Q1 2022 Brookfield Infrastructure Partners LP Earnings Call

Operator: Thank you for standing by and welcome to the Brookfield Infrastructure Partners' first quarter 2022 results conference call and webcast.

Operator: Thank you for standing by and welcome to the Brookfield Infrastructure Partners' first quarter 2022 results conference call and webcast. After this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star one on your telephone. As a reminder, today's program may be recorded. And now I would like to introduce your host for today's program, David Krant, Chief Financial Officer. Please go ahead, sir.

thankke you for standing by and welcome to the Brookfield Infrastructure Partners' first quarter 2022 results conference call and webcast.

Operator: At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star one on your telephone. As a reminder, this program may be recorded.

Speaker 2: Infrastructure Partners: first quarter 2022 results: conference call and webcast. After this time, all participants are listen only mode. After this speaker's presentation, that will be a question and answer session. To ask a question during this session, you'll need de press Star one on your telephone as a reminder. Today's program may be recorded. And now I would like to introduce your host for today's program, David crant, Chief Financial Officer. Please go ahead, sir.

As a reminder, this program may be recorded.

Operator: And now I'd like to introduce your host for today's program, David Krant, Chief Financial Officer. Please go ahead, sir.

Chief Financial Officer, Please go ahead, sir.

David Krant: Thank you operator, and good morning and everyone. Welcome to Brookfield Infrastructure Partners' first quarter 2022 earnings conference call. My name is David Krant and I'm the Chief Financial Officer of Brookfield Infrastructure Partners. Joining me today is Sam Pollock, our Chief Executive Officer, and Scott Peak, our Chief Investment Officer for North America. Following our prepared remarks Ben Vaughan, our Chief Operating Officer, will join us to take your questions.

David Krant: Thank you, Operator, and good morning and everyone. Welcome to Brookfield Infrastructure Partners' first quarter 2022 earnings conference call. My name is David Krant and I'm the Chief Financial Officer of Brookfield Infrastructure Partners.

David Krant: Joining me today are Sam Pollock, our Chief Executive Officer, and Scott Peak, our Chief Investment Officer for North America.

At this time, I would like to remind you that in our remarks today, we may make forward-looking statements. These statements are subject to known and unknown risks and future results may differ materially. For further information on known risk factors, I would encourage you to review our annual report on Form 20-F, which is available on our website.

David Krant: Following our prepared remarks, Ben Vaughan, our Chief Operating Officer, will join us to take your questions. At this time, I would like to remind you that in our remarks today we may make forward-looking statements.

David Krant: These statements are subject to known and unknown risks, and future results may differ materially. For further information on known risk factors, I encourage you to review our annual report on Form 20-F, which is available on our website.

I'd like to begin with a few comments around the current macro-economic environment. Top of mind for investors today are the elevated inflation levels, rising interest rates, and decelerated global growth that creates headwinds for many industries.

David Krant: I'd like to begin with a few comments around the current macro-economic environment.

David Krant: Top of mind for investors today are the elevated inflation levels, rising interest rates, and decelerated global growth that creates headwinds for many industries.

During these periods, the infrastructure sector generally outperforms. The growth in resiliency inherent and infrastructure assets is derived from inflation-linked revenues and the ability to pass through operating costs to customers.

The growth in resiliency inherent and infrastructure assets is derived from inflation winkedto revenues and the ability to pass through operating costs to customers.

David Krant: During these periods, the infrastructure sector generally outperforms. The growth in resiliency, inherent and infrastructure asset is derived from inflation-linked revenues and the ability to pass through operating costs to customers.

Exposure to rising interest rates is mitigated by long-term capital structures, largely on a fixed-rate basis, given the highly predictable cash flows these assets produce.

David Krant: Exposure to rising interest rates is mitigated by long-term capital structures, largely on a fixed-rate basis, given the highly predictable cash flows these assets produce.

From a valuation perspective, the established frameworks employed across revenue, expense, and debt financing protect or expand margins through revenue compounding, offsetting increase in our capital costs.

David Krant: From a valuation perspective, the established frameworks employed across revenue, expense, and debt financing protect or expand margins through revenue compounding, offsetting increases in our capital costs.

These attributes, in combination with strong operational performance and last year's successful capital deployment, have resulted in record results to start the year.

David Krant: These attributes, in combination with strong operational performance and last year's successful capital deployment, have resulted in record results to start the year.

We are pleased to report funds from operations or FFO, of $493 million, a 14% increase year-over-year. This was the highest in our partnership's history.

David Krant: We are pleased to report funds from operations or FFO, of $493 million, a 14% increase year-over-year. This was the highest in our partnership history. FFO per unit of 96 cents was 3% above the prior year as a result of the shares issued in conjunction with the acquisition of our pipeline, or IPL, and the equity offering completed in November is yet to meaningfully contribute to our first quarter results.

This was the highest in our partnership's history.

FFO per unit of 96 cents was 3% above the prior year as a result of the shares issued in conjunction with the acquisition of our pipeline, or IPL, and the equity offering completed in November that is yet to meaningfully contribute to our first quarter results.

Speaker 3: This was the highest in our partnership history. Ffo per unit of 96 cent was 3% out the prior year. As a result, shares issued in conduction with the acquisition of our pipeline, or ipopl, and the equity offering, completed November and it yets to meaningfully contribute to our first quarter results.

After removing the weather-related outperformance from our gas storage business last year, total FFO increased 35% and FFO per unit increased 22%.

David Krant: After removing the weather-related outperformance from a gas storage business last year, total FFO increased 35% and FFO per unit increased 22%.

Organic growth was robust at 10%, reflecting the benefits of elevated inflation impacting our tariffs and the commissioning of approximately $1 billion in new capital products over the last 12 months.

David Krant: Organic growth was robust at 10% reflecting the benefits of elevated inflation impacting our tariffs, and the commissioning of approximately $1 billion in new capital projects over the last 12 months.

Our base business continues to perform well, benefiting from outperformance in utility and transport segments. Additionally, results from our North American midstream operations have benefited from IPL's first full-quarter contribution, as well as outsized cash flow due to higher utilization and notable increasing commodity sensitive revenues.

David Krant: Our base business continues to perform well, benefiting from outperformance in utility and transport segment.

David Krant: Additionally, results from our North American stream operations have benefited from IPL's first full quarter contribution, as well as outsized cash flow due to higher asset utilization and notable increase in commodity- sensitive revenues.

Taking a closer to look at our operating results by segments, starting with utilities, we generated FFO of $167 million, an increase of 8% percent on a same-store basis.

David Krant: Taking a closer look at our operating results by segments, starting with utilities, we generated FFO of $167 million, an increase of 80% on a same-store basis.

Organic growth for the segment reflects higher than historical levels given the inflation indexation and the fact we commissioned approximately $450 million of capital in the rate base during the last 12 months.

David Krant: Organic growth for the segment reflects higher than historical level, given the inflation indexation and the fact we commissioned approximately $450 million of capital in the rate base during the last 12 months. Results also benefited from the partial contribution of the Australian regulated utility we acquired in February.

Results also benefited from the partial contribution of the Australian regulated utility we acquired in February.

Our UK regulated distribution business continues to experience strong sales activity, ending the quarter with over 100,000 new cash unsold, a 32% increase quarter-over-quarter.

Speaker 3: Results also benefited from the partial contribution of the Australian regulated utility we acquired in February .

David Krant: Our UK regulated distribution business continues to experience strong sales activity, ending the quarter with over 100,000 new connections sold, a 32% increase quarter-over-quarter. This is the second highest quarterly result on record, largely attributable to water connection sales. At our Brazilian- regulated gas transmission operation, we secured a first growth project as a result of strong demand from its key customer.

This is the second highest quarterly result on record, largely attributable to water connection sales.

At our Brazilian regulated gas transmission operation, we secured its first growth project as a result of strong demand for its key customers.

This low-risk project will expand existing network by 11 kilometers and is underpinned by a ship-or-pay contract with inflationary tariff increases over a 15-year term similar to our existing business.

David Krant: This low-risk project will expand existing network by 11km and is underpinned by a shipper Page contract with inflationary tariff increases over a 15 -year term, similar to our existing business. Our investment will be approximately $60 million, with [inaudible] share of being $20 million.

Our investment will be approximately $60 million, with split share being $20 million.

Moving to our transport segment, FFO was $185 million, a 14% increase over the prior year, as the segment continues to perform well under constrained supply chain conditions.

Speaker 3: Our investment will be approximately $6 million, with this share of being $2 million.

David Krant: Moving to our transport segment, FFO was $185 million, a 14% increase over the prior year as the segment continues to perform well under constrained supply chain conditions.

Higher traffic levels on our total portfolio were balanced by line moves that are diversified terminals and lower volumes transported across our rail networks due to weather-related delays.

David Krant: Higher traffic levels on our total portfolio were balanced by inline moves at our diversified terminals and lower volumes transported across our rail networks due to weather-related delays.

Strong customer demand and activity levels have increased rates generally in line with inflation.

Overall our annualized rate increase across our portfolio is approximately 6% for the year with potential for room to further increase.

David Krant: Strong customer demand and activity levels have increased rates generally in line with inflation. Overall, our annualized rate increase across our portfolio is approximately 6% for the year, with potential for room to further increase.

FFO from our diversified terminals increased by 40% compared to the first quarter of 2021. Our port operations maximized ancillary revenue by providing short-term storage solutions to our customers, offsetting loaded volumes from shipping delays and transportation availability.

David Krant: FFO from our diversified terminals increased by 40% compared to the first quarter of 2021. Our port operations maximized ancillary revenue by providing short-term source solutions to our customers, offsetting larger volumes from shipping delays and transportation availability.

Our US LNG export terminal continued to experience strong demand. We recently completed an expansion that add a sixth commercial liquefaction train bring total LNG capacity to 30 million tons annually.

David Krant: Our US LNG export terminal continued to experience strong demand. We recently completed an expansion that added a sixth commercial liquefaction train, bringing total LNG capacity to 30 million tons annually.

