Renewables Infrastructure Group Limited GBP Red.Shs · LSE:TRIG
Renewables Infrastructure Group Limited GBP Red.Shs — The Renewables Infrastructure Group — H1 2018 Earnings Presentation
35 slides from Renewables Infrastructure Group Limited GBP Red.Shs's earnings presentation, Aug 8, 2018
Slide 1: Interim results for six months to 30 June 2018
The Renewables Infrastructure Group Interim results for six months to 30 June 2018 8 August 2018 trig-ltd.com
Slide 2: Contents
Contents Section Slide Introduction 3 Overview of Interim Results 5 Portfolio and Operations 10 Financials 16 Outlook 22 Appendices 25 Contacts / Important Information 34 2 trig-ltd.com
Slide 3: Introduction
Introduction A leading London-listed renewables investment company TRIG is invested in 61 assets across wind, solar and battery storage in the UK, France and Ireland with 938MW of power output capacity Five year track record since IPO within a sustainable, growing market Substantial, diversifi
Slide 4: Speakers
Speakers Helen Mahy CBE Richard Crawford Phil George TRIG InfraRed Capital Partners InfraRed Capital Partners Chairman Director, Infrastructure Director, Infrastructure Jaz Bains Chris Sweetman Renewable Energy Systems Renewable Energy Systems Group Commercial Director TRIG Operations Manager 4 trig
Slide 5: Overview of Interim Results
Overview of Interim Results Clahane, Republic of Ireland trig-ltd.com
Slide 6: Financial Highlights
Financial Highlights Six months to 30 June 2018 Strong Performance Roussas, France ▲ NAV per share: 105.2p (Dec 2017: 103.6p) ▲ Earnings per share: 4.8p (H1 2017: 3.5p) ▲ New equity raised of £151m1 funding acquisitions ▲ Market capitalisation: £1.2bn2 ▲ H1 2018 TSR3: 9.2% annualised (since IPO: 7.7
Slide 7: Growth and Funding (1)
Growth and Funding (1) 117 MW of incremental capacity acquired in H1 2018 Date Project Net Capacity (MW) Subsidy Expected Location Total overall Acquired completion date investment Jan 2018 Clahane 41.2MW+13.8MW extension FITs Extension Q3 2018 County Kerry, R of Ireland €72m Rosieres 17.6 CfD/FiTs
Slide 8: Growth and Funding (2)
Growth and Funding (2) £151m raised since January 2018 June December December Portfolio Evolution 2018 2017 2016 Equity Issuance Projects 61 57 53 H1 2018: £81m Net Capacity 938MW 821MW 710MW July 2018: £70m Portfolio Value £1,206m £1,081m £819m Total: £151m Portfolio Gearing 36% 38% 40% Revolving A
Slide 9: Market Dynamics
Market Dynamics Strong demand continues, slight net reduction in power price forecast Valuation Discount Rates ▲ No change in discount rates (or inflation assumptions1), keep under review ~ upward price pressure ▲ For assumptions, see p18 Power Prices ▲ Average power prices achieved in H1 2018 are c
Slide 10: Portfolio and Operations
Portfolio and Operations Clahane Extension, Republic of Ireland trig-ltd.com
Slide 11: Portfolio (1) – Diversification
Portfolio (1) – Diversification 938MW net capacity / 61 projects (30 June 2018) By Jurisdiction / Power Market1 2 France 12% Republic of Ireland England (GB) (SEM) 6% 24% Northern Ireland (SEM) 5% Wales (GB) 9% Scotland (GB) 44% Guadeloupe By Technology2 Battery 2% La Réunion Solar PV 21% Onshore Wi
Slide 12: Portfolio (2) – Revenue Profile
Portfolio (2) – Revenue Profile Medium-term project-level revenues mainly fixed / indexed Project Revenue by Type Next 12 2 months1 £300m £250m £200m £150m £100m £50m - '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 '35 '36 '37 '38 1. Project revenue expected for 12 months from
Slide 13: Counterparty Exposure
Counterparty Exposure Broad spread of high quality equipment, maintenance and off-take counterparties Electricity off-takers Equipment manufacturers2 Maintenance suppliers3 40% 13 30% 13 Relative valuation of associated projects (%) 7 Number of projects 20% 5 13 4 24 4 10% 3 3 2 4 4 3 1 14 4 1 8 2 3
Slide 14: Operational Performance (1)
Operational Performance (1) Diversification helped mitigate poor wind ▲ H1 generation: 1,003GWh ▪ 18% increase over H1 2017 due to increased capacity Wind and solar variation to long-term average ▪ Total generation 6% below budget due to low wind, partially offset by good irradiation ▲ Weather condi
Slide 15: Operational Performance (2)
Operational Performance (2) Enhancements keep delivering value Commercial ▪ Ongoing O&M tendering cost reductions achieved ▪ Innovative PPA strategy enabling electricity price fixing ▪ New one-off revenue stream obtained for four UK wind farms Technical ▪ Turbine uprating, previously constrained by
Slide 16: Financials
Financials Haut Languedoc, France trig-ltd.com
Slide 17: Portfolio Valuation Bridge
Portfolio Valuation Bridge Valuation movement in the six months to 30 June 2018, £m £1,250m (49.0) (4.8) (0.6) 61.5 - 118.2 £1,000m £750m 1,150.4 1,145.6 1,145.6 712.3 1,145.0 1,081.2 1,081.2 1,150.4 1,206.5 £500m £250m £m 31-Dec-17 New Cash Rebased Change in Movement in Foreign Balance 30-Jun-18 Va
Slide 18: Valuation – Key Assumptions
Valuation – Key Assumptions As at 30 June 2018 As at 31 December 2017 Discount Rate Weighted average 7.9% 8.0% Weighted by market Power Prices Based on third party forecasts Based on third party forecasts (See power curve on slide 9) UK Long-term: 2.75% Long-term: 2.75% Inflation France & Rep. of Ir
Slide 19: Summary Income Statement
Summary Income Statement Six months to Six months to 30 June 2018 30 June 2017 £m £m Statutory Basis Adjustments1 Expanded Basis Expanded Basis Total operating income 47.4 8.9 56.3 39.5 Acquisition costs - (0.9) (0.9) (0.5) Net operating income 47.4 8.0 55.4 39.0 Fund expenses (0.7) (5.6) (6.3) (5.4
Slide 20: Summary Balance Sheet
Summary Balance Sheet As at 30 June 2018 As at 31 December 2017 £m £m Statutory Basis Adjustments Expanded Basis Expanded Basis Portfolio value 1,070.7 135.8 1,206.5 1,081.2 Working capital 0.1 (1.9) (1.8) (2.8) Debt - (134.0) (134.0) (106.4) Cash 14.8 0.1 14.9 10.8 Net assets 1,085.6 - 1,085.6 982.
