Greencoat UK Wind Plc · LSE:UKW
Greencoat UK Wind — FY2015 Earnings Presentation
27 slides from Greencoat UK Wind's earnings presentation, February 2016
Slide 1: Annual Results February 2016
Annual Results February 2016
Slide 2: Agenda
Agenda Introduction 3 Operational and Financial Performance 9 Regulation and Growth 16 Summary 20 Appendix 22 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 regulatory framework High and high wind resource Quality UKW acquires assets with an operational track record to mitigate wind-to-energy conversion risk Assets with UKW has low leverage
Slide 5: Results Summary: A Strong Performance
Results Summary: A Strong Performance Power generation of 799.3GWh (2014: 564.6GWh); 8% above budget Net cash generation of £48.3m (2014: £32.4m) Dividends of £29.6m (6.26p per share) paid with respect to the year and 6.34p target for 2016 One additional wind farm investment taking generatin
Slide 6: Simple Model: Total cash reinvested
Simple Model 6-17 wind Generating capacity increased farms from 126.5 to 301.4MWs since IPO Total cash reinvested Equity 1,655GWh Total power produced(1) Debt £102.3m Total cash generated(1) £33.7m £68.6m Total dividends paid Notes: (1) from listing to 31 December 2015 6
Slide 7: Proven Investment Proposition
Proven Investment Proposition £68.6m of dividends paid and 0.2% real NAV growth since listing 7
Slide 8: Portfolio Overview
Portfolio Overview Stroupster 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 Well-diversified portfolio generating sufficient electricity to power 250,000
Slide 9: Operational and Financial Performance
Operational and Financial Performance
Slide 10: Operational Performance
Operational Performance Portfolio generation of 799.3GWh (8% above budget) 10
Slide 11: Financial Performance
Year ended 31 December 2015 Group and wind farm SPV cash flows £m Net cash generation 48.3 Dividends paid (35.9) Acquisitions” (84.8) Acquisition costs (0.1) Equity issuance 48.3 Equity issuance costs (1.0) Debt repayment/drawdown 30.0 Upfront finance costs (1.8) Movement in cash (Group and wind far
Slide 12: Net Asset Value
Opening NAV 31 December 2014 £486.2m 600.0 Investment in new assets £84.8m Movement in Der valuations £14.6m) Movement in cash (Group and wind farm SPVs) Movement in other relevant assets/liabilities £0.2m Movement in Aggregate Group Debt (£30.0m) Closing NAV 31 December 2015 £529.8m 500.0 400.0 = 3
Slide 13: Generation and Power Price
Generation and Power Price Volume Price 2015 wind speed 4.7% above long term mean (Met Office) 2015 UK power price £40/MWh, 20% below budget Implies UK wind generation 8% above long term mean (1.7x) 40% UKW revenues subject to floating power price UKW 2015 generation 8% above long term mea
Slide 14: Listed UK Renewable Funds NAV Analysis
Listed 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 May-13 Aug-13 Nov-13 Feb-14 May-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Dec-15 UKW BSIF TRIG FSFL JLEAG NESF “6p dividend, increasing with RPI inflation and real NAV grow
Slide 15: Investment Performance
Total Shareholder Return vs Market Peers (Bloomberg) 130 125 120 115 o = 110 a oa 105 4 100 95 90 1 1 1 T T r 1 1 1 1 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 —Greencoat UK ——Bluefield Solar The Renewables Foresight Solar a.John Lain
Slide 16: Regulation and Growth
MAY, GREENCOAT — pow UK WIND ai Regulation and Growth
Slide 17: Regulation: Changes to Expected Timings, but not to Outcomes
Regulation: Changes to Expected Timings, but not to Outcomes 2015 Long term outlook Change to deadline for ROC regime Broad support remains steadfast An issue for developers, not for owners or Wind provides significant proportion of UK acquirers of operational assets generation (11% in 2015) C
Slide 18: Secondary Market - Continued Opportunities to Grow
Secondary Market - Continued Opportunities to Grow Wind - a huge secondary market UKW - structured to acquire the best assets 16 onshore 14 offshore Estimated Installed Capacity (GW) 12 10 5.2 GW 2.6GW 1.2 GW 4.1 GW 8 6 4 Other Major 2 Big Six Utilities Developers Other 0 2010 2011 2012 2013 2014 20
Slide 19: Simple Capital Structure
Simple Capital Structure 1000 800 GAV (£m) 600 Short Term Acq’n Debt 400 Equity 200 Long Term Debt IPO Oct Nov Dec Jun Aug Oct Sep Nov-Dec 2013 2014 2015 2016 Asset Level No debt at asset level in existing portfolio nor intention to have any asset level debt going forward Revolving Credit Facili
Slide 20: Summary
GREENCOAT — pow UK WIND ai Summary
Slide 21: Summary: Another Strong Performance
Summary: Another Strong Performance Power generation of 799.3GWh (8% above budget) Net cash generation of £48.3m Dividends of £29.6m (6.26p per share) paid with respect to the year and 6.34p target for 2016 Eight dividends totalling £68.6m paid since listing NAV of £529.8m; 0.2% real NAV g
Slide 22: Appendix
GREENCOAT — pow UK WIND ai Appendix
Slide 23: 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 24: Highly Experienced Investment Management Team
Highly Experienced Investment Management Team Stephen Lilley – 19 years of investment Laurence Fumagalli – 19 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 the nuclear industry Andrea F
Slide 25: 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 26: NAV Sensitivities
NAV Sensitivities The unlevered discount rate used in the DCF valuation is between 8 and 9 per cent.. The market discount rate has remained constant since listing. A variance of +/- 0.5 per cent. is considered to be a reasonable range of alternative assumptions for discount rate. Base case energy yi
Slide 27: 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 2015 (the “Presentation”). For the purposes of this notice, the P