Foresight Group Holdings Ltd. · LSE:FSG
Foresight — FY2021 Earnings Presentation
29 slides from Foresight's earnings presentation, Jul 27, 2021
Slide 1: Results presentation to 31 March 2021
Results presentation to 31 March 2021 27 July 2021
Slide 2: Disclaimer
Disclaimer NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND DEPENDENCIES, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA), CANADA, AUSTRALIA, NEW ZEALAND, JAPAN, THE REPUBLIC OF SOUTH AFRICA, THE
Slide 3: Presenting today
Presenting today Bernard Fairman Gary Fraser Executive Chairman & Co-Founder Chief Financial Officer & Chief Operating Officer Co-founded Foresight Group in 1984 Joined Foresight Group in 2004 40 years of private equity experience Responsible for all financial and operating matters including
Slide 4: Key Period Highlights
Key Period Highlights Strong AUM and revenue growth despite backdrop of COVID-19 Successful London listing in February 2021 already leading to increased visibility and opportunities Increased AUM to £7.2 billion (2020: £4.5 billion) with strong organic net flows of £0.8 billion (gross organic fl
Slide 5: Financials
Financials Foresight
Slide 6: Key Financial Metrics
Key Financial Metrics Improvement in all Key Performance Indicators 31 March 2021 31 March 2020 YoY Change Year-end AUM (£m) 7,193 4,519 +59.2% Year-end FUM (£m) 5,132 3,638 +41.1% Total Revenue (£m) 69.1 57.3 +20.6% Recurring Revenue (% of Total) 90.3% 85.4% +5.7% Core EBITDA (£m) 23.9 12.6 +89.0%
Slide 7: AUM Bridge
AUM Bridge Retail inflows were strong during the period with outflows (predominantly from open-ended funds) slightly higher than expected due to some investors seeking liquidity during COVID-19 related market stress in H1 Acquisition of PiP helped drive AUM growth during the period No signific
Slide 8: Rapidly growing revenues with over 90% now recurring
Rapidly growing revenues with over 90% now recurring Historical revenue breakdown AuM £3.0bn £4.5bn £7.2bn FuM(1) £2.3bn £3.6bn £5.1bn Total £49.5m £57.3m* £69.1m revenue 80. 20 70. 20 £3.9m 6% 4% £4.0m £2.8m 60. 20 Recurring Fee Marketing Fee Arrangement Fee 7% £7.2m £4.3m 8% 15% 50. 20 40. 20 £4.1
Slide 9: Demonstrable operating leverage
Demonstrable operating leverage AuM £3.0bn £4.5bn £7.2bn Average FTE 201 221 233 Total Administrative £37.4m £51.3m £48.7m Expenses £5.0m £2.6m £2.2m £7.8m £4.1m £4.4m £3.6m £6.0m £2.4m £5.5m £2.8m £3.9m £29.4m £33.8m £23.9m FY19 FY20 FY21 Staff costs Legal & Professional Costs Admin costs D&A Other
Slide 10: Repositioned platform poised for stable EBITDA generation at attractive margins
Repositioned platform poised for stable EBITDA generation at attractive margins EBITDA development £30 .0m £25 .0m £20 .0m Core EBITDA (£m) £15 .0m £10 .0m £23.9m £5. 0m £11.0m £12.6m £0. 0m FY19 FY20 FY21 Margin(3) 22% 22% 35% Segment Segment Segment Margin Margin Margin 37% 28% 32% 46% 32% 45% Cor
Slide 11: Strong financial position
Strong financial position As at 31st March (£m) 2021 2020 2019 Cash Flow: For the year ended 31 March Assets £29.7m Property, plant and equipment 3.0 3.9 3.9 Right ofuse assets 9.1 10.3 10.6 £39.4m Intangible assets 3.0 0.3 0.5 £23.9m £(6.6)m £2.3m £0.4m Investments 2.4 1.5 1.2 £(0.9)m Deferred tax
Slide 12: Business Review
Business Review Foresight
Slide 13: Key investment highlights
Key investment highlights Investing for a smarter future Specialist investment capabilities in large and 317 115 thematically growing, difficult-to-access markets Infrastructure Assets PE Portfolio Companies Ability to raise funds consistently from diversified £0.8bn 41% Net organic funds raised inv
Slide 14: Infrastructure opportunity driven by the fundamental transition towards de-carbonisation
Infrastructure opportunity driven by the fundamental transition towards de-carbonisation Provides diversification across asset classes and geographies Renewable Energy Renewable Energy Energy Social Core Forestry Generation Enabling Management Infrastructure Infrastructure (PiP) Subsectors Flexible
Slide 15: Infrastructure overview: Specialist investment capabilities
