Brookfield Infrastructure Partners Investor Meeting September 29, - - PowerPoint PPT Presentation

Brookfield Infrastructure Partners

Investor Meeting September 29, 2016

In an unpredictable world…

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Brookfield Infrastructure is an investment that provides

Security and Growth

How have we done since last year?

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FFO/unit is up 12% ‘Same store’ FFO growth of 11% Distributions per unit increased by 11% ~$1 billion of capital deployed

Last year we highlighted why it was a good time to invest in Brookfield Infrastructure

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1.

High quality transportation assets

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Our global business development initiatives with a focus on Brazil

3.

Predictable and stable cash flows

4.

Building value through diversification

• 1. Driving growth within our Transport segment

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Invested $350 million in Australian port business (Asciano) Deployed over $200 million to expand our toll roads, rail and ports New investment of $170 million, adding over 350 km of toll roads

• 2. Leading the charge into Brazil

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Building a large-scale electrical transmission utility Acquiring a leading natural gas transmission system

Investing over $1 billion

• 3. Continuing to deliver predictable and growing cash flows

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$117 $197 $392 $462 $682 $724 $808 $928

2009 2010 2011 2012 2013 2014 2015 2016

34%

CAGR

FFO (in $US millions)

15%

1) Reflects annualized Q2’16 YTD results

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And exceeding distribution targets

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1) Represents total quarterly increase of distribution per unit, including the recently announced distribution increase 2) Annualized 2016 quarterly distribution per unit

$0.71 $0.73 $0.88 $1.00 $1.15 $1.28 $1.41 $1.55

2009 2010 2011 2012 2013 2014 2015 2016

12%

CAGR

11%1

2

• 4. We further diversified our geographic and sector footprint

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India North America South America Australia Europe Airports Water Utilities Transport Energy Comm Infra Peru

We also had a number of other wins

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Increased ownership in NGPL and repositioned for growth Increased our capital backlog by 54% Recycled $1 billion of capital Raised $10 billion of third party capital to invest alongside BIP

Further reasons to invest in Brookfield Infrastructure

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• High Quality Assets – Spotlight on Energy and Communications

Infrastructure

Brian Baker, Managing Partner, Energy

• Execution of Contrarian Investment Strategy

Ben Vaughan, Chief Operating Officer

• A Simple Business with High Quality Cash Flows

Bahir Manios, Chief Financial Officer

• Pulling it all together – Why BIP is an investment for ‘all seasons’

Sam Pollock, Chief Executive Officer

AGENDA

High Quality Assets: Spotlight on Energy and Communications Infrastructure

Brian Baker, Managing Partner, Energy September 2016

We own a diverse portfolio of core infrastructure assets across five continents

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Ports ● Railroads ● Utilities ● Toll roads ● Natural gas transmission ● Telecom towers

Provision of essential services

• Consistent customer demand profile

Uniquely positioned and difficult to replicate

• Strong barriers to entry
• High customer retention

High quality cash flows

• Long-term customer contracts
• Inflation escalation
• Minimal maintenance capital

Significant organic growth potential

• Large, rapidly evolving sectors

Today we will focus on our Energy and Communications Infrastructure operating segments…

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…and their attractive investment attributes

Energy: Diversified portfolio of high quality assets

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Systems that provide energy transmission, distribution and storage services

~15,000 km of natural gas transmission lines > 600 bcf of natural gas storage 23 district energy plants servicing ~14,500 customers U.S., Canada and Australia

Gas sector transformation underway…

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Uniquely positioned assets to capture upside from evolving demand flows

Northwest Pipeline Alliance Northern Border Piceance San Juan Marcellus / Utica REX Illinois Barnett & Bossier DJ Basin Louisiana South Texas Permian Offshore Anadarko Arkoma East Texas

U.S. Gas Storage CDN Gas Storage NGPL

…driving significant organic growth opportunities

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$80 million Chicago Market Expansion $210 million Gulf Coast Reversal Permian and South Texas opportunities Gulf Coast Storage Expansion

Our district energy business is a core utility-like asset…

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Operating in 10 N. American and Australian CBDs through 23 facilities Average contract duration of ~20 years Inflation indexation and full cost pass-through Irreplaceable assets with captive customers

…and our business is heating up

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Fragmented market with over 1,000 systems across our core markets Currently evaluating 12 opportunities representing ~$2 billion in capital Expanding outside N. America

