Ecofin Global Utilities and Infrastructure Trust Plc · LSE:EGL
Ecofin Global Utilities and Infrastructure Trust — Shareholder Meeting (March 2022)
21 slides from Ecofin Global Utilities and Infrastructure Trust's shareholder meeting presentation, Mar 2, 2022
Slide 1: Ecofin Global Utilities and Infrastructure Trust plc AGM 2 March 2022
Ecofin Global Utilities and Infrastructure Trust plc (EGL.LN) AGM 2 March 2022 © 2021 Ecofin
Slide 2: EGL's Portfolio Manager
EGL’s Portfolio Manager Jean-Hugues de Lamaze Managing Director and Portfolio Manager Portfolio Manager, Ecofin Global Utilities and Infrastructure Trust plc and the Ecofin Sustainable Listed Infrastructure UCITS Fund. Joined Ecofin as Portfolio Manager in 2008. 32 years of experience in equities an
Slide 3: Strategy overview
Strategy overview An alternative income strategy featuring capital preservation and exposure to global growth Global Income Growth Diversified across geographies, Invested in securities with attractive Growth-oriented infrastructure sub-sectors and investment themes yields and inflation protection b
Slide 4: NAV and share price performance (total returns)
NAV and share price performance (total returns) Financial years (%) Since inception* (% p.a.) 35 18 16 15.3 30 28.9 14 25 22.9 11.6 12 20 10 15 8 10 6 6.3 5 4 2 0 -1.6 0 -5 Since Admission in Sept 2016 F2021 F2022 to date* EGL NAV EGL Share price EGL NAV EGL Share price EGL is growing: • Block-listi
Slide 5: Performance vs indices (to 28 February 2022)
Performance vs indices (to 28 February 2022) Since Since (all total returns in £) 3M% 6M% 1Y% 3 Yrs % 5 Yrs % Admission* Admission* % % per annum Net Asset Value 1.4 4.0 23.2 56.5 84.7 82.0 11.6 Share Price 1.2 3.4 17.2 68.2 110.4 116.8 15.3 S&P Global Infrastructure 6.5 7.1 19.0 18.0 25.6 29.8 4.9
Slide 6: Our investment philosophy
Our investment philosophy Capturing value from the energy transition EGL’s portfolio is positioned to deliver attractive total returns by selecting the companies with the greatest exposure to secular growth trends stemming from the world’s accelerating energy transition. We have an unconstrained uni
Slide 7: The opportunity: secular growth
The opportunity: secular growth Energy transition underpins sustainable and profitable growth Infrastructure globally requires a major step up in investment as a significant proportion is obsolete, in poor condition or inadequate to cope with the world’s rapid decarbonisation needs. The world today
Slide 8: The opportunity: secular growth
The opportunity: secular growth Moving to a greener, more electric energy mix We see two main secular trends in the infrastructure space driving investments and value creation for decades to come: • Decarbonisation – the substitution of fossil fuels with renewable energy, mostly in the form of renew
Slide 9: The opportunity: enhanced returns
The opportunity: enhanced returns Dual benefit of rising commodity prices in the short term Commodity prices have increased sharply, producing a dual benefit for our portfolio companies: higher revenues and margins through higher achieved power prices, and an expanded renewable investment opportunit
Slide 10: The opportunity: enhanced returns
The opportunity: enhanced returns Evolving business mixes drive value creation in the long run Utilities are rapidly adapting business models to a world which increasingly prioritises decarbonisation… EBITDA split by activity for European Utilities 12% 13% 11% 21% 22% 10% 7% 12% 29% 42% 44% 49% 46%
Slide 11: The opportunity: enhanced returns
The opportunity: enhanced returns Evolving business mixes drive value creation in the long run …with shifts in capital allocation offering opportunities to unlock significant value. 11 Sources: Bloomberg, Goldman Sachs, Company data
Slide 12: The opportunity: inflation hedge
The opportunity: inflation hedge Infrastructure as a source of inflation protection As owners of essential assets, listed infrastructure companies provide a uniquely attractive risk profile in times of rising inflation, often combining inflation indexing with strong pricing power and cyclical exposu
Slide 13: The valuation gap
The valuation gap Utilities relative yields – a 30-year perspective Notwithstanding its newly found growth, the utilities sector remains a source of income for many investors. The relative yields of the sector look the most attractive they have in decades (RHS chart), and the spread to risk free rat
Slide 14: Summary
Summary • Ecofin has a long and successful track record of investing in global sustainable listed infrastructure. • We identify superior risk/reward opportunities as specialists, with a unique focus on identifying utilities in transition. • We approach our investments with a total return mindset, al
Slide 15: Appendices
ecofin Appendices 15
Slide 16: Key performance indicators
Key performance indicators As at or year to As at or year to As at or year to As at or year to As at or period to KPIs 30 September 30 September 30 September 30 September 30 September 2021 2020 2019 2018 2017 Change in: NAV1 22.9 -2.6% 27.4% 4.8% 7.2% Share price1 28.9 5.6% 32.3% 1.1% 20.9% Premium/
Slide 17: Listed infrastructure investment universe
Listed infrastructure investment universe North Latin Inclusion criteria: Universe overview Europe APAC Total America America No. of companies 139 90 132 34 395 Market cap >$500mn Market cap. ($ ‘000) 2,024 1,017 697 109 3,847 Average daily volume >$1mn 17
Slide 18: Carbon performance
Carbon performance Emissions performance of EGL’s portfolio (by Ecofin Advisors Limited with CarbonAnalytics) • Electricity generators in EGL’s portfolio generally have CO2 emissions which are significantly below the average emissions of their relevant electricity grid and the companies sitting in t
Slide 19: Ecofin UK contact details
Ecofin UK contact details Ecofin Advisors Limited Burdett House 15 Buckingham Street London WC2N 6DU United Kingdom Tel: +44 20 7451 2929 Elspeth Dick, CFA Michael Hart Investor Relations Marketing +44 20 7451 2921 +44 20 7451 3023 edick@ecofininvest.com mhart@ecofininvest.com 19
Slide 20: Disclaimer
Disclaimer This document is being issued in relation to Ecofin Global Utilities and Infrastructure Trust plc (“Ecofin Global”) by Ecofin Advisors Limited (the “Investment Manager”) which is authorised and regulated by the Financial Conduct Authority. This document does not constitute or form part of
Slide 21: www.ecofininvest.com
www.ecofininvest.com
Ecofin Global Utilities and Infrastructure Trust — Shareholder Meeting (March 2022) on 6ix