Renewables Infrastructure Group Limited GBP Red.Shs · LSE:TRIG
Renewables Infrastructure Group Limited GBP Red.Shs — The Renewables Infrastructure Group — H1 2017 Earnings Presentation
36 slides from Renewables Infrastructure Group Limited GBP Red.Shs's earnings presentation, Aug 18, 2017
Slide 1: Interim results for six months to 30 June 2017
The Renewables Infrastructure Group Interim results for six months to 30 June 2017 18 August 2017 trig-ltd.com
Slide 2: Contents
Contents Section Slide Introduction 3 Overview of Interim Results 4 Portfolio & Operations 9 Financials 15 Outlook 21 Appendices 24 Contacts / Important Information 35 2 trig-ltd.com
Slide 3: Introduction
Introduction The leading London-listed renewables investment company1 TRIG is invested in 56 wind, solar and battery projects in the UK, France and Ireland with 774MW of power output capacity London-listed investment company (IPO in 2013) established in Guernsey with an independent board of non-
Slide 4: Overview of Interim Results
Overview of Interim Results Garreg Lwyd, Wales trig-ltd.com
Slide 5: Financial Highlights
Financial Highlights Six months to 30 June 2017 Robust Performance Freasdail, Scotland ▲ NAV per share: 100.6p (Dec 2016: 100.1p) ▲ Earnings per share: 3.5p (H1 2016: 2.6p) ▲ Ongoing charges: 1.09% (H1 2016: 1.15%): scale benefits ▲ Two wind acquisitions for £125m ▲ New equity raised of £110m ▲ Mark
Slide 6: Growth and Funding
Growth and Funding Scale, diversification, strategic partnerships Portfolio Evolution Investments June 2017 December IPO May: £22.6m in Neilston Community Wind Farm, a 10MW 2016 July 2013 onshore wind farm in East Renfrewshire, Scotland Projects 55* 53 18 May: £102.8m in Garreg Lwyd, a 34MW onshore
Slide 7: Broxburn Battery Storage
Broxburn Battery Storage First investment by listed sector in wholesale power storage ▲ In August TRIG acquired a 100% interest in a battery storage project, Broxburn ▲ Capacity of 20MW ▲ Acquired from RES – the project developer ▲ Total investment of £20m ▲ Benefits from a bespoke long-term bilater
Slide 8: Market Dynamics
Market Dynamics Strong demand continues despite muted power prices Power Prices Discount Rates ▲ H1 2017 spot prices have improved since lows of H1 2016 ▲ Reduced by 0.2% in H1 2017 ▲ Overall forecast prices down c.5% since December 2016 ▲ Weight of capital allocation ▲ Longer-term price rises drive
Slide 9: Portfolio & Operations
Portfolio & Operations Puits Castan, France trig-ltd.com
Slide 10: Portfolio (1) – Diversification
Portfolio (1) – Diversification 754MW net capacity / 55 projects (30 June 2017) By Jurisdiction / Power Market1 2 France 12% Republic of Ireland England (GB) (SEM) 2% 24% Northern Ireland SEM) 6% Wales (GB) 11% Scotland (GB) 45% By Technology / Weather System2 3 Solar PV Wind (Atlantic) 27% 68% Wind
Slide 11: Portfolio (2) – Revenue Profile
Portfolio (2) – Revenue Profile Medium-term project-level revenues mainly fixed / indexed Project Revenue by Type Indexed Fixed PPA Market PPAs & Revenue FITs 29% 19% PPA Market Next 12 Revenue at Floor2 11% months1 ROC Recycle, Other 5% Indexed ROC Buyout 36% £250m £200m £150m £100m £50m - 2017 201
Slide 12: Operational Performance (1)
Operational Performance (1) Weather effects mitigated by diverse, multi-technology portfolio UK Average Wind Speed2 12 ▲ H1 generation: 851GWh1 Average wind speed (knots) 10 15% increase over H1 2016 8 On budget production, marginally ahead of weather adjusted production 6 ▲ Weather conditions 4
Slide 13: Operational Performance (2)
Operational Performance (2) Diversification sustaining performance close to long-term expectations Portfolio Monthly Production vs. P501 200 2013 2014 2015 2016 2017 150 Portfolio budget estimate Monthly production Actual monthly production (GWh) 100 50 0 Focused Operational Management Enhancement I
Slide 14: Financials
Financials RES personnel inspecting panels at Egmere Airfield Gearbox replacement at Haut Cabardes (1) Turbine installation at Freasdail Gearbox replacement at Haut Cabardes (2) trig-ltd.com
Slide 15: Financials
Financials Haut Languedoc, France trig-ltd.com
Slide 16: Portfolio Valuation Bridge
Portfolio Valuation Bridge Valuation movement in the six months to 30 June 2017, £m £1000m £900m (35.3) 5.7 50.8 (35.2) 14.7 3.5 £800m 129.0 £700m £600m £500m 912.3 891.8 895.3 712.3 877.1 877.1 £400m 818.7 818.7 912.3 951.8 £300m £200m £100m £m 31-Dec-16 New Cash Rebased Change in Reduction in Fore
Slide 17: Valuation – Key Assumptions
Valuation – Key Assumptions As at 30 June 2017 As at 31 December 2016 Discount Rate1 Weighted average 8.1% 8.4% Weighted by market Power Prices Based on third party forecasts Based on third party forecasts See power curve on slide 8 UK 2.75% 2.75% Inflation France & Rep. of Ireland 2.00% 2.00% Forei
Slide 18: Summary Income Statement
Summary Income Statement On-target production, portfolio growth and valuation gains Six months to Six months to 30 June 2017 30 June 2016 £m £m Statutory Basis Adjustments1 Expanded Basis Expanded Basis Total operating income 33.3 6.2 39.5 32.8 Acquisition costs - (0.5) (0.5) - Net operating income