We expect this expansion to contribute to increased annual run rate EBITDA, underpinned by long-term take-or-pay contracts with diversified counterparties.

David Krant: We expect this expansion to contribute to increased annual run-rate EBITDA, underpinned by long-term take-or-pay contracts with diversified counterparties.

In our midstream segment we generated FFO of $196 million, a stem change increased in 2021 levels.

David Krant: In our midstream segment, we generated FFO of $196 million, a steep change increase from 2021 levels.

After removing the outperformance of our gas storage operations in the prior year, [inaudible] results more than doubled, primarily due to the first full quarter contribution from IPL.

David Krant: After removing the outperformance of our gas storage operations in the prior year, consumer results more than doubled, primarily due to the first full quarter contribution from IPL.

Organic growth for the segment reflects a stronger commodity price environment and higher utilization of our existing infrastructure, which has efficient excess capacity to accommodate additional demand from our customers.

David Krant: Organic growth for the segment reflects a stronger commodity price environment and higher utilization of our existing infrastructure, which has efficient excess capacity to accommodate additional demand from our customers.

At IPL, we are experiencing increased customer demand and benefit from an overbuild strategy employed on long-haul pipeline.

Speaker 3: Which has efificient excess capacity to accommodate additional demand from our customers.

David Krant: At IPL, we are experiencing increased customer demand and benefit from an overbuildt strategy employed on the long-haul pipeline.

During the quarter, we executed long-term transportation service agreements that combined will add approximately $50 million to Canadian annual run rate EBITDA by 2025.

David Krant: During the quarter, we executed long-term transportation service agreements that combined will add approximately $50 million of Canadian annual run-rate EBITDA by 2020 five.

We continue to progress the completion of the Huntling petrochemical complex in a safe and reliable manner.

David Krant: We continue to progress the completion of the Hudland Petrochemical Complex in a safe and reliable manner.

Utilizing the strategic connectivity of our adjacent redwater assets, we plan to start up the facilities on a sequential basis, beginning with the molypropylene plant in Q2, followed by the startup of the propane dehydrogenation plant in Q3.

David Krant: Utilizing strategic connectivity of our adjacent redwater assets, we plan to start up the facilities on a sequential basis, beginning with the polypropylene plant in Q2, followed by the start up of the propane dehydrogenation plant in Q3.

Our current plan is to gradually ramp up production through the balance of the year.

Demand for North American polypropylene continues to be robust, with end use customers excited about the introduction of our ESG-friendly product and geographic diversity of supply.

David Krant: Our current plan is to gradually ramp up production through the balance of the year. Demand for North American polypropylene continues to be robust, with end use customers excited about the introduction of our ESG-friendly product and geographic diversity of supply.

FFO from our data segment was in line with the prior year at $58 million.

Underlying growth from additional points of presence and inflationary tariff escalators were offset by lower revenues at our US data center operation that we're repositioning for hyperscale growth, as well as the impact of foreign exchange.

David Krant: FFO from our data segment was in line with the prior year at $58 million. Underlying growth from additional points of presence and inflationary tariff escalators were offset by lower revenues at our US data set operation that we're repositioning for hyperscale growth as well as the impact of foreign exchange.

So we continue to focus on advancing a number of capital products across our data source sub-segment, as customer demand continues to grow globally.

David Krant: We continue to focus advancing a number of capital products across our data storage subsegment as customer demand continues to grow globally.

Today we have active development at seven data centers from five different countries. Once complete, we expect to add 25 megawatts of additional capacity to our portfolio.

David Krant: Today, we have active developments at seven data centers from five different countries. Once complete, we expect to add 25 megawatts of additional capacity to our portfolio.

I'd now like to touch on the strength of our balance sheet.

In recent years, we have spent considerable effort proactively managing our corporate and asset-level balance sheets.

David Krant: I'd now like to touch on the strength of our balance sheet.

David Krant: In recent years we have spent considerable effort proactively managing our corporate and asset level balance sheet.

Our financing strategy of securing long duration, fixed-rate debt has been successful with less than 1% of our asset-level debt maturing in 2022 and no corporate maturity until 2024.

David Krant: Our financing strategy of securing long duration fixed rate debt has been successful, with less than 1% of our asset level debt maturing in 2022 and no corporate maturity until 2024.

Despite a volatile backdrop of rising interest rates, capital markets have remained supportive for the high quality, contracted, and critical infrastructure that we own. In April, we further enhanced our corporate balance sheet and supplemented our liquidity through a Canadian $600 million no issuance.

David Krant: Despite a volatile backdrop of rising interest rates, capital markets have remained supportive for the high quality contracted and critical infrastructure that we own. In April, we further enhanced our corporate balance sheet and supplemented our liquidity through a Canadian $600 million note issuance.

The offering was oversubscribed and well received and split between a 12-year and 30-year tranche, with an average coupon of approximately five and a half percent.

David Krant: The offering was oversubscribed and well received, and split between a 12 year and 30-year tranche, with an average coupon of approximately 5.5%.

Following a note offering, corporate liquidity totaled nearly $3 billion, which we plan on enhancing through our advanced capital recycling initiatives currently underway.

David Krant: Following a note-offering, corporate liquidity totaled nearly $3 billion, which we plan on enhancing through our advanced capital cycling initiatives currently underway.

Before I turn the call over to Scott, I'd like to report on a corporate matter that we recently approved at our Board of Directors.

We announced today of three-for-two stock split for Brookfield Infrastructure Partners units and Brookfield Infrastructure Corporations shares. This split will be effective on June 10th for unitholders and shareholders of record at the close of business on June 6th.

David Krant: Before I turn the call over to Scott, I'd like to report on a corporate matter that we recently approved at our Board Directors.

David Krant: We announced today a three-for-two stock split for Brookfield Infrastructure Partners units and Brookfield infrastructure corporations shares.

This split will be effective on June 10th for unitholders and shareholders of record at the close of business on June 6th.

Following the strong relative performance of our shares in units over the last few years, we think that this split will ensure that our public securities remain accessible to individual holders and improve the liquidity of our units and shares.

David Krant: This split will be effective on June 10th for unitholders and shareholders of record at the close of business on June sixth. Following the strong relative performance of our shares in units over the last few years, we think that this split will ensure that our public securities remain accessible to individual holders and improve the liquidity of our units and shares.

It is important to note that this but will not dilute our existing investors and will not be taxable in Canada or the United States.

David Krant: It is important to note that this split will not dilute our existing investors and will not be taxable in Canada or the United States.

As the share and units split take effect after the record date for the June distribution, it will not affect the announced distribution for the quarter returnings at 54 cents per unit.

David Krant: As the share in unit split takes effect after the record date for the June distribution, it will not affect the announced distribution for the quarter returning at 54 cents per unit.

I'd like to thank you all for your time this morning, and I'll now pass the call over to Scott.

Scott Peak: Thank you David, and good morning everyone. I'm pleased to be joining today's call to discuss natural gas as a reliable transition fuel and a path to energy security.

David Krant: I'd like to thank you all for your time this morning, and I'll now pass the call over to Scott.

Scott Peak: Thank you David, and good morning everyone. I'm pleased to be joining today's call to discuss natural gas as a reliable transition fuel and a path to energy security.

We are operating in a market environment of disrupted supply chains in rising commodity prices. The impact of recent geopolitical events has raised commodity prices to levels not seen in years and reinforce the importance of energy security.

Scott Peak: We are operating in a market environment of disrupted supply chains and rising commodity prices. The impact of recent geopolitical events has raised commodity prices to levels not seen in years and reinforced the importance of energy security.

Natural gas, and more specifically LNG, will continue to be a leading transition fuel in the move towards net zero. It is also expected to play a key role in providing global energy security.

Scott Peak: Natural gas, and more specifically LNG, will continue to be a leading transition fuel in the move towards net zero. It is also expected to play a key role in providing global energy security.

These elements highlight the valuable role our critically located infrastructure plays in the processing, transportation, and distribution of natural gas.

Scott Peak: These elements highlight the valuable role our critically located infrastructure plays in the processing, transportation, and distribution of natural gas.

Our North American midstream businesses are well positioned in the key markets currently benefiting from high utilization rates and increasing commodity prices.

Scott Peak: Our North American midstream businesses are well positioned in the key markets, currently benefiting from high utilization rates and increasing commodity prices. These businesses typically reserve a small portion of operational capacity as uncontracted to provide operating flexibility.

These businesses typically reserve a small portion of operational capacity as uncontracted to provide operating flexibility.

Speaker 6: These businesses typically reserve a small portion of operational capacity as uncontracted to provide operating flexibility.

Under the backdrop of the current market, this available capacity has generated incremental revenue that is contributed to our strong financial performance.

Scott Peak: Under the backdrop of the current market, this available capacity has generated incremental revenue that has contributed to our strong financial performance.

An indirect benefit of a constructive commodity environment is its impact on our energy customers, who are currently experiencing strong cash flow and strengthening balance sheets.

Scott Peak: An indirect benefit of a constructive commodity environment is its impact on our energy customers, who are currently experiencing strong cash flow and strengthening balance sheet.

These tailwinds to our customers' financial profile, coupled with improving market sentiment, is expected to incent reinvestment into their operations.

Scott Peak: These tailwinds to our customers' financial profile, coupled with improving market sentiment, is expected to incent reinvestment into their operations.

After several years of more limited production growth, we anticipate a renewed interest in customer initiated infrastructure expansion projects to increase capacity and throughprint across our asset base.

Scott Peak: After several years of more limited production growth, we anticipate a renewed interest in customer-initiated infrastructure expansion projects to increase capacity and through print across our asset base.

Today we own three businesses that are expected to benefit from increased demand for LNG.

There was significant interest in securing capacity at US LNG export terminals.

Scott Peak: Today, we own three businesses that are expected to benefit from increased demand for LNG.

