Foresight Group Holdings Ltd. · LSE:FSG
Foresight — H1 FY24 Earnings Presentation
25 slides from Foresight's earnings presentation, December 2023
Slide 1: For the half year ended 30 September 2023
For the half year ended 30 September 2023 Skaftåsen Wind Farm
Slide 2: Performance Overview, Financial Results, Outlook
Performance Overview 03 Financial Results 08 Outlook 14 Q&A 21 Bernard Fairman Gary Fraser Executive Chairman & Chief Financial Officer Co-Founder Fordie Estate
Slide 3: Bernard Fairman, Executive Chairman & Co-Founder
Bernard Fairman Executive Chairman & Co-Founder Kölvallen Wind Farm
Slide 4: Performance in current markets demonstrates success of our diversified model
• Performance in current markets demonstrates success of our diversified model o Strong Core EBITDA pre-SBP growth generating £27.6 million (+28%) o Resilient AUM, marginally up at £12.2 billion (+1%) • Benefit from high quality revenue o 87% recurring revenue streams o Over 90% long duration capita
Slide 5: Core EBITDA pre-SBP and margin
Core EBITDA pre-SBP (£m) 27.6 • Strong Core EBITDA pre-SBP growth 21.5 15.2 o 28% year-on-year growth 10.6 o 38% three-year CAGR H1 FY21 H1 FY22 H1 FY23 H1 FY24 • Full year margin expected to be above H1 FY24 Core EBITDA pre-SBP margin (%) 32.8% 38.3% 42.4% 40.7% 5
Slide 6: AUM growth since FY18
Growth since AUM growth history (£bn) FY18 Infrastructure Private Equity FCM 1.3 1.0 7.8x1 1.4 1.4 3.4x 1.6 1.1 0.9 0.7 9.5 9.8 4.6x 0.5 0.1 0.6 0.4 6.3 0.5 5.4 3.4 2.2 2.4 F Y18 F Y19 F Y20 F Y21 F Y22 F Y23 H 1 F Y24 Total (£bn) 2.6 3.0 4.5 7.2 8.8 12.2 12.2 4.8x 1. FCM growth calculated from FY19
Slide 7: AUM by distribution, division, vehicle and geography
Distribution Investment divisions Vehicles Geography by AUM by Core EBITDA pre-SBP by AUM by AUM H1 FY24 H1 FY24 H1 FY24 H1 FY24 200+ 59% 57% 69% 65% investors 27% 36% 26% c.40,000 31% investors 13% 5% 8% 3% 1% Institutional Retail Infrastructure Private Equity FCM Evergreen LP OEIC Other UK Austral
Slide 8: Gary Fraser, Chief Financial Officer
Gary Fraser Chief Financial Officer Energy to Waste Plant in Manfredonia
Slide 9: Profitable growth continuing to deliver shareholder value
Profitable growth continuing to deliver shareholder value Actuals Constant currency basis 30 September 31 March Period 30 September Period 2023 2023 Change 2023 Change Assets/Funds Period-end AUM (£m) 12,245 12,167 +1% 12,352 +2% Period-end FUM (£m) 8,830 9,022 -2% 8,899 -1% 30 September 30 Septembe
Slide 10: Fundraising into higher margin vehicles offset outflows in FCM division
Fundraising into higher margin vehicles offset outflows in FCM division (£bn) • Strong inflows of £247 million into higher margin (0.2) 0.3 (0.1) retail products, driven by in-house sales team 0.4 (0.4) • Private Equity institutional fundraising continued 12.2 12.2 • £207 million net outflows in low
Slide 11: 34% year-on-year increase in revenue
34% year-on-year increase £50.7m £67.8m • 87% recurring revenue remained in target range of 85-90% • Revenue up 34% or £17.1 million 13% £8.6m £17.1m • +£7.7 million organic growth 11% £5.4m • +£9.4 million related to acquisition activity1 • c.20% non-GBP denominated revenue (H1 FY23: 10%) 87% £59.2
Slide 12: Maintenance of firm cost discipline in an inflationary environment
Maintenance of firm cost discipline in an inflationary environment £29.7m £38.4m2 £41.4m • H1 FY24 8% up on rebased H1 FY23 costs2 +8% £7.3m • Average 7% salary increase for staff, reflecting high inflation environment £2.7m • £0.6 million increase following FY23 review of senior staff remuneration
