Redwheel Next Generation Power Infrastructure Fund - Institutional Class · NASDAQ:ECOIX
Redwheel Next Generation Power Infrastructure Fund - Institutional Class — HydrogenOne Capital Growth — Q4 2023 Earnings Presentation
33 slides from Redwheel Next Generation Power Infrastructure Fund - Institutional Class's earnings presentation, Feb 7, 2024
Slide 1: HydrogenOne Capital Growth plc Q4 2023 Investor Update
HydrogenOne Capital Growth plc Q4 2023 Investor Update Investing in clean hydrogen for a climate-positive impact 7th February 2024 LSE: HGEN
Slide 2: Disclaimer
Disclaimer This document is issued by HydrogenOne Capital Growth plc (the "Company" or "HydrogenOne") for the confidential use of only those persons to whom it is distributed and is not to be reproduced, distributed or used for any other purpose. By accepting delivery of this document, each recipien
Slide 3: Contents
Contents • Q4 2023 results • Portfolio update • Appendix: Invested companies update 3
Slide 4: Q4 2023 highlights
Q4 2023 highlights £132.7 103.0p • NAV per share 103.0 pence; an increase of 1.6% since 30 September m NAV per share 2023 (101.4 pence), and an increase of 5.8% since 31 December 2022, NAV which included a 6.7 pence per share reduction from higher discount rates; • Private companies, which account f
Slide 5: How our portfolio contributes to clean hydrogen
How our portfolio contributes to clean hydrogen Feedstock GAS Grid Blending Refining and chemicals clean-up Renewables Electrolysis Storage & distribution Transport ELECTRICITY Off grid HydrogenOne activities • Conversion of renewables to hydrogen Gaussin hydrogen truck • Multiple hydrogen applicati
Slide 6: Strong increase in investment in clean hydrogen in 2023
Strong increase in investment in clean hydrogen in 2023 HydrogenOne’s deal flow tracker 2023 key transactions 20,000 2020 2022 Lhyfe 2023 32,000 • Thyssenkrupp Nucera IPO NEL NEL AFC Energy Hy2Gen Hexagon Purus 17,500 Ceres Power Electric Hydrogen Amogy 28,000 • €550m raise / c. €2.5bn valuation Pow
Slide 7: 50% growth in green hydrogen production in 2023
50% growth in green hydrogen production in 2023 Xinjiang Solar Hydrogen Project start up 2023 260MW. Sinopec Liquid hydrogen plant Alabama 2023 start up 30 tonnes per day EUROPE 0.3GW 6.4GW NORTH AMERICA 0.3GW 4.1GW ME/ASIA 0.6GW 11.9GW AFRICA Ningxia Hydrogen Plant, China SOUTH AMERICA <0.1W 8.1GW
Slide 8: Unique and concentrated portfolio across the hydrogen value chain
HydrogenOne has a unique and concentrated portfolio, invested across the hydrogen value chain Access to a distinctive portfolio of private hydrogen businesses Where we invest Thierbach Others • Revenue-generating equipment businesses Top 10 4.9% 95.1% • Hydrogen production projects 20.4% • Co-invest
Slide 9: Investing alongside blue-chip industrials and funds
Investing alongside blue-chip industrials and funds Invested companies Co-investors Hydrogen production Storage & distribution Supply chain Hydrogen applications 9
Slide 10: Q4 2023 financial highlights
Q4 2023 financial highlights 31 Dec 30 Sep % 31 Dec % change change 2023 2023 1,2 2022 2,3 • NAV per share 102.99p NAV per share 102.99p 101.42p 1.6% 97.31p 5.8% • +5.8% Q4 22 – Q4 23 NAV £132.7m £130.6m 1.6% £125.4m 5.8% Market Cap £64.0m £71.2m (10.2)% £102.2m (37.4)% • +1.6% Q3 23 – Q4 23 Share p
Slide 11: Growing our NAV and NAV/share in Q4 2023
Growing our NAV and NAV/share in Q4 2023 NAV movements Q3 2023 – Q4 2023 (pence per share) NAV (£m) and NAV pence per share, 2021-23 104.00 0.40 0.03 145 105.00 103.0p 103.50 101.4p 1.82 100.7p 100.0p 100.00 103.00 97.3p 96.8p 96.9p 96.5p (0.68) 135 94.9p £132.7m £130.6m 102.50 £129.7m 95.00 £128.8m
Slide 12: Portfolio valuation changes
£21.8m £5.3m £27.1m £12.9m £0.8m £13.7m £11.5m (£6.1m) £5.4m £10.0m £0.6m £10.6m £3.4m £1.0m £4.4m £6.3m Portfolio valuation changes, 12 months ended 31 Dec 2023 Portfolio valuation changes 2022-23 £5.6m £11.9m £20.4m £4.0m £24.4m £5.1m £1.8m £7.0m £11.6m £8.1m £19.7m £1.9m £0.0m Thierbach £1.9m £3.
