Foresight Environmental Infrastructure Limited GBP · LSE:FGEN
Foresight Environmental Infrastructure Limited GBP — JLEN Environmental Assets Group — FY2020 Earnings Presentation
38 slides from Foresight Environmental Infrastructure Limited GBP's earnings presentation, Jun 11, 2020
Slide 1: JLEN Environmental Assets Group Annual Results Presentation
JLEN Environmental Assets Group Limited Annual Results Presentation 11 June 2020
Slide 2: Contents
CONTENTS Page Contents 4 JLEN overview 5 Environmental, Social and Governance 6 Annual results overview 7 Investments in the period 10 Portfolio overview 12 Portfolio analysis 15 Portfolio performance 21 Portfolio valuation 29 Financial performance 31 Outlook and pipeline 32 Summary
Slide 3: £4.5bn assets under management, 2.3GW clean energy generation
£4.5bn 22 ESG assets under sustainability- infrastructure management led funds investments 93 246 2.3GW renewable infrastructure clean energy energy professionals investments generation
Slide 4: JLEN Fund Overview
4 JLEN FUND OVERVIEW diversification 30 Environmental infrastructure investments 5 Technology subsectors 297.9MW Total diversified capacity Investment, growth and Predictable income growth for shareholders 6.66p Dividend for year to 31 March 2020 6.76p Dividend target for year to 31 March 2021! 1.5%
Slide 5: Environmental, Social & Governance
ENVIRONMENTAL, SOCIAL & GOVERNANCE SJECTIVE Over the course of the next full year 2020/21, JLEN Develop positive Ensure effective, will develop a series of KPIs to help the fund track the relationships with ethical governance portfolio's performance against each of the ESG the communities in across
Slide 6: JLEN Annual Results — Highlights
6 JLEN ANNUAL RESULTS — HIGHLIGHTS At At 31 March 2020 31 March 2019 Market capitalisation £606.9m £549.2m Cash flow from operations £36.2m £35.6m Portfolio value £537.1m £523.6m Share price 111.0p 110.5p Dividend per share (declared) 6.66p 6.51p NAV per share 97.5p 104.7p Gearing 35% 36% Number of
Slide 7: Investments in the Period
7 INVESTMENTS IN THE PERIOD Yorkshire Hydropower Acquisition date Location Ownership Capacity (MWs) Accreditation July 2019 Yorkshire 100% 2 (including 1.2MW battery storage) FiT Warren AD Plant Acquisition date Location Ownership Capacity (MWs) Accreditation August 2019 Methwold, Norfolk 100% 5 (&
Slide 8: YHL Hydropower and Co-located Battery
8 YHL HYDROPOWER AND CO-LOCATED BATTERY Acquisition date Location Ownership Project description Commercial operations date Accreditation July 2019 Yorkshire 100% Two operational run-of- river hydropower stations with a co-located battery storage facility October 2015 (Thrybergh) November 2016 (Kirkt
Slide 9: Bio Collectors revenue sources
Bio Collectors revenue sources Merchant power and ancillary revenues 26% Green benefits 74% • • •
Slide 10: Portfolio Overview as at March 2020
10 PORTFOLIO OVERVIEW AS AT 31 MARCH 2020 Bilsthorpe — 100%, 10.2MW, R Amber — 100%, 9.8 MW, UK FiT Burton Wold — 100%, 14.4M\ Branden — 100%, 14.7MW, ROC Carscreugh — 100%, 15. 3MW, CSGH Solar — 100%, 33.5MW, ROC. Castle Pill— 100%, Dungavel - 100%, 26MW Ferndale — 100%, 6.4M\\ Hall Farm — 100%, 24
Slide 11: JLEN Portfolio Construction
11 JLEN PORTFOLIO CONSTRUCTION Projects Capacity (MW) * Disciplined approach to acquisitions * Aim to diversify the portfolio to achieve a broad spread of risk and return * Focus on constructing a resilient portfolio that minimises the impact of any one climatic condition or market dynamic * Broad i
Slide 12: Portfolio Analysis at March 2020
12 PORTFOLIO ANALYSIS AT 31 MARCH 2020 Portfolio value split by sector Portfolio value split by rem: g asset life (years) Portfolio split by asset concentration 10% 15% aaa 23% oo a% Bwina Mlup to 10 years 46% 23% anaerobic digestion 11 to 20 years lar 49% Ml More than 20 years 19% Mi Waste & wastew