Slide 13: 28% year-on-year increase in Core EBITDA pre-SBP
28% year-on-year increase Core EBITDA pre-SBP £21.5m £27.6m £1.3m • 28% year-on-year growth driven by: £6.1m • Successful prior year and year-to-date fundraising into higher margin £10.0m and longer tenure vehicles £2.1m • Annualisation of FY23 M&A activity (+£3.8 million) £8.2m • Maintenance of fir
Slide 14: Bernard Fairman
Bernard Fairman Executive Chairman & Co-Founder Our Portfolio Team on a Site Visit in Sweden
Slide 15: • 4 article 9 funds under SFDR • >200 institutional
• 4 article 9 funds • >200 institutional • 87% recurring • Ideally positioned to • +£5.0bn AUM since • +34% revenue growth2 under SFDR investors revenue capture long-term IPO • +28% profit growth2 structural growth • 11 funds dedicated • c.40k retail • Over 90% in • +6.1ppt margin trends in our key
Slide 16: Large and compelling, multi decade opportunity as we target net zero
Large and compelling, multi decade opportunity as we target net zero globally Key drivers Supercharged by Accelerated by • Increased demand for electrification Multiple regulatory tailwinds, including: Strengthening focus on energy • Technological advancements • US Inflation Reduction Act security f
Slide 17: 15+ years' of sustainable infrastructure investment experience
15+ years’ of sustainable infrastructure investment experience ▪ ARIF (Aus) ▪ EIT (Aus) ▪ FSFC ▪ FSFL ▪ FORVEI II ▪ FEIP ▪ Hydrogen1 ▪ SMAs ▪ FEIP II1 Diversified strategies ITS, JLEN, DIT (Aus), PIP, IGB 1. Strategies currently in pre-marketing or marketing. 17
Slide 18: Over £4bn deployed into energy infrastructure across 9 countries
Over £4bn deployed into energy infrastructure across 9 countries Current Infrastructure portfolio • 435 infrastructure assets across multiple sectors including solar, wind, waste to Sweden energy, bioenergy and battery storage 508MW • 4.7 GW of total green energy technology capacity Finland UK 88MW
Slide 19: Focused approach to fundraising and M&A activity
1. Focused approach to fundraising 2. M&A Activity Institutional Infrastructure • Continue to apply a disciplined approach to • Initial power transition / renewable energy generation: assessing the market • ARIF - Existing A$1.0bn yield-paying core+ energy infrastructure fund with a diversified port
Slide 20: Targets, delivered in H1 FY24 and outlook
Target Delivered in H1 FY24 Outlook Growth • Continued fundraising into high margin vehicles • Well positioned for institutional fundraising growth in AUM1 rolling 3-year average2 • Supplementary inorganic activity High quality earnings • High visibility on FY24 earnings • FY24 revenue benefit from
Slide 21: Sandridge Solar Farm
‘sandrldge Solar Farm _- — =
Slide 22: Appendices
4 ndices < Appe
Slide 23: Glossary
ARIF Australian Renewables Income Fund DIT Diversified Infrastructure Trust EIT Energy infrastructure Trust FEIP Foresight Energy Infrastructure Partners FSFC Foresight Sustainable Forestry Company FSFL Foresight Solar Fund Limited IGB Foresight Italian Green Bond Fund ITS Inheritance Tax Solution J
Slide 24: Important notice
NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND DEPENDENCIES, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA), CANADA, AUSTRALIA, NEW ZEALAND, JAPAN, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC O
Slide 25: For further information, please contact
For further information, please contact: Foresight Group LLP The Shard t: +44 (0)20 3667 8100 32 London Bridge Street e: info@foresightgroup.eu London SE1 9SG w: foresightgroup.eu United Kingdom
Foresight Group Holdings — H1 FY24 Earnings Presentation on 6ix