Slide 13: Approach to valuation remains consistent
The Company’s approach to valuation remains consistent while market has seen strong rise and correction HydrogenOne NAV/share vs listed hydrogen shares (SOLGHYD) Portfolio fair value by valuation methodology, YE 31 Dec 2023 140 100% 97% 120 80% 100 60% 80 40% 60 20% 40 2% 2% HGEN SOLGHYD NAVPS - 20
Slide 14: Contents
Contents • Full year results for the year ending 31st December 2022 • Portfolio update • Appendix: Invested companies update 14
Slide 15: Distinctive and unique hydrogen portfolio
Distinctive and unique hydrogen portfolio Portfolio segmentation Portfolio segmentation Fund holdings (as of 31 Dec 23) by theme by geography Private portfolio NAV £m NAV % Sunfire GmbH 27 20% Elcogen Plc +1.1 24 18% 10% 4% +1.63 21% 15% Strohm Holding B.V. +1.1% 20 15% 9% 28% 1% HiiROC Ltd 14 10% C
Slide 16: HiiROC: Cemex enhanced strategic relationship
HiiROC: Cemex enhanced strategic relationship + UK LCHS inclusion (10% HGEN NAV) Thermal Plasma Electrolysis (“TPE”) production process HiiROC TPE demonstrator at Centrica Brigg site, UK Recent developments • Technology leader in patented TPE, which cleans up flare gas, methane, biogas in hydrogen a
Slide 17: Elcogen: HD Hyundai strategic investment
Elcogen: HD Hyundai strategic investment (18% HGEN NAV) !"#$%&"'$%(&)(##&*+%&,-*).&$++"/*-$"+ !$-(&0"1.,&)"22(+)(%&*-&3#)"456&7*##$++ !"#$%&'()$*(+,-.$/+((',,0$12+3"$45$46678$9:;<0$ =*$->$?@678$*>-",-'+($+-$-2'3$3'-" Cell Stack Module Underlying electrochemical Manages the way the inputs, Module inc
Slide 18: NanoSUN: relaunched as Swift Hydrogen
NanoSUN: relaunched as Swift Hydrogen (4% HGEN NAV) Distinctive ‘cascade’ technology for mobile refuelling Corporate restructuring Q1 24 • Market leader in mobile refuelling for ground transport and turboprop • Distinctive ‘cascade’ technology to manage high pressure gas transport into low pressure
Slide 19: Portfolio is revenue generating with consistent growth
The portfolio is revenue generating and has produced consistent growth E1"0-D&$+&91$/*-(&9"1-:"#$"&1(/(+;(,&,$+)(&$+/(,-2(+- 81$/*-(&9"1-:"#$"&1(/(+;(&<5==>&?*,$,@6&A2&4&71*$#$+B&5C&2"+-D, 16 80 70 14 +125% Increase in revenues since investment (0x) 60 Revenue, £m 50 12 40 10 30 20 8 10 - 6 Q4 2020
Slide 20: Growing value for investors
Growing value for investors % of invested 2022-23 Investments portfolio Activity revenue (31 Dec growth (%) 23) Growing value for our investors Cranfield • Business plan delivery in invested companies • IP demonstrators Early HiiROC 29% • Project +31% • Follow-on investment by 3rd parties at higher
Slide 21: Summary
Summary Q4 2023 highlights Identifying the best investment opportunities Active Grow EBITDA • NAV per share 103.0 pence; an increase of 1.6% since Specialist team >£500m pipeline stewardship and exit 30 September 2023 (101.4 pence), and an increase of 5.8% since 31 December 2022; • Private companies
Slide 22: Appendix: Invested companies summary
• Appendix: Invested companies summary 22
Slide 23: Fund holdings
Fund holdings As at 31 Dec 2023 As at 30 Sep 2023 Private portfolio NAV £m NAV % NAV £m NAV % Sunfire GmbH 27 20% 25 19% Elcogen Plc 24 18% 22 17% Strohm Holding B.V. 20 15% 20 15% HiiROC Ltd 14 10% 11 8% Cranfield Aerospace Solutions 12 9% 12 9% Bramble Energy Limited 11 8% 8 6% HH2E AG 7 5% 4 3% N
Slide 24: Sunfire GmbH investment
