Foresight Environmental Infrastructure Limited GBP · LSE:FGEN
Foresight Environmental Infrastructure Limited GBP — John Laing Environmental Assets Group — FY2019 Earnings Presentation
32 slides from Foresight Environmental Infrastructure Limited GBP's earnings presentation, June 2019
Slide 1: Full year results presentation
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Slide 2: Contents
Contents Page Contents 3 JLEN Overview 4 Annual Results Highlights 5 Portfolio Overview 7 Portfolio Performance 11 Portfolio Valuation 15 Leverage 16 Financial Performance 18 Environmental, Social & Governance 20 Investment Themes 21 Foresight Transaction 25 Summary
Slide 3: JLEN Overview
• • • • • • • • • 1 1. On IPO issue price. These are targets only and not profit forecasts. There can be no assurance that these targets will be met.
Slide 4: Annual Results Highlights
At At Growth 31st March 2019 31st March 2018 Market capitalisation £549.2m £394.4m 39% Profit per share 12.2p/share 5.7p/share 114% Portfolio value £523.6m £429.5m 22% Share price 110.5p 101.1p 9% Dividend per share 6.51p 6.31p 3% NAV per share 104.7p 99.6p 5% Gearing 36% 45% 9% Number of assets 28
Slide 5: Portfolio overview as at March 2019
Portfolio overview as at 31 March 2019 Wind Bilsthorpe — 100%, 10.2MW, ROC Burton Wold — 100%, 14.4MW, ROC Carscreugh — 100%, 15.3MW, ROC Castle Pill— 100%, 3.2MW, ROC Dungavel - 100%, 26MW, ROC Ferndale — 100%, 64MW, ROC Hall Farm — 100%, 24.6MW, ROC Le Placis Vert - 100%, 4MW, FIT. Llynfi - 100%,
Slide 6: Portfolio revenue breakdown
*Based on project revenues from volumes/generation over the previous year and assumes project cash flow distributions reflect revenue split at each project.
Slide 7: Portfolio performance: Anaerobic Digestion
Portfolio performance Anaerobic Digestion * Generation performance 4% above budget * Strong availability throughout year * Portfolio approach and stock buffers helped mitigate against unfavourable crop Aneerobic digestion growing conditions during summer 2018 * Vulcan AD plant's capital expansion to
Slide 8: Portfolio performance: Wind
Portfolio performance Wind * Generation negative variance due to low wind resource during the year, particularly Summer 18 * Availability good across the portfolio, with the exception of Senvion sites * Value enhancements implemented: Canselien « Aftermarket software and hardware 31 March 2019 (GWh)
Slide 9: Portfolio performance: Solar
ites Portfolio performance Solar * Satisfactory performance across the portfolio, excluding Branden outages * Generation 2% above budget on irradiation $ ° olar levels 6% above forecast Generation * Branden outages expected to be covered 31 March 2019 (GWh) 79 by insurance 31 March 2018 (GWh) 64 * L
Slide 10: Portfolio performance: Waste and Wastewater
10 Portfolio performance Waste and Wastewater * ELWA and Tay slightly ahead of = financial forecasts i i * Performance at each plant continues to be good * D&G project was terminated during the year and will make a final distribution on winding up
Slide 11: Portfolio valuation movement
i Portfolio valuation movement Includes impact of: Y Portfolio refinancing +£8.5m v Life extensions +£8.4m v Targeted Charging Review -£84m £m 550 540 530 £44.8m 520 510 £77.5m. 500 490 480 £11.6m. 470 648m | (€0.1m) 460 (E43.6m) == {c0.9m) 450 440 430 420 410 400 Portfolio Valuation Acquisitions an
Slide 12: Power price assumptions
• • • £/MWh 70 60 50 40 30 20 10 - 2021 2026 2031 2036 Mar-19 Sep-18
Slide 13: UK RPI Assumptions
• • • • UK RPI Assumptions 31 March 2019 31 March 2018 Valuation Reporting 3.2% 3.5% Date 2020 / 2021 3.2% 3.1% 2021 Onwards 2.75% 2.75%
Slide 14: NAV Sensitivity Analysis
14 NAV Sensitivity Analysis Discount rate (+/- 0.5%) Energy yield Wind (P90/P10) Energy yield Solar (P90/P10) Electricity and gas prices (+/- 10%) Feedstock prices (+/- 10%) Inflation rate (-/+ 0.5%) FX rates (+/- 5%) -8p (£0.1m) | £0.2m -6p -4p -2p Op 2p 4p 6p 8p NAV per share
Slide 15: Leverage by technology
Technology % Portfolio Revenue Sources Leverage of as % of GPV Solar 25% Merchant Power & Green Benefits 11% Wind 43% Merchant Power & Green Benefits 43% Anaerobic digestion 21% Merchant Power & Green Benefits 0% Sub-Total 89% 28% PFI/PPP Waste and 11% Authority payments 53% Water treatment Total 10
Slide 16: Financial performance — Summary