Slide 13: Seasonality by Technology Type
Seasonality by Technology Type 16% Monthly Production/Yearly Total 14% 12% 10% 8% Production 6% 4% 2% 0% Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec 2019 Wind Solar AD Hydro Mar-18 Hydro Sep-18 AD Mar-19 1% Waste/wastewater Sep-19 1% Solar Mar-20 0% 20% 40% 60% Wind
Slide 14: Covid-19 Response
14 COVID-19 RESPONSE * Emergence of global pandemic in 2020 presented an unprecedented operational challenge to JLEN and its stakeholders * Investment Advisor acted quickly and moved its global workforce to remote working and established a ‘Covid-19 Response Plan’. ° Asset Management team engaged wi
Slide 15: Diversified Portfolio Performance
DIVERSIFIED PORTFOLIO PERFORMANCE @ Wind portfolio actual generation (GWh) 399 406 458 Variation from budget! 0% -9% +4% @ Solar portfolio actual generation (GWh) 64 79 75 Variation from budget! -9% +2% -3% @ AD portfolio actual generation (GWh) 51 262 352 Variation from budget +8% +4% +4% Waste & w
Slide 16: Portfolio Performance: Wind
16 PORTFOLIO PERFORMANCE @ Wind * 4% above budget helped by good wind speeds and strong performance in the final quarter * Sites previously serviced by Senvion returned to expected availability levels since the half-year * Value Enhancements in the period include — Aftermarket software and hardware
Slide 17: Portfolio Performance: Anaerobic Digestion
17 JLEN PORTFOLIO PERFORMANCE @ Anaerobic Digestion 31 March 2020 (GWh) 352 Variation from budget +4% Cumulative performance 665GWh * Generation performance 4% above budget due to good plant availability and further process optimisation AD revenue sources * Progressing various initiatives to improve
Slide 18: Portfolio Performance: Solar
18 PORTFOLIO PERFORMANCE JLEN @ Solar 31 March 2020 (GWh) 75 Variation from budget -3% * Solar performance 3% below budget Cumulative performance 298GWh * Solar resource was 4.2% above expectations : Solar revenue sources * Variation due to a combination of technical issues, network outages, warrant
Slide 19: Bio Collectors revenue sources
• • Bio Collectors revenue sources • Merchant power and • ancillary revenues 26% • • Green benefits 74% • • 2% • •
Slide 20: Portfolio Performance: Hydro (and battery)
20 PORTFOLIO PERFORMANCE @® Hydro (and battery) * Hydro performance 17% below budget since acquisition in July 2019 * Budget deficit due to extreme river levels over the period ¢ The co-located battery at the Thrybergh site continued to focus exclusively on delivering frequency response services thr
Slide 21: Portfolio Valuation Movement
21 PORTFOLIO VALUATION MOVEMENT Includes impact of: * Life extensions +£3.4m * Upgrades, including Vulcan +£64m * Retendering and cost-saving +£5.0m £m 600 £579m 550 £50.9m (€45.0m) 500 £196m £0.1m (€13.1m) 450 400 Portfolio Acquisitions Distributions Rebased Forecast Economic Discount Change in Bal
Slide 22: Power price assumptions and market forwards approach
Approach of using market forwards or fixes where applicable remains unchanged – at 31 March 2020, 53% of the renewable energy portfolio’s electricity price exposure was subject to a fixed price or a floor arrangement for the summer 2020 season and 48% for the winter season 2020/21 Policy of using a
Slide 23: • • • '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31
• • • '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 '35 '36 '37 '38 '39 '40 '41 '42 '43 '44 '45 '46
Slide 24: Portfolio Valuation — Key Assumptions
24 PORTFOLIO VALUATION — KEY ASSUMPTIONS Economic Discount rate * Long term UK Retail Price Index assumptions remains * Reduction in the discount rates used for valuing selected AD unchanged at 2.75%. assets and levered wind and solar assets during the period * Future expectations of near-term infla
Slide 25: Portfolio Value Enhancements