• Completed first Australian tuck-ins
• Europe on the radar

Energy assets continue to trade at strong multiples

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Source: Company announcements, Press releases, Equity research

Acquirer Asset Seller EV EV/EBITDA

Colonial Coriance KKR €480 M 15.2x AMP/Infracapital Adven EQT €500 M 16.5x Wolf Infrastructure 50% Access Pipeline Devon $2.2 B 11.0x Southern Company 50% Southern NG Pipeline Kinder Morgan $4.2 B 10.5x Trans Canada Columbia Gas/Gulf Columbia Pipeline Group $13.0 B 18.0x Consolidated Edison 50% NE Gas Storage Crestwood $2.0 B 13.4x CheungKong/ Power 65% Husky Midstream Husky Energy $1.3 B 13.0x District Energy Transmission, Distribution & Storage

Our energy assets should be highly valued based on their strong investment characteristics and growth profile

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Enterprise value: $3.2 – $3.7 billion

EBITDA1 Characteristics Multiple District Energy 18%

• Long term contracts
• Core utility-like asset with growth

15x – 17x Transmission, Distribution & Storage 82%

• Strong contracted cash flow
• Visibility to 35%+ EBITDA growth

by 2020 12x – 14x Total 100% ($255 M) 12.5x – 14.5x

1) Represents annualized YTD Q2 2016 results adjusted for the sale of our European gas distribution business and the recently completed acquisition of Niska Gas Storage

Communications Infrastructure: Leading portfolio of assets

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Provides essential services and critical infrastructure to the broadcasting and telecom sectors

> 7,000 active tower sites > 26,000 points of presence 5,000 km high speed fibre network Largest independent operator in France

Recent developments continue to highlight the essential role of telecom infrastructure…

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Renewed customer contracts – average life of 9.5 years High customer retention in broadcast tenders Over 1,400 new points of presence since March 2014 MNO tower disposals and densification will drive growth

…with our Fibre-to-the-Home business under development

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Potential €13-14 billion of investment required over next 10 years Focus on medium to low-density regions Neutral carrier operating model over a 25-year exclusive concession period Leveraging TDF’s operating expertise, MNO relationships and existing 5,000 km fibre backbone Significant opportunity to build out a fibre network in France

TowerCos have been transacting in a range of 16x – 18x EBITDA

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Source: Company announcements, Press releases, Equity research, Infranews 1) Market Cap at IPO

Acquirer Tower Asset EV EV/EBITDA 3i Wireless Infrastructure Group ~£300 M ~16.0x Spin Off Telesites ~$2,500 M1 ~18.0x Macquarie (MIRA) Crown Castle Australia ~A$2,000 M ~16.0x Initial Public Offering INWIT €2,200 M1 16.6x Initial Public Offering Cellnex €3,200 M1 15.7x Abertis Wind Towers (Galata) €770 M 16.0x

Our telecom assets should be valued based on their high quality cash flows and growth potential

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Enterprise value: $1.4 – $1.6 billion

EBITDA1 Characteristics Multiple Communications Infrastructure $88 M

• Long-term contracts
• Strong customer retention
• High growth potential

16x – 18x

1) Represents annualized YTD Q2 2016 results

We estimate a net asset value to BIP of ~$3 billion for our existing Energy and Communications Infrastructure assets

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1) Consensus street NAV for BIP’s energy and communications businesses is currently a combined $2.3 billion based on most recent reports 2) Calculated with reference to the mid-point EVs on prior pages being $5.0 billion in aggregate ($3.5 billion and $1.5 billion for energy and communications, respectively) less combined debt of $2.0 billion

~$2.3B1 ~$3.0B2 Street consensus NAV Implied NAV

~$700 M ~$2.00 per unit

~$6.70 per unit ~$8.70 per unit

Energy Where do we go from here?

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• N. American recapitalizations
• Asset sales from mega-mergers
• Carve-outs

Communications Infrastructure

• European consolidation
• Looking abroad – India & LatAm
• Fibre-to-the-Home

Execution of a Contrarian Investment Strategy

Ben Vaughan, Chief Operating Officer September 2016

We consistently look for opportunities to invest with a contrarian mindset

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Recognize that superior returns often require contrarian thinking Acquire on a value basis with a goal of maximizing results Does not mean just ‘doing the opposite’

Need to have conviction and well-informed, long-term views

Why is this important?

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Core element of our approach to value investing that helps us earn 12-15% returns on a lower risk basis Surfaces opportunities to transact on a bi-lateral basis Seek to recycle capital when valuations are high

Our approach

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• Build long-term views based on institutional knowledge, fundamental

analysis and replacement economics

• Ability to execute is critical!

