Renewables Infrastructure Group Limited GBP Red.Shs · LSE:TRIG
Renewables Infrastructure Group Limited GBP Red.Shs — The Renewables Infrastructure Group — Investor Presentation (June 2019)
36 slides from Renewables Infrastructure Group Limited GBP Red.Shs's investor presentation, Jun 13, 2019
Slide 1: An Introduction to TRIG
The Renewables Infrastructure Group An Introduction to TRIG June 2019 Generating Sustainable Value. trig-ltd.com
Slide 2: Contents
Contents Section Slide Introducing TRIG 3 Market Developments 11 Concluding Remarks 20 Appendices 22 Contacts / Important Information 35 2 trig-ltd.com
Slide 3: Introducing TRIG
Introducing TRIG trig-ltd.com
Slide 4: Introduction
Introduction A leading London-listed renewables investment company TRIG is invested in 65 wind, solar and battery projects in the UK & Europe, with 1,446MW of power output capacity London-listed investment company (IPO in 2013) established in Guernsey with an independent board of non-executive d
Slide 5: Portfolio
Portfolio 1,446MW net capacity / 65 projects (June 2019) By Technology1 By Jurisdiction / Power market 1,2 Construction Exposure: 6.4%1 1. Segmentation by portfolio value and includes acquisitions to date in 2019 and committed investments. 5 2. Northern Ireland and the Republic of Ireland form a Sin
Slide 6: Recent Financial Highlights
Recent Financial Highlights Significant growth bringing scale advantages and diversification NAV and Earnings ▲ NAV per share 28 February 2019: 111.6p1 ▲ NAV per share 31 December 2018: 108.9p (Dec 2017: 103.6p) ▲ Earnings per share 2018: 11.7p (2017: 9.8p) Dividends ▲ Achieved 2018 target dividend
Slide 7: Cumulative Total Return
Strong track record over six years Growth of portfolio and dividend Progressive dividend (pence per share) Share price outperformance and low Beta3 6.80p Target2 170p 2.5 6.60p Cumulative Total Return 160p 6.40p 2 6.20p 150p 6.00p 140p 1.5 Beta 5.80p 130p 5.60p 120p 1 5.40p 110p 0.5 5.20p 100p 5.00p
Slide 8: The Team
The Team Access to Experienced Management Independent Board Investment Manager Operations Manager Key roles: Key Roles: Helen Mahy CBE (Chair) Sourcing and approving new investments Providing operational management services for the portfolio Advising the Board on investment strategy and divide
Slide 9: InfraRed Capital Partners – Investment Manager
InfraRed Capital Partners – Investment Manager Over 20 years’ pedigree in infrastructure London (Infrastructure and Real Estate) Seoul New York (Representative) Real asset expertise across infrastructure & real estate (Infrastructure) Hong Kong 25 years $12bn 17 (Real Estate) track record equity man
Slide 10: RES – Operations Manager
RES – Operations Manager 37+ years experience in renewables An experienced leader in the renewables industry 37 years 300 track record projects delivered worldwide 2000+ 16GW employees capacity developed / managed 300MW energy storage projects constructed or under contract The world’s largest inde
Slide 11: Market Developments
Market Developments trig-ltd.com
Slide 12: Renewables continue to see strong policy support
Renewables continue to see strong policy support …… ▲ Policy support is strong: ▪ EU renewables 2030 target increased to 32% ▪ Paris 2015 commitments “ratcheting” ▪ UK support for clean energy; supported by labour and conservatives, not Brexit dependent Carbon emissions and carbon budget 1 ▲ Sector’
Slide 13: Scale of the Global Market for Renewables
Scale of the Global Market for Renewables Renewables is now mainstream 80% Renewables as % of Global Power Capacity1 Global energy related CO2 emissions (Gt)2 76% Renewable 70% 35 share of global capacity 60% 61% 30 additions 50% 25 49% 47% 49% Renewable 43% power % of all 20 40% 37% capacity 15 30%
Slide 14: Market Developments: Offshore Wind
Market Developments: Offshore Wind Offshore Wind market has matured rapidly In December 2017, TRIG acquired a 14.7% equity ▲ The offshore wind industry has matured significantly, to the point where interest in Sheringham Shoal, a 317MW offshore wind risks are viewed as comparable with onshore wind.
