Renewables Infrastructure Group Limited GBP Red.Shs · LSE:TRIG
Renewables Infrastructure Group Limited GBP Red.Shs — The Renewables Infrastructure Group — H1 2014 Earnings Presentation
37 slides from Renewables Infrastructure Group Limited GBP Red.Shs's earnings presentation, Aug 21, 2014
Slide 1: Interim results for the six months to 30 June 2014
THE RENEWABLES INFRASTRUCTURE GROUP Interim results for the six months to 30 June 2014 21 August 2014 www.TRIG-Ltd.com
Slide 2: 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
Slide 3: Contents
CONTENTS Section Page Introduction to TRIG 4 Highlights for the six months to 30 June 2014 5 Portfolio and operations 8 Financials 12 TRIG – A Differentiated Proposition 18 Appendices - TRIG 20 Appendices - Market 31 Contacts 37 This presentation and subsequent discussion may contain certain forward
Slide 4: Introduction
INTRODUCTION The Renewables Infrastructure Group Limited (“TRIG”) ▲ TRIG is a renewable energy infrastructure investment company o A closed-ended, Guernsey registered vehicle o Market capitalisation of c. £435m1 with premium listing on the London Stock Exchange since July 2013 IPO ▲ Targeting an att
Slide 5: Highlights for the six months ended June 2014
HIGHLIGHTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
Slide 6: Highlights
HIGHLIGHTS For the six months to 30 June 2014 Distributions and NAV Paid dividend of 2.5p per share target for period to 31 December 2013 Declared distribution of 3.0p per share for 6 months to 30 June 2014 (targeting 3.08p for 6 months to 31 December 2014) NAV per share of 102.3p as at 30 Jun
Slide 7: Acquisitions (2014 to date)
ACQUISITIONS (2014 TO DATE) Increasing the portfolio by 44%, by value March Solar / UK / 30.5MW Post Period End – August Solar / UK / 56.6 MW Stour Fields Tamar Heights Parley Court Farm Egmere Airfield 18.7MW 1.6 ROCs 11.8MW 1.6 ROCs 24.2 MW 1.6 ROCs 21.2 MW 1.6 ROCs June Wind / UK / 22.2MW Penare
Slide 8: Portfolio and Operations
Lye RENEWABLES INFRASTRUCTURE GROUP PORTFOLIO AND OPERATIONS
Slide 9: Operational Performance
OPERATIONAL PERFORMANCE Benefits of diversification in evidence Electricity Production1 Against P50 Estimates At Acquisition Operational Output 6 months to 5 months to 11 months to Produced 399 GWh of electricity1 in the 6 months Segment June 2014 Dec 2013 June 2014 to 30 June 2014 GB Wind - 4% +1
Slide 10: Portfolio Diversification (30 June 2014)
PORTFOLIO DIVERSIFICATION (30 JUNE 2014) By Jurisdiction / Power Market1 2 By Technology / Weather System2 3 By Revenue Type4 The addition of three further solar projects in August 2014 has increased the contribution of solar PV to 39% by value. 1. Northern Ireland and the Republic of Ireland form a
Slide 11: Operations Management
OPERATIONS MANAGEMENT TRIG’s leading edge in unrivalled experience, in-house IP and technical expertise RES brings a complete reliability monitoring service to TRIG Full access to an integrated team of experts in engineering, technical and asset management (30+ staff) RES knowledge from a substa
Slide 12: Financials
Lye RENEWABLES INFRASTRUCTURE GROUP FINANCIALS
Slide 13: Summary Income Statement
SUMMARY INCOME STATEMENT Solid six months to 30 June 2014 Six months ended Initial period ended 31 30 June 2014 December 2013 £m £m Total operating income 13.4 15.2 Acquisition costs (0.4) (3.2) Net operating income 13.0 12.0 Fund expenses (2.0) (1.7) Foreign exchange gains 0.4 - Finance costs (0.6)
Slide 14: Summary Balance Sheet
SUMMARY BALANCE SHEET Portfolio growth through acquisitions and retained earnings At 30 June 2014 At 31 December 2013 £m £m Portfolio value 353.3 299.81 Cash 31.9 16.2 Other working capital (0.8) (1.1) Net assets 384.4 314.9 NAV per share2 102.3p 101.5p NAV per share after interim dividend (declared
Slide 15: Summary Cash Flow
SUMMARY CASH FLOW Distributions as targeted Six months ended Initial period ended 30 June 2014 31 December 2013 £m £m Cash from investments 16.3 13.2 Operating and finance costs outflow (2.1) (0.3) Net cash inflow before acquisitions and 14.2 12.9 financing set up costs Debt arrangement costs (1.7)
Slide 16: Portfolio Valuation Bridge
PORTFOLIO VALUATION BRIDGE Analysis of changes in the portfolio valuation In the six months to 30 June 2014, TRIG delivered a portfolio return of 9.1% on an annualised basis1 1. Based on portfolio return of £15.1m on a re-based portfolio valuation of £339.8m. 16
Slide 17: Valuation – Key Assumptions
VALUATION – KEY ASSUMPTIONS 30 June 2014 31 December 2013 Discount Rate1 Weighted Average 9.6% 9.8% Energy Yield All markets Third party P50 – central case Third party P50 – central case Based on updated third party forecasts (with Based on updated third party forecasts (with Power Prices All market
Slide 18: TRIG – A Differentiated Proposition
TRIG – A Differentiated Proposition
Slide 19: TRIG: A Differentiated Proposition
