32 slides from Renewables Infrastructure Group Limited GBP Red.Shs's earnings presentation, Feb 23, 2016
Slide 1: The Renewables Infrastructure Group Annual results 2015
THE RENEWABLES INFRASTRUCTURE GROUP Annual results for the year to 31 December 2015 23 February 2016 www.TRIG-Ltd.com
Slide 2: Contents
CONTENTS Page Introduction 3 Overview of Annual Results Richard Crawford – InfraRed 4 Portfolio and Operations Jaz Bains – RES 9 Financials Phil George – InfraRed 14 Future Opportunities 20 Appendices 22 Contacts 31 This presentation and subsequent discussion may contain certain forward looking stat
Slide 3: TRIG – Experienced Management
TRIG – EXPERIENCED MANAGEMENT Independent Board Investment Manager Operations Manager Helen Mahy CBE (Chair) Strong, 18+ year track record in One of the world's leading renewable infrastructure and real estate funds energy developers and operators Jonathan Bridel Over US$9 billion of equity un
Slide 4: Overview
OVERVIEW For the year to 31 December 2015 Crystal Rig 1 (Scotland) Resilient financial performance With strong cash generation, met dividend targets in spite of regulatory headwind and low prevailing power prices Robust generating performance supported by Diversification – geography/market/techn
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS For the year to 31 December 2015 Results 2015 Performance 2015 Summer Budget1 2015 Result 2014 Result (excl. Summer Budget1) Impact Profit before tax £37.2m £(20.2)m £17.0m £23.3m Earnings per share 6.6p (3.6)p 3.0p 6.2p Distributions Schedule NAV per share: 99.0p (2014: 102.4
Slide 6: Portfolio Growth and Funding
PORTFOLIO GROWTH AND FUNDING Scale, diversification, strategic partnerships Portfolio – Summary Statistics 2015 investments: Feb 2016 Dec 2015 Dec 2014 IPO o £255m aggregate consideration (July 2013) o Four Burrows + Fred. Olsen portfolio # of Projects 51 36 29 18 2015 equity funding: Net Capaci
Slide 7: Enhancing Scale – Fred. Olsen Portfolio
ENHANCING SCALE – FRED. OLSEN PORTFOLIO Investment in June 2015 Six operational onshore wind projects in Scotland o Gross generating capacity of 433MW £246 million investment o 49% of the equity + 100% of a mezzanine loan Crystal Rig I Rothes II Partnering with Fred. Olsen Renewables (FOR) o A
Slide 8: Enhancing Diversification – Akuo Portfolio
ENHANCING DIVERSIFICATION – AKUO PORTFOLIO Investment in January 2016 15 operational French solar PV projects o Gross generating capacity of 49MW Euro €57m (£44m) investment1 o 49% of holding company equity + 100% of a mezzanine loan Partnering with Akuo Energy - a major renewables developer i
Slide 9: Operational Performance
OPERATIONAL PERFORMANCE Consistent production track record Electricity Production vs P50 (set at investment)3 Electricity Production Segment 2015 2014 IPO to Dec ‘15 2015: 1,344GWh (2014: 814GWh) British Isles Wind + 4% - 8% + 1% Comments France Wind - 4% - 5% - 3% Strong wind in the British Isl
Slide 10: Managing Seasonal Variability
MANAGING SEASONAL VARIABILITY TRIG’s diversified portfolio – smoothing short-term variability Monthly 200 Portfolio Monthly Production vs. P501 production (GWh) 2013 2014 2015 150 Portfolio P50 Estimate Portfolio Actual Production 100 50 0 Actual Portfolio Achieved Capacity Factors monthly 0.6 capac
Slide 11: Diversification – Technology / Location
DIVERSIFICATION – TECHNOLOGY / LOCATION January 2016: 680 MW net capacity / 51 projects France 12% England / GB Rep. of Ireland / SEM 31% 2% N. Ireland / SEM 6% By Jurisdiction / Power Market1 2 Scotland / GB 49% Onshore Wind / Atlantic Solar 64% 31% By Technology / Weather System2 3 Onshore Wind /
Slide 12: Diversification – Project Revenue Source
DIVERSIFICATION – PROJECT REVENUE SOURCE More than two-thirds of near-term revenues not linked to power prices Project Revenue By Type1 PPA Market Revenue Fixed PPAs + FITs 16% 29% PPA with Floor 13% 2016 ROC Recycle, Embedded Benefits, Other 5% ROC Buyout 37% £250m £200m £150m £100m £50m - 2016 201
Slide 13: Operations – Key Activities
OPERATIONS – KEY ACTIVITIES Solar • RES protecting asset value following contractor administration at one site • Performance enhancements – detailed monitoring / contractor relationships Wind • Significant portfolio of 401 turbines across 24 projects • Use of framework agreements • Enhancing strateg
Slide 14: Directors' Portfolio Valuation Bridge – 2015
DIRECTORS’ PORTFOLIO VALUATION BRIDGE – 2015 14
Slide 15: Valuation – Key Assumptions
VALUATION – KEY ASSUMPTIONS 31 December 2015 31 December 2014 Discount Rate1 Weighted average 9.0% 9.0% Energy Yield All portfolio projects Acquisition P50 – central case Acquisition P50 – central case Power Prices Weighted by market Based on third party forecasts Based on third party forecasts UK 2
Slide 16: Summary Income Statement
SUMMARY INCOME STATEMENT Solid performance despite power price fall and removal of LECs (UK Summer Budget) Year to 31 Dec 2015 Year to 31 Dec 2014 £m £m Statutory Basis Adjustments Expanded Basis Expanded Basis Total operating income 15.9 11.4 27.3 30.1 Acquisition costs - (1.1) (1.1) (1.5) Net oper
Slide 17: Summary Balance Sheet
SUMMARY BALANCE SHEET 50% portfolio growth; NAV impacted by LECs removal & lower power prices At 31 Dec 2015 At 31 Dec 2014 £m £m Statutory Basis Adjustments Expanded Basis Expanded Basis Portfolio value 711.6 0.7 712.3 472.9 Working capital 0.1 (1.0) (0.9) - Debt - - - (60.1) Cash 14.9 0.3 15.2 12.
