Gore Street Energy Storage Fund Plc · LSE:GSF
Gore Street Energy Storage Fund — H1 FY24/25 Earnings Presentation
25 slides from Gore Street Energy Storage Fund's earnings presentation, December 2024
Slide 1: Interim Results presentation
Gore Street Energy Storage Fund plc Interim Results presentation For the six-month period ended 30 September 2024
Slide 2: Financial Highlights
Financial Highlights NAV PER SHARE OPERATIONAL EBITDA DIVIDEND YIELD 100.5p £10.9m 12.3% (FY23/24: 107.0p) (H1 FY23/24: £12.2m) (H1 FY23/24: 8.9%) NAV TOTAL RETURN SINCE IPO ENERGISED CAPACITY TOTAL CAPACITY 42.7% 421.4MW 1.25GW (FY23/24: 48.4%) (FY23/24: 421.4 MW) (FY23/24: 1.25 GW) Supported by: O
Slide 3: Balanced Portfolio
Balanced Portfolio Revenue split per market1 (£) Revenue split per type1 (£) Energised portfolio split per duration (MW) 5% 13% 7% 9% 10% 6% 28% 42% 44% 77% 59% Great Britain Island of Ireland Germany Texas Ancillary services Wholesale trading Capacity market <1 hr 1 hr 1<hr<2 ≥2 hr 5 20+ 4 weakly c
Slide 4: Portfolio Significantly Derisked: Progress to Date
Portfolio Significantly Derisked: Progress to Date Dogfish Big Rock • All significant physical Enderby • Energisation process works completed to RA Contract • All necessary milestones commenced and is safe-harbour the 10% expected to be ITC enhancement for energisation have • Secured stackable long-
Slide 5: Valuations & Capital Allocation
Valuations & Capital Allocation
Slide 6: NAV Bridge
NAV Bridge NAV Bridge 140 120 107.0 2.5 100.5 100 (3.5) 1.3 (5.2) (1.6) NAV / Pence per Share 80 Dividends Macroeconomic Drivers Active Management • Dividends during the period: • Revenue Curves: -5.2 PPS • Cash generation: +2.3 PPS - 3.5 PPS 60 • Inflation: -1.6 PPS • Fund Opex: -1.1 PPS Dividends
Slide 7: NAV Scenarios & Sensitivities
NAV Scenarios & Sensitivities Inflation Assumptions Inflation Assumptions • Short-term and long-term US and European inflation 2024 2025+ assumptions have been revised downward by 25 bps in line with decreasing core inflation, resulting in a net Great Britain 2.75% 2.50% decrease of 1.6 pence per sh
Slide 8: Appropriate Revenue Forecasts and Contracted Revenue Streams
Appropriate Revenue Forecasts and Contracted Revenue Streams Blended Curve of Ancillary Services and Trading, by Grid. Revenue curves Portfolio weighted average1 (-5.2p) 200 Yearly intervals 5-year intervals • Revenue curves are sourced from mid-case 175 scenarios of independent third 150 parties 12
Slide 9: Modest Leverage
Modest Leverage 1 Santander Revolving Credit Facility 2 Big Rock Facility Type: Portfolio-level Type: Project-level (Big Rock – 200 MW/ 400 MWh asset) Facility Size: £100 million Facility Size: $90 million upsized facility with First Citizens Currency: GBP Bank, following a loan conversion process.
