipality agreement of connections. with over approximately by of to fiber XXX,XXX has concession Our connections local at is This roll operation XX,XXX €XX XX-year underpinned the to additional local is This authority.

exceeding fiber levels. expects complete Our the rollout rates business our to commercialization plan in with significantly XXXX

Now, the I strength our to like of sheet. balance on touch would

our markets supportive corporate and a balance of split and of markets issued most risk at and an in high quarter, we business average during several and issuance average notes our limited by corporate level our diversified Canadian The UK due opportunistically the offering proactively fixed our $XXX business. reduce are corporate and rates open exposure duration, Canadian credit approximately and quality asset million a proactive locking grade financings to debt. to our asset dated In in investment Also in base. market. of asset notably regulated fixed investment of interest profile strong rates tranche grade April, Our XX-year XX-year we debt and midstream is X.X%. sheets rate oversubscribed to Capital significantly remain through the and well long with completed with operation between extending rising distribution level issuance coupon capitalized

will position new on asset we recycling X% available fixed have over made activity. we fully average highlight approximately sales million our Following $X.X borrowings the our the the corporate eight-years, less progress balance a with to liquidity ended quarter, and secured $XXX end have investment been year. that perspective, this add an billion of in and From have the this of activity, current than with of significant asset quarter strategy. at liquidity over of our Sam fund for XX% of funding our maturing duration since will

of balance billion Matt. $X.X we approximately year, have net your I generate time of I the sales to over combined the are three to like the call For that to additional and this would will processes all pass proceeds. for underway now morning, you thank

Matthew Grimes

I’m you, economy global the the to David everyone. joining resulting opportunities. discuss decarbonization and call investment today’s good pleased to morning, Thank of and be

a This footprints. for growth businesses supply these world these and replace chain. require consumption shift into through fundamental is multi-decade view new substantial how infrastructure to powered of separate and with aggressive investment categories. zero targets, our must in is net goal opportunities that governments, existing this be Our increasing to the We balance the will catalyst achieve the carbon To energy organically existing both energy is individuals activity. reducing two improve businesses, investment in and initiative expected

industries directly efficient on side, for emissions. which which demand And consumer Firstly, side, supply focuses secondly, preferences for and relates solutions. to energy companies the responsible carbon the

On or responsibly. the safely transition side, either power global be a economy we off the fuels supply run net to believe used zero today will the to economy and

to side located. and most investments smart fuels. participate time and the have We efficiency, which gas, energy demand we been utilized believe are the LNG enable have reliance in global decarbonization energy as predominantly to and the Recently, through management fossil assets real on of lower transition we from to through mix hydrogen. those active To-date, information energy Our us increase shift consumption usage. energy the demand these coal initiatives and assist characteristics both ways adoption about existing in on midstream in to meters emerging highly energy position made as to metering, reduce sub seeking well natural technologies, eventually energy through favorably natural strategically gas,

America The investing for are significant energy North tailwinds We energy also and provides combination high-efficiency Europe. of and preference regulatory businesses requirements building growing residential this infrastructure segment. evolving in-home solutions carbon, of in a for in low platform

for that an chain new residential infrastructure recurring investment in pumps products. policies Through HomeServe, to alleviate increases subscription-based more subscription currently we expansion X% for addressable North a customers and to excess infrastructure operations we know into our replacement $XX This other to where rental market solar In our the in will growth the rate by heat repair we based currently cost of long-term. a adopt have residential and acquisition and existing creates as energy homeowners expected presence. and value billion this opportunity a scale where installation, panels. memberships of in-home a U.S. America, be alone, grow in essential our As In to compound such HVAC is Europe, have repair accelerates our technology, inclined extend large offering over an annual cost model growth rental have model we plans markets complexity, smaller high well. provides the upfront presence, at should model

have closer will targets, on our As our the all new returns net transition moves sustainable opportunities global elements, investment long-term for given economy unitholders. zero to generating focus

operating demand-side today. the and remarks to supply Our I opportunities. future. positions the Brookfield Sam. to capabilities, now forward for secure look over ecosystem, leverage call ability us my pass development the experience concludes with sharing you We extensive decarbonization our and in progress investment to will well That to

