Brookfield Infrastructure Partners (BIP) Investor Day 2024 summary

Macroeconomic and strategic outlook

• Recent years marked by volatility, but current environment features falling interest rates, stabilized inflation, and renewed liquidity, setting the stage for recovery and strong tailwinds, especially for interest-sensitive businesses.

• Growth strategy centers on global presence, operational expertise, and disciplined investment, enabling rapid deployment and value creation across 30 countries.

• Focus on secular trends: decarbonization, digitalization, and deglobalization, with massive investment expected over the next 25 years, driven by private capital and corporate demand.

• AI and data center demand are major growth drivers, with partnerships and infrastructure investments supporting global technology expansion.

• U.S. remains the primary market due to size and risk/reward profile, but significant activity is also underway in India, Australia, Asia, and Europe.

Business model and operational approach

• Emphasis on owner-operator DNA, investing as if using own capital, and leveraging operational teams to optimize assets and respond agilely to changing environments.

• Value creation is driven by repeatable processes, institutionalized learning, and a culture that blends experience with new talent.

• Private equity engine focuses on sourcing, improving, and exiting businesses at value, with a 25-year track record of 27% gross IRR and $40 billion returned to investors.

• AI and digitalization are embedded in value creation, with dedicated teams and practical applications across portfolio companies to enhance efficiency and manage risk.

• Portfolio includes market-leading businesses such as SAGEN and Clarios, delivering substantial cash flows and high returns on equity.

Strategic vision and value creation

• Focus on generating strong long-term returns through a repeatable value creation playbook emphasizing operational improvement, commercial execution, and digitalization.

• BBU has invested $9B since inception, with half of operations acquired in the last three years at an average 10x EBITDA multiple, below the market average of 15x.

• Capital recycling and disciplined acquisitions drive incremental EBITDA and value, with $6B in realized proceeds from 20 business sales and a 30% IRR.

• Operational improvements and capital recycling are expected to generate $2B in proceeds over the next two years.

• Operational teams are deeply integrated, working alongside management to drive margin improvement, efficiency, and growth.