Gresham House Energy Storage Fund Plc GBP · LSE:GRID
Gresham House Energy Storage Fund Plc GBP — Gresham House — FY2021 Earnings Presentation
27 slides from Gresham House Energy Storage Fund Plc GBP's earnings presentation, Mar 15, 2022
Slide 1: Specialists in sustainable alternatives
Specialists in sustainable alternatives Gresham House plc Shareholder webinar Capturing 15 March 2022 the growth For professional investors only opportunity
Slide 2: Notice to recipients
Notice to recipients This presentation (the Presentation) is issued on a confidential basis by Gresham House for No representation is being made that any investment will or is likely to achieve profits or losses similar information purposes only. This Presentation, its contents and any information p
Slide 3: Presentation team
Presentation team Tony Dalwood Kevin Acton Chief Executive Chief Financial Officer ▪ Leads the Group and is Chairman of the Investment ▪ Oversees the Group finance function for Gresham House plc, Committee, overseeing balance sheet capital allocation including divisional entities ▪ Background in fun
Slide 4: 2021 results and 2022 priorities
2021 results and 2022 priorities
Slide 5: Specialists in alternatives
Specialists in alternatives Gresham House is a specialist alternative asset management group, quoted on the London Stock Exchange (GHE.LN), providing funds, direct investments and tailored investment solutions, including co-investment. ▪ Specialists in five areas of alternative investment ▪ Growing
Slide 6: Supported by strong market trends
Supported by strong market trends Alternative assets under management and Forecast 2010-20261 ▪ Alternative assets under management set to continue to grow strongly from $13.32tn globally at the end of 2021 to $23.21tn by 20261 ▪ Global sustainable fund assets doubled in just a six-month period to r
Slide 7: 2021 Annual Results
2021 Annual Results ▪ AUM up 65% in FY21 to £6.5bn Assets under management2 ▪ Organic AUM growth of £1.9bn, an increase of c.50% 2019 2.8bn 2020 £4.0bn ▪ Net core income increased by 51% to £61.6mn3 2021 £6.5bn ▪ Adjusted operating profit1 of £20.2mn up 67% on FY20 Net core income 2019 £31.7mn ▪ Adj
Slide 8: Financials
2021 Annual Results Financials
Slide 9: 2021 AUM progression update +£2.5bn
2021 AUM progression update +£2.5bn Strategic Equity Real Assets ▪ AUM growth of £1.0bn (+109%) ▪ AUM growth of £1.5bn (+51%) ▪ Robust net fund inflows of £206mn from open-ended funds ▪ Fundraising of £960mn, including c.£430mn in Australia and Baronsmead VCTs ▪ Performance added a further £555mn ▪
Slide 10: Quality and diversification of AUM
Quality and diversification of AUM AUM by strategy AUM by client AUM by fund ▪ Operate in specialist markets with 7% 16% average gross revenue margin of c.1% 18% 12% 19% 34% 14% 41% 21% ▪ Asset classes less correlated to equity market movements 41% 44% 33% ▪ Long-term lock up funds Public Equity Pri
Slide 11: Income statement
Income statement Income Statement 2021 2020 Exceptional growth in a challenging environment for the 12 months to 31 December £mn £mn Net core income 61.6 40.8 ▪ Net core income +51% to £61.6mn (FY20: £40.8mn) Administrative overheads (excl. Amortisation, Depreciation and Exceptional items) (41.1) (2
Slide 12: Balance sheet
Balance sheet Dec 2021 Dec 2020 A strong balance sheet: well positioned for growth Balance Sheet as at £mn £mn Assets ▪ Tangible / realisable assets comprise cash and Investments1 38.0 23.2 investments totalling £78.3mn (2020: £45.1mn) Cash 40.3 21.9 Tangible / realisable assets 78.3 45.1 ▪ Cash of
Slide 13: Cash flow
Cash flow Cash flow 2021 2020 Investing to grow the business for the 12 months to 31 December £mn £mn Net cash generated from operations 21.1 17.6 ▪ Cash at 31 December 2021 of £40.3mn Corporation Tax & Interest paid (1.1) (1.9) Net cash flow from operating activities 20.0 15.7 ▪ Raised net £40.5mn
