Foresight Group Holdings Ltd. · LSE:FSG
Foresight — FY2023 Earnings Presentation
28 slides from Foresight's earnings presentation, Jul 4, 2023
Slide 1: Results presentation
Results presentation FOR THE YEAR ENDED 31 MARCH 2023 4 JULY 2023
Slide 2: Agenda
AGENDA Bernard Fairman Gary Fraser Executive Chairman Chief Financial Officer & Co-Founder 1. Strategic and Performance Overview 2. Financial Results 3. Current Trading and Outlook 4. Q&A |2
Slide 3: Strategic and Performance Overview
STRATEGIC AND PERFORMANCE OVERVIEW Bernard Fairman Executive Chairman & Co-Founder
Slide 4: Excellent track record of profitable growth
EXCELLENT TRACK RECORD OF PROFITABLE GROWTH AUM (£bn) Core EBITDA pre-SBP (£m, margin %) 12.2 22.1% 34.6% 37.0% 42.1% 50.2 8.8 7.2 31.8 23.9 4.5 3.0 12.6 2.6 FY18 FY19 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 CAGR CAGR 5 year 3 year 1 year 3 year1 1 year 37% 39% 38% 59% 58% 1. Reflecting the periods
Slide 5: Exceptional FY23 performance, delivering on our strategic targets
EXCEPTIONAL FY23 PERFORMANCE, DELIVERING ON OUR STRATEGIC TARGETS TARGET DELIVERED IN FY23 • Significant international expansion and 20-25% +38% AUM diversification through M&A Growth growth achieved2 growth in AUM1 • Successful fundraising in higher margin vehicles • High visibility on FY24 earning
Slide 6: An increasingly diversified and resilient business model
AN INCREASINGLY DIVERSIFIED AND RESILIENT BUSINESS MODEL Distribution Investment divisions Vehicles Geography by AUM by AUM and profit by AUM by AUM 42% 200+ 60% 57% 69% investors 78% 25% 25% 32% 21% 31% c.40,000 11% investors 14% 11% 8% 11% 4% 1% AUM Core EBITDA pre-SBP Institutional Retail Infrast
Slide 7: Financial Results
FINANCIAL RESULTS Gary Fraser Chief Financial Officer
Slide 8: Key financial metrics
KEY FINANCIAL METRICS Outstanding performance across all key metrics delivering shareholder value 31 March 31 March YoY 2023 2022 Change Assets/Funds Year-end AUM (£m) 12,167 8,839 +38% Year-end FUM (£m) 9,022 6,675 +35% Revenue Total Revenue (£m) 119.2 86.1 +38% Recurring Revenue (% of Total) 86.6%
Slide 9: AUM progression
AUM PROGRESSION Significant and consistent contribution to growth from all business divisions AUM growth history (£bn) Growth since FY18 Infrastructure Private Equity FCM 1.3 10.6x1 1.4 3.4x 1.6 1.1 0.9 0.7 9.5 4.4x 0.5 0.1 0.6 0.4 6.3 0.5 5.4 3.4 2.2 2.4 FY 1 8 FY 1 9 FY 2 0 FY 2 1 FY 2 2 FY23 Tota
Slide 10: AUM bridge
AUM BRIDGE Step change achieved through strategic acquisitions, supported by strong retail inflows FY23 (£bn) Retail 3.4 12.2 8.8 0.9 (0.8) (0.2) 0.2 (0.1) 1 31 Mar 2022 AUM Inflow Outflow Market movements Institutional net Movement in DUM Acquisitions 31 Mar 2023 AUM inflow • 69% AUM growth since I
Slide 11: Revenue
REVENUE Certainty of recurring revenue provides a strong platform for delivery in FY24 • 87% recurring revenue remained in target range of 85-90% Revenue £86.1m £106.1m £119.2m • Revenue up 38% or £33.1 million • +£20.0 million organic growth £13.1m £16.0m • Annualisation of H2 FY23 recurring revenu
Slide 12: Costs
COSTS Continued strong cost discipline in an inflationary environment • FY23 costs, excluding acquisitions, up 12.9% slightly ahead Administrative expenses1 of guidance of c.12% £54.4m £61.4m £70.6m £5.2m • Rebase of FY23 to £76.7 million to allow for annualisation of £3.3m £12.0m operating costs re
Slide 13: Investment in people
INVESTMENT IN PEOPLE Supports differentiated business model to deliver enhanced returns • Year end FTE increased to 3611 (FY22: 261) • +56 from acquisitions • 48% investment professionals (FY22: 44%) Case study: Successful FY23 Asset and portfolio management realisations Infrastructure Our dedicated
Slide 14: Profitability