Capital constraints in sectors/geographies Global footprint Long-term cyclical trends Experience as owner-operators Asset repositioning opportunities Active across capital markets

Tools Signals

We have been focused on…

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• S. America and India

Out of favour geographies Energy Sector “Filling up”

• N. America to Brazil

Reprioritizing utility investments

Reprioritizing utilities from North America to Brazil…

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• N. American utility return expectations at all-time lows
• Universe of buyers growing
• Limited organic growth leading to consolidation

While at the same time…

• Brazil suffered a negative re-rating (loss of investment grade status)
• Reduced buyer universe and increasing supply of organic growth

Drivers

…to earn outsized returns on a lower risk basis

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Sold Cross Sound Cable and Ontario Transmission

@ mid-single digit real returns

Investing in lower risk natural gas and electric utilities in S. America

@ 12-14% conservative real returns

Our Focus

• Recycle capital from fully-valued N. American assets into compelling

high quality assets in Brazil

Brazilian Natural Gas Transmission Utility (NTS)

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MG SP RJ

Belo Horizonte São Paulo Bolivia Rio de Janeiro

• 2,000+ km pipeline system
• Backbone energy delivery system
• Meaningful growth potential

Offshore/ LNG

Why did this trade make sense?

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We gave up:

• Depreciating rate base assets with periodic regulatory re-sets and low growth potential
• Single digit future return potential

In exchange for:

• Going-in FFO and AFFO yields > 13%
• Low maintenance capital of ~3% of EBITDA
• Inflation indexed and no periodic regulatory resets
• Opportunities for real growth through future capital investments

Investing in out-of-favour geographies

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• Large conglomerates in India suffering from over-leverage
• Commodity downcycle impacting economies and currencies
• Overstretched local construction companies
• Outreach program to source attractive assets
• Position ourselves for bi-lateral transactions

Our Focus Drivers

Secured bi-lateral discussions and acquired attractive portfolios of toll road assets

39 Gammon, India Rutas de Lima, Peru

• Acquired Gammon March 2016
• 242 km of well-located toll roads
• Roads span regions across India
• Acquired Rutas de Lima June 2016
• 115 km of urban toll roads
• Key arteries of Lima road network

“Filling up” on NGPL

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• High quality asset undergoing a transition
• Gas flows changing from evolving shale gas sector
• Sub-investment grade capital structure
• Surface attractive growth projects underpinned with long-term contracts
• Reposition to address changes in gas flows and market needs
• Buy-out of minority partners and de-leverage balance sheet
• Strong partnership

Drivers Our Focus

Execution

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Brazil

• We have been there for over 100 years
• Do not believe political/economic crisis will persist
• Underwriting strong base case returns with upside on re-rating

Peru/India

• Local presence – targeted outreach
• Speed and certainty matter
• Willing to be flexible and creative

NGPL

• Leverage institutional knowledge

− Deep experience in our Energy group − Presence in Mexico

• Strong conviction in asset quality

A contrarian mindset is key to investing for value

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“Excuse me…. Excuse me”

BIP – A Simple Business with High Quality Cash Flows

Bahir Manios, Chief Financial Officer September 2016

1

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Leverage Metrics

Investment grade metrics that are improving over time

2 3

Impact of rising rates on business

Not significant

Impact of a strengthening US$

• n payout ratios

Well-hedged from an FFO and net-equity perspective

Last year we highlighted the resiliency and strength

• f our balance sheet

We had an active year on the financing front

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Refinanced $2.7 billion of 2016/2017 maturities Raised C$375 million in Canadian preferred share market Began deleveraging at NGPL

• Further diversified inflation-linked cash flows
• Executing plan to refinance N. American maturities

Our business is substantially insulated from rising rates

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Debt is fixed with long-dated maturities

• Average debt-to-maturity of eight years

A significant portion of EBITDA grows with inflation and/or GDP growth

Our diversification and FX hedging strategy minimizes our currency exposure

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Last year we ran scenarios on the impact of currency depreciating

• Showed overall impact to our payout ratio was insignificant

One year later, currencies have stabilized and the R$ has appreciated by more than 25% Investor focus currently on GBP (Brexit)

• FX exposure fully hedged

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Brookfield Infrastructure has many strengths

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A simple to understand business

