Infratil Newsletter-November 2025

Infratil Limited 5 Market Lane, PO Box 320, Wellington, New Zealand Tel +64-4-473 3663 www.infratil.com
3 December 2025

Infratil Newsletter – November 2025

Attached is a copy of the latest Infratil Newsletter for investors. It includes commentary on the
recent HY26 financial results and the common topics discussed with investors since the results.

Enquiries should be directed to:
Brett Jackson
Infratil Investor Relations Director
Email: brett.jackson@infratil.com

Authorised for release by:

Jason Boyes
Infratil Chief Executive Officer

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Infratil Newsletter – November 2025


The headline for our half-year results announcement was ‘Earnings lift as Infratil refines
its portfolio for growth’. This reflected our Proportionate Operational EBITDAF [1] lifting
7% from the prior period, helped by stronger than ever digital and renewable energy
thematics, and the sale of another $255 million of assets to boost our funding capacity.
Guidance for operational EBITDAF was unchanged on a like-for-like basis, with some
tweaks up and down for individual businesses.
We were, therefore, somewhat surprised by the drop in Infratil’s share price on the day.
Much of the detail on key assets had already been communicated via our September
Investor Day, and feedback from our subsequent investor and analyst discussions was
that the results were in line with market expectations. The growing momentum in
Longroad Energy and CDC earnings was seen as positive.
Instead, it became clear that our results had coincided with growing global question
marks about AI demand and the potential implications for CDC. This uncertainty saw
the share price drop to levels well below our September 30
th
net asset value of $15.55
per share.
As we set out in our Interim Report, we’re confident about CDC’s outlook because:
• CDC continues to see strong broad-based demand for its data centres and has a
diversified customer base across national critical infrastructure, public sector,
hyperscale & AI, with AI only one part of the demand mix.
• CDC’s annualised weighted average lease term is 30 years (including options)
• Australia is an attractive market for hyperscalers given its mature data centre
system, lease rates, and cost-effective power.

There was further evidence of this global demand with significant new investment
announcements in the United States. Microsoft and NVIDIA announced a new
partnership to contribute a combined US$15 billion of hardware and capital, and cloud
infrastructure, to AI company Anthropic. Anthropic, in turn, made a $30 billion
commitment to using Microsoft’s cloud services.
A few days later, NVIDIA reported results that beat market expectations. It said demand
for its new computing chips is “off the charts, and cloud GPUs are sold out,” driven by
the continued shift to data centre computing, a growing customer base and the
adoption of AI capability.
These are positive developments. For Infratil, we’re looking past the latest bout of
market volatility. We’re focused on the things we control and continuing to enhance the
value of our businesses. To this end, we thought it would be useful to share a summary
of the more popular topics from our Australasian investor meetings since the results.

CDC and the outlook for data centre demand
Reflecting its size in our portfolio and the recent share market trends, CDC was the
focus of most meetings. Consistent topics included CDC’s demand and deployment
profile, and its FY27 earnings trajectory.
As we said in the results, CDC has multiple opportunities it is exploring with existing and
new customers to sell significant additional capacity. CDC’s recent 140 megawatts
(MW) of new contract announcements mean it will deliver forecast revenue to achieve
its target of doubling its FY25 EBITDAF of A$330 million in FY27. The pace of earnings
growth beyond FY27 will depend on the rate at which workloads are deployed across
CDC’s growing operating capacity and the timing of future contract wins.
CDC has increased its FY26 capital expenditure guidance to A$1.9 - A$2.2 billion, from
A$1.6 - A$1.8 billion previously, as it accelerates the delivery of capacity to meet
demand. It plans to more than double its current built operating capacity of 372MW,
with another 453MW expected to achieve first operations over the next 12 months. This
is a significant amount of computing capacity and CDC is making strategic investments
to ensure it has an extended pathway for power access as its campuses are developed.
“Customer demand for liquid cooled, high density capacity has reached a new high,
and we are best positioned in the market to deliver against it.” - CDC CEO Greg Boorer

Slide 9: Infratil HY26 Results – Investor Presentation

Neoclouds – a new customer segment
Another popular topic was around key market risks and different market segments.
CDC recently signed a 40MW contract with Firmus Technologies, a leading Australian
neocloud provider. Neoclouds like Firmus, or Coreweave in the USA, lease out their
computing capacity to their end customers. This is a new fast-growing customer
segment for data centre operators.
There are benefits from working with neocloud providers. First, they can ramp up their
operations faster than other large-scale customers, meaning revenues are recognised
sooner. Second, they operate high-density computing, allowing CDC to concentrate
more computing capacity within the same footprint.
Some third-party estimates suggest densification could provide capacity increases of
between 10% - 20% with minimal additional investment. CDC is assessing densification
opportunities across its existing and planned data centre footprint, and how this might
be reflected in future deployments.
While the neocloud model is different from traditional data centre customers, it
presents an opportunity for diversification and CDC weighs up each contract carefully.
CDC undertakes robust due diligence as part of its customer onboarding process, with
credit quality of the underlying customers a critical consideration.