Samuel Pollock

and Thank morning, Matt you, good everyone.

financial our had to X.X annual new totaling for we of operational of half have excess billion we discussed, BIP, a first have performance, of strong approximately successfully David billion target. strong deployed well in secure top year. the achievements investments estimated $X.X and As our On

utility private an including we last Australian in meter As smart investments, telehealth. regular business approximately million Australian and XXX take utility of business quarter, invested acquisition of successfully AusNet, and the into mentioned the an Australian two

segments wholesale the to data in to This services and have $X.X a of and capital commitment acquire for approximately further businesses acquisitions telecommunications Uniti three we an billion. a In quarter, announced provider retail in secured we Australia. additional May, utilities of agreement customers early Group, and

early investment this to expect transaction the at is received for August. have close approximately million. court XXX with BIP equity share estimated in $XXX shareholder now to million, and and Total We be Brookfield approvals

master HomeServe call. in estimated in discussed a this the BIP with total provider share During across investment acquisition the acquisition, of quarter, of billion. this we acquire Matt at close the for global we another acquired alongside stake agreement largest portfolio tower retain home American the which a services will and also Deutsche Total institutional portfolio secure signed in at Telekom, towers to North leading billion be interested is Telekom $X.X equity approximately agreement. German is investor. our The earlier assets Europe, to required a share be the in anchored to under be Operator. an telecom quarter operating a billion third an XX% billion In $X.X July, expected $X The This and from fourth BIP approximately continue in XX-year is customer year. was to for services a will $XX.X approximately million. of investment telecom Deutsche Europe’s estimated marquee Germany XX,XXX Austria equity portfolio XXX XX% with

terminal partner. our fully existing at our diversify and as in the to we we of terminal terminal. our sale backdrop attractive a well grow sell to business automate In BIP. to to business Angeles plan on with agreement to past the in and the time quarter, interest and hold successful million nearly Angeles eight-year XX% supportive monetize close successfully recycling assets our the created In period, agreement weeks, During generating operations market an we equally These capital at and the business container enhancements we valuation. constrained were combined several proceeds Los the as for execute June, signed and opportune front. definitive $XXX Over signed U.S. aggregate volumes, Los Oakland capacity,

BIP. million million record IRR of Our exit sales was XXX a period, multiple debt of year’s proceeds to was last approximately net normalized EBITDA which was approximately over XX% for times result XX a holding pre-pandemic times an EBITDA in The with after business. the and during XXX repayment or XX

times business million customary In We [indiscernible] $XXX July, to EBITDA is mid also of BIP to portfolio kilometers a transaction in and stake net Zealand expected proceeds QX, constructed EBITDA implies profit portfolio of to XXXX, lines $X QX billion, signed previously of agreements a results all or closing XXXX Three-years this out million towers proceeds multiple we and and BIP. and regulatory New U.S. agreement proceeds XX following year bid, telecom with telecom fully of a net to in The approvals. sell in carve capital. our in our or $XXX most XX of telecom in later, transmission dollars. customary owned generate the times we return approximately exit of XXX of were was we at over is an sell times invested reached performance which we million is approvals. a an with nearly over in to subject signed XXX agreement approximately expected EBITDA. recently, XX% business. million the regulatory network million Total XXX for exit successfully be And acquired an XX% mobile In that newly within to X,XXX will electricity X,XXX Brazil. seven integrated which IRR able tower of a approximately net Closings

lines kilometers we the will the QX of the expect and X,XXX in of transmission remaining close will be out the build in organic on We transaction focused country.