2 3

Strong balance sheet Generates high quality earnings

Our business generates high quality earnings

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Low volatility

• Regulated and contracted nature of cash flows reduce volatility in earnings

High margins

• Provides strong credit support
• Serve as cushion against unforeseen economic downturns

Strong cash conversion

• Low maintenance capital allows for increased distribution levels

Over 90%1 of BIP’s cash flows are regulated or contracted

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Strong regulatory frameworks

• Established and attractive jurisdictions
• Provide high degree of certainty of long-term returns
• Lower risk of default

Long-term contracts

• Solid counterparties
• Average duration of 12 years
• Irreplaceable assets providing essential services

– Resulting in high re-contracting rates

1) Cash flow profile based on Q2 2016 YTD pre-corporate FFO

80%

Our margins are attractive

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Utilities

50%

Transport

57%

Energy

53%

Comm Infra

Predominantly fixed cost structure with minimal on-going maintenance Significant up-front capital requirements to build or replace Margins across all segments trending upwards

• $2 billion backlog to be commissioned with little change to cost structure
• Inflation indexation and GDP growth allow margins to grow exponentially

Factors contributing to our low maintenance capital requirements

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A number of our systems are recently constructed Our assets are mostly comprised of concrete and steel structures that experience limited wear and tear Several of our businesses recover capital expenditures through their regulated frameworks

Our high quality earnings are demonstrated by the cash we generate

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Stable results with high margins Low maintenance capital requirements Strong cash conversion & =

1) Reflects annualized Q2’16 YTD results

AFFO is the best measure of free cash flow generated in our business

Cumulative 2010-2015 Net income attributable to partnership $ 1,147 Add back or deduct the following: Deferred income taxes 57 Mark-to-market gains and losses 39 Depreciation and amortization 2,022 FFO 3,265 Maintenance capital expenditures (644) AFFO $ 2,621

AFFO and net income are similar but for one key item

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(in US$ millions, unless otherwise noted)

Depreciation and amortization expense is different than maintenance capital

Several factors account for these differences…

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Elected to revalue PP&E annually under IFRS Generally ascribe purchase price adjustments to PP&E vs. goodwill Accounting useful life is not always reflective of economic useful life

• 1. Revaluation

policy

• 2. Impact of

PPA

• 3. Economic vs.

Accounting Useful Life

$570 $100 $190 $100 $180

IFRS Depreciation Annual Maintenance Capex

...and the impact is significant

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(US$ millions)

• 1. Arising from our revaluation policy

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Current Policy

• Revalue annually under capitalized

IFRS using a DCF approach

• Values of S. American transmission business has increased by $700 million to

reflect higher IFRS values − Driven by inflation indexation, growth in rate base and lower discount rates − Greater PP&E values → higher depreciation charges

Impact

For the 12 months ended June 30, 2016

$24 M

INCREMENTAL DEPRECIATION

Case Study: South American Transmission

• 2. Arising from our purchase price

accounting methodology

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For the 12 months ended June 30, 2016

Current Policy

• Towers were recorded at fair value

using DCF approach

• Limited amounts allocated to goodwill
• r indefinite lived intangibles
• Business valued at $2 billion in excess of book
• Allocated excess value to PP&E versus goodwill

Impact

$40 M

INCREMENTAL DEPRECIATION

Case Study: European Telecom

• 3. Arising from accounting vs. economic useful life assumptions

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For the 12 months ended June 30, 2016

Current Policy

• Straight line depreciation over

average accounting useful lives

• f ~27 years
• Housing developments will long outlast depreciation life
• Network of simple to operate, durable assets
• Once installed, maintenance spend required is minimal
• Any damages in construction phase fully recovered from homebuilders

Maintenance Capex Spend

$32 M

INCREMENTAL DEPRECIATION

Case Study: UK Regulated Distribution

How do we think about finite life concessions?

