Greencoat UK Wind Plc · LSE:UKW
Greencoat UK Wind — FY2014 Earnings Presentation
23 slides from Greencoat UK Wind's earnings presentation, Feb 23, 2015
Slide 1: Annual Results
Annual Results 23 February 2015
Slide 2: Agenda
Agenda Introduction 3 Operational and Financial Performance 7 Growth 13 Summary 16 Appendix 18 2
Slide 3: Introduction
GREENCOAT UK WINE Introduction
Slide 4: Simple, Transparent and Low Risk
Simple, Transparent and Low Risk Wind is the most mature renewable technology High The UK has an established, stable regulatory framework and high wind resource Quality UKW requires an operational track record Assets with Low Risk UKW has low leverage for cashflow stability and higher tolera
Slide 5: Results Summary
Results Summary Power generation of 564.6GWh Net cash generation of £32.4m Dividends of £24.8m (6.16p per share) paid or declared Six additional wind farm investments, taking total generating capacity to 271.5MW GAV increased from £401.1m to £591.2m £125m equity raised NAV increased fr
Slide 6: Delivered: 6p Inflating Dividend and Real NAV Growth
Delivered: 6p Inflating Dividend and Real NAV Growth 271.5MW 226.4MW 184.0MW £486.2m 153.1MW GEN. CAPACITY 126.5MW £363.4m £360.3m £351.1m £353.0m £262.4m £263.8m 105.5p 105.8p 104.8p £254.8m 102.9p 100.9p 102.8p 101.4p 98p Mar 27 Jun 30 Sep 20 Oct 2 Equity Feb 21 Mar 31 Jun 30 Aug 22 Aug 29 Equity
Slide 7: Operational and Financial Performance
Operational and Financial Performance
Slide 8: Portfolio Overview
Portfolio Overview Kildrummy Braes of Doune Drone Hill Bin Mountain Carcant Middlemoor North Rhins Tappaghan Sixpenny Wood Rhyl Flats Lindhurst Yelvertoft Cotton Farm Earl’s Hall Farm Maerdy Little Cheyne Court High quality, well-balanced portfolio of assets 8 Note: All assets shown by value as at 3
Slide 9: Operational Performance
Operational Performance Portfolio generation in line with management expectations: 564.6GWh (budget 583.7GWh) 9
Slide 10: Financial Performance
Financial Performance Year ended 31 Dec 2014 (£m) Net cash generation (after fees, costs and expenses) 32.4 Dividends paid (February 2014 and August 2014) (20.8) Investment in Kildrummy (44.1) Debt drawn down 42.0 Net reinvestment (2.1) Investment in Maerdy (53.5) Debt drawn down 51.0 Net reinvestme
Slide 11: Net Asset Value
Net Asset Value DCF valuation Reduced by 0.5p per share Incorporates lower power price forecasts of 3p per share (2p in Q4) Partially offset by operational savings from long term contracts renewed in 2014 of 2p per share 11
Slide 12: Investment Performance
Investment Performance Total return (NAV) Total Shareholder Return vs market peers NAV at 31 Dec 2013 (ex div) 99.9p NAV at 31 Dec 2014 (ex div) 102.4p Movement in NAV (ex div) 2.5p 31 Dec 2013 to 31 Dec 2014 Dividend (paid/declared) 6.16p Total return 8.7% 12
Slide 13: Growth
GREENCOAT UK WINE Growth
Slide 14: Continued Opportunities to Grow
Continued Opportunities to Grow Utility friendly structure and independence allows UKW access to a wide range of value accretive acquisitions Currently installed/available capacity Future UK pipeline 16 onshore offshore 14 Estimated Installed Capacity (GW) 12 10 4.7 GW 2.2GW 1.6 GW 2.7 GW 8 6 Other
Slide 15: Simple Capital Structure
Simple Capital Structure 1000 800 Short Term Acquisition Debt GAV (£m) 600 400 Equity 200 Long Term Debt IPO Oct Nov Dec Jun Aug Oct Dec Feb 2013 2014 2015 Asset Level No debt at asset level in existing portfolio nor intention to have any asset level debt going forward Acquisition debt facility
Slide 16: Summary
GREENCOAT UK WINE Summary
Slide 17: Greencoat UK Wind
Greencoat UK Wind Power generation of 564.6GWh, in line with management expectations Six additional wind farm investments, taking total generating capacity to 271.5MW GAV increased to £591.2m £125m equity raised Strategic seed investors roles fulfilled, register now clear NAV increased t
Slide 18: Appendix
GREENCOAT UK WINE Appendix
Slide 19: Diversified Asset Portfolio
Diversified Asset Portfolio Group Acquisition Total Commercial ROCs / Forecast Net Load Wind Farm Country Turbines PPA Ownership Net MW(1) MW Operations Date Date MWh Factor(2) Stake Bin Mountain N Ireland GE SSE 9.0 100% 9.0 Jul-07 Mar-13 1.0 33.1% Braes of Doune Scotland Vestas Centrica 72.0 50% 3
Slide 20: Highly Experienced Investment Management Team
Highly Experienced Investment Management Team Stephen Lilley – 18 years of investment Laurence Fumagalli – 18 years of investment experience in the infrastructure, utility and and financing experience, with a focus on UK renewables sectors in addition to 6 years in wind industry Peter McHale – 20 ye
Slide 21: Independent UK Board
Independent UK Board Tim Ingram – Chairman Ex-Caledonia CEO, Ex-Collins Stewart Hawkpoint Chairman, Chairman of Wealth Management Assoc’n Shonaid Jemmett-Page – Director, Chair of Auditco Ex-KPMG, Unilever and CDC Finance and accountancy experience Willy Rickett – Director Ex-Director General of DEC
Slide 22: NAV Sensitivities
NAV Sensitivities The unlevered discount rate used in the DCF valuation is between 8 and 9 per cent. (equivalent levered discount rate of approximately 11 per cent.). Base case energy yield assumptions are P50 (50 per cent. probability of exceedance) forecasts produced by expert consultants based on
Slide 23: Disclaimer
Disclaimer Important Information This document has been prepared by Greencoat Capital LLP and Greencoat UK Wind PLC (“UKW”) solely for use at a presentation in connection with UKW’s annual results in respect of the year to 31 December 2014 (the “Presentation”). For the purposes of this notice, the P