Gore Street Energy Storage Fund Plc · LSE:GSF
Gore Street Energy Storage Fund — FY2024 Earnings Presentation
25 slides from Gore Street Energy Storage Fund's earnings presentation, 2024
Slide 1: Annual Results presentation for the year ended 31 March 2024
Gore Street Energy Storage Fund plc Annual Results presentation For the year ended 31 March 2024
Slide 2: Financial Highlights
Financial Highlights NAV PER SHARE OPERATIONAL EBITDA DIVIDEND YIELD 107.0p £28.4m 11.6% (2023: 115.6p) (2023: £27.8m) (2023: 6.9%) NAV TOTAL RETURN ENERGISED CAPACITY TOTAL CAPACITY -1.2% 421.4MW 1.25GW (2023: 12.6%) (2023: 291.6 MW) (2023: 1.17 GW) Supported by: Operational Strong Balance Rapidly
Slide 3: Unique Proposition
Unique Proposition Balanced Continued Growth Portfolio +79% 5 Increase in energised capacity uncorrelated markets expected in the next seven months. $60-80m 20+ ITC payment expected in 2025 Revenue streams resulting in high revenue generation per MW Operational Excellence +45 % 5 Increase in energis
Slide 4: Highlights
Highlights STRONG REVENUE GENERATION GROWING OPERATIONAL FLEET £41.4m Total Revenue 311.5 MW Average Operational FY23: £39.3m FY23: 291.6 MW capacity £28.4m Operational EBITDA 753.4 MW energised Projected capacity FY23: £27.8m FY23: 291.6 MW by FY-end ROBUST BALANCE SHEET DIVERSIFIED PORTFOLIO £60.7
Slide 5: Portfolio Significantly Derisked: Key Remaining Steps
Portfolio Significantly Derisked: Key Remaining Steps RA Contract Dog Fish Negotiations are in the Big Rock final stage, with a market All significant physical works Enderby Foundation piles installed completed to safe-harbour update expected soon and enclosure onsite the 10% ITC enhancement
Slide 6: Valuations & Capital Allocation
Valuations & Capital Allocation
Slide 7: NAV Bridge
NAV Bridge Dividend & Offering Macroeconomic Drivers Active Management Proceeds1 • Dividend resulted in a • Revenue Curves (-7.0p) • A mixture of pro-active decrease of (-7.4p) PPS management and • Inflation (-1.5p) diversification reduced the • Issuance of 23,700,000 new impact of macroeconomic Ord
Slide 8: Appropriate Revenue Forecasts
Appropriate Revenue Forecasts Blended Curve of Ancillary Services and Trading, by Grid. Portfolio weighted average1 Revenue curves (-7.0p) • Revenue curves are sourced from independent third parties • These curves exclude capacity markets, and resource adequacy in CAISO The decline in GB revenue for
Slide 9: Dividend Target and Energised Capacity
Dividend Target FY25 Dividend target aligned with cash flow 7.0 1200 400 MWh of capacity in CAISO – 6.0 benefiting from lucrative long-term RA 1000 contract Energised Capacity (MW) 5.0 79% increase in energised capacity ITC Payment of $60-$80m 800 Pence per Share by FY25-end2 dollars expected 4.0 60
Slide 10: Strategic Cash Allocation
Strategic Cash Allocation Key Considerations for Various Sources of Cash Flow Use of Cash Flow Higher interest rates make debt financing Cost of Capital less attractive Dividend Availability of Limited availability from equity capital Equity Capital market While debt financing options are available,
Slide 11: Portfolio Operational Performance
Portfolio Operational Performance
Slide 12: Track record: GSF Portfolio Summary
Track record: GSF Portfolio Summary GSF’s operational portfolio is 421.4 MW 497 MW in the GB 1 market 22 MW in the German Market GB & Northern Ireland (GBP) (50 Hertz) 1. Boulby 6.0 MW | 6.0 MWh 9. Larport 19.5 MW | 19.5 MWh 2. Cenin 4.0 MW | 4.8 MWh 10. Ancala 11.2 MW | 11.2 MWh 385 MW across the 3
Slide 13: Market Overview