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• AFFO does not reflect a capital charge for businesses that are finite
• 25% of our businesses are under concession agreements (not perpetual)
• Should adjust for cash flows that are effectively return of capital, rather than return
• n capital

~$40 million (5%) of our LTM AFFO reflects a return of capital

• n our concession based businesses

Return

• f

capital Acquisition cost

=

Cumulative AFFO expected over concession term AFFO (current year)

x

Our track record of cash flow conversion is strong and consistent

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2012 2013 2014 2015 20161 Adjusted EBITDA $ 841 $ 1,110 $ 1,142 $ 1,177 $ 1,304 Maintenance Capital (107) (129) (131) (136) (132) Unlevered net cash flow 734 981 1,011 1,041 1,172 % 87% 88% 89% 88% 90% Interest, taxes and other (379) (428) (418) (369) (376) AFFO $ 355 $ 553 $ 593 $ 672 $ 796

1) Reflects annualized Q2’16 YTD results

(in US$ millions, unless otherwise noted)

A Stock for all Seasons

Sam Pollock, Chief Executive Officer September 2016

Our strategy is to build a business for all investment cycles

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Provide

predictability of cash flows

Generate

growth and inflation protection

&

Let’s do a recap of BIP’s utility-like cash flow characteristics

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Regulated and contracted cash flows Minimal volume exposure Tariff certainty Risk mitigation through diversification

Here is an illustration of how solid our cash flows are

$- $200 $400 $600 $800 $1,000 $1,200 $1,400

2011 2012 2013 2014 2015

Utilities Transport Energy Comm Infra

‘Same-store’ constant currency EBITDA

($ millions)

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Let’s recap how BIP generates attractive growth

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Inflation indexation embedded in tariffs Organic growth projects Strong capability to source new investments

• 1. Inflation indexation embedded in tariffs

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70% of EBITDA is indexed to inflation Contributes on average ~3% annual growth to our results

• 2. Organic growth projects

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We’ve consistently expanded our businesses by re-investing capital into growth initiatives

2010 2016 ‒ 2017

• Growth capital invested as

% of invested capital 5% 15% ‒ 20%

• Growth capital run-rate

$200M $900M

We have high visibility on future organic growth

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Today, we have $2 billion of approved, ongoing projects in our backlog Doesn’t include almost $2 billion of initiatives currently in our pipeline:

• Smart meter roll-out
• Brazilian toll road infrastructure investment program (PIL)
• Fibre-to-the-home opportunities
• Gas storage expansion in Texas
• Future expansion at NGPL

• 3. Strong capability to source new investments

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We’ve built our business through strategic acquisitions…

2 4 6 8 10 12 14

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 1 2 3 4 5

6 13 10 8 1 Number of transactions

2008 2009 – 2010 2011 – 2012 2013 – 2014 2015 – 2016

BIP spin out

Total Equity Capital Deployed

$0.1B $2.0B $1.6B $1.2B $1.7B

Office locations Regions with operations

…and by applying BIP’s international market presence and access to capital

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Over 160 professionals

Many reasons to invest in BIP now

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Compelling relative value Discount to intrinsic value Entering period of significant growth

Great value relative to peers

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Distribution Yield

4.1% 3.4% 2011 2016

Distribution Growth Distribution Yield

$0.71 $1.55 2009 2016E 12%

CAGR

4.8% 4.6% 2011 2016

Distribution Growth

$6.91 $8.78 2009 2016E 4%

CAGR

S&P 500 Utilities Index BIP

BIP is trading below our historic multiples

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(in US$ millions, unless otherwise noted)

2012 2013 2014 2015 20161 AFFO $ 355 $ 553 $ 593 $ 672 $ 796 Return of Capital (9) (35) (36) (40) (45) $ 346 $ 518 $ 557 $ 632 $ 751 Units Issued 287.3 310.0 315.2 337.4 345.3 Per share $1.20 $1.67 $1.77 $1.87 $2.17 Price-to-AFFO Volume weighted average price 17.9x 14.9x 14.8x 15.0x 12.3x Period end 19.5x 15.7x 15.8x 13.5x 14.7x

1) Reflects annualized Q2’16 YTD results

~30% discount to intrinsic value

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Street Consensus NAV Implied NAV

Utilities (2014) Transport (2015) Energy and Comm Infra (2016)

$0.7B $1.0B $2.1B

Entering period of significant growth

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Organic projects

• n the go
• Brazilian toll roads
• Brazilian rail
• N.A. container terminal
• Utilities

Commissioning

• 2017-2019
• 2017
• 2016-2017
• 2016-2019

Recent acquisitions

• Peruvian toll roads
• N.A. gas storage
• Australian ports

Closed

• June
• July
• August

~$1 billion of pending investments (2017)

• Brazilian electricity transmission
• Brazilian natural gas transmission

The opportunity for capital appreciation is two-fold

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1) Based on closing price on NYSE on Sept 23, 2016 and 2016 annualized distribution 2) Based on projected annualized 2016 quarterly dividend 3) Assumptions constitute forward-looking statements and information. 4) Assuming no change in current dividend yield