substantial capital underway. could in we program. be activity. conclude of sales be that to few inflation through billion combined perspective, remarks remarks, comments additional that our seeing interest We to generate will continue effort positive M&A has our tackle used With highlighted macro From process a outlook now hikes. make my active As these banks three a in $X.X recycling to fund will business. a I concerted transactions central David for anticipate high we regarding his the are future proceeds with rate

businesses a may Generally, that of can effects within we conditions, high through operate businesses. contracted value. markets and their prudently our maintaining our will by have buy of pressures in hold operate, cushion on we Although revenue the liquidity. Nonetheless, deal continue where entering flow regulatory probability and From perspective, we resilient the nature. cost should recessionary inflationary period levels we in we our their be assets recessionary will infrastructure a for the many conditions to actions monitoring the of value given expect of highly these businesses increased which nature

allow in use may at to owners to liquidity quality which make tighter, points. liquidity become capital to us and will attractive should our assets of the overextended, entry However, market investments certain become high access

asset priority the of remainder the have investment remain deployment securing. our the in of investments the or well of we target we exceed again, will process and For annual our year, sales should complete to year. secured our that thus and results expect be Once strong and last to financial ahead

summarizes have we ESG and commitment Finally, second annual to published continued report, I’m just approach announce to businesses. across which pleased sustainability that our our our

expected of As investment remarks be for my decarbonization That is of back you call from concludes future copy on topic the of have page now drive Matt, key Brookfield from found will report the focus opportunities. pass and to for our I is the can responsibility a the Infrastructure operator heard over for the today. website. A questions analysts.

Operator

of from first comes Our line Instructions] open. question Robert [Operator of Scotiabank. Hope your is the line Robert Hope

Robert Hope

Good morning everyone.

time as this economic you in conditions in yield does are where years, change softening opportunities little or like that focusing this have a for think transport? your more bit investments, put recent soften you do question been way, to could where maybe verticals another new quiet something conditions you First

Samuel Pollock

the I the rising Robert. that would early moment, of is - tackle start-off that. maybe real I stages saying, I Hi, by will any This we rates. Sam. at impact guess Maybe the are will at from

valuations opportunities many liquidity. for to, alluded have some in and impact investors as because So compounding face who will the most leverage there you investors mentioned also will result groups should taken inflation much a I We as are you and probably remarks on the hold, looking that support - too quarters I are said valuations. think conditions ahead of we as for But the us. potential could and in the know, my near-term expect be part, past do assets infrastructure

And you transportation are contracted. which tend assets think ones and assets. are could typically to GDP-focused affected so, we And and arise highlighted, as because, that is aren’t the most the they opportunities the be are more that

moment, At be the likely But, think is we arise. ones will front. see pressure. could the where any opportunities the we quarters, where opportunities that coming particular I they some over that So, on seen the will arise haven’t

Robert Hope

you you are asset that. bolster acquisitions, the follow-up, own I forma then pro accelerate a the asset now. liquidity And of at recessionary right kind just where liquidity, your if your sheet, opportunities as in and further you Alright. Could just balance of the appreciate sales additional looking pending do could sales we for that further or see some yourself? to conditions even incremental bolster we enter are yield

Samuel Pollock

one, tackle as add well. and this comments Dave will I some might

For the set they we five-year the we most operating in on time plan businesses a cycle the have think year achieved ways appropriate tend part, are that have access is of into part, assets them. We we we to we where of accelerate when have taken based dispose we plan and most it think and so to their up many our to not account for on where life changes place most for have take to do asset each conditions. those market capital. look We But that within sales.

would on every scale large number the the probably probably guess of other of that But year We given businesses we we sell. that. have in intend is we short, do forms a asset sales. would that only our also So, of capital our I wouldn’t thing to utilize I add the wouldn’t We timing we change business, have.

to we are of new opportunities. available And have deploy that activities recycling source continuous capital from so,

Robert Hope

you. Thank

Operator

line please ahead. the Maurice next RBC comes Our Choy Capital Maurice from Markets. Choy of go of question

Maurice Choy

follow-up that investments. Good morning. to on question I about just want

at hallmark say, has more years? hold sellers going a good infrastructure their a have You the through issues, of value the you you assets greater to organic seeing assets to buying deep for been a that recessionary buy until conditions, are a opportunities a mentioned as recent value, at versus at which rate, over used growth, assets least few liquidity lower tend

Samuel Pollock

question. full the get quite didn’t I Maurice

me Let got right. if paraphrase and just this I tell me

opportunity an or lower not I lower platform this will think value buy growth we have goodwill business? reflecting maybe in condition, much the at question or reflecting was, to a market the in multiples as