Infrastructure overview: Specialist investment capabilities Specialist renewables investment manager, diversified across complementary platforms Recent Infrastructure investments £6.5bn Extensive origination platform Full fibre network investment Review several projects per annum, sourced from ext
Slide 16: Infrastructure year in review
Infrastructure year in review Grew infrastructure AUM to £6.5 billion (including FCM business) and 317 assets Completed 46 transactions during FY21 with an aggregate value of £595 million Progress made in integrating Pensions Infrastructure Platform (PiP) team and assets onto Foresight platfor
Slide 17: Private Equity: specialist investment capabilities
Private Equity: specialist investment capabilities Targeting regional small cap segment of the UK private equity market Addressable market ~83% UK SMEs based outside of London – regional focus is key to Recent Private Equity investments £0.7bn AuM as of 31 Mar-2021(3) targeting largest portion of th
Slide 18: Private Equity year in review
Private Equity year in review Deployment remained strong during period with £72 million invested across 49 transactions despite the more challenging economic backdrop that COVID-19 presented A number of successful exits made during the period with notable examples being Hedges Direct and FFX Gro
Slide 19: Strategy and Outlook
Strategy and Outlook Foresight
Slide 20: Medium term strategy
Medium term strategy FY21 Outlook Favourable macro conditions driving investment in renewable energy infrastructure 20-25% Retail is capable of raising half of the 20-25% target in FY22 Targeted yearly growth in Fundraising A further quarter comes from top ups to established funds +22% organic
Slide 21: Trading update and current outlook
Trading update and current outlook Strong start to fundraising in FY22 with 30 June 2021 AUM of £7.8 billion (unaudited) with FY22 flows currently ahead of 20-25% annual AUM growth target Investor sentiment remains robust and momentum continues with net inflows of over £0.5 billion in Q1 FY22
Slide 22: Q&A
Q&A Foresight
Slide 23: Addendum
For a Smarter Future 31 March 2021 results presentation Addendum
Slide 24: Overview of infrastructure financials
Overview of infrastructure financials Revenue AuM £3.9bn £6.5bn FuM £3.0bn £4.4bn Total revenue £39.6m £50.9m £1.7m £2.0m £2.7m £8.0m £0.2m £2.1m £0.2m £9.2m Recurring revenues (Management, Secretarial £39.0m & Directors' fees): 93% £25.4m FY20 FY21 Management fees Secretarial fees Directors' fees A
Slide 25: Infrastructure – Margins evolution
Infrastructure – Margins evolution Infrastructure revenue margins(1) Infrastructure revenue margins – Retail FuM(1) Infrastructure revenue margins – Institutional FuM(1) Year-end retail FuM Year-end institutional FuM £1,534m £2,153m £1,503m £2,265m 1.35% 1.17% 1.61% 1.08% 1.00% 1.59% 0.80% 0.80% FY2
Slide 26: Overview of private equity financials
Overview of private equity financials Revenue AuM £0.6bn £0.7bn FuM £0.6bn £0.7bn Total £17.7m £18.2m revenue £20 .0m £1.1m £18 .0m £1.6m £16 .0m £1.9m £1.9m £2.1m £1.7m £14 .0m £12 .0m £1.8m £2.3m £10 .0m Recurring revenues (Management, Secretarial £8. 0m £11.3m & Directors’ fees): 84% £6. 0m £4. 0
Slide 27: Private equity – Margins evolution
Private equity – Margins evolution PE revenue margins(1) PE revenue margins – Retail FuM(1) PE revenue margins – Institutional FuM(1) Year-end retail FuM Year-end institutional FuM £352m £448m £250m £265m 1.72% 2.28% 2.27% 2.07% 2.07% 1.52% 1.98% 1.98% FY20 FY21 FY20 FY21 FY20 FY21 Revenues / Averag
Slide 28: FUM movement FY21 and Q122
FUM movement FY21 and Q122 £’m Infrastructure retail Infrastructure institutional 2,600 2,800 876 297 156 13 2,590 347 34 7 2,321 309 28 2,400 2,600 117 26 2,153 2,200 2,400 600 2,265 2,200 2,000 2,000 1,800 228 1,800 65 1,600 1,534 1,503 1,600 1,400 1,400 1,200 1,200 1,000 1,000 Private equity reta
Slide 29: Adjusted profit
Adjusted profit £'000 FY21 FY20 Per Annual Adjusted Adjusted Per Annual Adjusted Adjusted Report Items Profit Report Items Profit Revenue 69,098 0 69,098 57,253 (65) 57,188 Cost of sales (4,639) 0 (4,639) (4,389) 0 (4,389) Gross profit 64,459 0 64,459 52,864 0 52,864 Administrative expenses (48,709)
Foresight Group Holdings — FY2021 Earnings Presentation on 6ix