Greencoat UK Wind Plc · LSE:UKW
Greencoat UK Wind — H1 2021 Earnings Presentation
31 slides from Greencoat UK Wind's earnings presentation, July 2021
Slide 1: Half Year Results
Half Year Results July 2021 For Professional Investors Only
Slide 2: H1 2021 Highlights
H1 2021 Highlights £103.6m Strong cash generation Net cash generation 1,476GWh Power generation 20% below budget due to low wind resource Power generation £68.45/MWh High power prices Average power price £70.9m / 3.59p per share Dividend in line with FY target and dividend cover of 1.5x Dividends de
Slide 3: Simple Model
Simple Model 6-38(1) wind Generating capacity increased farms from 127 to 1,209MW(1) since IPO Total reinvestment Equity 12.8TWh Total power produced Debt £725.2m Total cash generated £195.7m £529.5m Total dividends paid or declared “6p dividend, increasing with RPI inflation and real NAV preservati
Slide 4: Operational and Financial Performance
Operational and Financial Performance
Slide 5: Financial Performance
For the six months ended 30 June 2021 Group and wind farm SPV cashflows £'000 Net cash generation” 103,574 Dividends paid (67,846) Acquisitions® (64,264) Acquisition costs®) (4,848) Equity issuance 197,618 Equity issuance costs (2,933) Net repayment under debt facilities (160,000) Upfront finance co
Slide 6: Net Asset Value
Net Asset Value The increase in the portfolio valuation of £14.9m (1p per share) comprised: ▪ +4p from an increase in forward power prices over the period 2021-2024 ▪ -2p from an increase in the modelled corporation tax rate over the medium term ▪ -1p other 6
Slide 7: Power Price
Power Price Demand Supply Energy efficiency Demand in China and India Gas 60p/th = £40/MWh Electric vehicles Cost of extraction Electrification of heat Carbon Focus on climate change £60/t = £25/MWh Absolute level of demand not important in the long term Generation mix will be the same Network charg
Slide 8: Net Asset Value Since IPO
Net Asset Value Since IPO “6p dividend, increasing with RPI inflation and real NAV preservation’’ 8 Note: (1) per share and adjusted for accrued dividends
Slide 9: Investment Performance
Investment Performance Strong, consistent return with correlation to inflation 9
Slide 10: Portfolio and Acquisitions
GREENCOAT UK WIND Portfolio and Acquisitions
Slide 11: Portfolio Overview
Portfolio Overview Generating sufficient electricity to power 1.3 million homes 11
Slide 12: Portfolio Overview
Portfolio Overview Well diversified generating portfolio of 1,209MW – 5% market share Note: breakdown by value as at 30 June 2021 12
Slide 13: Braes of Doune
Braes of Doune Seller ▪ Hermes Capacity ▪ 72MW Turbines ▪ 36 x Vestas V80 2MW Commercial Operations Date ▪ June 2007 PPA ▪ Centrica to June 2022 Turbine O&M ▪ Vestas O&M Management ▪ DNV-GL ▪ Part of IPO seed portfolio ▪ Restricted from purchasing Centrica’s 50% due to single investment limits at th
Slide 14: Douglas West
Douglas West Seller ▪ Blue Energy Capacity ▪ 45MW Turbines ▪ 13 x Vestas V136 3.6MW Commercial Operations Date ▪ September 2021 PPA ▪ Erova Turbine O&M ▪ Vestas O&M Management ▪ Natural Power ▪ Bilateral transaction for 100% ownership ▪ Construction has taken place over the last 18 months, managed b
Slide 15: Investments and Commitments in 2021
Investments and Commitments in 2021 Wind Farm Seller Net MW Investment Comment Investments Braes of Doune Hermes 36 £48m Bilateral purchase of remaining 50% Douglas West Blue Energy 45 £16m from cashflow COD in Sep 2021 Commitments Windy Rig Statkraft 43.2 £53m Acquire on COD in Sep 2021 Twentyshill