Slide 21: Summary Cash Flow
Summary Cash Flow Higher than expected power prices balancing out lower generation Six months to Six months to 30 June 2018 30 June 2017 £m £m Statutory Basis Adjustments Expanded Basis Expanded Basis Cash from investments 27.6 21.4 49.0 35.3 Operating and finance costs (0.6) (6.6) (7.2) (4.8) Cash
Slide 22: Outlook
Outlook Borgo, Corsica, France trig-ltd.com
Slide 23: Market Opportunities
Market Opportunities European markets increasing their renewables targets Positive backdrop for renewables continues: ▲ Need to intensify efforts to decarbonise following Paris EU Generating Capacity (GW)2 ▲ Reducing costs of deployment Onshore Wind Offshore Wind Solar 600 Actual Projected EU: 500 ▲
Slide 24: Concluding remarks
Concluding remarks Strong operating performance ▲ Active asset management resulting in good availability ▲ Higher achieved power prices mitigated lower wind speeds Attractive dividends ▲ Good cash cover achieved ▲ On target to deliver 6.50p aggregate distribution for 2018 Favourable outlook ▲ Strong
Slide 25: Appendices
ost _ Appendices: Sheringham Shoal, England trig-Itd.com
Slide 26: The Team
The Team Access to Experienced Management Independent Board Investment Manager Operations Manager Helen Mahy CBE (Chair) Strong, 20+ year track record in The world’s largest independent renewable infrastructure and real estate funds energy developer Jonathan Bridel Over US$10 billion of equity
Slide 27: Board and Senior Management Team
Board and Senior Management Team Over 100 years of relevant experience on the TRIG Advisory Committee TRIG Independent Board Helen Jonathan Klaus Shelagh (Non-Executive) Mahy CBE Bridel Hammer Mason (Chairman) Investment matters Operational TRIG Investment Werner Chris Tony Jon Richard matters Commi
Slide 28: Scale of the Global Market for Renewables
Scale of the Global Market for Renewables Renewables is now mainstream Global Cumulative Renewables as % of Global Power Capacity1 Installed Wind and Solar Capacity (GW)2 600 60% 55% 50% 51% 49% 45% 500 40% 42% 40% 39% 30% 32% 400 27% 20% 20% 17% 15% 13% 12% 14% 10% 11% 300 10% 8% 9% 10% 11% 8% 8% 8
Slide 29: Sustained Investor Demand
Sustained Investor Demand Record allocations to renewables Unlisted Infrastructure Dry Powder Completed Infrastructure Deals (by fund’s primary geographic focus) (%) (by number of deals) 2009-2017 ($bn) 46 47 46 51 14 16 15 9 13 10 11 18 10 14 14 10 15 11 11 9 1 11 11 1 12 2014 2015 2016 2017 Other
Slide 30: EU – New Power Capacity Installations
EU – New Power Capacity Installations Wind + Solar PV: dominating European new power capacity 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2014 (27GW) 2015 (29GW) 2016 (24GW) 2017 (28GW) Offshore Wind Onshore Wind Solar Other Renewables Hydro Biomas Nuclear Gas Coal Source: Wind Europe 30 trig-ltd.co
Slide 31: NAV sensitivities
NAV sensitivities Based on portfolio at 30 June 2018 Reduction in assumption Increase in assumption Sensitivity effect on NAV per share as at 30 June 2018 (£ labels represent sensitivity effect on fully invested portfolio value of £1,263.4 m) 31 trig-ltd.com
Slide 32: Debt Structure
Debt Structure Disciplined approach Term Project Debt Gearing1 TRIG’s portfolio at 7/8/2018 ▲ Limited to 50% of portfolio enterprise value Project Category typically (Younger = <10yrs) Average % of # of available gearing1 portfolio projects ▲ Fully amortising within period of firm power prices (i.e.
Slide 33: 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 30 June 2018 of 105.2p Issue / Listing ▲ Premium listing of ordinary shares on the Main Market of ▲ Market Capitalisation c. £1.13bn (30 June 2
Slide 34: 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 Trafalgar Court Bulwer Avenue +44 (0)2
Slide 35: 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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