NextEnergy Solar Fund Ltd · LSE:NESF
NextEnergy Solar Fund — Investor Presentation (September 2021)
38 slides from NextEnergy Solar Fund's investor presentation, September 2021
Slide 1: NextEnergy Solar Fund (NESF)
“NESF” NextEnergy Solar Fund
Slide 2: Presented by NextEnergy Capital Group
Presented by NextEnergy Capital Group • • • • • • •
Slide 3: Introduction to NextEnergy Capital Group
Introduction to NextEnergy Capital Group • • • • • • • • • • • • • • • • • • • • • • • •
Slide 4: Introduction to NESF
Stalbridge solar farm: 5MW Dorset NextEnergy Solar Fund Introduction to NESF
Slide 5: Introduction to NextEnergy Solar Fund (NESF)
Introduction to NextEnergy Solar Fund (“NESF”) NAV £580m GAV £1,058m NAV/share 98.7p
Slide 6: Full year key highlights
Full year key highlights 7.16p £101m £78m £59.5m +5.2% +4 +£7m 195,000 317,600 738 GWh
Slide 7: NESF diversified portfolio
NESF diversified portfolio = NESF Operating Asset 99 1
Slide 8: Track record of operating outperformance vs peers
Track record of operating outperformance vs peers NESF Peer 1 Peer 2 Peer 3 Peer 4 • 15.0% • 10.0% 9.1% 8.4% 8.3% 7.5% 6.9% 6.2% 6.2% 5.0% 4.8% 4.9% 4.1% 4.7% 4.5% 3.9% 3.8% 3.2% 3.3% 2.3% 2.0% 0.9% 2% 1.8% 0.4% 0.0% (0.1%) (1.0%) (1.0%) (1.5%) (2.0%) (2.5%) (3.3%) (4.6%) -5.0% (5.3%] (5.1%) (9.0%)
Slide 9: NESF Board of Directors
NESF Board of Directors KEVIN LYON PATRICK FIRTH JO PEACEGOOD VIC HOLMES Kevin has over 30 years of Patrick has almost 30 Jo has over 20 years of Vic has been involved in the experience in fund years' experience advising experience in the financial services industry management, investment management
Slide 10: NextEnergy Capital Group – NESF Investment Committee
NextEnergy Capital Group – NESF Investment Committee MICHAEL BONTE- ALDO FRIEDHEIM GIULIA GUIDI ROSS GRIER BEOLCHINI Michael is Founding Partner Giulia is the Head of Ross is the UK Managing Aldo is Managing Partner and Group CEO of Environmental, Social and Director of NextEnergy and Chief Investme
Slide 11: Why invest in Solar & NESF?
Kentishes: 5MW Essex NextEnergy Solar Fund Why invest in Solar & NESF?
Slide 12: The solar opportunity
The solar opportunity Map of Solar Irradiation(1) Volatility of Solar Irradiation Solar PV Module Spot Price Evolution(5) (W/m2) ($/W) Abundant Energy Source Proven and Stable Technology Continuous Cost Reduction • • • • • • • • •
Slide 13: Solar growth potential
Solar growth potential Predicted global solar capacity growth, 2019 and 2050 Renewables predicted to be main energy source in future 832GW 7,749GW 2019 2050 Global installed capacity mix, 2019 and 2050 What will drive this demand? • Immediate need to address global climate change • Increase in globa
Slide 14: How does NESF make its revenue?