Customers on our US natural gas pipeline are discussing the contracting options for a third phase of our Gulf Coast egress. And lastly, our Canadian midstream business is well situated to process and support gas deliveries to West Coast LNG export terminals currently under construction.

Scott Peak: There was significant interest in securing capacity at US LNG export terminals.

Scott Peak: Customers on our US natural gas pipeline are discussing the contracting options for a third phase of our Gulf Coast egress. And lastly, our Canadian midstream business is well situated to process and support gas deliveries to West Coast LNG export terminals currently under construction.

In addition to traditional energy businesses, our utility operations play a vital role in the transportation and distribution of natural gas to residential and industrial customers.

Scott Peak: In addition to traditional energy businesses, our utility operations play a vital role in the transportation and distribution of natural gas to residential and industrial customers.

In each of the countries we operate, energy regulators are advocating for energy security and diversification of supply that includes natural gas as a transition fuel and reliable source of base flow generation.

Scott Peak: In each of the countries we operate, energy regulators are advocating for energy security and diversification of supply that includes natural gas as a transition fuel and reliable source of base flow generation. The more limited investment in traditional energy supply and the intermittency of renewable power have created more scarcity value for our assets. As we continue to expand our footprint and re-contract our assets on attractive terms, we are well positioned to deliver strong returns on both our in-place businesses and our capital recycling initiatives in the years to come.

The more limited investment in traditional energy supply and the intermittency of renewable power have created more scarcity value for our assets.

As we continue to expand our footprint and re-contract our assets on attractive terms, we are well-positioned to deliver strong returns on both our in-place businesses and our capital recycling initiatives in the years to come.

That concludes my remarks for today. I will now pass the call over to Sam.

Sam Pollock: Thank you Scott, and good morning everyone. On today's call, we're going to discuss some of the strategic initiatives we have underway, and then I'll conclude with an outlook for the business.

Scott Peak: That concludes my remarks for today. I will now pass the call over to Sam.

On today's call, we discuss some of the strategic initiatives we have underway, and then I'll conclude with an outlook for the business.

Sam Pollock: Thank you Scott, and good morning everyone. On today's call, we're going to discuss some of the strategic initiatives we have underway, and then I'll conclude with an outlook for the business.

Overall as David has discussed, we've had a strong start to the year. On top of our operational achievements and strong financial performance, we've secured nearly $1 billion of investment opportunities, leading us to believe that 2022 is shaping up to be an excellent year.

On top of our operational achievements and strong financial performance, we ve secured nearly $1 billion of investment opportunities.

Sam Pollock: Overall as David has discussed, we've had a strong start to the year. On top of our operational achievements and strong financial performance, we've secured nearly $1 billion of investment opportunities, leading us to believe that 2022 is shaping up to be an excellent year.

Speaker 7: On top of our operational achievements and strong financial performance, we've secured nearly $1 billion of investment opportunities.

Leading us to believe that 2022 is shaping up to be an excellent year.

We continue to see opportunity to execute our full-cycle investment strategy across all segments and geographies in which we operate.

Speaker 7: Leading us to believe that 2022 is shaping up to be an excellent year.

Sam Pollock: We continue to see opportunity to execute our full cycle investment strategy across all segments and geographies in which we operate.

We successfully invested approximately $750 million into two utility investments, including the take-private of an Australian regulatory utility business called AusNet and the acquisition of an Australian smart metering business called [inaudible].

Into two utility investments.

Sam Pollock: We successfully invested approximately $750 million into two utility investments, including the take-private of an Australian regulatory utility business called [inaudible] and the acquisition of an Australian smart metering business called [inaudible]

Including the take private of an Australian regulay utility business called azset and the acquisition of an Australian smart metering business.

Speaker 7: Including the take private of an Australian regulay utility business called oset and the acquisition of an Australian smart meiing business.

Called telehu.

Subsequent to quarter-end, we announced an agreement to acquire unity group in an Australian $3.7 billion take-private transaction through 50/50 joint venture partnership with another infrastructure Investor.

Sam Pollock: Subsequent to quarter end, we announced an agreement to acquire a unity group in an Australia $3.7 billion take-private transaction, through a 50/50 joint venture partnership with another infrastructure investor. Total Brookfield equity for the investment is estimated to be approximately $850 million, with split share at approximately $200 million.

Through aappenddepency joint venture partnership with another infrastructure Investor.

Total Brookfield equity for the investment is estimated to be approximately $850 million, with split share at approximately $200 million.

Speaker 7: Through a pindepending joint venture partnership with another infrastructure Investor. Total brookl equity for the investment is estimate to be approximately $85 million, with bid share at approximately $2 million.

Unity provides wholesale and retail communication services to customers and businesses in Australia.

In Australia.

Sam Pollock: Unity provides wholesale and retail telecommunication services to customers and businesses in Australia. Strategically, this investment provides exposure to the country's largest pure-play greenfield fiber to the home wholesale operator with a stable and predictable recurring revenue stream and a significant backlog. This business has similarities to our [inaudible] to-home product that we sell in our UK last-mile connection business and this is what attracted us to acquire it. The investment is expected to close in the third quarter of 2022.

Strategically, this investment provides exposure to the country's largest pure-play, greenfield fiber-to-the-home wholesale operator with a stable and predictable recurring revenue stream and a significant backlog. This business has similarities to our fiber-to-the-home product that we sell in our UK last-mile connections business, and this is what attracted us to acquire it.

With a stable and predictable recurring revenue stream and a significant backlog.

This business has similarities.

Speaker 7: with a stable and predictable recurring revenue stream and a significant backlog. This business has similarities to our [inaudible] to-home product that we sell in our UK last-mile connection business.

To our fiber, to the home product that we sell in our U K last mile connections business.

And this is what attractis do acquire it.

The investment is expected to close in the third quarter of 2022. In total, [inaudible] deployers secured nearly $1 billion in equity thus far in 2022, and this represents over 60% of our estimated $1.5 billion in annual deployment that we look to target.

Speaker 9: and this is what attracted us to acquire it. The investment is expect to close in the third quarter of 2022.

In total, empus deployer are secured nearty $1 billion in equity thus far in 2020 -two.

Sam Pollock: In total, [inaudible] deployer secured nearly $1 billion in equity thus far in 2022, and this represents over 6% of our estimated $1.5 billion in annual deployment targets.

And this represents over 60% of our estimated $1.5 billion in annual deployment. Though we look to target.

Speaker 9: And this represents over 6% of our estimated $1.5 billion in annual deployment. Though we look to target.

We have a high degree of confidence in our ability to exceed the balance of our target, based on the robust pipeline of advanced opportunities that our global investment teams are pursuing.

Sam Pollock: We have a high degree of confidence in our ability to exceed the balance of our target, based on the robust pipeline of advanced opportunities that our global investment teams are pursuing.

That our global investment teams are pursuing.

Our access to capital, local presence, an active operating approach are expected to continue to differentiate us from others. We also continue to be active on the cap work site front and expect to generate up to $2 billion over the next year or so.

Sam Pollock: Our access to capital, local presence, and active operating approach are expected to continue to differentiate us from others. We also continue to be active on the [inaudible] site front and expect to generate up to $2 billion over the next year or so.

We also continue to be active on the cap ort site in front and expect to generate up to $2 billion of the next year or so.

Speaker 4: We also continue to be an active on the cap form site front and expect to generate up to $2 billion of the next year or so.

Most advanced are the sales processes for our Indian toll road business and our 2400 kilometers of newly constructed electricity transmission lines in Brazil. Both processes are anticipated to result in finding commitments in the coming weeks and be concluded in 2022.

Sam Pollock: Most advanced are the sales processes for our Indian total business and our 2400 kilometers of newly constructed electricity transmission lines in Brazil. Both processes are anticipated to result in binding commitments in the coming weeks and be concluded in 2022.

Both processes are anticipate to result in finding commitments in the coming weeks and be concluded in 2020. -two and.

Speaker 9: Both processes are anticipated to result in binding commitments in the coming weeks and be concluded in 2022.

Generally, our cap pre-segment program continues to attract lower cost of capital buyers searching for de-risk and mature core infrastructure assets.

Sam Pollock: Generally, our cap pre-segment program continues to attract lower cost of capital buyers searching for de-risked and mature core infrastructure assets.

In addition to sales, our current corporate equity stands at nearly $3 billion, which positions us well to fund a growing pipeline of accreting new investments.

Sam Pollock: In addition to sales, our current corporate equity stands at nearly $3 billion, which positions us well to fund a growing pipeline of accreting new investments. I'll now conclude my remarks with a few comments regarding our outlook for the business, which is very positive.

I'll now conclude my remarks for a few comments regarding our outlook for the business which is very positive.

Which is very positive.

From a macro perspective, we continue to see the significant capital needed globally to build out data infrastructure networks, debottle neck supply chains, and decarbonize the energy and transportation sectors.

We continue to see the significant capital needed globally to build out data infrastructure networks, debotlenck supply chains and decarbonize the energy and transportation sectors.

Sam Pollock: From a macro perspective, we continue to see the significant capital needed globally to build out data infrastructure networks, de-bottle neck supply chains, and decarbonize the energy and transportation sectors.

On top of this, geopolitical challenges have led countries to emphasize the onshoring of critical supply chains in industries. This phenomena has been referred to as de-globalization and has increased in urgency because of the current conflict in Europe.

Sam Pollock: On top of this, geopolitical challenges have led countries to emphasize the onshoring of critical supply chains in industries. This phenomenon has been referred to as deglobalization and has increased in urgency because of the current conflict in Europe. We expect this re-onshoring activity and deglobalization trend to continue to accelerate, which could create hundreds of billions of dollars of new potential investment opportunities.

This phenomena has been referred to as de-globalization and has increased in urgency because of the current conflict in Europe.

And has increase in urgency because of the current conflict in Europe .

We expect this reonsuring activity and de-globalization trend to continue to accelerate, which could create hundreds of billions of dollars of new potential investment opportunities.