Slide 16: Secondary Market - Continued Opportunities to Grow
Secondary Market - Continued Opportunities to Grow UKW net generating capacity (MW) 1,209MW 1200 1000 800 600 400 200 127MW 0 30000 £70bn market 25000 20000 15000 UK offshore capacity (MW) £20bn market 10000 5000 UK onshore capacity (MW) 0 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-
Slide 17: ESG
GREENCOAT UK WIND ESG
Slide 18: Environmental, Social and Governance
Environmental, Social and Governance ▪ Portfolio produces enough renewable electricity to power 1.3 million homes ▪ Recycling of capital enabling more renewable generation capacity to be built out Environmental ▪ 1.5m tonnes of CO2 per annum will be avoided compared to thermal generation ▪ Co-existe
Slide 19: ESG Case Study – Stroupster
ESG Case Study – Stroupster St. John’s Pool Bird Reserve, Dunnet Head, Caithness ▪ Provides a safe sanctuary for breeding, wintering and migrant birds (over 200 species) Grant of £43,600 to: ▪ Improve access for all-ability visitors ▪ Increase safe breeding areas for terns ▪ Enhance biodiversity ▪ I
Slide 20: ESG Case Study – Corriegarth
ESG Case Study – Corriegarth Errogie Free Church, Dores, Inverness ▪ Contribution of £92,300 to purchase, renovate and convert the church into a multi-use community meeting place ▪ Public consultation has identified more than 50 activities that the building could house including painting, a gym and
Slide 21: Summary
GREENCOAT UK WIND Summary
Slide 22: H1 2021 Highlights
H1 2021 Highlights £103.6m Strong cash generation Net cash generation 1,476GWh Power generation 20% below budget due to low wind resource Power generation £68.45/MWh High power prices Average power price £70.9m / 3.59p per share Dividend in line with FY target and dividend cover of 1.5x Dividends de
Slide 23: Appendix
GREENCOAT UK WIND Appendix
Slide 24: Greencoat UK Wind
Greencoat UK Wind ▪ 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 Simple remainder is reinvested to ensure capital is preserved in real terms. ▪ Simple structure, UK domiciled with a
Slide 25: 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 Oct-17 1.0 23.8% Bin Mountain N Ireland GE SSE 9.0 100% 9.0 J
Slide 26: 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 Crighshane N Ireland Enercon Energia 32.2 100% 32.2 Jul-12 Dec-18 1.0 22.6% Deeping St England Senvion EDF 16.4 8
Slide 27: 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 Little Cheyne England Nordex RWE 59.8 41% 24.5 Mar-09 Mar-13 1.0 28.7% Court Maerdy Wales Siemens Statkraft 24.0
Slide 28: Diversified Asset Portfolio (4)
Diversified Asset Portfolio (4) 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 Slieve Divena N Ireland Nordex SSE 30 100% 30 Mar-09 Aug-17 1.0 22.1% Slieve Divena II N Ireland Enercon SSE 18.8
Slide 29: NAV Sensitivities
Discount rate (+/- 0.5%) Inflation rate (-/+ 0.5%) Energy yield (10 year P90/P10) Power price (-/+ 10%) Asset life (-/+ 5 years) -20p -15p Impact on NAV -10p -5p Op 5p 10p pence per share 15p 20p 29
Slide 30: Disclaimer (1)
Disclaimer (1) Important Information This presentation and its contents are confidential. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES (OR TO ANY US PERSON), AUSTRALIA, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA, CANADA, JAPAN, ANY MEMBER STATE O
Slide 31: Disclaimer (2)
Disclaimer (2) Any subsequent offer may only be made in Jersey where the offer is valid in the United Kingdom or Guernsey and is circulated in Jersey only to persons similar to those to whom, and in a manner similar to that in which, it is for the time being circulated in the United Kingdom or Guern