GCP Asset Backed Income Fund Ltd. · LSE:GABI
GCP Asset Backed Income Fund — GCP Infrastructure Investments — H1 2021 Earnings Presentation
24 slides from GCP Asset Backed Income Fund's earnings presentation, June 2021
Slide 1: GCP Infrastructure Investments Limited Interim Results presentation
GCP INFRASTRUCTURE INVESTMENTS LIMITED 31 March 2021 Interim Results presentation June 2021 Authorised and regulated by the Financial Conduct Authority
Slide 2: Important Notice
IMPORTANT NOTICE This presentation (the "Presentation") has been prepared by Gravis Capital No undertaking, representation, warranty or other assurance, express or implied, is Management Limited (the "Investment Adviser“ or “Gravis”) and is for information made or given by or on behalf of the Compan
Slide 3: Agenda
AGENDA Strategic Update Portfolio Update Finance Update Q&A 2 INFRA
Slide 4: Agenda
AGENDA Strategic Update Portfolio Update Finance Update Q&A 3 INFRA
Slide 5: Strategic Update: Company objectives
STRATEGIC UPDATE Company objectives DIVIDEND INCOME DIVERSIFICATION CAPITAL PRESERVATION To provide shareholders with regular, To create a diversified portfolio of To preserve the capital value of its sustained, long-term dividends. debt and similar assets secured investment assets over the long ter
Slide 6: An attractive risk-adjusted exposure to infrastructure
AN ATTRACTIVE RISK-ADJUSTED EXPOSURE TO INFRASTRUCTURE The current share price represents an attractive entry point to invest into a mature, diverse portfolio with strong fundamentals Theme / Trend • 11-year track record of attractive income: 7.1% income yield on current share price with a focus on
Slide 7: UK Infrastructure Market
UK INFRASTRUCTURE MARKET National Infrastructure Strategy and Energy White Paper provide directions of travel with evolving detail on revenue support mechanisms UK’s National Infrastructure Strategy (November 2020) Strategy ‘pillar’ Economic Recovery Levelling up regions Net zero emissions Infrastru
Slide 8: Pipeline
PIPELINE The Company maintains an attractive pipeline of investment opportunities in existing and new sectors Sector Description Amount (£m) Return New opportunities Renewables - AD Portfolio of biomass and anaerobic digestion assets seeking senior loans to finance £5m 7.5% capital works. Renewables
Slide 9: Agenda
AGENDA Strategic Update Portfolio Update Finance Update Q&A 8 INFRA
Slide 10: Portfolio Update: Investment Portfolio at a glance
PORTFOLIO UPDATE Investment Portfolio at a glance £1.03 Portfolio valuation bn 48 Infrastructure loans in the portfolio 13 Weighted average life of loans years in the portfolio 8.0% Average annualised portfolio yield 1% Construction exposure (as % of total assets) 60% Renewable energy project exposu
Slide 11: Portfolio Update: disciplined approach to valuation of renewable assets
PORTFOLIO UPDATE The Company maintains a disciplined approach to the valuation of renewable assets, meaning the risk embedded in valuations has not changed over time 10 INFRA
Slide 12: Long-term electricity price forecasts
LONG-TERM ELECTRICITY PRICE FORECASTS The Company revised its approach in the period to more accurately reflect prices being captured by Projects GB market electricity price forecasts (real 2019) Replacement of 4Q Maintain long-term 4Q average from average with ICE single price provider futures Q4 2
Slide 13: Portfolio enhancements and challenges over the 6 months
PORTFOLIO UPDATE Portfolio enhancements / challenges and impact over the 6 months ending 31 March 2021 Challenges Enhancements Onshore Wind Life extensions Contract optimisations: £4.1m Technical Offshore Wind • Technical enhance- Hedging (Future TBC) review Renewables Electricity ments Ofgem audit
Slide 14: Portfolio Risk Summary
PORTFOLIO UPDATE Portfolio Risk Summary Low Impact Renewables SH PFI / PPP Medium Supported Living Wind (offshore) Wind (onshore) Geothermal Healthcare Education Biomass Leisure Waste Hydro High Solar AD Likelihood Market risks Asset Characteristics Credit risks Operational risks Legal / regulatory
Slide 15: Agenda
AGENDA Strategic Update Portfolio Update Finance Update Q&A 14 INFRA
Slide 16: Financial Update: Results Summary
FINANCIAL UPDATE Results Summary Balance Sheet: as at 31 March 2021 (£ 000) Comprehensive Income: 12 months to 31 March 2021 [£ 000] unless stated 31 March 2021 30 Sept 2020 [£ 000] unless stated 31 March 2021 31 March 2020 Assets Income Cash and cash equivalents 17,724 24,354 Net income / gains on
Slide 17: Income Breakdown
FINANCIAL UPDATE Income Breakdown – 6 months ending 31 March 2021 Income (£ 000) 16,585 36,362 0 42,205 11,193 451 5,489 1,867 3,837 32,122 -28,285 Interest accruals Principal Unrealised gains Unrealised Other income Total Income Operating costs Finance Profit and Dividends Net contribution indexati
Slide 18: Investment breakdown
FINANCIAL UPDATE Investment breakdown – 6 months ending 31 March 2021 (including post period-end movements) Cash flow (£ 000) 12,935 30,888 25,925 33,719 10,159 New investments Further advances Scheduled repayments Unscheduled repayments Net position Cash flow (£ 000) 12,824 - Main transaction in In
Slide 19: Financing breakdown
FINANCIAL UPDATE Financing breakdown – 6 months ending 31 March 2021 (including post period-end movements) 10,159 26 22,600 12,467 Net investment in period Equity raise (net of issuance costs) Credit facility repayment (drawdown) Funded out of (to) cash resources Size Margin Expiry Balance Period En
Slide 20: Approach to dividend coverage
FINANCIAL UPDATE Approach to dividend coverage GCP approach to dividend coverage Alternative approach Revenues Revenues (Operating costs and taxes) (Operating costs and taxes) (Capex) (Capex) (Fund level costs) (Fund level costs) Cash flows to service investors Cash flows to service investors Altern
Slide 21: Dividend coverage
FINANCIAL UPDATE Dividend coverage Earnings (as per SOCI) Adjusted earnings Cash 3,837 34,706 0 32,122 +8.0% 7,353 34,234 32,122 +6.6% 18,425 -49.3% 7,353 41,587 16,281 -111.9% 23,634 -32,122 Loan Other Expenses Adjusted Dividend Loan Operating OperatingRepayments Total Dividends Total profit / (los
Slide 22: Agenda
AGENDA Strategic Update Portfolio Update Finance Update Q&A 21 INFRA
Slide 23: Contact Information
CONTACT INFORMATION Philip Kent philip.kent@graviscapital.com 020 3405 8512 Rollo Wright rollo.wright@graviscapital.com 020 3405 8503 Gravis Capital Management Limited 24 Savile Row London W1S 2ES www.graviscapital.com 22 INFRA
Slide 24: Investment ideas for the long run
INVESTMENT IDEAS FOR THE LONG RUN INFRA
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