How does NESF make its revenue? Service provider and end user • Revenue streams Government Corporate Subsidy free Subsidy PPAs • •
Slide 15: NESF has one of the highest dividend yields in the sector
NESF has one of the highest dividend yields in the sector 7.2% 7.50% • 7.00% • 6.50% • 6.00% • 5.50% • 5.00% 4.50% • 4.00% •
Slide 16: NESF robust dividend cover
NESF robust dividend cover 7.16p 1.1x 8.0 7.05 7.16 7 years (4) 6.65 6.87 7.0 6.31 6.42 6.25 6.0 5.25 (3) 5.0 (Pence) 4.0 3.0 2.0 7.16p 1.0 0.0 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
Slide 17: NESF investment case
NESF Investment case nextenergycapital.com GuERNSE® GREEN Large diversified portfolio Year-on-year portfolio growth providing diversification across key components, locations, subsidies, asset size and revenue streams Active asset and portfolio outperformance Achieved continuous operating outperform
Slide 18: Strategy Update
Bowden: 5MW Somerset NextEnergy Solar Fund Strategy Update
Slide 19: Strategic focus 2021/22
Strategic focus 2021/22 1 Unlock growth - Expand NESF portfolio into international assets, battery storage and solar PE structures • • • 2 Manage risk - Continue to hedge further forward and enhance our electricity sales strategy • 3 Asset performance - Continue NESF operational outperformance •
Slide 20: Unlock growth - Expand into international solar assets
Strategic focus 2021/22 1 Unlock growth - Expand into international solar assets • • • • Investment policy: Up to 30% GAV in • international OECD countries North America Portugal Spain Italy 400MW
Slide 21: Unlock growth - Introduce energy storage assets
Strategic focus 2021/22 1 Unlock growth - Introduce energy storage assets • • • Investment policy: • Up to 10% GAV in energy storage 200MW
Slide 22: Unlock value - Invest into private equity structures
Strategic focus 2021/22 1 Unlock value - Invest into private equity structures to complement NESF portfolio • • • Investment policy: • Up to 15% GAV in solar private equity structures Higher Revenue Co-investment Access to new Geographical returns diversification opportunities assets diversification
Slide 23: Manage risk - Focus on progressing our electricity sales strategy
Strategic focus 2021/22 2 Manage risk - Focus on progressing our electricity sales strategy • • • +£7m • 2021/22 2022/23 2023/24 2024/25 94% 64% 34% 5%
Slide 24: Maximise income generation - Continue NESF operational outperformance
Strategic focus 2021/22 3 Maximise income generation - Continue NESF operational outperformance • • • +3.8% 10.0% 9.0% 9.1% 8.0% 7.0% NESF 6.0% 6.2% 5.0% 4.8% 4.7% 4.1% 4.0% 3.0% 3.3% 2.0% 1.0% 0.9% 0.0% FY2014/15 FY2015/16 FY2016/17 FY2017/18 FY2018/19 FY2019/20 FY2020/21
Slide 25: Strategic focus end goals
Strategic focus end goals 7.16p Increase portfolio diversification Achieve target dividend of 7.16p Maintain positive dividend cover Maximise income generation Increase Net Asset Value
Slide 26: Sustainable Investment
Emberton: 9MW Buckinghamshire NextEnergy Solar Fund Sustainable Investment
Slide 27: Environment, Social and Governance
Environment, Social and Governance • • • • 195,000 317,600 738 GWh
Slide 28: ESG integration into the solar investment process
ESG integration into the solar investment process • • •
Slide 29: Solar biodiversity benefits
Solar biodiversity benefits • Boxted Airfield - Exemplar case study • • • 500% 300% 85% Langenhoe - Exemplar case study • •
Slide 30: NextEnergy Foundation
NextEnergy Foundation
Slide 31: The NextEnergy Foundation and Selected Projects
The NextEnergy Foundation and Selected Projects • USA UNITED KINGDOM ITALY SYRIA INDIA JORDAN AFGHANISTAN • PAKHISTAN • NEPAL SIERRA LEONE RWANDA ETHIOPIA COLOMBIA GHANA • KENYA PERU NIGERIA UGANDA ZAMBIA THE ANDES TANZANIA ZIMBABWE MALAWI
Slide 32: Further information
Further information Peter Hamid Investor Relations +44 (0) 203 746 0700 +44 (0) 759 214 1536 Email: Peter.Hamid@nextenergycapital.com Website: www.nextenergysolarfund.com Media And Public Relations +44 (0) 203 757 4993 NESF@camarco.co.uk www.camarco.co.uk
Slide 33: Q&A
Forest Farm: 3MW Hampshire NextEnergy Solar Farm Q&A
Slide 34: Ongoing Covid-19 response
Ongoing Covid-19 response • • • • • • • • •
Slide 35: NextEnergy Capital overview and track record
NextEnergy Capital overview and track record • • • • •
Slide 36: Investment policy limits
Investment policy limits Investment Objective ▪ Technological Limit • • Private Equity Limit • Geographical Limit • • Development Limit • • Single Asset Limit • Gearing Level •
Slide 37: Energy market jargon buster
Energy market jargon buster PPA PV MW MWh GW RO ROC OFGEM FIT
Slide 38: Disclaimer
Disclaimer This document is issued by Next Energy Capital Limited (“NEC”), which is authorised and regulated by the UK Financial Conduct Authority (“FCA”) with registered number 471192. The contents of this document are strictly private and confidential and accordingly may not be published, reproduc
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