Foresight Group Holdings Ltd. · LSE:FSG
Foresight — FY2024 Earnings Presentation
27 slides from Foresight's earnings presentation, Mar 31, 2024
Slide 1: Results Presentation
Results Presentation For the year ended 31 March 2024
Slide 2: Agenda
Agenda Performance overview 4 Financial results 9 Guidance update 15 Trading update and outlook 20 Bernard Fairman Gary Fraser Q&A 23 Executive Chairman & Chief Financial Officer Co-Founder Front cover: Community Day at Skaftåsen Wind Farm, Sweden, part of Foresight’s portfolio Glenmuckloch Pumped S
Slide 3: Diversified with proven strategies in growth markets
Diversified with proven strategies in growth markets Foresight brings investors closer to some of the world’s most exciting emerging investment opportunities Infrastructure Private Equity Foresight Capital Management We invest to build a sustainable future and grow thriving economies. $4.8 trillion
Slide 4: Performance overview
Performance overview Bernard Fairman Executive Chairman and Co-founder Kolvallen Wind Project, Sweden, part of Foresight's portfolio
Slide 5: Strong earnings momentum; multiple drivers of growth
Strong earnings momentum; multiple drivers of growth • Demonstrable track record of pr ofita ble growth • Driven by long term structural growth in our key markets and a highly sca la ble platform • Supported by a high level of predictability in future revenue flows • Built on the foundations of a di
Slide 6: Track record of profitable growth
Track record of profitable growth Core EBITDA pre-SBP1 (£m) 59.3 Enhanced profile post listing has facilitated profitable growth 50.2 • Up 18% year-on-year 31.8 23.9 • 35.4% three-year CAGR o 70% of growth driven by organic activity FY21 FY22 FY23 FY24 Significant margin expansion, up 7.4ppts Core E
Slide 7: Significant long duration capital provides resilience
Significant long duration capital provides resilience 0.7 AUM growth history (£bn) 1.3 1.6 Growth since FY18 4.7x 1.4 Infrastructure 4.6x 1.6 Private Equity 3.8x 1.1 0.9 FCM1 6.0x 0.7 9.5 9.8 0.5 0.1 0.6 0.4 6.3 0.5 5.4 3.4 2.2 2.4 FY 1 8 FY 1 9 FY 20 FY 21 FY 22 FY 23 FY 24 Total (£bn) 2.6 3.0 4.5
Slide 8: Diversification positions the Group for future success
Diversification positions the Group for future success Investment divisions Vehicles Distribution Geography by Core EBITDA pre-SBP by AUM by AUM by AUM FY24 FY24 FY24 FY24 59% 200+ 54% 68% 69% investors 28% 38% c.40,000 24% investors 31% 15% 6% 3% 2% 3% Infrastructure Private Equity FCM Evergreen LP
Slide 9: Financial results
Financial results Gary Fraser Chief Financial Officer Fordie Estate. Scotland, part of Foresight's portfolio
Slide 10: AUM Bridge
AUM Bridge Inflows into higher revenue margin vehicles offset OEIC net outflows • Strong gross inflows of £436 million into (£bn) higher margin retail products, driven by in- house sales team 0.8 (0.9) 0.0 • Private Equity institutional fundraising continued, with gross inflows of £134 million 12.2
Slide 11: Revenue
Revenue Continued growth in predictable revenue provides strong future visibility £119.2m £141.3m £22.1m 13% £18.9m • Revenue up £22.1 million or 19% 13% £16.0m • +£12.5 million organic growth • +£9.6 million related to acquisition activity 87% £122.4m £103.2m 87% • 87% recurring revenue remained in
Slide 12: Costs
Costs1 Effective cost management in an inflationary environment £70.6m £76.7m2 £89.0m £2.9m • FY24 12% up on rebased FY232 £6.1m £26.7m • Excludes £2.9 million non-cash adjustment for an impairment of intangible assets £22.5m • Rise in staff costs reflects one offs relating to: £59.4m £48.1m - Above
Slide 13: Profitability
Profitability Diversified strategy provides multiple drivers of profitability Core EBITDA pre-SBP1 £50.2m £59.3m £1.6m £9.1m • 18% year-on-year growth driven by: £3.9m £22.6m • Successful fundraising into higher margin and longer tenure vehicles (+£4.1 million) £15.9m • Annualisation of FY23 M&A act
Slide 14: Cash generation
Cash generation Highly cash generative business, facilitating returns for shareholders (£m) 1.6 0.2 (£m) 7.7 FY24 closing cash position £17m1 £18m £4m2 £6m £45.0m 59.3 49.8 Regulatory required capital Final dividend Share buyback Surplus Cash generated Timing of cash Cost saving Other Core EBITDA pr
Slide 15: Guidance update
Guidance update Gary Fraser Chief Financial Officer
Slide 16: Excellent performance since IPO
Excellent performance since IPO Creating significant shareholder value 20-25% AuM growth +19% CAGR 85-90% recurring revenue Consistent FY24 £12.1bn FY24 87% FY23 £12.2bn FY23 87% FY22 £8.8bn FY21 FY22 87% £7.2bn AUM (£bn) % of total revenue c.43% core EBITDA pre-SBP margin over the medium term +7.4p
Slide 17: Updating medium term guidance
Updating medium term guidance Focused on delivering further profitable growth Double core EBITDA pre-SBP in 5 years 85-90% recurring revenue • Strong organic growth • Allows institutional strategies to mature Continue to deliver margin expansion as business scales core EBITDA pre-SBP margin • Builds
Slide 18: Multiple drivers underpinning guidance
Multiple drivers underpinning guidance Long established, highly profitable foundation strategies Regional private equity • Long duration capital inflows into higher margin products • Market leading capabilities: Provides capital for SMEs1 in the UK and Ireland, typically investing £2-20 million o In
Slide 19: Multiple drivers underpinning guidance
Multiple drivers underpinning guidance High growth, scalable, real asset focused strategies with global reach Energy transition • Scalable strategies in expanding markets Very significant and expanding international investment opportunity • Extensive experience and capabilities providing end to end
Slide 20: Trading update and outlook
Trading update and outlook Bernard Fairman Executive Chairman and Co-founder Manfredonia, Italy, an energy-from-waste plant. Part of Foresight’s and J LEN’s portfolios
Slide 21: Outlook
Outlook Q1 FY25 trading update Outlook • AUM: c.£12.6 billion, FUM: c.£8.9 billion, + c.£0.5 billion • FEIP II first close at €300 million Prior year fundraising into Quality of our retail • Completion of c.€3001 million Greek solar deal higher margin vehicles distribution platform which continues t
Slide 22: Strong earnings momentum; multiple drivers of growth
Strong earnings momentum; multiple drivers of growth • Demonstrable track record of pr ofita ble growth • Driven by long term structural growth in our key markets and a highly sca la ble platform • Supported by a high level of predictability in future revenue flows • Built on the foundations of a di
Slide 23: Q&A
Q&A Silvermines Hydro, Tipperary, part of Foresight's portfolio
Slide 24: Appendices
Appendices Refeyn, part of FWT's portfolio
Slide 25: Appendix 1: Key Financial Metrics
Appendix 1: Key Financial Metrics Actuals Constant currency basis 31 March 2024 31 March 2023 Period Change 31 March 2024 Period Change Assets/ Funds Period-end AUM (£m) 12,144 12,167 0% 12,341 +1% Period-end FUM (£m) 8,397 9,022 -7% 8,520 -6% 31 March 2024 31 March 2023 YoY Change Revenue Total Rev
Slide 26: Important Information
Important Information 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
Slide 27: Thank you
Thank you 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
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