Slide 18: Summary Cash Flow
SUMMARY CASH FLOW Robust cash flows; lower dividend cover in a low power price environment Year to 31 Dec 2015 Year to 31 Dec 2014 £m £m Statutory Basis Adjustments Expanded Basis Expanded Basis Cash from investments 24.0 18.4 42.4 35.3 Operating and finance costs (0.8) (7.6) (8.4) (4.7) Cash flow f
Slide 19: EU – New Power Capacity Installations
EU – NEW POWER CAPACITY INSTALLATIONS Wind + Solar PV: dominating European new power capacity 2013 Share of EU New Power Capacity (Total = 35GW) 2014 Share of EU New Power Capacity (Total = 27GW) 2015 Share of EU New Power Capacity (Total = 29GW) Source: Data from EWEA Annual Statistics (Copyright T
Slide 20: Renewables Market Opportunities
RENEWABLES MARKET OPPORTUNITIES Extensive further portfolio opportunities expected from target markets Onshore Wind & Solar PV UK Generating Capacity (Major Renewable Energy Technologies) ▲ UK pipeline Solar Onshore Offshore PV1 Wind Wind o Strong deal flow from existing owners (GW) (GW) (GW) o Deve
Slide 21: TRIG: A Differentiated Proposition
TRIG: A DIFFERENTIATED PROPOSITION ▲ Substantial portfolio: diversified across technologies, weather systems, regulatory jurisdictions and markets ▲ On-target operating performance since IPO ▲ Generating attractive income: quarterly dividend with c.6% cash yield1 ▲ Distinct manager combination: Infr
Slide 22: Appendices
ATRIG APPENDICES 22
Slide 23: Counterparty Exposures
COUNTERPARTY EXPOSURES Broad spread of high quality equipment, maintenance and off-take counterparties Key Counterparties1 Equipment Manufacturers2 Electricity Off-Takers Maintenance Suppliers3 1. By value, as at 31 December 2015 using Directors’ valuation. Some projects have more than one contracto
Slide 24: NAV Sensitivities
NAV SENSITIVITIES Based on portfolio as at 31 December 2015 Sensitivity effect on NAV per share as at 31 December 2015 (£ labels represent sensitivity effect on portfolio value of £712.3m) 24
Slide 25: Senior Management Team
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 TRIG Investment Werner Chris Tony James Richard von Gill Roper Hall-Smith Crawfor
Slide 26: RES & Operations Management
RES & OPERATIONS MANAGEMENT TRIG’s leading edge in unrivalled experience, in-house IP and technical expertise RES brings TRIG a complete condition monitoring and reliability engineering service Full access to an integrated team of experts in engineering, technical and asset management (50+ staff)
Slide 27: Operations Management
OPERATIONS MANAGEMENT Breadth and depth of capability provided by RES Managing performance RES: Resourcing Structure • Availability – minimising lost production, fault rectification • Generation – maximising output, maintenance planning, turbine & grid settings • Financial – budget control, minimisi
Slide 28: UK Government Benchmark Yields
UK GOVERNMENT BENCHMARK YIELDS UK Gilt Yields (Last 5 Years) % IPO 30-yr Gilt Now 10-yr Gilt 3-yr Gilt Source: InfraRed, Thomson Reuters 28
Slide 29: TRIG: Key Facts
TRIG: KEY FACTS Fund Structure ▲ Guernsey-domiciled closed-end investment company Return Targets1 ▲ Quarterly dividends with a target aggregate dividend of 6.25p per share for the year to 31 December 2016 (1.5625p target quarterly dividend from Q1 dividend payable in June 2016) Issue / Listing ▲ Pre
Slide 30: Glossary
GLOSSARY ▲ CfD contract for difference: typically , a contract between a buyer and seller, stipulating that the seller will pay to the buyer the difference between a pre-agreed price of an asset or commodity and its actual (if higher) value at contract time (if the value is lower, then the buyer pay
Slide 31: Contacts
CONTACTS INVESTMENT MANAGER OTHER ADVISERS INFRARED CAPITAL PARTNERS LTD ADMINISTRATOR / COMPANY SECRETARY REGISTRAR 12 CHARLES II STREET DEXION CAPITAL (GUERNSEY) LTD CAPITA REGISTRARS (GUERNSEY) LTD LONDON SW1Y 4QU 1 LE TRUCHOT MONT CREVELT HOUSE +44 (0)20 7484 1800 ST PETER PORT BULWER AVENUE KEY
Slide 32: 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. The information in this document has been prepared by the Company sole