PROFITABILITY Highly profitable growth drives 58% increase in core EBITDA pre-SBP to £50.2 million • Significant progress made towards 43% margin target as Core EBITDA pre-SBP business builds scale £31.8m £44.2m £50.2m1 (37.0% margin) (42.1% margin) • + 5.1 ppt margin improvement in FY23 due to stro
Slide 15: Shareholder returns
SHAREHOLDER RETURNS Increasing value creation year on year Earnings per share Dividend per share (p) (p) 15.5 34.6 22.2 13.8 14.9 4.6 1.7 FY21 FY22 FY23 FY21 FY22 FY23 Final Interim | 15
Slide 16: Current Trading and Outlook
CURRENT TRADING AND OUTLOOK Bernard Fairman Executive Chairman & Co-Founder
Slide 17: Significant market opportunity
SIGNIFICANT MARKET OPPORTUNITY Investing in the energy transition for over 15 years Renewable Rollout Systematic energy Wider economic ARIF (Aus) transition decarbonisation FSFL EIT (Aus) FSF FORVEI II FEIP Hydrogen1 SMAs FEIP II1 Sustainable Food1 FCER1 Diversified strategies ITS, JLEN, DIT (Aus),
Slide 18: Multiple levers to deliver further profitable growth
MULTIPLE LEVERS TO DELIVER FURTHER PROFITABLE GROWTH 1.1.Fundraising Fundraisingoutlook outlook Asset Class Strategy Pipeline Infrastructure: renewable rollout ARIF: Existing A$1.0bn yield-paying core+ energy infrastructure fund with a diversified portfolio of wind, solar, and hydro investments in A
Slide 19: Current trading and outlook
CURRENT TRADING AND OUTLOOK Q1 trading FY24 outlook • AUM and FUM marginally lower at £12.0 billion and • High degree of revenue certainty £8.8 billion • Provides visibility to facilitate long term decision • Reflecting inflows into high margin retail products making and effective cost management •
Slide 20: Q&A
Q&A
Slide 21: Appendices
APPENDICES
Slide 22: Appendix 1: Glossary
Appendix 1: GLOSSARY ARIF Australian Renewables Income Fund DIT Diversified Infrastructure Trust EIT Energy infrastructure Trust FCER Foresight Core European Renewables FEIP Foresight Energy Infrastructure Partners FSFC Foresight Sustainable Forestry Company FSFL Foresight Solar Fund Limited IGB For
Slide 23: Appendix 2: Infrastructure highlights
Appendix 2: INFRASTRUCTURE HIGHLIGHTS One of Europe’s and Australia’s most established real asset investors Exceptional growth • AUM +50% to £9.5 billion (FY22: £6.3 billion) delivered primarily • FUM +52% to £6.3 billion (FY22: £4.1 billion) through M&A • Infrastructure Capital integration complete
Slide 24: Appendix 3: Private Equity highlights
Appendix 3: PRIVATE EQUITY HIGHLIGHTS Investing across multiple sectors and development stages; experienced through economic cycles Significant growth • AUM +54% to £1.4 billion (FY22: £0.9 billion) delivered both organically and • First close of four new private equity funds (+£132 million) and acq
Slide 25: Appendix 4: FCM highlights
Appendix 4: FCM HIGHLIGHTS Leveraging Foresight’s deep knowledge of private markets to provide opportunities in listed markets • £(0.1) billion net outflows, as UK domiciled funds experienced large outflows across asset Net flows classes • FY23 represented particularly challenging market conditions,
Slide 26: Appendix 5: Infrastructure Capital - summary of acquisition accounting
Appendix 5: INFRASTRUCTURE CAPITAL - SUMMARY OF ACQUISITION ACCOUNTING No impact on the Group’s key financial metrics from acquisition accounting methodology Non-underlying items Administrative expenses and taxation Items which are not considered part of the normal operations of the • Staff costs –
Slide 27: Disclaimer
DISCLAIMER NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND DEPENDENCIES, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA), CANADA, AUSTRALIA, NEW ZEALAND, JAPAN, THE REPUBLIC OF SOUTH AFRICA, THE
Slide 28: For further information, please contact
For further information, please contact: Foresight Group LLP The Shard t: +44 (0)20 3667 8100 32 London Bridge Street e: info@foresightgroup.eu London SE1 9SG w: foresightgroup.eu United Kingdom
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