Slide 15: Market Developments: Costs Declining
Market Developments: Costs Declining Grid parity altering the shape of the European renewables market Maintaining technological diversification ▲ Falling costs mean that solar (as well as wind) can be viable without subsidies in the best locations – moving the investment focus from subsidies to unde
Slide 16: Jädraås, Sweden (and the Nordics Market)
Jädraås, Sweden (and the Nordics Market) TRIG’s largest investment to date acquired February 2019 ▲ Acquisition of 100% interest in a 213MW wind farm, TRIGs largest investment to date (€207m/£177m) Ersträsk ▲ Majority of revenues from power sales: hedging agreements in place for 5 years covering c.7
Slide 17: Optimising Asset Performance
Optimising Asset Performance Active targeting of value-enhancing initiatives RES control centre overseeing site activities Individual turbine data monitored & analysed Main bearing replacement underway Technical Commercial ▲ Solar works performed over winter months ▲ Optimising PPAs (including impro
Slide 18: Environment, Social & Governance
Environment, Social & Governance A commitment to responsible investing TRIG and the Environment Minimising impact on the local and global environment ▲100% Renewable energy generator, committed to environmental sustainability ▲Powering 650,000 homes, avoiding 550,000 tonnes of CO2 emissions annually
Slide 19: Brexit Preparedness
Brexit Preparedness Brexit expected to have low impact Major Brexit Risks Key Mitigants • Managers well resourced Workforce skills shortage • Wide range of subcontractors in place mitigates individual asset risks • All key suppliers reviewed for approach to anticipated challenges and Supply chain fa
Slide 20: Concluding Remarks
Concluding Remarks trig-ltd.com
Slide 21: TRIG: Generating Sustainable Value
TRIG: Generating Sustainable Value Strong NAV growth, earnings and a positive outlook Excellent operational and financial results for FY 2018 ▲ Strong cashflow on the back of high achieved power prices, good asset performance and diversification, despite poor wind resource ▲ Portfolio enhancement in
Slide 22: Appendices
Appendices Breeding Wader:ManagementAfea) Garreg, kwyd trig-Itd.com
Slide 23: Recent additions to the Portfolio
Recent additions to the Portfolio Increasing geographical diversification Date Acquired Project Technology Location Revenue Type2 Net Capacity Total Consideration (MW) (£m) Jan 2018 Clahane Onshore Wind Ireland FiT 55.0 £64.4 May 2018 Rosières Onshore Wind France CfD/FiT 17.6 £16.0 Montigny Onshore
Slide 24: Growth in UK Renewables Generation Capacity
Growth in UK Renewables Generation Capacity Wind and Solar displacing Coal UK Capacity (GW) – historic data by Technology1 100,000 Onshore Wind 80,000 Offshore Wind PV- Utility 60,000 PV-Commercial and Residential Hydro Biomass and Waste 40,000 Oil Nuclear 20,000 Gas Coal 0 2000 2001 2002 2003 2004
Slide 25: NAV sensitivities
NAV sensitivities Based on portfolio at 28 February 20191 -300.0p -200.0p -100.0p 0.0p 100.0p 200.0p 300.0p Discount rate +/- 0.5% -3.6p 3.9p Output P90 / P10 (10 year) -12.3p 11.8p Power price -/+ 10% -8.6p 8.5p Inflation -/+ 0.5% -4.9p 5.3p Operating costs +/- 10% -4.3p 4.3p Exchange rate -/+ 10%
Slide 26: Diversified shareholder base
Diversified shareholder base TRIG has a high quality institutional shareholder base as well as retail investors Shareholders by Type1 ▲ Top five holders account for 32% of TRIG’s issued share capital 6.32 ▲ Top 10 holders account for 48% of TRIG’s issued share capital ▲ Nearly 800 registered holders
Slide 27: Revenue Profile
Revenue Profile Medium-term project-level revenues retain a material fixed element Project Revenue by Type PPA Market Revenue Fixed and hedged 26% PPAs, CfDs & FiTs 32% Next 12 Months1 PPA Market Revenue at Floor 7% ROC Recycle and Other 4% Indexed ROC Buyout 31% Split of Project Revenues by Contrac
Slide 28: Constructing a Balanced Portfolio
Constructing a Balanced Portfolio Understanding the range of revenue types available Range of Revenue Options within a balanced portfolio ▲ FiT & CFD contracts (France, Ireland, UK) typically have subsidy revenues of 15 years then market FiT/CfD UK ROC Unsubsidised revenues for the balance of a proj
Slide 29: Approach to Gearing
Approach to Gearing Disciplined approach Term Project Debt Gearing1 TRIG’s portfolio at 31/12/2018 ▲ Limited to 50% of portfolio enterprise value Project Category typically (Younger = <10yrs) Average % of # of available gearing1 portfolio projects2 ▲ Fully amortising within the subsidy period Younge
Slide 30: Currency Exposure
Currency Exposure Hedges dampen currency exposure Portfolio by country1 ▲ TRIG is a sterling denominated investment company. Direct exposure from non-UK investments: ▲ Policy is to hedge at least 50% of the balance sheet value of non-sterling assets: o Forward sale of expected euro receipts for next
Slide 31: Counterparty Exposure at December 2018
Counterparty Exposure at 31 December 2018 Broad spread of counterparties monitored regularly Electricity off-takers Maintenance suppliers3 Equipment manufacturers2 13 40% 7 Number of associated projects % of Portfolio Valuation of associated projects¹ % of Portfolio Valuation 30% 7 13 20% 5 13 4 24
Slide 32: Short-Run Marginal Cost Supply Curve (Merit Order)
Short-Run Marginal Cost Supply Curve (Merit Order) Gas-fired power tends to set the marginal price £/MWh Min. Demand Average Demand Max. Demand 100 80 Peaking plant 60 Coal Gas 40 Biomass & Interconnectors 20 Nuclear Renewables 0 0 10 20 30 40 50 60 70 80 Cumulative Capacity (GW) Note: Schematic onl
Slide 33: Constituents of Power Prices
Constituents of Power Prices Key elements: natural gas and carbon prices £/MWh, Real 2018 2020 2030 70 60 60 50 50 Scarcity uplift 40 Transmission charges and BSUoS Carbon price 30 Impact of Gas price Lower marginal cost production impact 20 10 0 -10 Note: Schematic only for illustration. 33 trig-lt
Slide 34: Key Facts
Key Facts Fund Structure ▲ Guernsey-domiciled closed-end investment company Performance ▲ Dividends to date paid as targeted for each period ▲ NAV per share 28 February 2019 of 111.6p Issue / Listing ▲ Premium listing of ordinary shares on the Main Market of ▲ Market Capitalisation c. £1.8bn (1 June
Slide 35: Contacts
Contacts Investment Manager Other Advisers InfraRed Capital Partners Limited Administrator / Company Secretary Registrar 12 Charles II Street London SW1Y 4QU Aztec Financial Services (Guernsey) Ltd Link Asset Services (Guernsey) Ltd East Wing Mont Crevelt House +44 (0)20 7484 1800 Trafalgar Court Bu
Slide 36: Important Information
Important Information NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES, AUSTRALIA, SOUTH AFRICA,CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION This docum
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