Foresight Group Holdings Ltd. · LSE:FSG
Foresight — H1 FY23 Earnings Presentation
34 slides from Foresight's earnings presentation, Dec 1, 2022
Slide 1: Results presentation, half-year ended 30 September 2022
Results presentation Half‐year ended 30 September 2022 1 December 2022
Slide 2: Agenda
Agenda 1. Strategic and Performance Overview 2. Financial Results Bernard Fairman Executive Chairman & Co‐Founder 3. Business Review 4. Outlook 5. Q&A Gary Fraser Chief Financial Officer & Chief Operating Officer |2
Slide 3: Strategic and Performance Overview
Strategic and Performance Overview Bernard Fairman, Executive Chairman & Co‐Founder Results presentation | 3
Slide 4: An excellent track record
An excellent track record Consistent delivery of profitable growth AUM (£bn) Core EBITDA pre SBP (£m, margin %) 28.1% 32.8% 38.3% 42.4% 12.5 21.5 8.1 15.2 6.8 10.6 4.2 7.9 2.6 2.8 H1 FY20 H1 FY21 H1 FY22 H1 FY23 H1 FY18 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H1 FY23 CAGR CAGR 5 year 3 year 1 year 3 year1 1
Slide 5: Sustainability-led investment manager
Sustainability‐led investment manager Diversified and resilient business model, with an increasing international focus Distribution INSTITUTIONAL RETAIL 68% of AUM 32% of AUM INFRASTRUCTURE PRIVATE EQUITY FCM1 Investment Focus on renewable energy Extensive capabilities and Private market expertise d
Slide 6: H1 FY23 highlights
H1 FY23 highlights Diversification and resilience in action Target Target Delivered Delivered in in H1 H1 FY23 FY23 20‐25% International expansion and +41% AUM diversification through M&A Growth growth achieved2 growth in AUM1 Successful fundraising 85‐90% 89% recurring High quality Launched three n
Slide 7: Financial Results
Financial Results Gary Fraser, Chief Financial Officer & Chief Operating Officer Results presentation | 7
Slide 8: AUM progression
AUM progression Significant and consistent contribution to growth from all business divisions Growth since AUM growth history (£bn) FY18 Infrastructure Private Equity FCM 1.5 12.0x1 1.3 3.0x 1.6 1.1 0.9 0.7 9.7 4.5x 0.5 0.1 0.6 6.3 0.4 0.5 5.4 3.4 2.2 2.4 FY18 FY19 FY20 FY21 FY22 H1 FY23 Total: 2.6
Slide 9: AUM bridge
AUM bridge Step change achieved through strategic acquisitions H1 FY23 (£bn) Retail Institutional 3.3 12.5 0.0 (0.1) 0.1 (0.0) 0.0 (0.3) 0.2 0.5 8.8 31 Mar 2022 Inflow Outflow Market Inflow2 Outflow2 Market Movement in Acquisitions 30 Sep 2022 (1) (1) AUM movements movements2 DUM AUM Strategic acq
Slide 10: AUM breakdown
AUM breakdown High quality platform supports long‐term and predictable revenue generation AUM by division AUM by client type AUM by fund type 2% 12% 12% 10% 32% 42% 20% 68% 78% 24% Infrastructure Private Equity FCM Retail Institutional Evergreen LP Listed investment trust OEIC Other Infrastructure
Slide 11: Revenue growth
Revenue growth High quality recurring revenue within 85‐90% target, with increasing international contribution Revenue £39.7m £48.7m £50.7m (90% recurring) (89% recurring) (89% recurring) 28% total revenue increase resulted from £5.4m FUM uplift £5.3m New fund launches and raises £4.2m Acqui
Slide 12: Revenue breakdown
Revenue breakdown Increased revenue contribution from all business divisions Revenue by business division (including acquisitions) £5.3m £6.9m +30% £9.8m £28.4m £24.7m £15.4m +57% +15% H1 FY22 H1 FY23 Division Typical fund margins Continued revenue growth across all divisions Infrastructure c.80 –
Slide 13: Costs
Costs On track to manage underlying FY23 administrative expenses within c.12% guidance Administrative expenses1 £24.1m £27.0m £30.7m 12% guidance excludes £2.6 million expenses arising from £2.6m acquisitions that will only recur for a limited timeframe £1.2m £1.2m £4.8m See appendices for detai
Slide 14: EBITDA progression
EBITDA progression 41% increase in core EBITDA pre‐SBP to £21.5 million Core EBITDA pre‐SBP 38.3% 42.3% 42.4% Core EBITDA pre‐SBP 8% ahead of consensus1 + 4.1 ppt margin uplift from H1 FY22 result of strong revenue growth and cost discipline Significant progress towards 43% margin target as bu
Slide 15: Business Review
Business Review Bernard Fairman, Executive Chairman & Co‐Founder Results presentation | 15
Slide 16: Infrastructure highlights
Infrastructure highlights One of Europe’s, and now Australia’s, fastest growing real asset investors •AUM +54% to £9.7 billion (FY22: £6.3 billion) Exceptional growth delivered primarily •FUM +56% to £6.4 billion (FY22: £4.1 billion) through M&A •Infrastructure Capital integration plan progressing w
Slide 17: Foresight Australia
Foresight Australia Integration progressing well with fundraising in H2 FY23 Current position Opportunities Integration progress Increased geographic diversification Infrastructure AUM (H1 FY23) Integrated investment processes established HR and IT integration on track Senior management, compliance,
