GCP Asset Backed Income Fund Ltd. · LSE:GABI
GCP Asset Backed Income Fund — GCP Infrastructure Investments — FY2020 Earnings Presentation
23 slides from GCP Asset Backed Income Fund's earnings presentation, Dec 17, 2020
Slide 1: GCP Infrastructure Investments Limited – Annual Results
GCP INFRASTRUCTURE INVESTMENTS LIMITED Investor and Analyst Presentation – Annual Results Period ending 30 September 2020 17 December 2020 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: Strategic Update: shareholder returns
STRATEGIC UPDATE 10 years from IPO, the Company has performed well for its shareholders 7.6p 119.6% £1.0bn 47 Annual dividend per Total shareholder return Market capitalisation at Investments as part of a share paid for last 7 since IPO (c. 8% annual 30 September 2020 diversified pool of years retur
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) Economic Recovery Levelling up regions Net zero emissions • £4bn levelling up fund to
Slide 8: Energy White Paper
ENERGY WHITE PAPER A material change to electricity, heating and transport (and ancillary sectors) that points to significant investment requirements -31% • c. 30% reduction in overall energy use; Final Energy Use (TWh) 1,800 Other 1,600 Electricity • Doubling of electricity demand associated with e
Slide 9: Brexit / Covid
BREXIT / COVID Company is well placed to weather uncertainty associated with Brexit and Covid Brexit Covid At the time of writing there is limited clarity on what The impacts of Covid are likely to extend into Q1 as the arrangements, if any, will be agreed post the end of the vaccine roll-out occurs
Slide 10: Electricity Prices
ELECTRICITY PRICES Electricity price forecasts have fallen significantly in the period, following a trend of reductions over the historic medium-term GB Electricity Price Forecasts (Source: Afry, Gravis analysis) (16%) Current 4Q average 30 Sept 2019 4Q average Current contributing curves 2021 2022
Slide 11: Agenda
AGENDA Strategic Update Portfolio Update Finance Update Q&A 10 INFRA
Slide 12: Portfolio Update: Investment Portfolio at a glance
PORTFOLIO UPDATE Investment Portfolio at a glance Infrastructure loans in the 47 portfolio Weighted average life of 15 loans in the portfolio years Average annualised yield 8.1% Construction exposure 5% (as % of total assets) Renewable energy project 60% exposure (as % of total asset valuation) Loan
Slide 13: Portfolio enhancements and challenges
PORTFOLIO UPDATE Portfolio enhancements / challenges and impact over the 12 months to 30 September Challenges Enhancements Onshore Wind Life extensions Technical • Technical Total system Offshore Wind enhance- review benefits* Renewables ments Electricity • Land PPA optimisations: £1.4m 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) Healthcare Education Biomass Leisure Waste Hydro High Solar AD Likelihood Market risks Asset Characteristics Potential Covid- Credit risks 19 impacts Operational risks Le
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 2020 (£ 000) Comprehensive Income: 12 months to 31 March 2020 [£ 000] unless stated 30 September 30 September [£ 000] unless stated 30 September 30 September 2020 2019 2020 2019 Assets Income Cash and cash equivalents 24,354 2,477 Net in
Slide 17: Income Breakdown – FY ending September 2020
FINANCIAL UPDATE Income Breakdown – FY ending 30 September 2020 Income (£ 000) 0 7,082 72,160 81,065 9 15,996 12,070 4,652 726 66,755 -67,481 Interest accruals Principal Unrealised gains Unrealised Other income Total Income Operating costs Finance Profit and Dividends Net contribution indexation los
Slide 18: Investment breakdown – FY ending September 2020
FINANCIAL UPDATE Investment breakdown – FY ending 30 September 2020 Cash flow (£ 000) 49,234 Post period-end 5,642 3,558 25,992 In period 76,985 43,592 4,040 -29,550 72,945 139,011 6,124 48,466 -42,342 New investments Further advances Scheduled repayments Unscheduled repayments Net position Cash flo
Slide 19: Financing breakdown – FY ending September 2020
FINANCIAL UPDATE Financing breakdown – FY ending 30 September 2020 48,466 57 27,000 21,409 Net repayment in period Scrip share issue costs Repayment of credit facility Increase in cash resources Size Margin Expiry Balance Period End Fixed tranche £50m 190 bps March 2021 £50m - Net repayment of £27m
Slide 20: Dividend coverage
FINANCIAL UPDATE Dividend coverage Earnings (as per SOCI) Adjusted earnings Cash 66,755 83,950 199,150 9 16,722 67,237 66,755 +0.7% +198.3% 165,002 -101.1% 66,755 -48.8% 16,071 34,148 50,219 -726 Loan Other Expenses Adjusted Dividend Loan Operating OperatingRepayments Total Dividends Total profit /
Slide 21: Agenda
AGENDA Strategic Update Portfolio Update Finance Update Q&A 20 INFRA
Slide 22: 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 21 INFRA
Slide 23: Investment Ideas for the Long Run
INVESTMENT IDEAS FOR THE LONG RUN INFRA
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