Maurice Choy

not lack a I a buying prices between security No, of going versus the yield value sellers greater their given mix in face buying at side? assets understand assets of deep issues are us platform their selling or especially with on opportunity, lower lowering at the a

Samuel Pollock

So I the some - think for today, acquisitions we think I deep I in. don’t yet think are opportunity of exist. the distress the don’t those is that market

this they we nor saw don’t not had type where XXXX, they is some financial back say in could we Brazil is value conditions the So XXXX, really opportunities. might buy but platforms today, in deep is that, I the see, is arise, not conditions that not crisis I not That to are we growth market that But lower will and the do. I we think look valuations. here sure. opportunity think definitely it is Yes, environment for in at do the to what to

Maurice Choy

sense. second for that. Understood you And Thank about that my question makes is midstream.

some near-term? potential have How monetize obviously view whether also but it through not? the IPL related Do add you assets or the and these you options other sector the including of exposure broadly segments, midstream of primarily transport. assets to segment, and to in through the some to exposure find even some see to exposure do more your sub or is assets, your You

Samuel Pollock

are would critical and mentioned assets and past we critical very are midstream I to going a think midstream key for assets most to for next fuels But be decades. evolve the overtime. portfolio recognize economy. couple different we they what of the the the And that of reiterate will attractive are into what world part, that component today transition we we think is and in think have mix investments and our

percentage as would our have what far or within portfolio. quantum broader we As

is. in we don’t And and that mind their think on the will profile. selling or right assets, because constantly what I buying I - are maturity evolve, will depending specific we a target amount that think always have

portfolio have think goal regions. sectors I is diversified across a to our always and

to we or dynamics time in sector place exposure regulatory, to have So take that might from minimal political, changes time. that

than in other mind. to So, really bounce a we have that diversity percentage trying requirement, don’t

Maurice Choy

very Great, you thank much.

Operator

Thank you.

CIBC. Our line Robert next Robert open. of your is of line Catellier question comes Catellier from the

Robert Catellier

Thanks, are everyone to can their and you most to like start on ways would good likely And and to renewable new discuss maybe what leverage platforms secure opportunities? comments companies transition with decarbonization. morning I the you assisted

Matthew Grimes

Hi Robert mention funds, closely I tackle that I various maybe that investment all within one we would I so, different while deployed will the transition guess one. first are team we group. and have is thing with capital the the and groups very we work renewable

and try it as so, seamless what We our we within very information is and to particularly, to much, very how achieve notes And on is exchange I we opportunities think ideas that philosophies. compare we and existing take those talked on businesses the... the I to learnings drive franchises within already groups of think [Technical the we various Difficulty] about from the value that ideas some own and

Robert Catellier

learnings existing are take value? you are the think and We within dropped you drive talking off, about is franchises, I

Matthew Grimes

Yes.

yes, let residential need of with And the only new make practices, not obviously, only apologize have tackling learnings on investments represent trends, just strategies me investments various back over for And franchise group and we the but perspective work couple our coming demand on the country. our in So we billions large. investments, collectively But very learned, of all, but lessons we particular, data dropping, crypto first that, think the and to renewables clearly not share closely an just on today. equation, just the best of infrastructure we lines transition we dollars from side many business invest to next to is decarbonization from this particularly investments. that decades. And, the opportunity the where are we think and in a

from benefited have the we the assistance of group. so, And renewables

So in and to yes, do together so. are working we closely short, will continue

Robert Catellier

on wanted Okay. startup HPC I plant to just a polypropylene bit. the follow-up

or on - little to can’t bit color had contractors know, such work is more up time than is de asset facility I the takes how you and anything spec, or other have to you to partnering that? risk is warranty Just process the it, And then going? perhaps thing any a anything product of options like that it but other with sort on best contracted, rush start consider that perform call XX% more a there and on there required to a stake? as

Benjamin Vaughan

Robert, question. everyone, startup we to phase and to speaking that I now running handle was the complete that maybe occur And first And we is over Sure, up just since of it will three IPL, behind getting in the took phases. first was Ben planned the is construction maybe so Heartland part to of have remind and us.

