Greencoat UK Wind Plc · LSE:UKW
Greencoat UK Wind — H1 2018 Earnings Presentation
22 slides from Greencoat UK Wind's earnings presentation, July 2018
Slide 1: Half Year Results July 2018
Half Year Results July 2018
Slide 2: Simple, Low Risk, Proven
▪ Greencoat UK Wind acquires and operates UK wind farms. The cash generated by these assets is used primarily to pay a robust, premium dividend to shareholders. The remainder is reinvested to Simple ensure capital is preserved in real terms. ▪ Simple structure, UK domiciled with a strong board, wind
Slide 3: H1 2018 Highlights
H1 2018 Highlights ▪ Power generation of 951GWh; 6% below budget (low wind resource in Q2) ▪ Power prices above budget ▪ Net cash generation on budget at £67.4m (2017: £39.2m) ▪ Dividends of £36.5m (3.38p per share) declared with respect of the period ▪ Two investments made taking generating capacit
Slide 4: Simple Model
Simple Model 6-30 wind Generating capacity increased farms from 127 to 785MW since IPO Total reinvestment Equity 5.0TWh Total power produced Debt £298.8m Total cash generated £97.6m £201.2m Total dividends paid or declared “6p dividend, increasing with RPI inflation and real NAV preservation’’ 4 Not
Slide 5: Operational and Financial Performance
Operational and Financial Performance
Slide 6: Financial Performance
For the six months ended 30 June 2018 Group and wind farm SPV cash flows £'000 Net cash generation 67,411 Dividends paid (34,088) Acquisitions” (276,115) Acquisition costs (1,201) Equity issuance 118,845 Equity issuance costs (1,898) Net drawdown under debt facilities 130,000 Upfront finance costs (
Slide 7: Financial Performance
For the six months ended 30 June 2018 Net Cash Generation — Breakdown £'000 Revenue 109,736 Operating expenses (26,635) Tax (1,890) Other (3,934) Wind farm cashflow 77,277 Management fee (5,947) Operating expenses (799) Ongoing finance costs (5,441) Other 1,029 Group cashflow (11,158) VAT (Group and
Slide 8: Net Asset Value
Investment Performance Movement in Movement in Movement in Movement in Seeseaney mesimein MCE cahiGrupand [| Storramart [ aoweone I SooNAY valuation wind farm SPVs) assets/liabilities Group Debt £277.4m (£5.3m) £2.4m £1.3m (£130.0)m £1,289.9m™ “ Oo 1,200 1,000 & 800 600 400 200 0 Numbers do not cast
Slide 9: Net Asset Value Since IPO
Net Asset Value Since IPO “6p dividend, increasing with RPI inflation and real NAV preservation” 9
Slide 10: Investment Performance
Investment Performance Strong, consistent return with correlation to inflation 10
Slide 11: Portfolio and Acquisitions
Portfolio and Acquisitions
Slide 12: Portfolio Overview
Portfolio Overview Well-diversified portfolio generating sufficient electricity to power 725,000 homes 12 Note: all assets shown by value as at 30 June 2018
Slide 13: Brockaghboy
Brockaghboy Previous Ownership ▪ ERG Capacity ▪ 47.5MW Turbines ▪ 19 x Nordex N90 2.5MW Commercial Operations Date ▪ Feb 2018 PPA ▪ SSE until 2033 Turbine O&M ▪ Nordex O&M Management ▪ Wood Group ▪ Brockaghboy was developed by TCI and constructed by ERG ▪ Transmission connected with potential for DS
Slide 14: Clyde
Clyde Previous Ownership ▪ SSE Capacity ▪ 522MW ▪ 152 x Siemens 2.3MW Turbines + 54 x Siemens 3.2MW Commercial Operations Date ▪ Oct 2012 & Aug 2017 PPA ▪ SSE until 2032 Turbine O&M ▪ Siemens O&M Management ▪ SSE ▪ UKW acquired a 28.2% stake in the Clyde wind farms (North, South and Central) in Marc
Slide 15: Secondary Market - Continued Opportunities to Grow
Secondary Market - Continued Opportunities to Grow 800 785MW 700 UKW net generating capacity (MW) 600 500 400 300 200 127MW 100 0 30,000 25,000 £50bn market 20,000 15,000 £20bn market 10,000 UK offshore capacity (MW) 5,000 UK onshore capacity (MW) 0 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 M
Slide 16: Summary
Summary
Slide 17: H1 2018 Highlights
H1 2018 Highlights ▪ Power generation of 951GWh; 6% below budget (low wind resource in Q2) ▪ Power prices above budget ▪ Net cash generation on budget at £67.4m (2017: £39.2m) ▪ Dividends of £36.5m (3.38p per share) declared with respect of the period ▪ Two investments made taking generating capacit
Slide 18: Appendix
Appendix
Slide 19: Diversified Asset Portfolio (1)
Diversified Asset Portfolio (1) Group Acquisition Total Commercial ROCs / Forecast Net Load Wind Farm Country Turbines PPA Ownership Net MW(1) MW Operations Date Date MWh Factor(2) Stake Bicker Fen England Senvion EDF 26.7 80% 21.3 Sep-08 Nov-17 1.0 23.6% Bin Mountain N Ireland GE SSE 9.0 100% 9.0 J
Slide 20: Diversified Asset Portfolio (2)
Diversified Asset Portfolio (2) Group Acquisition Total Commercial ROCs / Forecast Net Load Wind Farm Country Turbines PPA Ownership Net MW(1) MW Operations Date Date MWh Factor(2) Stake Drone Hill Scotland Nordex Statkraft 28.6 51.6% 14.8 Aug-12 Aug-14 1.0 24.0% Earl’s Hall Farm England Senvion Sai
Slide 21: Diversified Asset Portfolio (3)
Diversified Asset Portfolio (3) Group Acquisition Total Commercial ROCs / Forecast Net Load Wind Farm Country Turbines PPA Ownership Net MW(1) MW Operations Date Date MWh Factor(2) Stake North Hoyle Wales Vestas RWE 60 100% 60 Jun-04 Sep-17 1.0 34.3% Red House England Senvion EDF 12.3 80% 9.8 Jun-06
Slide 22: Disclaimer
Disclaimer Important Information This document has been prepared by Greencoat Capital LLP and Greencoat UK Wind PLC (“UKW”) solely for use at a presentation in connection with UKW’s annual results in respect of the half year to 30 June 2018 (the “Presentation”). For the purposes of this notice, the