Octopus Renewables Infrastructure Trust Plc · LSE:ORIT
Octopus Renewables Infrastructure Trust — H1 2020 Earnings Presentation
36 slides from Octopus Renewables Infrastructure Trust's earnings presentation, September 2020
Slide 1: Octopus Renewables Infrastructure Trust plc Interim Results Presentation
Octopus Renewables Infrastructure Trust plc Interim Results Presentation From the period from incorporation on 11 October 2019 to 30 June 2020
Slide 2: Important information
Important information This document is issued by Octopus Investments Limited (“Octopus”) in This document contains certain forward-looking statements. In some cases connection with Octopus Renewables Infrastructure Trust plc (the “Company”) forward looking statements can be identified by the use of
Slide 3: Important information
Important information This document is not for release, publication or distribution, directly or indirectly, The securities in the Company have not been nor will be registered under the in whole or in part in any jurisdiction where such release, publication or U.S. Securities Act of 1933, as amended
Slide 4: Table of Contents
Table of Contents Key Investor Risks 5 Appendices ORIT Strategy Overview 6 About ORIT 27 Investing for a positive impact 7 Financial Performance 28 H1 2020 Highlights 8 Table of assets 30 Acquisitions 11 Valuation Sensitivities 31 Portfolio Breakdown as at 30 June 2020 15 Impact Initiatives 32 Reven
Slide 5: Key Investor Risks
Key Investor Risks 1. An investment in the Company will place capital at risk. 5. Renewable energy assets are illiquid and may prove The value of investments can go down as well as up, so difficult to sell. The price achieved on any realisation may investors could get back less than the amount inves
Slide 6: ORIT Strategy Overview
ORIT Strategy Overview Investment Objective: Provide investors with an attractive and sustainable level of income returns, with an element of capital growth, by investing in a diversified portfolio of renewable energy assets in UK, Europe and Australia. Diversified Asset Allocation Active Constructi
Slide 7: Investing for a positive impact
Investing for a positive impact Our aim is to accelerate the transition to net zero through our investments, building and operating a diversified portfolio of renewable energy assets • Aim to enhance impact where possible through initiatives aligned with three responsible investment lenses: Performa
Slide 8: H1 2020 Highlights
H1 2020 Highlights Following a successful fundraise, fund has delivered a solid performance despite a challenging market • On 10 December 2019 ORIT listed on the main market of the London Stock Raised in oversubscribed IPO £350m Exchange Ordinary share price 112.2p • Extraordinary demand and strong
Slide 9: H1 2020 Highlights
H1 2020 Highlights NAV has remained stable and cash generated from operational portfolio supported dividend per share declared in the period • To date NAV has largely been protected Net Asset Value (“NAV”)1 £341.5m from power price falls through timing and terms of acquisitions NAV per ordinary shar
Slide 10: Investments and Portfolio
Investments and Portfolio
Slide 11: Acquisitions
Acquisitions Solid progress has been made deploying the proceeds of the IPO in line with the diversified investment strategy 30 June 15 Sept Number of acquisitions made 2 3 Number of assets 9 23 Capacity 171MW 291MW Total committed capital £203m £257m IPO Proceeds 59% 75% 1. First investment of £59m
Slide 12: Portfolio – Swedish Wind
Portfolio – Swedish Wind First investment of €68m was made into Ljungbyholm Wind Farm, a construction-ready onshore wind farm project in Sweden • ORIT acquired this project from OX2, a Acquisition Highlights leading renewable energy developer based in Technology Wind Sweden which has developed and b
Slide 13: Portfolio – UK Solar
Portfolio – UK Solar Second investment of £144m into a portfolio of 8 fully operational ROC subsidised solar PV assets with a capacity of 123MW located throughout the UK • ORIT acquired this project from an Octopus Acquisition Highlights managed entity, Fern Trading Technology Solar • Project was in
Slide 14: Portfolio – French Solar (post period completion)
Portfolio – French Solar (post period completion) Third investment of £53m into a portfolio of 14 fully operational FiT subsidised solar PV assets with a capacity of 119.5MW located throughout France • ORIT acquired this project in an off-market Acquisition Highlights transaction from a subsidiary o
Slide 15: Portfolio Breakdown as at 30 June 2020
Portfolio Breakdown as at 30 June 2020 Building a diversified portfolio to accelerate the transition to net zero • Average remaining asset life Impact KPIs across the portfolio is 25 years from £203m committed into • 8 operational assets, 1 asset in renewables construction Potential production from
Slide 16: Revenue breakdown as at 30 June 2020
Revenue breakdown as at 30 June 2020 Over the next two years, 64% of revenues1 are forecast from fixed prices • Proportion of fixed revenues has increased following the French transaction, from 64% to 82%1 over the next two years • Substantial levels of fixed-price revenues for the next 15 years, pr
Slide 17: Current Portfolio as at September 2020