and central get was the to utility first The up block running.

was plant. the side to The second facility. operate the polypropylene PDH to the start of the And then third is

in this a achieve capacity describe got were mentioned normal running polypropylene basis to and it with we weren’t challenges, railcar issues, output and and So, the full or central what we on in running. We the his what extruder as from In the I plant. spring block, there just commissioned for it up year, startup to course, but this the warranty We achieve commissioned to any of full daily successfully startup. would got year, major claims utility that any material Dave Robert, bit of add July a color notes. loading. maybe And speaking able in

the So capacity achieve the from up well. - daily end extruder achieve polypropylene and full loading. for plant no again, output there of were once and a is And on basis running railcar major the full

and of a major along the starting then learnings again, August And up that September, PDH plant again, were end And the way we course, describe no the startup So plant. up during once side. a are the polypropylene would - I well. for because and running is as there few once excited we of the are completely normal

the the the And once up the this and in ramp plant the PDH to fall up end full complete to of towards production do expect get at and so we side year. running, we

So major of the we and issues as we in far operations progressing as planned. no had, commissioning initially is and the plant

going spec Heartland you commissioning. maybe that color. able were bit extra to of the terms little risking make is in hopefully for we forward, I So we product that And know, de targeting the of have been will a of

to have make the side plant, We we operation. we will at move operations. we menu plant make as look the to as into wider mentioned contracted contracts, just our the up. the side Sam as do And of so. XX% the risk for the that expect David leave spec bet revenue I as bit And market, we of a continue we the will to de will practicable coming is product more strategic with plant down a question reaches more direct continue about that where it And to just the you as either to to And maybe or today. achieve that, full we revenue look

Samuel Pollock

I obviously at thing I road. was I only we are to in the question or bring opportunity add, any Thanks Ben. that a your not looking an we looking we partner, bring to regarding in this which would the consider guess, is guess down partners but point time, that can

Robert Catellier

a you. Okay. great That Thank color. was

Samuel Pollock

Yes. Thank you.

Operator

Thank you.

of open. line from Dodge Devin question your next is of Devin comes BMO Markets. Capital the Dodge Our line

Devin Dodge

country? expecting of BIP for seller net the investor capital prospects at in good to ask recycled a see level or into - that I level seeing least the about Are interest a are of to general improved investments back there. you any down wanted you Brazil morning. still Thanks, Brazil and could new redeploy be

Samuel Pollock

been the It an long for in - opportunities we for our country. the is Hi, country. us, history in looking area look Devin. always of given are We focus within

There our most asset much been gas of currently if significant existing transmission look have, even our recently. for too that investments to hasn’t infrastructure add-ons center the in not we business, we have key base all our at in business, Given the sector Brazil. business. us of, or segments been adding investments onto of to is data whether most growing And our or it growing more transmission our have

So mostly been I is organic would it say growth.

be number think least will going more posture exits, while. our possibly I becoming a is mature. that And little be the that next some for of the likely at are investment there to businesses as

our But businesses extent say just that we are life seller look the hate that may sounds So, it to it. We But because value. the opportunity of be arises, I would is to case. more probably, is from great that cycle definitely another net it negative.

Devin Dodge

good Okay. a for that. That is Thanks color.

update are consider to kind towers Second remaining remainder your give were are out, plans there going and operations? think there infrastructure much, really was the there towers you the an you that candidates Can the other ask would to the retail Vodafone for business. integrated question, New we acquire with the what of with company opportunities out on about of Zealand, to where the in carved I be isn’t there

Samuel Pollock

I infrastructure the the just the we maybe to does still services provides remaining. wireline country. internet and say, have substantial would think business, significant Vodafone it that that significant It other first So, very part, business has

actually it. to And so, infrastructures would have tremendous we say, bones does it a

chains happy buy very But, utilities like the there generate. business still the we something question, value these think, guess further holistic infrastructure not there to think are business So we from is the telecom that and separate to are similar lots that operate I on business is have infrastructure of we or out we type opportunities and and to fully-integrated the opponent some whether we a of separate your second on Yes. operating basis I with assets? to or consider. decide remaining today

are and perspective, this around sense I one think look success give there that would are from we can made of definitely the them still consider at transaction. up that world it. number the came If a a value we