Slide 19: Summary Balance Sheet
Summary Balance Sheet NAV per share up 0.5p after dividends As at 30 June 2017 As at 31 December 2016 £m £m Statutory Basis Adjustments Expanded Basis Expanded Basis Portfolio value 941.7 10.1 951.8 818.7 Working capital (1.6) (1.7) (3.3) (3.1) Debt - (8.5) (8.5) - Cash 8.5 0.1 8.6 18.7 Net assets 9
Slide 20: Summary Cash Flow
Summary Cash Flow Robust cash flows in low power price environment Six months to Six months to 30 June 2017 30 June 2016 £m £m Statutory Basis Adjustments Expanded Basis Expanded Basis Cash from investments 25.3 10.0 35.3 30.8 Operating and finance costs (0.3) (4.5) (4.8) (4.8) Cash flow from operat
Slide 21: Outlook
Outlook Roussas Claves, France trig-ltd.com
Slide 22: Market Opportunities
Market Opportunities Disciplined approach seeking value across multiple sectors UK Generating Capacity1 Wind & Solar PV Developments 15 ▲ Momentum maintained in Northern Europe ▲ UK development activity slowing except offshore wind 10 GW Implications for Deal Flow ▲ Expect to see reduced UK activity
Slide 23: Concluding remarks
Concluding remarks On-track operating performance Driven by a diversified portfolio, scale benefits and prudent management Portfolio enhancement initiatives Attractive dividends On target to deliver 6.40p aggregate distribution for 2017 Continuing to monitor inflation, real power price f
Slide 24: Appendices
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Slide 25: The Team
The Team Access to Experienced Management Independent Board Investment Manager Operations Manager Helen Mahy CBE (Chair) Strong, 18+ year track record in The world’s largest independent renewable infrastructure and real estate funds energy developer Jonathan Bridel Over US$9 billion of equity
Slide 26: Board and Senior Management Team
Board and Senior Management Team Over 100 years of relevant experience on the TRIG Advisory Committee TRIG Independent Board Helen Jonathan Klaus Shelagh (Non-Executive) Mahy CBE Bridel Hammer Mason (Chairman) Investment matters TRIG Investment Werner Chris Tony Jon Richard Committee von Gill Roper
Slide 27: EU – New Power Capacity Installations
EU – New Power Capacity Installations Wind + Solar PV: dominating European new power capacity 2014 Share of EU New Power Capacity (Total = 27GW) 2015 Share of EU New Power Capacity (Total = 29GW) 2016 Share of EU New Power Capacity (Total = 24GW) Source: Wind Europe 27 trig-ltd.com
Slide 28: UK Renewables Production History
UK Renewables Production History UK Electricity Production from Renewable Energy by Major Source (GWh) Source: UK Government / BEIS 28 trig-ltd.com
Slide 29: Counterparty Exposure
Counterparty Exposure Broad spread of high quality equipment, maintenance and off-take counterparties 1. By value, as at 30 June 2017 using Directors’ valuation. Where projects have more than one contractor, valuation is apportioned. 29 2. Equipment manufacturers generally also supply maintenance se
Slide 30: NAV sensitivities
NAV sensitivities Based on portfolio at 30 June 2017 Negative directional change to assumption Positive directional change to assumption Sensitivity effect on NAV per share as at 30 June 2017 (£ labels represent sensitivity effect on portfolio value of £951.8 m) 30 trig-ltd.com
Slide 31: Operational Management
Operational Management Breadth and depth of capability provided by RES Managing Performance ▲ Availability – minimising lost production, fault rectification ▲ Generation – maximising output, maintenance planning, turbine & grid settings ▲ Financial – budget control, minimising costs, distributions ▲
Slide 32: UK Government Benchmark Yields
UK Government Benchmark Yields Low rate environment makes yielding assets attractive UK Gilt Yields (Last 5 Years) % Source: InfraRed, Thomson Reuters 32 trig-ltd.com
Slide 33: Dividend Track Record
Dividend Track Record Aggregate dividend target of 6.40p per share for 2017 Interim dividends per Period Aggregate annual dividend per share Payment timing share Q4 2017 1.60p Target 3/2018 Q3 2017 1.60p Target 12/2017 Target 6.40p Q2 2017 1.60p Declared; Due 9/2017 Q1 2017 1.60p Paid 6/2017 Q4 2016
Slide 34: Key Facts
Key Facts Fund Structure ▲ Guernsey-domiciled closed-end investment company Performance ▲ On target for 2017 aggregate dividend of 6.40p per share ▲ 8.4% annualised Total Shareholder Return since IPO based on Issue / Listing ▲ Premium listing of ordinary shares on the Main Market of share price plus
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 Capita Registrars (Guernsey) Ltd East Wing Mont Crevelt House Trafalgar Court Bulwer Avenue +44 (0)20
Slide 36: Important Information
Important Information By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This document is an advertisement and is not a prospectus. Any decision to purchase shares in The Renewables Infrastructure Compa
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