25 PORTFOLIO VALUE ENHANCEMENTS ¢ In the year to 31 March 2020 value Vulcan Renewables AD Plant Upgrade enhancement initiatives added more than £20m to the portfolio valuation ¢ Value enhancements recognised include: . Ongoing retendering of technical and site asset management contracts Increased EY
Slide 26: Dividends
26 DIVIDENDS Dividend Declaration * JLEN delivered target dividend of 6.66 pence in year to 31 March 2020 with a dividend cover of 1.1x * Target dividend of 6.76 pence declared for year to 31 March 2021 which reflects an increase of 1.5% YoY Dividend Policy Change * Dividend targets to increase ‘pro
Slide 27: NAV Sensitivity Analysis
27 NAV SENSITIVITY ANALYSIS Energy yield: (P90/P10) Energy yield: me oo I Electricity (+/- 10%) Feedstock prices (£7.6m) PF £6.8m (+/- 10%) ven os TE - ae (£0.2m) | £0.2m -8p -6p -4p -2p Op 2p 4p 6p 8p NAV per share
Slide 28: Leverage Use at March 2020
28 LEVERAGE USE AT 31 MARCH 2020 Leverage of as % of Technology % Portfolio Revenue Sources GPV Solar 23% Merchant power & green benefits 12% Wind 36% Merchant power & green benefits 45% Anaerobic digestion 25% Merchant power & green benefits 0% Hydro & battery 1% Merchant power & green benefits 36%
Slide 29: Financial Performance — Summary
29 FINANCIAL PERFORMANCE — SUMMARY 31 March 2020 31 March 2019 Portfolio valuation £537.1m £523.6m Cash £22.0m £11.4m Net Debtors £3.2m £2.0m Revolving credit facility (£29.3m) (£16.7m) Net assets £533.0m £520.3m Number of shares in issue 546.7m 497.0m Net asset value per share (pence per share) 97.
Slide 30: Financial Performance — Group Cash Flow
30 FINANCIAL PERFORMANCE — GROUP CASH FLOW 31 Mareh 2020 Cash received from environmental infrastructure investments 45.0 43.6 Administrative expenses (1.0) (1.0) Directors’ fees and expenses (0.3) (0.2) Investment advisory fee (5.5) (4.8) Financing costs (net of interest income) (2.0) (2.0) Cash fl
Slide 31: Outlook and Pipeline
OUTLOOK AND PIPELINE Investment policy Investment outlook The Company invests in environmental infrastructure projects, being those that utilise natural or waste resources or support more environmentally friendly approaches to economic activity New government policies will support investment into Ge
Slide 32: Summary
32 SUMMARY * Strong operational performance with energy generation 2.4% above budget * Disciplined approach to three acquisitions completing during the year, giving a total of 30 assets * Raised £57 million of equity capital via an oversubscribed placing during the year * Dividend cover of 1.1x and
Slide 33: Q&A Thanks for listening
33 Q&A Thanks for listening
Slide 34: Appendices
ss os JLEN APPENDICES
Slide 35: The Fund, Investment Adviser and Fees
• The Fund • • • Investment Adviser • • • Base Fee • Performance Fee • Asset Origination Fee • Investment Adviser Term • • Discount Control • Continuation Vote
Slide 36: Investment Policy
JLEN INVESTMENT POLICY * Environmental Infrastructure projects that utilise natural or waste resources or support more environmentally-friendly approaches to economic activity, which could involve: + Renewable energy generation (solar, wind, biornass and hydropower) * Supply and treatment of water *
Slide 37: Timeline — 2019/20
37 TIMELINE — 2019/20 January 20 February 20 March 20 April 20 + Announced a commitment of * Raised £57.2 million in an + Paid a dividend of 1.665 pence per * Investment into Peacehill Farm AD plant for €25 million to Foresight Energy oversubscribed placing share (relating to the three-month an aggr
Slide 38: Disclaimer
38 DISCLAIMER This document contains information provided solely as an update on the financial condition, results of operations and business of John Laing Environmental Assets Group Limited ("JLEN"). Nothing in this document or in any accompanying management discussion of this document constitutes,
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