Longroad Energy makes earnings inroads
Longroad Energy is attracting more investor attention as its renewable energy
developments accelerate. It delivered strong EBITDAF growth – up 2.5 times from HY25
to US$83 million in HY26. This was welcomed by the market because investment in its
operating footprint is now beginning to deliver meaningful returns.
Longroad’s EBITDAF guidance for FY26 was upgraded and we see the potential for
further upside in the business:
• US electricity demand is soaring thanks to new data centres, industrial growth
and electrification.
• With 1.1GW of capacity added in HY26 and another 1.6GW under construction,
it is nearing the pace needed to lift Operating Company run-rate EBITDA [2] from
US$380 million in 2025 to US$700 million in 2028.
• Greater scale lends itself to merger and acquisition opportunities, as smaller
operators find changing market dynamics (including tax credit qualification and
supply chain requirements) more challenging.

Side 10: Infratil HY26 Results – Investor Presentation

Portfolio refinement enhances funding capacity
Investors were interested in the progress to refine our portfolio, including updates on
our asset sales and how we see the portfolio evolving. The main portfolio news from our
results was the sales of our 20% stake in Fortysouth for more than $200 million and a
legacy property asset for $55 million.

With about $585 million of divestments now announced, we’re over halfway to our
medium term $1 billion divestment target. As the chart below from our HY26
presentation shows, we have substantial capacity to fund anticipated future growth
through to at least the end of FY27. This should reassure investors who may have been
questioning whether an equity raise may be needed to fund our current growth plans.

Note: Operating cashflows are not forecast to be in balance over the forecast period so will also impact
liquidity to some degree.
Slide 23: Infratil HY26 Results – Investor Presentation

Our New Zealand businesses’ performance
The New Zealand economy was subdued through HY26 and investors were keen to
gauge how our domestic businesses are performing. As we noted in the results, our
businesses were largely resilient.

• One NZ is seeing positive trading momentum, particularly in post-pay mobile, as
it heads into the peak summer trading period.
• Wellington Airport had 5% fewer domestic passengers in HY26, but there are
signs of improvement with continued growth in international passengers and
441,000 total passenger movements in September 2025 compared to 436,000 in
September 2024.
• RHCNZ Medical Imaging had a challenging first half with a lower margin service
mix and cost inflation leading to a reduction in its FY26 EBITDAF expectations. A
standalone teleradiology service provider is being established, combining
RHCNZ and Qscan assets and staff. This will be owned by Infratil alongside
doctors and management.

Gurīn Energy - Going for growth
One business we’d hoped to be able to talk about more in our results announcement is
Gurīn Energy. Securing an export licence to deliver solar energy from Indonesia to
Singapore is taking longer than initially expected, but we remain excited about Project
Vanda and planning for the physical infrastructure is continuing in parallel. Clarity on
the export licence would enable us to make a final investment decision on Project
Vanda around mid-2026.

Slide 17: Infratil HY26 Results – Investor Presentation

Australia’s National AI Plan
This week the Australian Government released its National AI Plan for how it will support
building an AI-enabled economy that is more competitive, productive and resilient. The
Plan recognises CDC as driving data centre sustainability with its water conservation
and net zero carbon electricity. The Government’s goals include capturing the AI
opportunity, saying: “We are positioning Australia as a leading destination for data
centre investment while ensuring growth is sustainable and secure.”
Data Centres Australia, which includes CDC in its membership, recently published
research showing that data centres are key drivers of economic growth, renewable
energy investment, and sustainable water solutions.


Data Centres as Enabling Infrastructure – November 2025

Follow us on LinkedIn or visit our website at infratil.com for future updates and
presentations. If you’d like to provide us with feedback, please email info@infratil.com
[1] EBITDAF is an unaudited non-GAAP measure of net earnings before interest, tax, depreciation,
amortisation, financial derivative movements, revaluations, and nonoperating gains or losses on the
sales of investments and assets. Proportionate EBITDAF shows Infratil’s operating costs and its share of
the EBITDAF of the companies it has invested in. A reconciliation of net profit after tax to Proportionate
EBITDAF is provided in the 13 November 2025 HY26 results presentation.
[2] Opco run-rate EBITDA calculated based on 5-year average EBITDA once projects reach operational
status and recognised in Opco run-rate EBITDA total based on year of financial close, adding back all
corporate overheads and development related costs.