Brookfield Infrastructure Partners L.P. Limited Partnership Units Investor Day 2026

Well, good afternoon, everyone. It is great to see so many familiar faces and good friends. As a son of a Sam, was I the only one feeling uncomfortable with Howard's story there? Bruce was looking over at me. Last year, we said that Brookfield Infrastructure was approaching an inflection point in its growth trajectory. Today, I want to pick up where we left off and show you why we believe that it is underway. To do that, I am going to briefly revisit the strategy that we have, walk through what we have accomplished this year, and then I will finish with what we think the opportunity ahead is, and why we think it is as strong as ever been.

To start off with, we have got a slide here that I think most of you have seen this before, and that is pretty intentional. Our strategy has not changed, and there are three parts to it. We maintain a strong financial position, deploy capital at attractive risk-adjusted returns, and we crystallize value through capital recycling. When we execute those three things well, the result should be 10% or better FFO growth per unit over time. The full-cycle approach has been the foundation of the business for almost two decades now, and it remains the framework for how we allocate capital today. As I just mentioned a second ago, a year ago, we told you we believed the growth rate was at that inflection point, and we had conviction because several things were coming together at once. Our organic backlog had grown.

Recent investments were beginning to contribute to our business. Capital recycling had scaled, and some of the headwinds that were affecting our per unit growth were starting to minimize. This year, rather than repeat that statement, I want to show you some of the evidence. I think this chart tells the story pretty clearly. From 2023 through 2025, average annual FFO per unit growth was about 7%, which is below our long-term experience. This year, we expect that to be approximately 10%. The important point is the direction of travel. The base business is performing well, capital from our backlog is coming into earnings, and recent investments are contributing more meaningfully. Since inception, we have compounded FFO per unit at roughly 14%.

We are not suggesting that one year will make a trend or get us right back up there, but we believe the business is now moving back toward the growth profile that the investors in this room have come to expect from us. Let me now walk you through the three elements of our strategy and where we stand against each of them. The key point is that the improvement in growth is not coming at the expense of financial discipline. We are maintaining a strong balance sheet, investing at attractive returns, and continuing to monetize mature businesses. Let us start with our financial position. We have generated 10% FFO per unit growth year to date while maintaining approximately $2.6 billion of corporate liquidity, BBB+ investment-grade credit ratings, and a 65% payout ratio. Those numbers matter in combination. We are growing while retaining financial flexibility.

That means that we can be patient when markets are expensive and move quickly when volatility creates opportunity, and that's been a hallmark of our success in the past. The second part of our strategy is deployment. We've secured approximately $1.4 billion of growth investments and expect to deploy more than two. The deployment isn't dependent on one large acquisition. The deployment is diversified across the investments we made into our semiconductor facility, the growth backlog that we have within our other businesses, and new investments made through various industrial partnerships. The mix is increasingly representative of our opportunity set. It involves more organic investment, more strategic partnerships, and more opportunities sourced through the Brookfield ecosystem rather than just competing in broad auctions. The more important point about this year's deployment is the return profile.

We expect average returns of 15% or higher on the capital that we're currently deploying, which is above our historic target range of about 12%-15%. There are a couple of reasons for that. First is the infrastructure super cycle is creating a very large opportunity set for us to invest in. Second, AI infrastructure is adding another capital-intensive growth avenue for us to pursue. Finally, our scale and competitive moat is helping us source opportunities where we can achieve better economics. What I'd emphasize is that we're not targeting higher returns by taking greater risk. We remain focused on high-quality counterparties, strong contractual protections, and disciplined underwriting. The other side of the equation, obviously, is capital recycling.

So far this year, we've secured approximately $1.4 billion of asset sale proceeds, and that excludes the approximately $1.2 billion of proceeds that we were able to obtain from the Csquare IPO, which was used to repay debt. We remain well on track to exceed our $2 billion target for capital recycling for the year. The returns shown here from the mid-teens to over 40% demonstrate the value that we've created across various businesses and geographies throughout the year. This is how the full cycle strategy funds itself. We take capital out of mature investments where we've executed the value creation plan and redeploy it into new opportunities at attractive returns. That spread is an important source of long-term per unit growth. I want to take a second to discuss the simplification that we announced in July.

You may recall that we listed BIP in 2008 as a partnership and created BIPC in 2020. We are now proposing to combine these two into a single publicly traded corporation called BIP Inc. Nothing changes about the underlying business or the investment strategy. What changes is just the wrapper. We expect one corporate security to be easier to own, it will broaden the potential investor base to those who currently can own a partnership, and it'll materially improve consolidated trade and liquidity. The security holder vote is scheduled for October 14th and subject to approvals, we expect to close the transaction in the fourth quarter. The result should be a roughly $30 billion company and more than twice the trade and liquidity. This brings us back to the inflection. Our confidence doesn't come from any single transaction or results from in a quarter.

It comes from a combination of having a strong base business, a larger organic backlog, and more capital going to work at attractive returns. I am going to finish up on this slide because it demonstrates or at least shows why we are optimistic on the deployment front, and it sets out the focus for the remainder of the presentation. We have three substantial avenues for capital deployment that we are going to talk about: emanating corporate partnerships, AI infrastructure, and organic growth within our businesses. The point we hope you take away at the end of the presentation is that our strategic advantage is the optionality that we have in the business to allocate capital to whatever opportunities offers the best risk-adjusted returns at that time. With that, I am going to turn it over to Scott, and he is going to come up and talk about emanating corporate partnerships.

Thank you. I do not know if anyone else was keeping track of the number of times scale was mentioned today. Every session has referenced it, either directly or indirectly. In fact, Bruce's start at the beginning when he was asked what gets him most excited about coming to work, he referred to the assets, the relationships, the dollars, the people that we have here, which is very different from where he started his career. That is all scale. With that is BIP's primary competitive advantage, and it is something that has been built patiently and deliberately business by business over the decades. I will start with three main messages. First is that scale is no longer a nice to have. It is not even simply just important. It is a prerequisite for market relevance, for accessing the best opportunities and the best returns.

Second, we have differentiated access to the world's largest companies who originate most of the coveted and high-quality market transactions we pursue. Third, the infrastructure landscape is vast, and it continues to expand, so we are able to remain highly selective in where we deploy our capital. I would estimate about a third to a half of the infrastructure we invest in today was nascent or did not even exist as an investable asset class a decade ago. With that context, it may make more sense that the current forecast for global infrastructure requirements has doubled over the last 10 years to more than $100 trillion today. While traditional infrastructure needs have grown, there have been three developments over this period that I would like to mention. The first is that there has been advancements in technology. You heard the OpenAI panel. That is not going to be a surprise to you.

Think fiberization, think automation, think AI factories. These weren't prevalent ten years ago, but each is highly relevant today and will be in the future. The second is previously less understood subsectors are maturing with large capital needs. Think residential infrastructure. Last, asset classes previously outside the perimeter of infrastructure, ones that didn't meet the rigorous definitions that we hold them to, have been adapting their revenue models, have been adapting their contracts to fit within the perimeter of infrastructure. For example, semiconductor foundries, like what we did with Intel. All this means we have a much broader opportunity set to choose from. However, to capitalize on these opportunities, a few interconnected elements are required. Together, these create a very strong moat for BIP's long-term deployment visibility, and that's very valuable and difficult to replicate. The first is the most quantifiable.