Speaker 9: And his increase in urgency. Because of the current conflict in Europe , we expect this reonsing activity and deglobalization trend to continue to accelerate, which could create hundreds of billions of dollars of new potential investment opportunities.

Given the scale and global nature of our business, we are uniquely positioned to be a leader in this potentially massive investment opportunity set.

We are unique to position to be a leader in this potentially massive investment opportunity set.

Sam Pollock: Given the scale and global nature of our business, we are uniquely positioned to be a leader in this potentially massive investment opportunity set.

At the micro-level, the outlook for our business is equally as strong. Our expectation for 2022 is that we will deliver organic growth at the high end of our target annual range.

Our expectation for 2022 is that we will deliver organic growth at the high end of our target annual range.

Sam Pollock: At the micro-level, the outlook for our business is equally as strong. Our expectation for 2022 is that we will deliver organic growth at the high-end of our target annual range.

Speaker 9: Our expectation for 2022 is that we would deliver organic growth at the high end of our target annual range.

The business is expected to benefit from the following factors, including favorable operating conditions, resulting in higher tariffs from elevated inflation levels and higher utilization of our midstream assets.

Resulting in higher tariffs from elevated inflation levels and higher utilization our miststream assets.

Sam Pollock: The business is expected to benefit from the following factors, including favorable operating conditions resulting in higher tariffs from elevated inflation levels and higher utilization of midstream assets.

We have higher embedded organic growth as we continue our asset rotation strategy and we have incremental cash flows as we progress the commissioning of several meaningful growth projects into full operation.

Speaker 9: Resulting in higher tariffs from elevated inflation levels and higher utilization or miststream assets.

Sam Pollock: We have higher embedded organic growth as we continue our attribution strategy, and we have incremental cash flows as we progress the commissioning of several meaningful growth projects into full operation.

Into full operation.

In addition, our business [inaudible] from rising interest rates and we anticipate being able to continue to achieve a 12% to 15% return on invested capital.

Sam Pollock: In addition, our business [inaudible] from rising interest rates and we anticipate being able to continue to achieve a 12% to 15% return on invested capital.

The strong visibility on capital of deployment of over 60% of this year's estimated target for new investments already secured and the operating opportunity pipeline is probably as strong as it's ever been.

Sam Pollock: We have strong visibility on capital of deployment of over 60% of this year's estimated target for new investments already secured and the operating opportunity pipeline is probably as strong as it's ever been.

Now that concludes my remarks for today. I'll pass it back to the operator, we'd be happy to take some questions.

Sam Pollock: Now that concludes my remarks for today. I'll pass it back to the operator. We'd be happy to take some questions.

Operator: Ladies and gentlemen, if you have a question at this time, please press star then one. If your question has been answered and you'd like to remove yourself from the queue, please press the pound key. Our first question comes from the line of Cherilyn from TD Securities, your question please.

If your question has been answered and you'd like to move yourself from.

Multiple speakers: Certainly, ladies and gentlemen, if you have a question at this time, please press star then one. If your question has been answered and you'd like to remove yourself from the queue, please press the pound key. Our first question comes from the line of [inaudible] from TD Security, ask your question please. Thank very much and good morning. In terms of the residential infrastructure business, it looks like you've been making some interesting acquisitions to add adjacent products and services, kind of following the playbook of the UK residential distribution business to some degree. So I was hoping you could give us a bit of color on that and also talk at a high level about whether there are any relevant differences in how you would expect consumer-oriented infrastructure to perform in this type of environment versus infrastructure that's more oriented to industrial counter parties.

Please press the pound key.

First question comes in the line of cheryl rep from TV security, if your question Please.

Cherilyn Radbourne: Thank you very much and good morning. In terms of the residential infrastructure business, it looks like you've been making some interesting acquisitions to add adjacent products and services kind of following the playbook of the UK residential distribution business to some degree. So I was hoping you could give us a bit of color on that and also talk at a high level about whether there are any relevant differences in how you would expect consumer-oriented infrastructure to perform in this type of environment versus infrastructure that's more oriented to industrial counterparties.

Sam Pollock: Hi, Cherilyn. Maybe I'll start and if Scott has anything to add to my comments then I'll leave for him to add to them. So I guess your first question is just regarding the residential infrastructure business and our strategy of adding new distribution and products to grow the business.

Sam Pollock: Hi Sherilyn, maybe I'll start and if Scott has anything to add to my comments then I'll leave for him to add to them. So I guess your first question is just regarding the residential infrastructure business and our strategy of adding that distribution and products to grow the business.

So.

I guess your first question is just regarding the residential infrastructure business and.

Our strategy of adding new distribution and products to grow the business.

This is a playbook as you pointed out, that we were very successful in employing in our UK business. Where we've had great success is when we've had businesses that have that great operational leverage where we have access into a customer's home or to a developer who has multiple needs. And the Enercare franchise, which is where our residential business resides in North America has great access to the home and we think that as the trend towards COD carbonization takes hold and many new more expensive components are introduced to consumers to facilitate the reduction or the conversion from conventional fuels that customers will need some assistance in the form of rental products or other types of needs to invest in those new products and services and so we're well-positioned to do that and by adding the solar product to Enercare, we think that again is something that's very unique adding the generation capability through that partnership we think it's very unique. So we'll continue to do that and I think that is the most accretive way we can grow that franchise.

Sam Pollock: This is a playbook as you pointed out that we were very successful in employing in our UK business. Where we've had great success is when we've had businesses that have that great operational leverage where we have access into a customer's home or to a developer who has multiple needs and the [inaudible] care franchise which is where our residential business resides in North America has great access to the home.

yao bap we.

Where we've had great successes when we've had businesses that have that great operational leverage where we have access into a customer's home or or to a developer who has multiple needs and.

Speaker 9: Where we've had great success is when we've had businesses that have that great operational leverage where we have access into a customer's home or to a developer who has multiple needs and.

The the edtorcare franchise, which is our.

Which is where our residential business resardes in North America has great access to the home and.

Speaker 9: The editorcare franchise which is our which is where our residential business resides in North America has great access to the home and.

We think that as as the trend towards CD carbonization takes hold and many new more expensive of components are introduced to consumers to facilitate. The reduction or the conversion from conventional fuels that customers will need some assistance in the form of rental products or other types of needans to invest in those new products and services and so we're well positioned to do that and by adding the solar product to the a care. We think that again it's something that's very unique adding the the generation capability. Through that partnership. We think it's very unique. So.

Sam Pollock: We think that as a trend towards COD carbonization takes hold and many new more expensive components are introduced to consumers to facilitate the reduction or the conversion from conventional fuels that customers will need some assistance in the form of rental products or other types of needs to invest in those new products and services and so we're well-positioned to do that. And by adding the solar product to [inaudible] care we think that again it's something that's very unique, adding the generation capability through that partnership we it's think's very unique.

We'll continue to do that and I think that is the most accretive way we can grow that franchise.

Sam Pollock: We'll continue to do that and I think that is the most accretive way we can grow that franchise. The other question I guess you had, which is a follow on to that and I think what you're alluding to, is there are noises around the potential for recessions in various markets around the world and that might impact the ability for the consumer to invest. We think that our residential infrastructure businesses are largely recession-proof. I hate to use that word because it may be too strong a word, but because they are critical, people need heating or plumbing or water products. These are not things people can do without, and many of the things that we do are replacement products. We believe that are that the demand for what we provide will be sustained and the fact that we're providing a payment mechanism and a peace of mind for this product that it could, in fact, do very well in a recessionary environment. The one area where we might see some softness is to the extent that we're providing product to home builders for new home sales, it's possible we could see some weakness in that regard. But for the most part, I think our businesses are very well positioned for any economic environment. Scott do you want to add anything?

The other question I guess you had, which is a follow-on to that, and I think what you're alluding to is there are noises around the potential for recessions in various markets around the world and that might impact the ability for the consumer to invest.

We think that our residential infrastructure businesses are largely recession proof. I hate to use that word because it's maybe too strong a word, but because they are critical, people need heating or plumbing, or know water products, these are not things people can do without, and many of the things that we do are replacement products. We believe that the demand for what we provide will be sustained and the fact that we're providing a payment mechanism and a peace of mind for this product that it could in fact do very well in a recessionary environment. The one area where we might see some softness is to the extent that we're providing product to home builders for new home sales. Well then it's possible we could see some weakness in that regard. But for the most part, I think our businesses are very well positioned for any economic environment.

youknow heating or plumbing, or know water products. These are not things people can do without, and many of the things that we do, our replacement products, knowwhat we believe that are that the Man for what we're provide will be sustained and the fact that we're providing a, a payment ne mechanism and and a peace of mind for this product that it couldn'in fact do very well in a recessionary environment. The one area where we might see some softness is to extent that we're providing product to home builders for new home sales. Well then, you know it's possible we could see some weakness in that regard, but for the most part, I think our businesses.

Speaker 7: You heating or plumbing or know water products. These are not things people can do without, and many of the the things that we do, our replacement products, knowwhat we believe that are that the Man for what we're provide will be sustained and the fact that we're providing a, a payment ne mechanism and and a peace of mind for this product that it could, in fact, do very well in a recessionary environment. The one area where we might see some softness is to extent that we're providing product to home builders for new home sals. Well then, you know it's possible we could see some weakness in that regard, but for the most part, I think our businesses.

Are very well positioned.

For any economic environment.

Speaker 12: Are very well positioned for for any economic environment. That's great to know what.

Multiple speakers: That's great. Scott, did you want to add anything?

Scott Peak: No look, I thought that was great, Sam. I'd just highlight that we emphasize investments in platforms. We seek accretive growth wherever it resides, so it will not be uncommon for us to pursue adjacent, synergistic growth where actionable across our asset portfolio. So these types bolt-ons and opportunistic acquisitions are going to be commonplace for us across our assets.

