Greencoat UK Wind Plc · LSE:UKW
Greencoat UK Wind — H1 2015 Earnings Presentation
24 slides from Greencoat UK Wind's earnings presentation, July 2015
Slide 1: Half-year Results
Half-year Results July 2015
Slide 2: Agenda
Agenda Introduction 3 Operational and Financial Performance 7 Regulation 13 Growth 15 Summary 18 Appendix 20 2
Slide 3: Introduction
MAY, GREENCOAT — pow UK WIND ai Introduction
Slide 4: Simple, Transparent and Low Risk
Simple, Transparent and Low Risk Wind is the most mature renewable technology and the UK has an established, stable regulatory framework High and high wind resource Quality UKW requires an operational track record to mitigate wind-to-energy conversion risk Assets with UKW has low leverage for
Slide 5: Results Summary
Results Summary Power generation of 408.0 GWh; 10% above budget Net cash generation of £29.2m Dividends of £14.4m (3.13p per share) declared for the period GAV of £585.8m1 and NAV of £480.8m1; NAV growth of 0.2p per share (ex-dividend) Market capitalisation of £512.1m1 Leverage of £105m
Slide 6: Proven Investment Proposition
Proven Investment Proposition £53.4m of dividends paid or declared since listing 6
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 Portfolio generation of 408.0GWh (10% above budget) 8 Note: All assets shown by value as
Slide 9: Financial Performance
For the six months ended 30 June 2015 Group and wind farm SPV cash flows fim Net cash generation 29.2 Dividends paid (February and May 2015) (21.4) Acquisitions — Acquisition costs =_ Equity issuance costs" (0.3) Debt repayment/drawdown — Upfront finance costs (0.8) Movement in cash (Group and wind
Slide 10: Net Asset Value
Net Asset Value DCF valuation Reduced by 2.4p per share Incorporates ̶ Lower power price forecasts (Q1) ̶ Loss of CCL exemption and reduced Corporation Tax rate (Q2) 10
Slide 11: Investment Performance
Investment Performance Total return (NAV) Total Shareholder Return vs market peers NAV at 31 Dec 2014 105.5p Less Feb 2015 dividend (3.1)p NAV at 31 Dec 2014 (ex div) 102.4p NAV at 30 June 2015 104.2p Less Aug 2015 dividend (1.6)p NAV at 30 Jun 2015 (ex div) 102.6p Movement in NAV (ex div) 0.2p 11
Slide 12: UK Renewable Funds NAV Analysis
UK Renewable Funds NAV Analysis 110.0 108.0 106.0 104.0 NAV/Share (p) (1) 102.0 100.0 98.0 96.0 94.0 92.0 90.0 Mar-13 Jun-13 Sep-13 Jan-14 Apr-14 Aug-14 Nov-14 Mar-15 Jun-15 UKW BSIF TRIG FSFL JLEN NSEF “6p dividend, increasing with RPI inflation and real NAV growth’’ 12 (1) Adjusted for accrued div
Slide 13: Regulation
GREENCOAT — pow UK WIND ai Regulation
Slide 14: Regulation
Regulation New Government – changes to expected timings, but not to outcomes Change to deadline for ROC regime An issue for developers, not for owners or acquirers of operational assets Changes were well trailed prior to announcement, and largely expected Primacy of grandfathering remains cl
Slide 15: Growth
GREENCOAT — U D OLR K WIND ai Growth
Slide 16: Continued Opportunities to Grow
Continued Opportunities to Grow Wind - a huge secondary market Greencoat - structured to acquire the best assets 16 onshore 14 offshore Estimated Installed Capacity (GW) 12 10 4.7 GW 2.1GW 1.5 GW 3.7 GW 8 6 4 Other Major 2 Big Six Utilities Developers Other 0 2010 2011 2012 2013 2014 2015 2016 2017
Slide 17: 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 Jul 2013 2014 2015 Asset Level No debt at asset level in existing portfolio nor intention to have any asset level debt going forward Revolving credit facility (“RC
Slide 18: Summary
GREENCOAT — pow UK WIND ai Summary
Slide 19: Summary
Summary Power generation of 408.0 GWh; 10% above budget Net cash generation of £29.2m Dividends of £14.4m (3.13p per share) declared for the period Six dividends totalling £53.4m declared since listing NAV of £480.8m1; NAV growth of 0.2p per share (ex-dividend) Leverage of £105m (18%)1 a
Slide 20: Appendix
GREENCOAT — pow UK WIND ai Appendix
Slide 21: 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 31.7% Braes of Doune Scotland Vestas Centrica 72.0 50% 3
Slide 22: A Highly Experienced Investment Management Team
A 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
Slide 23: 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 24: 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