Market Overview 3 Types of Service With 20+ Revenue Streams Available GB • Secured a combined 251.5 MW of non-derated CM contracts Trading • Agreements will provide an additional c.£1.7m in two delivery years, alongside existing CM 8%(1) commitments Peak shifting 7%(1) ROI & NI • 41% increase in rev
Slide 14: Revenue Breakdown & Highlights
Revenue Breakdown & Highlights Average revenue per grid during FY23/241 £8.80/ £20.67/ MW/hr MW/hr Great NI/ROI £9.44/ £37.02/ MWh/hr Britain MWh/ hr Increasing renewables generation led to increased volatility GB remained the Company's 57.0% 24.5% lowest performing market due to on the grid. The as
Slide 15: Diversification
Diversification Seasonal variation in one market creates large fluctuations in quarterly revenue, making diversification critical for BESS. Quarterly Revenue Volatility (GB Only) Standard deviation: Quarterly revenue volatility £5.15 per MW reduced by more than 1/2 Average revenue: £13.84 per MW / h
Slide 16: Environmental, Social and Governance
Environmental, Social and Governance 15,178 tCO2e 26,232 MWh Net CO2 emissions avoided Total renewable electricity stored Gore Street Energy Storage Fund | 17
Slide 17: Next Milestones
) Gore Street @ Energy Storage Fund Next Milestones
Slide 18: Portfolio Growth
Portfolio Growth 332.0 MW Additional energised capacity by Feb 2025 45% Energised capacity increased from Mar- 2023 to Mar-2024 ~ 924.1 MWh Total MWh by Feb- 2025 1 GSF Portfolio Split by geography (MW): Energised Mar-24 Split by geography (MW): Energised Feb-252 Split by duration (MW): Energised Fe
Slide 19: Investment Tax Credit
Investment Tax Credit Asset owners can deduct part of renewable energy project costs from Stand alone, BESS has been federal taxes or sell the credits for cash eligible for ITC benefits since Q4 2022. % to third parties, who can use them to offset their own tax liabilities. Therefore, GSF’s projects
Slide 20: Key Drivers of Additional Portfolio Construction
Key Drivers of Additional Portfolio Construction The average lithium-ion battery pack and cell price (volume weighted) 1 210 $60-80 million 190 14% Anticipated total ITC benefit reduction in 2023 170 Capital $/kWh 150 recycling Options being actively 130 explored 110 2018 2019 2020 2021 2022 2023 Ke
Slide 21: Resource Adequacy Contract
Resource Adequacy Contract GSF is in advanced stages of securing an RA contract for its 200 MW / 400 MWh Big Rock project What is a Resource Adequacy (RA) contract? Key Features Contracted Capacity + • Resource adequacy refers to the Reserve Margin state’s electricity grid's ability to reliably meet
Slide 22: Conclusion
) Gore Street @ Energy Storage Fund Conclusion
Slide 23: Conclusion
Conclusion Consistent delivery Best in class revenue against targets Competitive cost per generation Construction portfolio MW fully installed supporting future The Company continues growth Supported by the to create value for Manager’s in-house asset shareholders despite The manager primarily chall
Slide 24: Contact
Contact Gore Street Capital – Shore Capital – J.P. Morgan Cazenove – The Investment Manager Joint Corporate Broker Joint Corporate Broker Alex O’Cinneide / Paula Travesso Anita Ghanekar (Corporate Advisory) William Simmonds/ Jérémie Birnbaum Tel: +44 (0) 20 4551 1382 Fiona Conroy (Corporate Broking)
Slide 25: Disclaimer
Disclaimer This presentation has been prepared by Gore Street Capital Limited ("Gore Street Capital") for certain exceptions, taken or transmitted into Canada, Australia, New Zealand or the Republic of information and discussion purposes only and should not be considered to be an offer or South Afri
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