Scott Peak: No look, I thought that was great Sam. I'll just highlight that we emphasize investments in platforms. We seek accretive growth wherever it resides, so it will not be uncommon for us to pursue adjacent, synergistic growth where actionable across our asset portfolio. So these types of bolt-ons and opportunistic acquisitions are going to be commonplace for us across our assets.

Cherilyn Radbourne: That's great detail. And since that was really two questions in one I'll pass it on, thanks.

Unknown Speaker: That's great detail, and since that was really two questions in one I'll pass it on, thanks.

Sam Pollock: Thank you, Cherilyn.

Operator: Thank you are next question comes from the line of Robert Kwan from RBC Capital Markets, your question please.

From RBC capital markets. So your question Please.

Operator: Thank you. Our next question comes in the line of Robert Kwan from RBC Capital Markets. Your question, please.

Robert Michael Kwan: Hey, good morning. I was wondering just as you think about new investments- and obviously, you're just targeting trying to get strong IRRs in total- but there have been some instances this year where you've had high return- maybe lower multiple, but high cash on cash returns like Inner pipe, and then you've had lower going in cash on cash returns like Unity and AusNet now obviously seeing lower risk or volatility and in the case of Unity, higher growth. But when you take a step back you think about kind of combining the investments and where you want FFO to be like how much of a consideration is that and maybe just overall where you're seeing the best opportunities right now? Is it higher cash-on-cash returns or the lower ones with growth profile?

I'm wondering, just as you think about new investments- and obviously you're just targeting, trying to get strong IRS and total- but there's been some instances here of where you've had high return- maybe lower multiple, but high cash on cash returns like Inner pipe, and then you've had lower going in cash on cash returns.

Robert Michael Kwan: Thank you and good morning. I'm wondering, just as you think about new investments- and obviously, you're just targeting trying to get strong IRRs in total- but there have been some instances here of where you had high return, maybe lower multiple but high cash on cash returns, like Inner pipe, and then you've had lower going in cash on cash returns like Unity and Oz net now obviously some lower risk or volatility and in the case of going to be higher growth. But when you take a step back and you think about kind of combining the investments and where you want FFO to be like, how much of a consideration is that and maybe just overall where you're seeing the best opportunities right now is it the higher cash and cash returns or the lower ones with growth profile?

Like Unity and oz nat now obviously see lower risk or volatility and in the case to higher growth. But when you take a step back you think about kind of combining the investments and where you want FFO to be like. How much of a consideration is that and maybe just overall where you're seeing the best opportunities?

Speaker 15: Light Unity and oz net now obviously some lower risk or volatility and in the case of going to be higher growth. But when you take a step back, you think about kind of combining the investments and where you want FFO to be like. How much of a consideration is that and maybe just overall where you're seeing the best opportunities?

Right now is that higher cash and cash returns are the lower ones with growth profile.

Speaker 15: Right now is it the higher cash and cash returns are the lower ones, with growth profile.

Sam Pollock: Hi Robert, maybe I'll start there again and then if any of my colleagues want to jump in they can do that. So I would say that the first thing is we don't make acquisitions based on whether or not they have high FFO accretion or low FFO accretion. We are IRR investors and multiple capital investors first and foremost so the long-term profits for the business are what counts. And so you are correct in pointing out that sometimes it may be that we buy businesses that have high FFO yields out of the gate, and sometimes the profile is reversed. I think the overriding consideration and I think your question is when we buy businesses that have lower FFO yield out of the gate what considerations do we take into account for that versus the reverse because it would imply higher risk, I guess? And really what we're taking into account is the longevity and risk profile around the growth in that business and factors we'll take into account are how much of that growth is contracted and how visible that growth is. And in addition to that, we'll also look at what Scott referred to as the potential platform effect that we can leverage because many of the businesses that we buy often we're buying entities where someone is only exploiting a small piece of the opportunity and because of our experience in running many different businesses globally, we have a view that we can expand that growth to a much greater extent. So all those things, I mean those are the things that make us successful in buying entities versus others and we always look to add on ancillary services and products to businesses to enhance that operating leverage. Does that answer your question?

Sam Pollock: Hi Robert, maybe I'll start there again and if any of my colleagues want to jump in they can do that. So I would say that the first thing is, we don't make acquisitions based on whether or not they have high FFO accretion or low FFO accretion. We are IRR investors and multiple capital investors, first and foremost, so the long term prospects for the business are what counts, and so you are correct in pointing out that sometimes it may be that we buy businesses that have high FFO yields out of the gate, and sometimes the profile is reversed.

' let me do that.so I would say that the first thing is, we don't make acquisitions.

Speaker 12: Let me do that. So I would say that the first thing is, we don't make acquisitions.

Based on whether or not they have high FFO accretion or low FFO agcreation. We are IRR investors and multiple capital investors first and foremost So that the long term prospects for the business are what counts, And so you are correct in pointing out that sometimes it may be that we buy businesses that have high FFO yields out of the gate, and sometimes the profile is is reversed.

Speaker 12: Based on whether or not they have high FFO accretion or low FFO accretion. We are IR investors and multiple capital investors, first and foremost So that the long term prospects for the business are what counts, And so you are correct in pointing out that sometimes it may be that we buy businesses that have high FFO yields out of the gate, and sometimes the profile is is reversed.

I think the overriding consideration in and and I think you 're.

Sam Pollock: I think the overriding consideration and I think your question is: when we buy businesses that have lower FFO yield of the gate, what considerations do we take into account for that versus the reverse, because it would imply higher risk, I guess. And really what we're taking into account is the longevity and risk profile around the growth in that business and factors we'll take into account are how much of that growth is contracted and how visible that growth is. 

You your question is when, when we buy businesses that have lower ethfo yield out of the gate, you know, what considerations do we take into account for that versus the reverse? Because it would. It would imply higher risk, I guess, and and really know what we're taking into account is the know, the longevity and risk profile around the growth in that business.

And factors will take into account are how much of that growth is contracted and how visible that growth is and in addition to that we ll also look at what cot referred to as the.

Speaker 9: and factors we'll take into account are how much of that growth is contracted and how visible that growth is. 

The potential platform ofeffect that we could we can leverage because made the businesses that we buy often we're buying entities where you know. Someone is only exploiting a small piece of the opportunity and because of our experience in running many different businesses globally. You know we can. We have a view that we can expand that growth you know to a much greater extent. So all those things I mean those are the things that make us successful in buying entities versus others and you know. We always look to add on and cillary services and.

Sam Pollock: And in addition to that, we'll also look at what Scott referred to as the potential platform of effect that we can leverage because the businesses that we buy often we're buying entities where someone is only exploiting a small piece of the opportunity, and because of our experience in running many different businesses globally, we have a view that we can expand that growth to a much greater extent. So all those things, I mean, those are the things that make us successful in buying entities versus others and we always look to add on ancillary services and products to businesses to enhance that operating leverage. Does that answer your question?

And products to businesses, to.

To enhance that offperating leverage.

Is that answer question.

Multiple speakers: Yes, that's great, thanks. The second question here, just around inflation, and you talked about 10% organic growth in Q1. I apologize if you broke it down, but how much of that was specifically inflation and, as we look forward, how much more shows up in the future quarters of this year whether that's contractually or regulatory wise? I think Dave is going to answer that.

Robert Michael Kwan: Yes, that's great. The second question here is just around inflation and you talked about 10% organic growth in Q1, apologizes if you broke it out, but how much of that was specifically inflation and, as we look forward, how much more shows up in the future quarters of this year, whether that's contractually or regulatory wise?

Sam Pollock: I think Dave's going to answer that.

David Krant: Morning Robert. So if we look at the 10% organic growth that we generated during the quarter, I'd saying if you were to break out into the three components and just as reminder, that would be inflation, indexation, GDP related volume growth, and capital commissioned into our earnings- by about 5% or 6% of it was from inflation and, if we look across our segments, where you're seeing the biggest tailwind is obviously going to be in our utilities, transport, and data businesses, where on balance by about 90% of our businesses within those segments, have inflation mechanisms built into the revenue constructs.

So we look at the 10% organic growth that we generated during the quarter I'd saying if you were to brak out into the three components.

David Krant: Good morning, Robert. So if we look at the 10% organic growth that we generated during the quarter, I'd say, if you were to break out into the three components and just a reminder that the inflation annexation, GUP related volume growth, and capital commission into our earnings by the 5% or 6% of it was from inflation. And if we look across our segments where you're seeing the biggest tailwinds is obviously going to be in our utilities, transport, and data businesses were on balanced about 90% of our businesses within those segments have inflation mechanisms built into the revenue constructs.

And just as reminded out, the inflation exation, GP related volume growth and capital commission- into our earnings by of 5%, of 6% of it was from inflation and, if we look across our segments, where you're seeing the biggest tailwind is obviously going to be in our utilities, transport and data businesses, where I, on balanceced by about 90% of our businesses within those segments, have inflation mechanisms built into the revenue constructs.

Speaker 12: And if we look across our segments, where you're seeing the biggest tailwinds is obviously going to be in our utilities, transport and data businesses, where I'm unbalanced by about 90% of our businesses within those segments have inflation mechanisms built into the revenue constructs.

In terms of looking ahead for the rest of the balance of the year, could we see further increases in inflation? I think that's possible if the levels persist. A lot of our businesses do rollover at different parts of the year and a good example in the US we're seeing average inflation probably around in our business this quarterly around 6%. If we continue to run where they are today for the balance of the year we could see that grow 7%-8%, a bit higher in certain elements. So I do see there being a little bit of opportunity for additional performance in the back half of this year if the current environment persists.

David Krant: In terms of looking ahead for the rest of the balance of the year, could we see further increases in inflation? I think that's possible if the levels persist. A lot of our business do roll over different parts of the year and a good example: in the US we're seeing average inflation probably in our business this quarter probably around 6%. If we continue to run where they are today for the balance of the year we could see that grow 7%-8%, a bit higher in certain elements. So I do see they're being a little bit of opportunity for additional performance in the back half of this year if the current environment persists. And just on the capital side in terms of what you're spending, do the regulatory construct and or the contractual side of things, are you protected on cost increases for capital, and in fact, do you benefit just from the higher spending levels? Largely yes, I think on the utility side for rebase inclusion we will benefit from 

Robert Kwan: And just on the capital side in terms of what you're spending due to the regulatory constructs and or the contractual side of things, are you protected from cost increases for capital? In fact, do you benefit just from the higher spending levels? 

