Foresight Environmental Infrastructure Limited GBP · LSE:FGEN
Foresight Environmental Infrastructure Limited GBP — JLEN Environmental Assets Group — H1 2020 Earnings Presentation
34 slides from Foresight Environmental Infrastructure Limited GBP's earnings presentation, Nov 26, 2020
Slide 1: Half-year results presentation 2020
JLEN Environmental Assets Group Limited Half-year results presentation 2020 26th November 2020
Slide 2: Contents
CONTENTS Page Contents 4 JLEN overview Ss) Highlights 6 Environmental, Social and Governance 7 Investments in the period 8 Market outlook and pipeline 13 Portfolio overview 16 Portfolio performance 22 Portfolio valuation 27 Financial performance 30 Summary
Slide 3: JLEN and Foresight at a glance
£6.5bn 24 ESG assets under sustainability- infrastructure management led funds investments 100 277 2.7GW renewable infrastructure clean energy energy professionals investments generation
Slide 4: JLEN Fund Overview
4 JLEN FUND OVERVIEW diversification 32 Environmental infrastructure investments 5 Technology subsectors 304.7MW Total diversified capacity Investment, growth and Predictable income growth for shareholders 6.76p Dividend target for year to 31 March 2021" 3.38p Dividend declared for the half year to
Slide 5: Highlights
5 HIGHLIGHTS JLEN + NAV per share 96.1p (March 2020 * Two acquisitions completed during the * Majority of the portfolio has operated 97.5p) period and further capital injections into well despite Covid-19 lockdown * Portfolio value of £552.9m (March Foresight Energy Infrastructure Partners restricti
Slide 6: Environmental, Social & Governance
ENVIRONMENTAL, SOCIAL & GOVERNANCE Develop po: Ensure effective, relationships with ethical governance the communi in across the portfolio which JLEN works Promote the e int use of resources est ir >450,000 MWh Renewable energy generated by the portfolio c.240,000 Waste diverted from landfill (tonne
Slide 7: Investments in the period
7 INVESTMENTS IN THE PERIOD Northern Hydropower Acquisition date April 2020 Acquisition date September 2020 Location Fife, Scotland Location ae Ownership 49% Ownership 100% Capacity (MWs) ge ae Capacity (MWs) 18 ee) Accreditation RHI, FiT Accreditation FiT Skaftasen Vindkraft AB (FEIP) Through the T
Slide 8: Market Opportunity
8 MARKET OPPORTUNITY The rapidly decarbonising power mix presents a significant opportunity for investors European Power Generation Mix to 2050 1,593GW increase in global 1,335GW increase in storage capacity European renewables capacity TA% 66% share of wind and solar in Europe’s 2050 power mix redu
Slide 9: Underpinning delivery of net-zero emissions in the UK
UNDERPINNING DELIVERY OF NET-ZERO EMISSIONS IN THE UK UK Government “The government has announced over £5 billion to support a green recovery. This plan 10 Point Plan = mobilises £12 billion — and potentially more than three times as much from the private sector.” nd ol Hydrogen provides A minimum o
Slide 10: Greening our gas network
10 GREENING OUR GAS NETWORK JLEN * Heat and transport have a key role to play in meeting decarbonisation goals * Energy Networks Association seeks to establish the world's first net zero gas network built around biomethane and hydrogen + The pathway is built around four core elements working togethe
Slide 11: Europe, UK, 87%
• 65% • • 24% • 11% • • Europe, • 13% • UK, 87% •
Slide 12: Portfolio overview as at September 2020
12 PORTFOLIO OVERVIEW AS AT 30 SEPTEMBER 2020 JLEN BN Wind GB Solar 32 ae assets Bilsthorpe — Amber ~ 100%, 9.8 MW, UK FiT Burton Wold — 1¢ Branden — 100%, 14.7MW, ROC 304.7 Carscreugh CSGH Solar ~ 100%, 33.5MW, ROC MW capacity Castle Pill Monksham - 100%, 10.7MW, ROC s Dungavel Pylle Southern — 100
Slide 13: Portfolio analysis at September 2020
13 PORTFOLIO ANALYSIS AT 30 SEPTEMBER 2020 Portfolio value split by sector 15% % 34% Mwind 22% Anaerobic digestion Misolar Mi waste & wastewater Hydro Portfolio split by inflation linkage 24% Wiinflation linked HNon-inflation linked 76% Portfolio value split by remaining asset life (years) 9% 41% Wi
Slide 14: Covid-19 update
14 COVID-19 UPDATE * Portfolio continues to operate well, demonstrating resilience in the face of challenges presented by the Covid-19 pandemic ° Power prices have been negatively impacted by lower electricity demand due to lockdown measures. Power prices recovered post period end * Restrictions on
Slide 15: Diversified portfolio performance
DIVERSIFIED PORTFOLIO PERFORMANCE @ Wind portfolio actual generation (GWh) 173 (HY 2019/20 - 165) Variation from budget! +2% . . 230 @ AD portfolio actual generation (GWh) (HY 2019/20 - 153) Variation from budget +2% . . 59 @ Solar portfolio actual generation (GWh) (HY 2019/20 - 56) Variation from b
Slide 16: Merchant power and ancillary revenues
• • Merchant power and ancillary revenues • Green benefits 64%
Slide 17: Merchant power and ancillary revenues
