GCP Asset Backed Income Fund Ltd. · LSE:GABI
GCP Asset Backed Income Fund — GCP Infrastructure Investments — Investor Presentation (March 2025)
25 slides from GCP Asset Backed Income Fund's investor presentation, Mar 31, 2025
Slide 1: GCP Infrastructure Investments Limited Investor Update Webinar
GCP INFRASTRUCTURE “INVESTMENTS LIMITED _| ee Investor Update Webinar 31 March 2025 Yo Y, Gravighg e i wats Si / ,
Slide 2: Important Notice
IMPORTANT NOTICE Warning This presentation (the "Presentation") has been prepared by Gravis Capital Management Limited (the "Investment Adviser" or “Gravis") andis for information purposes only. This Presentation is not intended for distribution to, or use by, any person or entity in any jurisdictio
Slide 3: Presenters
PRESENTERS Philip Kent CEO Phil joined Gravis in 2015 and serves as the CEO. Phil is actively involved in the management of Gravis' direct infrastructure and real asset investments, and has led investments across a range of energy, renewable and social infrastructure asset classes. Phil has 20-years
Slide 4: Agenda
AGENDA ® Introduction ®@ Capital allocation ® Portfolio ™®@ Conclusion GCP INFRA
Slide 5: Introduction
INTRODUCTION Gravis
Slide 6: GCP Infrastructure Investments Limited
GCP INFRASTRUCTURE INVESTMENTS LIMITED Invests in UK infrastructure that benefits from public-sector backed cash flows, with a focus on debt. Initial Offering Net Asset Value Investments Constituent of Market Cap the FTSE 250 since July 2015 £631m £903m 22 July 2010 £872m Note(s): Asat 31 March 2025
Slide 7: GCP Infrastructure Investments Limited - Objectives
GCP INFRASTRUCTURE INVESTMENTS LIMITED - OBJECTIVES The Company primarily invests in UK infrastructure debt and/or similar assets to meet the following key objectives. £ Income Pays an attractive risk- adjusted income and has done for 15 years Diversification Diversified across a range of different
Slide 8: Peer Group Universe — A Diverse Landscape
PEER GROUP UNIVERSE — A DIVERSE LANDSCAPE GCP Infrastructure Investments provides exposure to a diversified portfolio which is differentiated from its peers, with a repositioning expected over time. ' Infrastructure Infrastructure Private Demand } Debt ' Equity Equity Based 1 . . ' Economic f Listed
Slide 9: Capital Allocation
CAPITAL ALLOCATION Gravis
Slide 10: Capital Allocation — Objectives
CAPITAL ALLOCATION — OBJECTIVES The Company has progressed against the objectives for the use of the disposal proceeds. Demonstrate NAV Disposals of c.£57m on average around NAV | Reduce lovorace Net debt reduced from a £43m to £29m! SS 13.6m shares bought back Minimum £50m capital return during the
Slide 11: Capital Allocation - Disposals
CAPITAL ALLOCATION - DISPOSALS Progress has been made with capital recycling in a market that has been challenging for disposals. Blackcraig Wind Farm (April 2024) - £31 million - 8.1% Net IRR - 1.3x MOICt Rooftop Solar (October 2024) - £7 million - Realised at NAV Onshore Wind Disposal (January 202
Slide 12: Capital Allocation — Future Disposal Opportunities
CAPITAL ALLOCATION — FUTURE DISPOSAL OPPORTUNITIES Further pipeline of disposal opportunities, focusing on exiting supported living exposures and reducing merchant electricity price exposure. Assets Supported Living Portfolio of c. 80 properties to be refinanced Portfolio of c. 55 properties to be d
Slide 13: Portfolio
PORTFOLIO Gravis
Slide 14: Loan Payments
LOAN PAYMENTS The Company expects c. £270m to be repaid over the next c. 4 years on a scheduled basis, providing the opportunity for a ‘re-set’. Gravis has historically been able to exceed scheduled turnover of the portfolio through proactive refinances / disposals. Forecast loan cash flows (undisco
Slide 15: Portfolio Overview
PORTFOLIO OVERVIEW Amature, diverse and operational portfolio of UK infrastructure projects that is well positioned to benefit from the macro trends of population dynamics, decarbonisation and energy security. Portfolio by sector Healthcare Supported Living Biomass (domestic) Agriculture / Resource
Slide 16: Portfolio Overview (cont.)
PORTFOLIO OVERVIEW (CONT.) A mature, diverse and operational portfolio of UK infrastructure projects that is well positioned to benefit from the macro trends of Concentration (top 20 - 45%) population dynamics, decarbonisation and energy security. Portfolio by income type ( Lease income Electricity
Slide 17: Capital Allocation Policy — Resulting Indicative Portfolio
CAPITAL ALLOCATION POLICY — RESULTING INDICATIVE PORTFOLIO The Company has highlighted its intention to materially exit the Supported Living sector and reduce exposure to merchant electricity prices. Executing on this will have significant changes to the underlying portfolio characteristics. Indicat
Slide 18: NAV Bridge - March 2025
NAV BRIDGE - MARCH 2025 The NAV movement was driven by an increase in discount rates, asset specific revaluations and updated long-term electricity price forecasts. Discount rate changes by independent | valuation agent, Mazars, has raised the I] lo weighted average discount rate of the portfolio to
Slide 19: Electricity Price Backdrop
ELECTRICITY PRICE BACKDROP Valuations continue to be subject to considerable variability dependent on the assumptions made. External Consultant Forecasts Valuation forward curve (GB market) 30/09/2024 . 95 31/12/2024 z 30 —31/03/2025 a 02/05/2025 cd 85 2 £ a 2 80 e z £ a 75 ry 2 70 iw E 2 65 3 2 60
Slide 20: Asset Specific Adjustments
ASSET SPECIFIC ADJUSTMENTS Net asset specific revaluations in the period contributed (2.46) pence per share, showing the weakness in the market for certain assets. all Why now? US political uncertainty Buyer’s market Multiple sales of assets from listed sector GCP INFRA = _ J UK structural change Po
Slide 21: Outlook
OUTLOOK Gravis
Slide 22: Market Developments in the Quarter
MARKET DEVELOPMENTS IN THE QUARTER Key points Summary of proposals GCP INFRA Planning and Infrastructure Bill 2025 Reform of the England and Wales planning system to ‘get Britain building again’. Some impact in Scotland. Support to house building targets (1.5m new homes) and fast track 150 planning
Slide 23: Portfolio continues to operate well
Portfolio continues to operate well, diversification has served to mitigate risks. Continued focus on capital reallocation strategy - reducing leverage, buying back shares and rebalancing risk. Rebalancing of portfolio in near-term: reduce equity-like exposures as we refocus on debt and trade out of
Slide 24: Gravis Capital Management Limited Contact Information
Gravis Capital Management Limited 24 Savile Row London WIS 2ES www.graviscapital.com CONTACT INFORMATION Philip Kent philip.kent@graviscapital.com 020 3405 8512 Cameron Gardner cameron.gardner@graviscapital.com 020 3405 8555 Max Gilbert max.gilbert@graviscapital.com 020 3405 8515 Craig Jenkins craig
Slide 25: Gravis
Gravis INVESTMENT IDEAS FOR THE LONG RUN
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