Current unit price1 $34 Yield1 4.6% BIP Re-rating Infrastructure Returns 8.0% – 9.0% Less: Organic growth 5.0% Cash yield range 3.0% – 4.0% 5-year Roll-forward Reflecting Growth Rates Target3 Actual3 Distribution increase 5.0% - 9.0% 12.0% Current Yield1 4.6% Trading yields 3.0% 3.5% 4.0% Implied unit price2,3 $52

$45

$39 Dividend Growth Rates 5.0% 7.0% 9.0% 12.0% 5-yr Projected Price3,4 $43 $48

$52

$60

BIP: A Stock for all Seasons

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Security of cash flows Generates growth and provides inflation protection Considerable

• pportunity for capital

appreciation

TODAY $34 2008* $11

*Closing price at Brookfield Investor Day

Disclaimer

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FORWARD-LOOKING STATEMENTS This presentation contains forward-looking information within the meaning of Canadian provincial securities laws and other “forward looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities regulations. The words “growing”, “target”, “growth”, “expect”, “will”, “strategy”, “return”, “backlog”, “appreciation”, “potential”, “expand”, “believe”, “continue”, “increase”, “may”, “should”, “opportunity”, derivations thereof and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify the above mentioned and other forward-looking statements. Forward-looking statements in this presentation include statements regarding participation in a growing asset class, targeting of dividend yield and growth in FFO and distributions, our ability to identify, acquire and integrate new acquisition opportunities, completion of and performance of new investments, return objectives, potential demand for additional capacity at our operations, further investment in each of our business segments, volume increases in certain of our businesses due to customer demands and economic recovery, growth in the sectors in which we operate, targeted equity returns, upside potential from development projects, availability of funding for growth projects with debt and internally generated cash flow, future growth prospects including large-scale development and expansion projects, distribution payout ratio, ability to finance our backlog of growth projects, future capital appreciation, distribution policy and objectives and other statements with respect to our beliefs, outlooks, plans, expectations and intentions. Although Brookfield Infrastructure believes that these forward-looking statements and information are based upon reasonable assumptions and expectations, the reader should not place undue reliance on them, or any other forward looking statements or information in this presentation. The future performance and prospects of Brookfield Infrastructure are subject to a number of known and unknown risks and uncertainties. Factors that could cause actual results of Brookfield Infrastructure to differ materially from those contemplated or implied by the statements in this presentation include general economic and market conditions in the jurisdictions in which we

• perate, regulatory developments and changes in inflation rates in the U.S. and elsewhere, the fact that success of Brookfield Infrastructure is dependent on market

demand for an infrastructure company, which is unknown, the availability of equity and debt financing, foreign currency risk, the outcome and timing of various regulatory, legal and contractual issues, the competitive business environment in the industries in which we operate, the competitive market for acquisitions and

• ther growth opportunities, our ability to satisfy conditions precedent required to complete acquisitions (including without limitation those mentioned in this

presentation), our ability to integrate acquisitions into existing operations and the future performance of those acquisitions, our ability to complete large capital expansion projects on time and within budget, favourable commodity prices, weakening of demand for products and services in the markets for the commodities that underpin demand for our infrastructure, ability to negotiate favourable take-or-pay contractual terms, the continued operation of large capital projects by mining and industrial customers of our businesses which themselves rely on access to capital and continued favourable commodity prices and other risks and factors described in the documents filed by Brookfield Infrastructure Partners L.P. with the securities regulators in Canada and the United States including under “Risk Factors” in its most recent Annual Report on Form 20-F. Except as required by law, Brookfield Infrastructure Partners undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise. IMPORTANT NOTE REGARDING NON-IFRS FINANCIAL MEASURES To measure performance we focus on net income as well as funds from operations (“FFO”) and invested capital, which we refer to throughout this presentation. We define FFO as net income plus depreciation, depletion and amortization, deferred taxes and certain other items. We define invested capital as partnership capital, adding back non-cash income statement items net of maintenance capital expenditures, accumulated other comprehensive income and certain other items. FFO and invested capital are not calculated in accordance with, and do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”). FFO and invested capital are therefore unlikely to be comparable to similar measures presented by other issuers. FFO and invested capital have limitations as analytical tools. See the Reconciliation of Non-IFRS Financial Measures section of the most recent Annual Report on Form 20-F and the Partnership’s Supplemental Information report for a more fulsome discussion including a reconciliation to the most directly comparable IFRS measures.