TRIG: A DIFFERENTIATED PROPOSITION ▲ On track for performance and distributions since IPO o Attractive long-term yield – 6p annualised to 30 June 2014, growing with inflation thereafter1 o NAV upside from reinvestment of surplus cash flows after dividends1 ▲ Distinct management combination o InfraRe
Slide 20: Appendices (A) TRIG
Ly RENEWABLES INFRASTRUCTURE GROUP APPENDICES (A) TRIG 20
Slide 21: Portfolio Composition (August 2014)
PORTFOLIO COMPOSITION (AUGUST 2014) 398MW capacity / 27 projects – largest and most diversified portfolio in the sector Generating Turbine / Panel Capacity Manufacturer and Market (MWs) Commission Date2 Rating (MW) Onshore Wind Roos GB (Eng) 17.1 2013 Vestas (1.9) Grange GB (Eng) 14.0 2013 Vestas (2
Slide 22: Cash Flow and NAV Outlook
CASH FLOW AND NAV OUTLOOK As at 30 June 2014 £m Illustration of Long-Term Cash Flows and NAV £m (including effect of re-investment of surplus after dividend payment) 1. The chart is illustrative only and is not a profit forecast. There can be no assurance that these levels of performance will be ach
Slide 23: NAV Sensitivities
NAV SENSITIVITIES Impact on NAV per share at 30 June 2014 23
Slide 24: Counterparty Exposures
COUNTERPARTY EXPOSURES Broad spread of high quality equipment, maintenance and off-take counterparties ▲ Main credit exposure is to national governments through subsidy commitments (both directly and indirectly) ▲ Commercial counterparties performing as expected – power off-takers, equipment and mai
Slide 25: Current Portfolio Projects (1)
CURRENT PORTFOLIO PROJECTS (1) Roos Hill of Towie Project Size (MW) 17.1 Project Size (MW) 48.3 Ownership 100% Ownership 100% Location Yorkshire, England Location Moray, Scotland Turbines 9 x Vestas 1.9MW Turbines 21 x Siemens 2.3MW PPA Counterparty Scottish Power PPA Counterparty Scottish Power Ass
Slide 26: Current Portfolio Projects (2)
CURRENT PORTFOLIO PROJECTS (2) Forss Lough Hill Project Size (MW) 7.2 Project Size (MW) 7.8 Ownership 100% Ownership 100% Location Caithness, Scotland Location Co. Tyrone, Northern Ireland Turbines 2x Siemens 1.0MW; Turbines 6 x Siemens 1.3MW 4x Siemens 1.3MW PPA Counterparty ESB Independent Energy
Slide 27: Current Portfolio Projects (3)
CURRENT PORTFOLIO PROJECTS (3) Haut Languedoc Roussas-Claves Project Size (MW) 29.9 Project Size (MW) 10.5 Ownership 100% Ownership 100% Location Languedoc-Roussillon, France Location Rhône-Alpes, France Turbines 23 x Siemens 1.3MW Turbines 6 x Vestas 1.8MW PPA Counterparty EDF PPA Counterparty EDF
Slide 28: Current Portfolio Projects (4)
CURRENT PORTFOLIO PROJECTS (4) Tamar Heights East Langford Project Size (MW) 11.8 Project Size (MW) 5.0 Ownership 100% Ownership 100% Location Devon, England Location Cornwall, England Solar Panels Hanwha Solar One Solar Panels Canadian Solar PPA Counterparties Centrica PPA Counterparty Smartest Ene
Slide 29: Current Portfolio Projects (5)
CURRENT PORTFOLIO PROJECTS (5) Parley Court Farm Project Size (MW) 24.2 Ownership 100% Location Dorset, England Solar Panels ReneSola PPA Counterparties Neas Energy Asset / O&M Management RES / Isolux Corsan Acquisition Date August 2014 Egmere Airfield Project Size (MW) 21.2 Ownership 100% Location
Slide 30: 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 Bridel Hammer Mason (Chairman) Investment matters TRIG Investment Werner Chris Tony James Committee1 von Gill Roper Hall-Smith Guionnea
Slide 31: Appendices (B) Market
Ly RENEWABLES INFRASTRUCTURE GROUP APPENDICES (B) MARKET 31
Slide 32: EU – New Power Capacity Installations
EU – NEW POWER CAPACITY INSTALLATIONS Onshore wind and solar PV dominate European new power capacity 2013 Share of New Power Capacity Installations in the EU (Total = 35GW) Source: Data from EWEA Annual Statistics (Copyright European Wind Energy Association) 32
Slide 33: EU – Progress Towards Renewables Targets
EU – PROGRESS TOWARDS RENEWABLES TARGETS Challenging targets for many countries Progress in Europe towards Renewables’ Targeted Contributions to Total Energy Consumption (Electricity, Heat and Transport) 2012 actual v 2020 targets % of energy from renewables 15% Source: Eurostat March 2014 33
Slide 34: Renewable Energy – Sustained Growth
RENEWABLE ENERGY – SUSTAINED GROWTH Significant further investment required to meet the UK’s EU 2020 renewables targets Onshore Wind and Solar PV: UK Installed Base & Development Pipeline (MW)3 3 Sources: DECC / InfraRed 34
Slide 35: Renewable Energy Across the UK
RENEWABLE ENERGY ACROSS THE UK Regional contributions to the UK’s installed renewables capacity Renewable Electricity Generation Capacity (by UK region) 2012-2013 Source: DECC – Energy Trends (March 2014) 35
Slide 36: 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 37: 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
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