Slide 14: Balance sheet - potential uses of capital
Balance sheet - potential uses of capital Forestry ▪ £5-7mn - warehouse assets and GP commitments ▪ Target 20% ROCE in medium term ▪ £40mn cash and £20mn RCF ▪ New Energy: £8-15mn - Battery storage projects New Energy & ▪ Opportunities to invest up to Sustainable ▪ New Energy: £10mn - Renewables £40
Slide 15: Strategic priorities
Strategic priorities Including an update on GH25
Slide 16: Gresham House five-year plan - GH25
Gresham House five-year plan - GH25 Financial targets Strategic targets ▪ Double shareholder value ▪ Leaders in ESG and sustainable investing ▪ AUM £8bn+ ▪ Majority investment products outperforming ▪ EBITDA margins 40%+ ▪ Significant market share in specialist products ▪ International presence esta
Slide 17: Strategic highlights
Strategic highlights ▪ International expansion ‒ Ireland: Appian acquisition ‒ Australia: further forestry mandate ▪ Recognised for leadership in sustainable investment through fund performance and award wins ▪ Increased client diversification ▪ Mobeus VCTs acquisition ▪ New Audit Committee Chair De
Slide 18: Sustainable investment highlights
Sustainable investment highlights ▪ Listed as a signatory to 2020 UK Stewardship Code ▪ Board-level Sustainability Committee established ▪ Corporate Sustainability Strategy launched ▪ Initial TCFD reporting roadmap to setting net zero targets and Group climate impact scenario modelling 18
Slide 19: Capturing the growth opportunity
Capturing the growth opportunity
Slide 20: Creating shareholder value
Creating shareholder value Continuing to develop through acquisition and organic growth Successful delivery of our business model creates long-term sustainable management fees and carried interest, creating value for clients and shareholders. Partnership with clients Remaining focused on ⊠ Profit gr
Slide 21: Why invest? Quality of earnings and long-term revenue visibility
Why invest? Quality of earnings LP funds average 90% of AUM in High gross revenue and long-term contract life: closed-ended / listed margins: 1% 14 years vehicles revenue visibility Sustainability International Delivering Organic growth leadership expansion strategic goals 50% in 2021 in ESG Ireland
Slide 22: Why invest? Proven acquisition and investment track record
Why invest? Balance sheet capital Proven acquisition and Acquisition performance accelerates investment track record typically 20%+ ROCE AUM growth LTIP aligned with GH25 Senior management and Long-term alignment employees own c.10% delivery and shareholder value creation Past performance is not nec
Slide 23: 2022 growth priorities
2022 growth priorities ▪ Fundraising for forestry ‘Growth and sustainability’ fund Forestry ▪ International Forestry Fund - use of balance sheet for warehousing ▪ Continue to grow GRID and develop international battery energy storage platform opportunity New Energy & Sustainable ▪ Develop utility-sc
Slide 24: The growth opportunity
The growth opportunity Gresham House’s asset classes demonstrate considerable potential for market growth. Current position Pipeline Market opportunity New Energy 0.4GW capacity 1.1GW pipeline in GRID 15GW by 20251 Battery energy storage Sustainable Infrastructure £0.2bn capital committed £1.6bn pip
Slide 25: Conclusion
Conclusion ❑ Strong period of AUM growth in 2021 - AUM increased by 65% to £6.5bn ❑ Strong adjusted operating profit growth of 67% to £20.2mn (2020: £12.1mn) ❑ Completed acquisition of Mobeus VCTs, enhancing our specialist VCT business ❑ International expansion delivered through completion of Appian
Slide 26: Q&A
Q&A
Slide 27: Get in touch
Get in touch Media relations Broker support Houston PR Canaccord Genuity Limited - Nominated Adviser and Joint Broker gh@houston.co.uk Bobbie Hilliam / Georgina McCooke +44 (0)20 4529 0549 +44 (0)20 7523 8000 Jefferies International Limited - Financial Adviser and Joint Broker Paul Nicholls / Max Jo