Devin Dodge

it will over. Okay turn that is helpful. Thanks, I

Samuel Pollock

you. Thank

Operator

you. Thank

from question Frederic Frederic Bastien Bastien the next of line line Our James. your comes open. Raymond is of

Frederic Bastien

I was on provide what catalyst for positive for I this could morning here? a this. gather, guys. bit if your no results. joint was since a add see that DigitalBridge. you venture your you CHIPS views hoping expert Act it you of well could and in space, bode could the From wondering as color whether with Good But Good I’m

Samuel Pollock

viable we But, we proceed. maybe will semiconductor of of profitable, are development facilities and businesses. the And with the that related about Act business the business. in U.S., opportunity. has is the it of just that to to and CHIPS more Telekom and excited capital impact reonshoring the clarify, to the guess, So which we I Germany, think I area into think I the have Deutsche don’t we encourage DigitalBridge it JV, of businesses provide and the of a will the is on to in do facilities those additional for an the And are think impetus chip make help focus probably that been those source discussions to facilitate number us. semiconductor

distant And that. not we in secure I hope too that know, cores, future a in we transaction. think, help can us future hopefully that talk with so you And the will,

Frederic Bastien

pass does here. others. your part the confusion. will Okay, I is Thank of actually like you. have, sound sorry on story all an for I it is it That But underappreciated it to

Samuel Pollock

Fred. Thanks

Operator

you. Thank

open. your line Credit Our Andrew next Kuske Suisse. of of from is the comes Kuske line question Andrew

Andrew Kuske

Thanks, a funds, How is of the just worked is BIP, is and context Industrials biggest the of in in of admission highlighted opportunity from the good gets it issue. potential one autos together in context decarb this of broader of just sort how of an big the on transition the the the buildings Obviously that flagship culprits call BIP? the Maybe then buildings but see all for focus, you morning. do fund, have and interplay and standpoint. investment a the you lot letter. and

Samuel Pollock

just answered think didn’t Hi want or I me - Andrew. it? part question. BIP it the on side, a where properly. particular I just on focus think your first your in maybe to bring I estate question maybe you clarify I to play real the make back to particular in quite will Do buildings of sure

Andrew Kuske

Brookfield got office but of is broader is you BIP got unfairness Yes, the centric, very also and which is residential have bigger you your of both exposure. residential family exposure, bit strategy, a buckets have probably

from you a different have effectively capital is sources standpoint, of capital invest. there and deployment So levers of you bunch or spend that bunch a then buckets of can from different a got

you more to BIP. just sort broadly that how specifically and I’m of curious think then So about on

Samuel Pollock

Okay.

side, real is North real deploy where probably answer metering the there or I grow Bruce the because So and submetering some our we capital safe leave businesses huge it side, businesses, properly our and as a But of the on - Brian won’t think on where I to maybe side the mostly the go America on to both properly. estate will probably in estate well Australia. later related opportunity call, answers on as relates to

have HomeServe. particularly the business, Enercare the of to through to relates as deployment driving heat rental customers So and And and geographies, we those. to where really I that and is important the products financing number primary the focus our in and immediate well leveraging component, of and just those definitely and the to of have growing solar, think is rooftop that. products a business, other extent But and HVAC provide of benefit of new do now expand it them And assisting HVAC will in of pumps. side residential potential we efficiency on we as the real most today types the largest as industrial. that And think we to estate, we an component is that expanded improving residential products different the we both businesses the really of generators, can and that

more decade, more will and dramatically. of has more think of the So expensive I coming that grow sophisticated. I products relevant of the become And think over in more even become grown number products and the the array sense

will people services that need much so our more. And

well in truly think, dollars. business. I to we And positioned we that of So billions think the building is market in are be the leaders opportunity