Slide 10: Portfolio Operational Performance
Portfolio Operational Performance
Slide 11: Portfolio Summary
Portfolio Summary Energised Portfolio per Geography (MW) 421.4 MW 497 MW in the 5% 7% GB Energised market across 4 grids 22 MW in the 31% German 57% Market 385 MW across the 332.0 MW combined Great Britain Island of Ireland NI & ROI market Germany Texas Construction Portfolio by Stage across 3 grids
Slide 12: Construction Overview
Construction Overview Enderby Big Rock Dogfish Capacity: Capacity: Capacity: 57 MW / 57 MWh 200 MW / 400 MWh 75 MW / 75 MWh Market: Market: Market: Great Britain California Texas Target Energisation: Target Energisation: Target Energisation: Jan-25 Commenced – expected completion Feb-25 in the comin
Slide 13: Revenue Drivers
Revenue Drivers Average revenue per grid during the six-month period ending 30 September 20241 Island of Ireland Great Britain SNSP levels varied significantly during the The deceleration of deployment of BESS reporting period, due to seasonal wind illustrates the cyclical nature of the GB patterns
Slide 14: Revenue Breakdown
Revenue Breakdown Average revenue per grid during the six-month period ending 30 September 20241 £7.66/ Great MW/hr Island of Ireland £13.55/ MW/hr Britain £7.98/ MWh/ hr Wind levels increased in August and The GB market £24.26/ performed broadly in line September, leading to an increase in MWh/hr w
Slide 15: Contracted Revenue Streams
Contracted Revenue Streams BESS is primarily a merchant asset class that offers wholesale trading and ancillary services. As a result of diversification, the contracted revenue streams available to the portfolio has increased. Examples of these include; capacity market contracts, tolling agreements,
Slide 16: Post-period updates
) Gore Street @ Energy Storage Fund Post-period updates
Slide 17: Gore Street Energy Trading (GSET)
Gore Street Energy Trading (GSET) Overview • Software has been fully developed in-house • Focussed entirely on storage assets • Monitors assets and markets, creates forecasts, determines optimal strategies, and optimises in real-time Alan Smallwood Commercial Principal • Held a variety of roles at C
Slide 18: Resource Adequacy Contract
Resource Adequacy Contract >$14 m • Resource Adequacy (RA) contract secured for the 200 annually for a MW/ 400 MWh Big Rock asset in California with J Aron, a long-term fixed subsidiary of Goldman Sachs, expected to commence in price stackable Summer 2025. contract MW/hr Per annum 100 MW of RA >$16.
Slide 19: Environmental, Social and Governance
Environmental, Social and Governance The Company’s Investment Manager has chosen to adopt the Financial Conduct Authority’s “Sustainability Focus” The Company’s FY 23/24 ESG and Sustainability report label as part of the Sustainability Disclosure Requirements was published during the period. The rep
Slide 20: Next Milestones
) Gore Street @ Energy Storage Fund Next Milestones
Slide 21: Investment Tax Credit
Investment Tax Credit The Inflation Reduction Act, passed in late 2022, promises $369 bn of investment of energy security and climate change initiatives over ten years. This act created Investment Tax Credits for energy storage projects. Process for c.$60-80m cash-inflow based on sale of ITCs 1 2 3
Slide 22: Portfolio Significantly Derisked: Route to c.750 MW
Portfolio Significantly Derisked: Route to c.750 MW Enderby Portfolio Capacity Buildout • All necessary milestones for energisation 1400.0 have been completed • Delays attributable to NGET and winter 494.8 outage season 1200.0 1000.0 Big Rock Energisation • Energisation process commenced and process
Slide 23: Conclusion
Conclusion Consistent delivery Best in class revenue against targets Competitive cost per generation De-risking the MW fully installed portfolio The Company continues to Supported by the create value for Manager’s in-house asset shareholders despite The manager primarily challenging GB market manage
Slide 24: Contact
Contact Gore Street Capital – Shore Capital – J.P. Morgan Cazenove – The Investment Manager Joint Corporate Broker Joint Corporate Broker Alex O’Cinneide / Paula Travesso Anita Ghanekar (Corporate Advisory) William Simmonds/ Jérémie Birnbaum / Ben Paulden (Corporate Finance) Fiona Conroy (Corporate
Slide 25: Disclaimer
Disclaimer This presentation has been prepared by Gore Street Capital Limited ("Gore Street Capital") for certain exceptions, taken or transmitted into Canada, Australia, New Zealand or the Republic of information and discussion purposes only and should not be considered to be an offer or South Afri
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