Slide 18: Private Equity highlights
Private Equity highlights Investing across multiple sectors and development stages; experienced through economic cycles Significant growth •AUM +39% to £1.3 billion (FY22: £0.9 billion) delivered both organically and •First close of three new private equity funds (+£70 million)and acquisition of ino
Slide 19: FCM highlights
FCM highlights Leveraging Foresight’s deep knowledge of private markets to provide opportunities in listed markets •+£26 million reflected continued demand for FCM's sustainable strategies Net inflows position •UK domiciled funds have experienced large outflows across asset classes •H1 FY23 represen
Slide 20: Outlook
Outlook Bernard Fairman, Executive Chairman & Co‐Founder Results presentation | 20
Slide 21: Outlook
Outlook Diversified business model provides resilience and growth opportunities Long‐term structural trends; creating multi‐year opportunities within our key markets Proven access to quality sustainable investment opportunities in growing international markets, across both private and public vehicle
Slide 22: Q&A
Q&A Results presentation | 22
Slide 23: Appendices
Appendices All figures in the appendices of this presentation are subject to deResults rounding | 23 minimispresentation
Slide 24: Appendix 1: Sustainability embedded within Foresight's business model
Appendix 1: Sustainability embedded within Foresight’s business model Acting conscientiously and investing responsibly are critical to long‐term success H1 FY23 highlights Established sustainability partnership with the Eden Project Introduced Foresight nature recovery statement 5‐star PRI sco
Slide 25: Appendix 2: Revenue analysis by business division
Appendix 2: Revenue analysis by business division Infrastructure Private Equity FCM Group H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 H1 FY23 H1 FY22 Underlying Acq'n Total Total Underlying Acq'n Total Total Total Total Underlying Acq'n Total Total Total AUM £bn 6.7 3.0 9.7 6.0 1.0 0.3 1.3 0.8 1
Slide 26: Appendix 3: Cost analysis by business division (£m)
Appendix 3: Cost analysis by business division (£m) Infrastructure Private Equity FCM Central Group H1 H1 H1 H1 H1 H1 H1 H1 FY23 FY22 H1 FY23 FY22 FY23 FY22 FY23 FY22 H1 FY23 FY22 Underlying Acq'n P&L Acq'n costs Total Total Underlying Acq'n P&L Acq'n costs Total Total Total Total Total Total Underl
Slide 27: Appendix 4: FUM movement by business division and investor type
Appendix 4: FUM movement by business division and investor type (£m) Infrastructure retail Private Equity retail Foresight Capital Management retail (1) 1,800 1,000 2,200 1,700 256 889 324 (298) 900 2,000 1,600 95 4 1,537 100 800 1,800 1,612 (30) (143) 1,500 42 1,368 700 35 1,600 (20) 1,474 1,400 56
Slide 28: Appendix 5: Summary Income Statement (£m)
Appendix 5: Summary Income Statement (£m) Income Statement H1 FY23 H1 FY22 Revenue 50.7 39.7 Cost of sales ‐3.0 ‐2.4 Gross profit 47.7 37.3 Administrative expenses ‐30.7 ‐24.1 Acquisition‐related costs ‐3.5 ‐ Other operating income ‐ 0.3 Operating profit 13.5 13.4 Finance income 0.1 ‐ Finance expens
Slide 29: Appendix 6: Core EBITDA pre-SBP reconciliation (£m)
Appendix 6: Core EBITDA pre‐SBP reconciliation (£m) Core EBITDA pre‐SBP Calculation H1 FY23 H1 FY22 Total comprehensive income 23.4 11.5 Adjustments: Gain on business combination ‐12.2 — Staff costs – acquisitions 0.7 — Amortisation in relation to intangible assets (customer contracts) 0.8 0.7 Acqui
Slide 30: Appendix 7: Summary Statement of Financial Position (£m)
Appendix 7: Summary Statement of Financial Position (£m) 30 September 30 September Summary Statement of Financial Position 2022 2021 Assets Property, plant and equipment 2.5 2.8 Right of use assets 8.0 8.8 Intangible assets 82.7 3.0 Investments at FVTPL 3.3 2.2 Investments in equity accounted joint
Slide 31: Appendix 8: Cashflow statement (£m)
Appendix 8: Cashflow statement (£m) Cashflow Statement H1 FY23 H1 FY22 H1 FY23 H1 FY22 Cash generated from operations 25.4 9.6 Profit before tax 25.4 13.1 Tax paid ‐1.4 ‐1.6 Gain on business combination (provisional) ‐12.2 ‐ Other interest paid ‐ ‐ Profit from share in joint venture ‐ ‐ Loan interes
Slide 32: Appendix 9: Infrastructure Capital – Summary of acquisition accounting
Appendix 9: Infrastructure Capital – Summary of acquisition accounting No impact on the Group’s key financial metrics from acquisition accounting methodology Initial consideration • Initial share consideration of £3.8 million relates to good leavers Initial cash consideration £32.6m1 • The remaining
Slide 33: 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 34: 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
Foresight Group Holdings — H1 FY23 Earnings Presentation on 6ix