Greencoat UK Wind Plc · LSE:UKW
Greencoat UK Wind — FY2016 Earnings Presentation
21 slides from Greencoat UK Wind's earnings presentation, February 2017
Slide 1: Annual Results
Annual Results February 2017
Slide 2: 2016 Highlights Strength of Business Model
2016 Highlights Strength of Business Model Power generation of 978.1GWh (2015: 799.3GWh); 6% below budget Net cash generation of £49.0m (2015: £48.3m) Dividends of £38.8m (6.34p per share) declared with respect to the year and 6.49p target for 2017 Two investments made taking generating capa
Slide 3: Simple, Transparent and Low Risk
Simple, Transparent and Low Risk 6-19 wind Generating capacity increased farms from 127 to 420MW since IPO Total reinvestment Equity 2.6TWh Total power produced(1) Debt £151.3m Total cash generated(1) £43.9m £107.4m Total dividends paid or declared “6p dividend, increasing with RPI inflation and rea
Slide 4: Track Record of Consistent Delivery
Track Record of Consistent Delivery Period Production Cash Generation Dividend(1) Dividend Cover(2) RPI NAV Growth 2013(3) 291.5GWh £21.6m £14.2m (4.50p) 1.8x 1.9% 2.5% 2014 564.6GWh £32.4m £24.8m (6.16p) 1.6x 1.6% 2.5% 2015 799.3GWh £48.3m £29.6m (6.26p) 1.7x 1.2% 0.5% 2016 978.1GWh £49.0m £38.8m (
Slide 5: Wind Resource and Production
0 1 2 3 4 5 6 7 January February March Production Wind Speed April May June July + 8% + 3% 2013(2) August Annual average September October November December January February March April May June 10 year average July 2014 - 3% - 2% August Wind Resource and Production September October November Notes:
Slide 6: Operational and Financial Performance
Operational and Financial Performance
Slide 7: Operational Performance
Operational Performance Portfolio generation of 978.1GWh (6% below budget) 7
Slide 8: Financial Performance
For the year ended 31 December 2016 Group and wind farm SPV cash flows £m Net cash generation 49.0 Dividends paid (35.1) Acquisitions (220.0) Acquisition costs® (2.7) Equity issuance 247.0 Equity issuance costs (3.9) Debt repayment (35.0) Upfront finance costs (0.6) Movement in cash (Group and wind
Slide 9: Net Asset Value
Net Asset Value DCF Valuation • £14.6m decrease in H1 • £28.2m increase in H2 (3.8p/share) • Increase in H2 primarily reflects higher forecast power prices 9
Slide 10: Net Asset Value Since IPO
Net Asset Value Since IPO 108 104 NAV/Share (p) (1) 100 96 92 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 UKW RPI rebased BSIF TRIG FSFL JLEAG NESF UKW NAV growth of 9.2% v RPI growth of 7.4% since IPO 10 Note: (1) adjusted for accrued dividends
Slide 11: Investment Performance
Investment Performance TSR in 2016 of 17.4% TSR since IPO of 46.1% Correlation to inflation attractive to investors 11
Slide 12: Portfolio Growth
ez. GREENCOAT | UK WIND Portfolio Growth
Slide 13: Portfolio Overview
Portfolio Overview Well-diversified portfolio generating sufficient electricity to power 375,000 homes Note: all assets shown by value as at 31 December 2016 13
Slide 14: Disciplined Approach to Acquisitions and Growth
Disciplined Approach to Acquisitions and Growth £400m+ of acquisition debt capacity no investments made in 15 months 2013 2014 2015 2016 No. of assets £35bn market £20bn market (Post IPO) 20 37 48 40 Priced 4 6 1 2 Acquired Notes: capital structure historical to date, illustrative in the future; acq
Slide 15: Summary
Wi GREE NCOAT — UK WIND ARS Summary
Slide 16: 2016 Highlights Strength of Business Model
2016 Highlights Strength of Business Model Power generation of 978.1GWh (2015: 799.3GWh); 6% below budget Net cash generation of £49.0m (2015: £48.3m) Dividends of £38.8m (6.34p per share) declared with respect to the year and 6.49p target for 2017 Two investments made taking generating capa
Slide 17: Appendix
Wi GREE NCOAT — UK WIND ARS Appendix
Slide 18: 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 Bin Mountain N Ireland GE SSE 9.0 100% 9.0 Jul-07 Mar-13 1.0 31.7% Braes of Doune Scotland Vestas Centrica 72.0 5
Slide 19: 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 Maerdy Wales Siemens Statkraft 24.0 100% 24.0 Aug-13 Jun-14 1.0 30.3% Middlemoor England Vestas Innogy 54.0 49% 2
Slide 20: NAV Sensitivities
NAV Sensitivities The unlevered discount rate used in the DCF valuation is between 8 and 9 per cent.. The market discount rate has remained constant since listing. A variance of +/- 0.5 per cent. is considered to be a reasonable range of alternative assumptions for discount rate. Base case energy yi
Slide 21: 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 year to 31 December 2016 (the “Presentation”). For the purposes of this notice, the P