16 Financial performance — Summary Portfolio valuation 523.6 429.5 Cash 11.4 11.8 Net Debtors 2.0 (0.5) Revolving credit facility (16.7) (48.4) Net assets 520.3 3924 Number of shares in issue 497.0 394.1 Net asset value per share (pence 1047p 99.6p per share)
Slide 17: * Inclusive of small amount adjusted for true up agreements
* Inclusive of small amount adjusted for true up agreements
Slide 18: Environmental, Social & Governance
18 Environmental, Social & Governance JLEN is proud of the contributions their assets make to the low carbon economy It considers the following environmental criteria during due diligence and ongoing monitoring of assets * Energy management * Resource and waste management * Pollution * Climate chang
Slide 19: Research conducted by Aardvark Consulting
• • • • Research conducted by Aardvark Consulting
Slide 20: Investment Themes
20 Investment Themes Continued strong competition in UK market for renewable assets Positive 2019 Spring Statement to ‘green’ our gas network to help meet national emission targets Continue to monitor attractive opportunities across several environmental asset classes in the UK and overseas Actively
Slide 21: Foresight transaction - summary
21 Foresight transaction - summary 5th June 2019 — Announcement to the markets that the investment adviser to the JLEN fund will transfer to Foresight Group from John Laing Group. * JLCM's investment advisory business relating to JLEN will be sold to Foresight * The team at JLCM, which has provided
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Slide 23: Foresight overview
£2.9bn 14 ESG assets under infrastructure sustainability-led management funds investments 80 195 1.7GW infrastructure clean energy renewable energy professionals investments generation Information as at 31 March 2019 £3.1bn of energy infrastructure assets under management Manager of 190 renewable ge
Slide 24: Foresight investment mandate and allocation
Investment mandate overlaps are a consequence of the diversity of Foresight’s practice and its successful track record. A fair allocation policy within Foresight as a multi-fund manager has always been in place given their obligation to manage such overlaps fairly and effectively. In practice, the d
Slide 25: Summary
25 Summary * Dividend growing with inflation with 1.2x cover ¢ Attractive NAV growth on prudent measures * Diversified mandate * Continued theme for acquisitions this year ¢ Lower portfolio volatility ¢ Wider opportunity set JLEN
Slide 26: Thanks for listening
26 Q&A Thanks for listening
Slide 27: Appendices
27 Appendices
Slide 28: Pipeline — First Offer Agreement with John Laing
28 Pipeline — First Offer Agreement with John Laing Type JLEN ROFO Project Country © Speyside UK © Cramlington UK Klettwitz Wind Farm Germany Horath Wind Farm Germany Somette Wind Farm France St Martin Wind Farm France Nordergrunde Wind Farm Germany Rammeldalsberget Wind Farm Sweden Svart Windfarm S
Slide 29: The Fund, Investment Adviser and fees
• The Fund • • • Investment Adviser • • • Base Fee • Performance Fee • Asset Origination Fee • Investment Adviser Term • • Discount Control Continuation Vote • * "Adjusted Portfolio Value" means the sum of the Fair Market Value of the Investment Portfolio, plus any cash owned by or held by or to the
Slide 30: Investment policy: sector, geography, operational limits
• ➢ ➢ Sector ➢ ➢ • • Geography • • Operational • Single Asset Limit • • Gearing • ** “Gross Project Value" means in respect of each Project Entity, the Fair Market Value of the Investment Interests in such Project Entity acquired or to be acquired by the Fund as increased by the amount of any financ
Slide 31: Timeline — 2018/19
31 Timeline — 2018/19 October 18 December 18 March 19 + Raised gross proceeds of £105 million + Paid a dividend of 1.6275 pence per share (relating to + Paid a dividend of 1.6275 pence per share through the issue of 102.9 million new the three month period ended 30 September 2018) (relating to the t
Slide 32: Disclaimer
32 Disclaimer This document contains information provided solely as an update on the financial condition, results of operations and business of John Laing Environmental Assets Group Limited ("JLEN"). Nothing in this document or in any accompanying management discussion of this document constitutes,
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