Constructs and or the contractual side of things. Are you protected on cost increases for capital? In fact, the benefit just from the higher spending levels.

Largely yes. I think your pointy utities side for rate base inclusion. We will benefit from higher capital costs of our connections and additions into our rate base.

David Krant: Largely yes, I think to your point on the utility side for rate base inclusion, we will benefit from higher capital costs of our connections and additions into our rate base. A lot of our large scale capital projects that we highlighted this quarter, including train six, the Heartland Petrochemical Facility, and our Brazilian transmission lines, are either fully complete construction in the case of train six and in our pipelines HPC or [inaudible] 96% physically done with the construction, so a lot of that inflation risk is behind us. On the more normal recurring connection and Enercare additions, I think those are all repriced pretty regularly and capture inflation to your point which should be beneficial for the business looking ahead.

Is behind us on the more normal recurring connection than the enter carrier additions. I think those are all repriced pretty regularly and capture inflation to your point which.

youshould be beneficial for the business. Looking ahead.

Robert Kwan: Okay, that's great. Thank you very much.

Operator: Thank you, our next question comes from the line of Robert [inaudible] from CIBC Capital Markets, your question, please.

Line of Robert culia from C I B, C capital markets for your question, Please.

Unknown Speaker: Hi, good morning everyone. Could you provide some context around the US data center operations on why the lower revenue and how is the business being repositioned? And, in light of that, have the dynamics changed at all in terms of how the business is investing in that particular component of the segment?

Speaker 16: Why the lower revenue? And how is the business being repositioned and, in light of that, have the dynamics changed at all in terms of how that is investing and that's that particular component of the segment.

Sam Pollock: Hi Robert, thanks for that question, and I think we'll ask Ben Vaughan, who is our Chief Operating Officer to address that question.

Speaker 9: Hi Robert, thanks that question and I think we'll ask Ben bon, who's our Chief Operating Officer, to address that question.

Benjamin Michael Vaughan: Yeah, hey, Robert. So in that US data center business, we've basically been migrating client base away from traditional retail colo product towards a hyper-scale and edge computing product. And so, as we've been engaging in that shift, we now have about know seven megawatts of new contracts from hyperscalers to take up our space whereas, to put in perspective, a few years ago we would have had none of those types of contracts. So the business is migrating away from a traditional retail colo offering and towards a hyper-scale and edge computer offering. So that is the process that we're undertaking and we've got a good pipeline of hyper-scale opportunities that we're pursuing and a proven track record now of contracting with hyper-scale clients for that service. So I don't know if that's responsive to your question, but that's I guess the strategic shift that's going on within that asset at this point.

Yes So. So in that U's data center business we've basically been migrating client base away from traditional retail a colo product towards a hyperscale and edge computing product and so, as we've been know engaging in that shift, we now have about know seven megawatts of new contracts from hyperscalers to take up our space whereas, to put in perspective, a few years ago we would have had none of those types of contracts of the businessesis migrating away from a traditional retail colo offering and towards a hyperscale and edge computer offerings. So that is the process that we're undertaking and we've got a good pipeline of hyperscale opportunities that we're pursuing and a proven Tract record now of contracting with hyperscale clients for that service. So I don't know if that's responsive to your question, but that's the- I guess the strategic shift that's going on been that asset at this point.

Speaker 17: yeshey, Robert. So So in that U's data center business we've basically been migrating client base away from traditional retail, a colo product towards a hyperscale and edge computing product and so, as we've been engaging in that shift, we now have about seven megawatts of new contracts from hyperscalers to take up our space whereas, to put in perspective, a few years ago we would have had none of those types of contracts of the businesses migrating away from a traditional retail colo offering and towards a hyperscale and edge computer offerings. So that is the process that we're undertaking and we've got a good pipeline of hyperscale opportunities that we're pursuing and a proven Tract record now of contracting with hyperscale clients for that service.

Speaker 18: So I don't know if that's responsive to your question, but that's the, I guess, the strategic shift that's going on within that asset at this point. Yes, then that". What I was looking for is terious ESS to the impact of competition versus, but deliberate strategic change there. Yes, and then, I guess, a Robert orstory just to highlight that, maybe to reinforce the strategic nature of it, we are reinvesting some capital into the facilities in order to reconfigure them, because the needs of the hyperscalers are different than just the rack by rack retail colo setup. So there it is a very deliberate strategy with a physical repositioning of the assets that complements the new product offering essentially. So I hope that, hope that's helpful.

Multiple speakers: Yes, Ben, that's exactly what I was looking for. I was curious as to the impact of competition versus a deliberate strategic change there. Yes, and then I guess Robert, sorry, just to highlight that maybe to reinforce the strategic nature of it, we are reinvesting some capital into the facilities in order to reconfigure them, because the needs of the hyperscalers are different than just the rack by rack retail colo setup. So it is a very deliberate strategy with a physical repositioning of the assets that complements the new product offering essentially, so I hope that's helpful.

Unknown Speaker: Yes, that definitely helps. And then, I'm just curious on the impact of rising interest rates on the utility ROEs. Are you generally expecting increases in ROEs to be commensurate with rising rates, allowing for the normal regulatory lag or do you expect some compression to ROEs because they didn't necessarily chase rates down to the bottom and obviously to mitigate the pressure on customer bills?

Speaker 16: That definitely helps. And then I'm just curious on the the impact of rising interest rates on the utility ROE. Are you generally expecting increases in ROE to be commensurate with the rising rates? You know allowing for the regular, the normal regulatory lag. Where do you expect some compression to ROE because necessary to chase rates, coun on the bottom and obviously you know to mitigate the pressure on customer bills high Robert, that the short answer to question is it will depend on jurisdictions. Know, in Australia and the U K we expect, subject to the lag, as you pointed out, that the the rates will adjust in the normal regulatory environment. In the U's, where we don't really have.

Sam Pollock: Hi Robert, it's Sam here. So the short answer to your question is it will depend on jurisdictions. In Australia and the UK, we expect subject to the lags as you pointed out that the rates will adjust in the normal regulatory environments. In the US where we don't really have utility operations per se, but that would be a jurisdiction where there may be some delay in response to higher rates because they didn't go down as much. But for most of our businesses, whether in South America or Australia and the UK, I would expect rates to move up pretty quickly with rising rates.

So that indeed, the short answer to question is: it will depend on jurisdictions.

In Australia and the U? K. we expect a subject to the lags. You pointed out that the the rates will adjust in the normal regulatory environments in the U S.

Where we don't really have.

Utility operations per se, but that would be a jurisdiction where there may be some delay in response to higher rates because they didn't go down as much. But for most of our businesses, whether in South America or. Australian and the? U K, I would expect rates to up pretty. And quickly with risiding rates.

Speaker 9: Utility operations per se but that would be a jurisdiction where there may be some delay in response to higher rates because it didn't go down as much. But for most of our businesses whether in South America or.

Australian and the? U K, I would expect rates to up pretty. And quickly with risiding rates.

Speaker 9: Australian and the? U K. I would expect rates some of up pretty quickly with rising rates.

And quickly with risiding rates.

Unknown Speaker: Okay and just finally, I'm curious if you're noticing any change in the permitting environment in any of your operating jurisdictions in light of the need for energy security. Is the permitting environment changing to accommodate that?

Speaker 16: Okay and just finally, I'm curious if you're noticing any change in the permitting environment in any of your operating jurisdictions in light of the need for energy security, is the permitting environment changing to accommodate that?

In any your your operating jurisdictions in light of the need for energy security. It is the permitting environment changing to accommodate that.

Sam Pollock: Maybe I'll ask Scott to address that one.

Scott Peak: Look, it's evolving and it's a continuing discussion with local regulators. I can't say we're seeing a quantum shift, but I think some of the recent geopolitical events have re-emphasized the need for energy security and we're hopeful we'll get everyone aligned to get permits needed for the projects to achieve that energy security. But I can't say we're seeing a quantum shift, but definitely a constructive tailwind.

Speaker 19: They all ask us ST to address that. one look it's evolving and at the continuing discussion with local regulators. I CAn't say we're seeing a quum shift, but I think some of the recent geopolitical events have reemphasize the need for energy secursecurity and we're hopeful we'll get everyone aligned to to get permits needed for you every projects to you achieve that under gy security. But I CAn't say we're seeing a quantum shift, but definitely a constructive Tail lok. It's like very much andthank bably.

Unknown Speaker: Okay, thank you very much.

Sam Pollock: Thanks Robert.

Operator: Thank you. Our next question comes from the line of Rob Hope from Scotia Bank, your question, Please.

Line of Rob Hope from Scotia Bank. Your question, Please.

Rob Hope: Good morning, everyone. Just a follow question for me. I appreciate the commentary on organic growth being towards the upper-end kind of the range in 2022. But just as we look out at 2023, shouldn't we see kind of equally strong organic growth just given the quantum capital being put into place, as well as the fact that you will see kind of inflation being feathered into tariffs throughout the year? So just taking a look at 2023, shouldn't the factors that we're seeing benefit 2022 equally benefit 2023 as well?

Speaker 2: The you exquestion comes in the line over scoa Bank. Your question Please, morning. Just a follow question for me. Appreciate the commentary on organic growth being towards the upper and the range in thousand and 22, but just as we look out at 2023, you shouldn't we see kind of equally strong organic growth, just given the qu capital being put into place, as well as the fact that you will see kind of inflation being feathered into tariffs in, you know, throughout the year? So, just you know, take a look at 2000 and twent 3, shouldn't the factors that we're seeing benefit 2000 and 22 equally benefit 2023 as well and robt your com? I think your, your assumption is correct. I think one of the things is important to highlight is obviously the, the inflation that we're passing through this year. one of the biggest benefits is it is compounding. This doesn't you know? These do can continue to.