• • Merchant power and ancillary • revenues 11% Green benefits 89% • • • •
Slide 18: Merchant power and ancillary revenues
• Merchant • power and ancillary revenues • 25% Green benefits 75% •
Slide 19: Green benefits and merchant revenues
• • Merchant power and • ancillary revenues Green 24% benefits 76% • <1%
Slide 20: Portfolio performance
20 PORTFOLIO PERFORMANCE 0) Waste and Wastewater ELWA waste management Bio Collectors waste AD and waste collection * Strong performance against ~—key * As a result of Covid-19, the business has contractual ‘diversion from landfill target’ seen a material reduction in commercial * Other contractual
Slide 21: Portfolio valuation movement
21 PORTFOLIO VALUATION MOVEMENT Em 600 £24.9m 550 ate {EL6m) 500 450 400 Portfolio Acquisitions Distributions Rebased Forecast Economic valuation at and further power assumptions 31Mar 2020 investments prices £8.8m £0.1m Change in foreign exchange rate Balance of portfolio return Portfolio valuation
Slide 22: Valuation methodology — electricity prices
22 VALUATION METHODOLOGY — ELECTRICITY PRICES JLEN * Short term Approach remains unchanged — Price assumptions reflect winter/summer market forwards unless fixed price arrangements in place * 75% of the wind and solar portfolio is subject to a fixed price or floor arrangement for winter 20/21 and 78
Slide 23: Revenue analysis
23 REVENUE ANALYSIS Revenue type Contribution to portfolio value PPA/FiT with floor arrangement 20% * Changing mix of underlying ROC buyout 18% portfolio revenues over time ROC recycle 1% Ancillary revenue % * Table shows contribution of PPA market revenue (electricity) 23% different revenue categor
Slide 24: Portfolio valuation — key assumptions
JLEN PORTFOLIO VALUATION — KEY ASSUMPTIONS * Long term UK Retail Price Index assumptions remains « Reduction in the discount rates used for valuing selected UK unchanged at 2.75% solar and wind assets, reflecting market discount rate observations * Portfolio valuation reflects UK Corporation Tax at
Slide 25: NAV sensitivity analysis
25 NAV SENSITIVITY ANALYSIS Discount rate (+/- 0.5%) Energy yield: Wind (P90/P10) Energy yield: Solar (P90/P10) Electricity and gas prices (+/- 10%) Feedstock prices (+/- 10%) Tax rates (+/- 2%) Inflation rate (-/+ 0.5%) FX rates (+/- 5%) -8p | (£28.4m) (£29.4m) (£20.3m) £21.2m (€0.5m) | £0.5m -6p -
Slide 26: Asset level leverage use at September 2020
26 ASSET LEVEL LEVERAGE USE AT 30 SEPTEMBER 2020 Leverage of as % of Technology % Portfolio Revenue Sources GPV Solar 22% Merchant power & green benefits 12% Wind 34% Merchant power & green benefits 38% Anaerobic digestion 27% Merchant power & green benefits 0% Hydro & battery 2% Merchant power & gr
Slide 27: Financial performance — summary
27 FINANCIAL PERFORMANCE — SUMMARY 30 September 2020 31 March 2020 Portfolio valuation £552.9m £537.1m Cash £12.8m £22.0m Net Debtors £2.0m £3.2m Revolving credit facility (£42.4m) (£29.3m) Net assets £525.3m £533.0m Number of shares in issue 546.7m 546.7m Net asset value per share (pence per share)
Slide 28: Financial performance — group cash flow
28 FINANCIAL PERFORMANCE — GROUP CASH FLOW Six months ended 30 September 2020 Cash received from environmental infrastructure investments 24.4 22.8 Administrative expenses (0.6) (0.8) Directors’ fees and expenses (0.1) (0.4) Investment advisory fee (2.7) (2.6) Financing costs (net of interest income
Slide 29: Summary
29 SUMMARY * Robust pipeline and favourable market outlook presents further scope for diversification, supporting a lower-carbon economy * Strong operational performance with the wind, solar and AD portfolios exceeding their generation budget * Two acquisitions during the period, giving a total of 3
Slide 30: Thanks for listening
30 Q&A Thanks for listening
Slide 31: Appendices
APPENDICES
Slide 32: Fund governance and terms
32 FUND GOVERNANCE AND TERMS Investment Adviser Performance Fee nation Fee Investment Adviser Term Discount Control Continuation Vote Domiciled in Guernsey Independent Board of Directors Premium listing on the LSE (Chapter 15) Foresight Group FCA authorised and regulated Monitors and reviews project
Slide 33: Investment policy
33 INVESTMENT POLICY JLEN Environmental Infrastructure projects that utilise natural or waste resources or support more environmentally-friendly approaches to economic activity, which could involve * Renewable energy generation (solar, wind, biomass and hydropower) * Supply and treatment of water +
Slide 34: Disclaimer
34 DISCLAIMER This document contains information provided solely as an update on the financial condition, results of operations and business of JLEN Environmental Assets Group Limited ("JLEN"). Nothing in this document or in any accompanying management discussion of this document constitutes, nor is
JLEN Environmental Assets Group — H1 2020 Earnings Presentation on 6ix