Sunfire GmbH investment (Supply chain) Description Growth in revenues since investment German industrial electrolyser producer, of pressure 16 alkaline (AEL) and solid oxide electrolysers (SOEC) Increase in revenues since investment (0x) 14 www.sunfire.de Investment size / date / 12 • £22m / Oct 21
Slide 25: Elcogen Plc investment
Plc Elcogen Plc investment (Supply chain) Company description Growth in revenues since investment Solid oxide fuel cell and electrolyser manufacturer with presence in Estonia and Finland 16 Increase in revenues since investment (0x) www.elcogen.com 14 Investment size / date / • £20m / May 22 / 18% o
Slide 26: Strohm Holding B.V. investment
Strohm Holding B.V. investment (Storage & Distribution) Company description Growth in revenues since investment 16 Netherlands-based hydrogen pipeline company Increase in revenues since investment (0x) 14 www.strohm.eu 12 Investment size / date / • £10m / Aug 22 & Dec 22 & Nov 23 / 15% of NAV % of N
Slide 27: HiiROC Limited investment
HiiROC Limited investment (Storage & Distribution) Company description UK-based thermal plasma electrolysis developer, with Growth in revenues since investment world-leading (IP-protected) technology for low-cost, zero-emission hydrogen, also enabling flare/waste gas 16 mitigation and CO2 capture us
Slide 28: Cranfield Aerospace Solutions Ltd
Cranfield Aerospace Solutions Ltd Company description Growth in revenues since investment UK-based passenger flight innovator, powering turboprop 16 Increase in revenues since investment (0x) flight with hydrogen 14 www.cranfieldaerospace.com 12 Investment size / date / • £9m / Mar 22 & Apr 23 & Sep
Slide 29: Bramble Energy Limited
Bramble Energy Limited Company description Growth in revenues since investment UK-based fuel cell and portable power solutions company 16 Increase in revenues since investment (0x) www.brambleenergy.com 14 Investment size / date / 12 • £10m / Feb 22 / 8% of NAV % of NAV Co-investors • IP Group, BGF,
Slide 30: HH2E & Thierbach investments
HH2E & Thierbach investments (Hydrogen Production) Description German green hydrogen project developer with a focus on industrial customers. Operator of the Thierbach green hydrogen development project, in which HGEN has a direct investment. Lubmin www.hh2e.de Investment size / date / • HH2E: £5m /
Slide 31: NanoSUN Limited
NanoSUN Limited Company description Growth in revenues since investment UK-based developer of hydrogen distribution and mobile 16 refueling equipment Increase in revenues since investment (0x) www.nanosun.co.uk 14 Investment size / date / • £11m / Dec 21 & Feb 23 & Jul 23 / 4% of NAV 12 % of NAV Co-
Slide 32: Gen2 Energy
Gen2 Energy Company description Norwegian green hydrogen project developer www.gen2energy.com Oslo Investment size / date / • £4m / Mar 22 & Nov 23 / 3% of NAV Holandsvika % of NAV • 500MW – est. 2027 Co-investors • HyCap, Vitol, Hoegh LNG, Knutsen Group • Electrolysis with shipping transport HGEN i
Slide 33: Contact us
Contact us HydrogenOne Capital LLP: Dr JJ Traynor, Managing Partner E: JJ.Traynor@hydrogenonecapital.com Richard Hulf, Managing Partner E: Richard.Hulf@hydrogenonecapital.com 5 Margaret St London W1W 8RY www.hydrogenonecapitalgrowthplc.com/ Barclays Bank PLC: Dion Di Miceli E: BarclaysInvestmentComp
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