David Krant: Hey, Rob. It's David here, I can take that one. I think your assumption is correct. I think one of the things that is important to highlight is obviously the inflation that we're passing through this year one of the biggest benefits is it is compounding. These do continue to grow and to your point, we will expect to see additional inflation through the back half of this year that should lead to all else being equal and there are a lot of other variables that go into it. But as of today, it should lead to organic growth at the high end of our target range next year and if you factor in that HPC will be ramping up for the balance of this year. That is another large project that should come online in 2023 that will contribute to base business earnings next year as well. So there are a number of tailwinds that should lead to a strong outlook for 2023 as well.

Speaker 20: To grow in and, to your point, we will expect to see additional inflation through the back half of this year. That should lead all outse being equal and you- there are a lot of other you variables that go into A- But as of today, it should lead to the organic growth at the high end of our target range next year. And if you factor in that H P C will be ramping up at the balance of this year, that is another large project that should come out line in 2023. that will contribute to B. business earnings next year is also. There are a number of tailinds that should lead to strong outlook for 2023 as well.

Rob Hope: Appreciate the color, thank you.

Operator: Thank you. Our next question comes from the line of Andrew Kuske from Credit Suisse, your question, please.

Speaker 21: Appreciate a col of ditherthank you. Our next question comes in line of Andrew puskey from credit suwees. Your question, Please.

Of Andrew plkey from credit ssuets your question.

Andrew M. Kuske: Thanks, good morning, I think the questions is for Sam and it really relates to just the partnerships and ventures you've used over the years and how they've evolved, maybe a little bit of how and why they've evolved, and maybe just some examples, you have a partner on the voter for a New Zealand deal. You aligned yourself with the [inaudible] in a couple of jurisdictions. I guess just maybe context on how this has changed or evolved over time. Is it easier for exit, helps with risk management? Just some color would be great.

Speaker 22: Thanks good morning. I D think the questionsis for Sam and it really relates to just the partnerships and Ventures you've used over the years and how they've evolved, maybe a little bit of how and why they've evolved and maybe just some examples. You had a partner on the votoof phone, new zeal and deal. You aligned yourself with DLR in a couple jurisdictions. I guess just maybe context on how this is changed were evolved over time. Is it easier for exit? Helps with risk management? Just some color would be great.

I guess just maybe context on how this has changed or evolved over time. Is it easier for exit? Helps with risk management.

Just some color would be great.

Sam Pollock: Hi, Andrew. Look, I guess I would start off by saying one of our critical success factors is to be a partner of choice. And so that's something that when we go out and meet potential strategics or even some of our peers, we pride ourselves on the fact that we've got a long history going way back into the [inaudible] days, and we had the mining companies and we had many partnerships on projects all the way through today, 40 years later, where we continue to build upon partnerships.

Speaker 3: High andok. I guess I've been start off by saying one of our critiical success factors is to be a partner of choice, And so you know, that's something that when we go out and meet potential strategics or even some of our peers, we we pride ourselves on the fact that we've got a long history going way back you into the know, deal breath andates, and we had the mining companies and we had many partnerships on on projects all the way through today and 40 years later, where you know we continue to build upon partnerships.

ok I guess I would start off by saying one of our critiical success factors is to be a partner of choice, And so know that's something that when we go out and meet potential strategics or even some of our peers, we we pride ourselves on the fact that we've got a long history, going way back into the gilbreath anddays, and we had the mining companies and we we have many partnerships on projects all the way through today and 40 years later, where you know, we continue to build upon partnerships.

The investments can be large and often others are looking for someone to come in to help them, they're not necessarily looking to sell in every case, or in some cases, someone else might have secured the deal ahead of us and need someone to help them achieve the business plan. So we are always looking to partner with others where it makes sense. Sometimes we choose to do things on our own because we feel it may make sense for us to have the full discretion over the business plan in order to achieve it and sometimes maybe the business opportunities are big enough to entail a partner. But I would say given the scale of the opportunities today, we see being a good partner and finding good partners as a critical component to the strategy.

Speaker 7: The investments can be large and often others are looking for someone to come to help them but' not necessaryily looking to sell in every case, or in some cases someone else might have secured the deal ahead of us and need someone to help them achieve the business plan. So we are always looking to partners with others where it makes sensesometimeswe.

We choose to do things on our own because we feel it may make sense for us to have the full discretion over the business plan in order to achieve it and sometimes maybe the business opportunities N big enough to Intel a partner but But I would say given that the scale of the opportunities today.

Speaker 7: We choose to do things on our own because we feel it may make sense for us to have the full discretion over the business plan in order to achieve it and sometimes maybe the business opportunities and big enough to Intel partner. But But I would say, given that the scale of the opportunities today, we see being a good partner and finding good partners as a critical component to the strategy, Thank you that's, that's helpful, that maybe a different kind of partnership I just want to want to looks internally at the broader group and we think about the data of business.

We see being a good partner and finding good partners as a critical component to the strategy.

Andrew M. Kuske: Thank you, that's helpful. And then maybe a different kind of partnership, just when one looks internally at the broader group and we think about the data business, part of that is real estate oriented, part of it is power-oriented and part of it is telecom and infrastructure oriented. Has the thought process changed internally at Brookfield on how you think about allocating capital to that? Is it a divide and conquer at times or is it just solely within them?

You know part of that is real estate oriented, part of it is power oriented and part of it is ser of telecom and infrastructure oriented. Has the thought process changed internally at Brookfield on how you think about allocate and capital to that? Is it a divide and conquer at times or is it just solely within them?

Speaker 22: You part of that is real estate oriented part of is power oriented and part of it is sort of telecom infrastructure. Oriented has the thought process changed internally at Brookfield on how you think about allocating capital. To that is it a dividide conquer at times or is it just solely within thatso as it relates to you know data you that this is clearly an area that infrastructure group is focused on your writing point out that in particularly with that centers there's elements where that the real estate group can be know extremely helpful know given their land assembly capabilities. We do leverage know those capabilities in markets where it makes sense and I think one of the know. Great attributes of Brookfield as a an asset manager is the fact that.

Sam Pollock: So as it relates to data, this is clearly an area that the infrastructure group is focused on, you're right to point out that, particularly with data centers, there are elements where the real estate group can be extremely helpful, given their land assembly capabilities. We do leverage those capabilities in markets where it makes sense and I think one of the great attributes of Brookfield as an asset manager is the fact that the various platforms are able to work seamlessly across opportunities and we don't let the fact that one group may fund the capital, reduce the ability to leverage all those capabilities and expertise. So yes, the short answer, I appreciate this [inaudible] but short answer is we do get help from time to time from the other platforms, but we do fund all the data infrastructure through an infrastructure group.

Data this is clearly an area that infrastructure group is focused onyour writing point out that, particularly with thata centers, there's elements where the real estate group can be extremely helpful, given their land assembly capabilities. We do leverage those capabilities in markets where it makes sense and I think one of the great attributes of Brookfield as a an asset manager is the fact that the various platforms are able to work seamlesslyacross opportunities and we don't.

Speaker 9: Not the various platforms are able to work seamlessly across opportunities and we don't. We don't let the fact that one group may fund the capital reduce the ability to leverage all those capabilities and expertise. So So yes, the short answer, I appreciate this song win. But short answer is: we do get help from time to time from the other platforms, but we do fund all the data infrastructurewer through infrastructure group.

We don't let the fact that one group may fund the capital reduce the ability to leverage all those capabilities and expertise. So So yes, the short answer. I appreciate this song, win it. But short answer is: we do get help from time to time from the other platforms, but we do fund all the data infrastructure through an infrastructure group.

Andrew M. Kuske: Okay, that's great. Thank you.

Sam Pollock: Thank you.

Operator: Thank you. As a reminder, if you have a question at this time, please press star than one. Our next question comes from the line of Dimitri [inaudible] from [inaudible], your question, please.

Speaker 21: Okay that's great, Thank you, Thank you. Thank you as a reminder. If you have a question at this time, Please press Star than one our next question comes in the line of dmitri. Come Al, let' keep from very task your question, Please. Hi, and thanks for taking my my question. I won. If you can walk us through how your business benefits from rising frustrates by segment is possible.

Our next question comes in the line of to me.

Come the let's give from eritas your question, Please.

Unknown Speaker: Hi and thanks for taking my question. I wonder if you can walk us through how your business benefits from rising interest rates by segment as possible.

Multiple speakers: David do you want to start with that? Yes, I can start with that. I'd say largely before going segment by segment, I think an important benefit that our business is largely insulated from rising interest rates because of the capital structures and the financing approach that we put in place, which is largely fixed rate, long duration, asset level borrowing. So I'd say across the portfolio, outside of Brazil, 90% of our business is fixed rate with an average maturity of over seven years. So from a balance sheet standpoint, we're largely insulated from the impact of short term rising rates.

Speaker 23: They've doing. Yes, I can, I guess, started that to be tred, I'd say largely, before going segment by segment, I can. The important that efsay our business largely insulated from rising interest rates because of the capital structures and the financing approach that'll be put in place, which go is largely fixed rate, long duration, access level borrowings, So I'd say across the portfolio. You know, outside of Brazil, 90% of our businesses is fixed rate with an average maturity of over seven years. So from a from a balance sheet standpoint, we're largely insulated from the impacts of, you know, short-term rising rates.

David Krant: On the upside and where we could benefit from rising rates like Sam alluded to earlier is most likely in our utilities business where largely ROEs and returns on equity are derived from the risk free and prevailing interest rates of local environments, in which case we should start to see regulated earnings go up as these regulatory rate resets kick in over whatever period or whatever line that may be on. But I'd say our utilities business stands to benefit from it the most.