Andrew Kuske

you maybe color that market at bit them, there done? maybe say, is Canadian is a appreciate there the many is cash effectively been securitization certain and be just grow could are like where repackaging securitizing to it some areas where mean those market done? not a are a When flow more where think as that well and the established and streams degree, about markets just Because U.S. Does follow-up. those or certain that a can areas difficult? be precedents that faster examples that than rate I

Samuel Pollock

proposition pretty, is to for business, is is make whether attractive will Australia pools to not even You look, cost down or there I of of outside a of value the the still as type cost our pools as extent North Obviously, it of business. lots the there know customers. deep is capital of America, gold this an capital securitization, there lots is particularly of capital, that Europe, low driving that of think far and in this we that grow capital have standard

think there the grow elsewhere. pools best into of to so North tap can And lots is capital think that are I America look, of the I suited. But we business

Andrew Kuske

Okay. Very it. much Thank you. appreciate

Samuel Pollock

Okay. Thank you.

Operator

Thank you.

is Naji Naji comes question final open. Baydoun from Alliance. of Industrial line your line Our of the Baydoun,

Naji Baydoun

provide [Technical if see in QX. that previous difficulty] probably quarter, the of can on want to more you discussion but details just

Samuel Pollock

We first Naji. repeat Sorry, you Can part missed of that? the just that.

Naji Baydoun

down I’m of the that in organic can Sure. quarter? you XX% just wondering if break growth you components posted. The the

David Krant

can David Hey, here. I tackle Naji. It is that one.

utilities, all those XX% in upwards benefit will driver I benefits, inflation So the are data that today. if deeper And of looked you our going for would that those are and XX% the recall of primary quarter, it say the across be from transport four is little you the the a we of businesses. be segments. notably, to that to would benefiting seeing into outsized XX% we Most

X% when pretty then indexation. would it of resilient. of inflation the trends. of XX%, say, the of pretty you projects. overall looking I is key were Volumes driver the flat are And So other in would be X% average I year-over-year say, total are from on almost commissioning would capital they the terms

of are the train year. revenues sector. seeing this quarter We the transport base ones commissioned larger have the And for first course normal in the that was our to one chunkier now contributing quantum lines quarter, prior Brazilian then relatives in is to Electricity addition Project and Transmission within example. Sabine fully the But are you that BIP say in be our at would at Xth to would rate UK, I

So two. those the would be

looking on So outside CapEx transport seeing two where the you quarter. in this utilities would are be biggest current year-over-year. the But side the drivers those on

Naji Baydoun

a of your were, language growth this end organic end hit and let’s results lag Okay. to is ability that That think the perfect. still That But hit see do high the targets, some still in organic being next And to terms no you of potentially some dynamics year in one. of is impacting longer pointing upper say, great initially inflation targets. started inflation of see the when growth of I there able I is supplemental. you the to you this noticed maybe the or of and color. higher sort

David Krant

to wouldn’t year, Definitely read But, in which of all it we We inflation highlight. this a our the too much into ton I range back the wouldn’t of Naji, of for the of not that. and year, markets on I I in operating. are well strategic and current would still back the runs initiatives read just half touching quarter. this into had above for target say half

when that we to look the will pass you regulated have the we risk capture to point, between, do have and utilities that. of through Australia So your in a do current that UK bit continue to and and inflation. benefit a our free number rate of lag And a from

looking XXXX. benefits incremental see should we to So, ahead

still year on our in. I So above we the are as be to next no, expect range based well, environment current target

Naji Baydoun

you. Thank fantastic. Okay,

Operator

over closing Sir. Sam back remarks. CEO for would time, Thank Pollock, to you. the I to turn this like At call

Samuel Pollock

thank Thank you for the more difficulties on add everyone for morning. and on importantly, apologize you that technical We also your operator. next forward XXth. for Details do joining our are you our the and you our website. had presentation with of this And appreciate bearing speaking thank to we September Investor call available that which And your quarter but to support look is Day us.

the So and your of thank you very summer. much rest enjoy

Operator

Thank This concludes today’s you conference for participating. call.

disconnect. now may You

Brookfield Infrastructure Partners (BIP) 3 Aug 222022 Q2 Earnings call transcript