Current Portfolio as at 15 September 2020 Continue to achieve further diversification of invested capital through our acquisitions Operational Operational Total French Solar UK Solar invested capital £256m 21% Percentage fixed revenues1 82% 56% Total capacity2 Average 291MW 23% asset life3 26 years
Slide 18: Portfolio Performance
Portfolio Performance
Slide 19: Portfolio Performance
Portfolio Performance Since acquisition the Company’s operational solar portfolio in the UK has performed well. Construction of Ljungbyholm Wind Farm remains on track. • UK experienced the ‘sunniest’ month on Asset performance at SPV level record in May 2020 Total production in the period 63,906MWh
Slide 20: Financial Highlights and Valuations
Financial Highlights and Valuations
Slide 21: Financial Results
Financial Results For the period from incorporation to 30 June 2020 £731k £1,465k (0.54p) 1.24% Total income Loss for the Earnings per Ongoing charges period share ratio Interim dividend £341.5m £6.2m +6.23% fully covered by NAV Operational asset Operational asset the net cashflows EBITDA performanc
Slide 22: Power Prices
Power Prices Limited impact on 30 June NAV as conservative forecasts used for acquisitions • Power price forecasts used based on market forwards in the near term and blend of advisor forecasts thereafter • Forecasts have fallen dramatically across the full Average power only Per time horizon in the
Slide 23: Outlook
Outlook
Slide 24: Market Outlook
Market Outlook Renewables have demonstrated resilience and set to benefit from green-led recovery • Reduction in economic demand • Size of opportunity expected to grow impacts renewables much less than as governments promote green led many other infrastructure investments recoveries • Zero marginal
Slide 25: Concluding remarks
Concluding remarks Strong performance to date, ever-growing opportunity • COVID has been disruptive to all our • Construction on track lives, but renewables as an asset class has demonstrated its value • Ever-growing opportunity as political and social momentum behind net-zero • ORIT has been able t
Slide 26: Appendix
Appendix
Slide 27: Octopus Renewables Infrastructure Trust plc
Octopus Renewables Infrastructure Trust plc To provide investors with an attractive and sustainable level of income returns, with an element of capital growth, by investing in a diversified portfolio of Renewable Energy Assets in Europe and Australia Investment Highlights Description Manager • Octop
Slide 28: Financial Performance (1)
Financial Performance (1) Summary financial statements Statement of Comprehensive Income Statement of Financial Position For the period from incorporation to 30 June 2020 As at 30 June 2020 £’000 £’000 Total income 731 Portfolio value 163,019 Fund expenses (2,196) Working capital (1,704) Tax - Cash
Slide 29: Financial Performance (2)
Financial Performance (2) Summary financial statements Statement of Cash Flows For the period from incorporation to 30 June 2020 £’000 Net cash flow from operations (464) Purchase of investments (162,742)¹ Interest received 426 Net proceeds from issue of share capital 343,000 Net cash flow 180,220 O
Slide 30: Table of all assets
Table of all assets Portfolio breakdown as at 30 June 2020 30
Slide 31: Valuation Sensitivities
Valuation Sensitivities NAV sensitivities are based on the existing portfolio of assets as at 30 June 2020 and as such may not be representative of the sensitivities once the Company is fully invested. 31
Slide 32: Impact Initiatives
Impact Initiatives Beyond accelerating the transition to net zero, ORIT seeks to generate additional impact and contribution to a broader set of SDGs through impact initiatives. Carbon measurement: ORIT intends to develop a deeper understanding of both negative and positive impacts by measuring and
Slide 33: Board of Directors
Board of Directors Phil Austin, MBE, Chair of the Board Spent most of career in banking with HSBC in London and, latterly, in Jersey as Deputy CEO of the Bank’’s Offshore business. Founding CEO of Jersey Finance Ltd, the body that represents and promotes the Island’s finance industry, both at home,
Slide 34: Octopus Renewables – Fund Management Team
Octopus Renewables – Fund Management Team Matt Setchell Chris Gaydon David Bird Matt is Co-head of Octopus Renewables, a Chris joined Octopus Renewables as an David is an investment director who joined the team that he started nine years ago and has investment director in 2015, is a long-standing Oc
Slide 35: About Octopus Renewables
About Octopus Renewables One of the largest renewable energy investment managers in Europe and manage on behalf of clients the largest portfolio of investor owned solar PV in Europe Investor owners of European large scale solar PV1 Octopus Renewables’ >70 managed portfolio (EV2) Renewable 1,200 Ener
Slide 36: Investor and Media Enquiries
Matt Setchell Chris Gaydon Octopus Renewables Octopus Renewables Matt.Setchell@octopusrenewables.com Chris.Gaydon@octopusrenewables.com David Bird Octopus Renewables David.Bird@octopusrenewables.com Octopus Investor Enquiries Media and Analyst Enquiries +44 (0)800 316 2295 +44 (0)207 466 5000 invest
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