Speaker 20: On the upside and then where we could benefit from rising rates would like. That Sam alluded to earlier is most likely our utilities business, where know largely ROEs and returns on equity or derived from, you know, the risk free and prevailing interest rates of E local environments, in which case we should start to see, you know, regulated earnings go up as these regulatory rate resets kick in, over whatever period and whatever bank that may be on, but isthere utilities business stands to benefit from it the most.

Unknown Speaker: Got it. And any potential downsides from rising rates in any of the segments?

Speaker 24: And then potential downsides from some rising rates in any of the segments.

In any of the segments.

Sam Pollock: I would say David touched on the balance sheet impacts. Obviously, that's where we see the most impact. I think where we're able to adjust the business is to the extent that rates have increased. We reflect that in our acquisition models and adjust our capital allocation, both organically and inorganically. So I feel that as rates move up, we reflect those rising rates in all the capital decisions we make going forward. But other than on a more medium to long-term basis, we don't see too much impact from rising rates.

Speaker 25: I would say was thatdavid touched onthe the balance sheet impacts, obvious that that's where we see the most impact. I think.

Where we're able to adjust the business is to the extent that.

Speaker 11: Where we're able to adjust the business is to the extent that rates have increased. We reflect that in our acquisition models and adjust our capital allocation both organically and inorganically. So I feel that as rates move up we reflect those rising rates in all the capital decisions we make going forth. But other than on a more mediate to long term basis know we don't see too much impact from rising rates. All some got it and the question is I just wonder if you can confirm that the in thousand and 22 you plan to generate two billion of proceeds from capital recycling and whether that will come primarily from Brazil and electricity transmission and the Indian toll roads.

Rates have increased. We reflect that in our acquisition models and adjust our capital allocation- you both organically and inorganically. So I feel that as rates move up, we reflect those rising rates in all the capital decisions we make going forward. But you, other than on a more mediors to long term basis, know we don't see too much impact from rising rates.

Unknown Speaker: Awesome, got it. And the last question is I just wonder if you can confirm that in 2022 you plan to generate two billion of proceeds from capital recycling and whether that will come primarily from Brazil and electricity transmission and the Indian total road.

Sam Pollock: So we have probably six or so investments that are currently being marketed. The only two that we have publicly disclosed are the ones you mentioned. Those are the near-term situations that we expect to secure. Those are relatively small in context. There are several others that are more meaningful and will be signed hopefully, in the third quarter of this year and I think the overall timing to receive proceeds will take place over the next 12-15 months. I think the ones that are going to be signed shortly, we hope to have probably Q3 and then the rest that we signed in Q2, Q3, and Q4 will be thereafter, but that is the current amount that's in the pipeline is that roughly the two billion dollars worth.

So we have probably.

six or so.

Speaker 25: So we have probably six or so investments that are currently being marketed.

Investments that are currently being marketed.

The only two that we have, you know, publicbably disclosed are the ones you mentioned. Those are the near term situations that we expect to secureyear. Those are relatively small in the context. There are several others that are are more meaningful and will be signed hopefully, in the, you know, third quarter of this year and I think the overall timing to receiveved proceeds you will take place, you know, over the next. You know 12 that could see months. I think the, the ones that are, you know, going to be signed shortly, we hope to have probably Q3 and then you know, the rest and that we signed in in Q2, Q3 and Q4 will be thereafter, but but that is the current amount that's in the pipeline. Is that RE the two billion dollars worth?

Speaker 11: The only two that we have probably disclosed are the ones you mentioned. Those are the near term situations that we expect to secure, those relatively small in the context. There are several others that are more meaningful and will be signed, hopefully in the, you know, third quarter of this year and I think the overall timing to receiveved proceeds will take place, you know, over the next, you know 12, that they see months, I think the the ones that are you going to be signed shortly, we hope to have probably Q3 and then you know the rest that we signed in: Q2 Q3, Q4 will be thereafter, but but that is the current amount that's in the pipeline. Is that reoughly two billion dollars worth right? ok, think for so much.

Unknown Speaker: Right. Okay, thank you so much.

Sam Pollock: Okay, thank you.

Operator: Thank you. Our next question comes from the line of Naji Baydoun from IA Capital Markets, your question, please.

Our next question comes in the line of nagi vdon from IA capital markets. So your question Please.

Speaker 19: okaythank you. Thank you. Our next question comes from the line of that, you don't from capital markets. Your question, Please. My good morning. I'm wanting to go back to the topic of tailwinds. You talked about inflation and customer demand. I'm just wondering if you can provide any color on fxs and any potential impact there, particularly from the unhed exposure.

Naji Baydoun: Hi, good morning. Just wanted to go back to the topic of tailwinds. You talked about inflation and customer demand, I'm just wondering if you can provide any color on FX and any potential impacts there, particularly from the unhedged exposure.

Sam Pollock: Yup, happy to Naji. I think we've seen 80% of our business today is OECD and therefore hedged back into US dollars for that next, on average balance 24 months. So largely our business is very well insulated from those movements. The one currency where we do have the exposure is on the Brazilian real, we've had that historically. That's a balance of somewhere between 15%-17% of our business and that could be one of the tailwinds that we start to see starting in the second quarter if the currency can remain around the current levels. I think for the first quarter we started to see an appreciation of that currency in the month of March, albeit the overall impact on the quarter was modest. It's pretty negligible. I think, looking ahead, that's one of the tailwinds that we could see on the balance of the business that it could be in the 48, 49 levels that we currently see.

But we've seen.

youknow, 80% of our business today is oc B and therefore hedge back into U's dollars for that next know, on average balance 24 months. So largely our businesses is very well insulated from those movements. The one currency where we do have, you know, the exposure, is on the Brazilian real. We've had that historically. That's a balance of somewhere between fifteenen, you know, 17% of our business and that could be one of the tailwind that we start to see starting in the second quarter if the currency can remain around the current levels. I think for the for the first quarter we start to see appreciation of that currency. Be you know, the month of March, albe at the overall impact on the quarter was was modest. Stock is pretty negligible. I think, looking ahead, that's one of the tailwind that we could see on me on the balance of the business that it, you know, in the four a 4, nine levels that we RE currently see.

Speaker 19: Happy 2000. I think what we've seen- you know 80% of our business today is you o C, B and therefore hedgeed back into U's dollars. That ex on average balance 24 months, So largely our businesses is very well insulated from those movements. The one currencies where we do have you the exposure on the Brazilian realil we've had that historically- that's a balance of somewhere between 15, you know, 17% of our business and that could be one of the tailwind that we start to see starting in the second quarter if the currency can remain around the current levels. I think for the for the first quarter we start to see appreciation of that currency. Know the month of March, albe at the overall impact on the quarter was modest start, pretty negligible. I think looking ahead that's one of the tailwind that we could see on me on the balance of the business that say it's you in the for a 4, nine levels that we are.

Naji Baydoun: Okay, that's helpful detail. And just wanted to ask on the M&A pipeline, seems like it's very active. You have the different types and scale of transactions in the hopper, some of them in the public news. I'm just wondering do you see more opportunities today to pursue more public either corporate or asset transactions just get in a volatile market environment or are you still seeing a lot of scale opportunities on the profit side?

Speaker 19: Okay that's a helpful detail and just wanted to ask on the mn, a pipeline seems like to reactive. You have the different types and scale of transactions in the hopper, some of them in the public news. I'm just wondering: do you see more opportunities today to pursue more public, other corporate or <expletive> setthat transactions- just get in a vaile market environment, or are you still seeing a lot of scale opportunities on the profit side?

Sam Pollock: Yeah, maybe I'll take that one. It's a mix, so I would say today we probably have a good balance of both private versus public to private. Usually, we wouldn't have as much public to private as we have today. There does appear to be a value discrepancy between public valuations and private valuations which makes public to privates attractive for investors like ourselves. And I think given the increasing volatility in the pullback in the market, that's likely to persist going out the balance of the year, and so that will remain a focus. But today, I wouldn't want to give you the impression that all we're focused on is public to private. We have a large number of private opportunities that we are pursuing as well.

It's a mix. So I would say today we probably have a good bance of both private versus public, private.

Speaker 26: Yes maybe I'll take that one it's a mix. So I would say today we probably have a good balance of both private versus public private.

Usually we wouldn't have as much public to private as we have today- that there does appear to be.

Speaker 7: Usually we wouldn't have as much public to private as we have today- that there does appear to be a value discrepancy between public valuations and private valuations, which it makes public prives attractive for investors like ourselves, andi think, given the increasing volatility in the pullback in the market, that that's likely to persist going out the balance of the year, and and so that will remain a focus. But but today.

A value discrepancy between public valuations and private valuations which it makes public privac attractive for investors like ourselves and I think know, given the increasing volatility in the pullback in the market, that that's likely to persist know, going out the balance of the year and and so that will remain a focus, but but today.

I wouldn't want to give you the impression that all were're focused on ppublic to private. We have a large number of private opportunities that we are pursuing as well.

Speaker 9: I wouldn't want to give you the impression that all we're focused on public to private. We have a large number of private opportunities that we are pursuing as well got Thank.

Naji Baydoun: Got it. Understood, thank you.

Operator: Thank you. This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Sam Pollock, Chief Executive Officer, for any further remarks.

Speaker 2: Thank you. This does conclude the question-and answer session of today's program. I'd like to hand the program back to Sam tolic, Chief Executive Officer, for any further remarks.

Sam Pollock: Thank you operator, and thank you to everyone for joining the call this morning. We appreciate your ongoing support and look forward to speaking with you again next quarter. Thank you.

Speaker 9: Thank you operator, and thank you to everyone for joining the call this morning. We appreciate your ongoing support and look forward to speaking you again next quarter. Thank youthank you, Ladies and gentle, for your participation in today's conference. This does include the program. You may now disconnect. Good day.

Operator: Thank you, ladies and gentlemen for your participation in today's conference. This does conclude the program, you may now disconnect. Good day.

F.