SDCL Efficiency Income Trust PLC · LSE:SEIT
SDCL Efficiency Income Trust — SDCL Energy Efficiency Income Trust — H1 FY2025 Earnings Presentation
36 slides from SDCL Efficiency Income Trust's earnings presentation, Dec 4, 2024
Slide 1: Interim Results Presentation: Six months to 30 September 2024
SDCL Energy Efficiency Income Trust plc Unlocking the world’s most valuable energy resource: Efficiency Interim Results Presentation Six months to 30 September 2024 04 December 2024
Slide 2: Contents and Investment Manager Presentation Team
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 2 Contents Investment Manager Presentation Team Meet the Investment Manager 1. Overview and Highlights 2. Performance 3. Financial Highlights 4. Outlook 5. Summary Remarks Jonathan Maxwell Eugene K
Slide 3: 1. Overview and Highlights
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 3 1. Overview and Highlights
Slide 4: SDCL Energy Efficiency Income Trust
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 4 SDCL Energy Efficiency Income Trust Unlocking the investment potential of the energy transition’s largest market opportunity Large and diversified portfolio with strong balance Distressed UK inve
Slide 5: Highlights for the period ended 30 September 2024
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 5 Highlights for the period ended 30 September 2024 Stable operations underpin performance and portfolio valuation movement despite macro pressure Valuation movements – NAV per share of 90.6p as at
Slide 6: Adapting to current market conditions
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 6 Adapting to current market conditions Focused on shareholder value: positioning the portfolio for total return and addressing the discount to NAV Reducing short-term Full or partial disposals to
Slide 7: Portfolio of energy efficiency solutions for buildings, industry and transport
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 7 Portfolio of energy efficiency solutions for buildings, industry and transport Providing essential energy services on-site such as electricity, heating, cooling and lighting energy efficiency por
Slide 8: Consistently structured to create compelling investment returns
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 8 Consistently structured to create compelling investment returns Commercial business models acquired or built to generate revenue uncoupled from power prices – No unmitigated exposure to merchant
Slide 9: 2. Performance
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 9 2. Performance
Slide 10: Portfolio performance
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 10 Portfolio performance SEEIT’s diversified portfolio continues to produce the steady distributions it was built to deliver Portfolio Cash Inflows to SEEIT, in Total and per Share Dividends and Ca
Slide 11: Dividend fully covered by portfolio cash generation
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 11 Dividend fully covered by portfolio cash generation £66.2 million cash generated at project level. 1.1x dividend coverage, net of all costs Dividend cash cover 6-month period to September 2024 F
Slide 12: Operational performance
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 12 Operational performance Diversified portfolio delivering overall operational performance marginally above budget Project Equity Project level EBITDA H1 2024 Value at 30 Debt at 30 Technical KPI
Slide 13: 3. Financial Highlights
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 13 3. Financial Highlights
Slide 14: NAV per share movement in the six months to September 2024
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 14 NAV per share movement in the six months to September 2024 NAV stable, despite impact of net FX movements during the period Opening NAV EPS Dividends Paid Closing NAV Portfolio performance of 6.
Slide 15: Weighted average discount rate movements
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 15 Weighted average discount rate movements No overall movement since March 2024 – No overall movement since March 2024 – 9.4% levered rate includes amortising debt and limited refinancing in futur
Slide 16: Summary financials
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 16 Summary financials1 Earnings in line with expectations Six months to Six months to 30 September 30 September Income Statement 2024 (£m) 2023 (£m) Total income 47.8 (79.5)4 Fund expenses & financ
Slide 17: Summary financials continued
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 17 Summary financials1 continued Dividends fully covered by cash Six months to Six months to 30 September 30 September Cashflow Statement 2024 (£m) 2023 (£m) Commentary Cash from investments2 48.0
Slide 18: 4. Outlook
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 18 4. Outlook
Slide 19: Improving share price and NAV total return
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 19 Improving share price and NAV total return Objectives and actions Initiative Objective Actions Gearing – Maintain prudent approach to gearing within limits – 35% total debt as a percentage of en
Slide 20: 5. Summary Remarks
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 20 5. Summary Remarks
Slide 21: Summary remarks
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 21 Summary remarks SEEIT has a large, diversified and robust portfolio, generating attractive levels of income and presenting the opportunity for substantial capital gains from current share price
Slide 22: 6. Appendices
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 22 6. Appendices
Slide 23: Government policies in the US, Europe and the UK
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 23 Government policies in the US, Europe and the UK Energy efficiency supported by the strong policy tailwinds in all regions the SEEIT operates US Europe UK Department of Government Efficiency Fit
Slide 24: SEEIT portfolio as at 30 September 2024
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 24 SEEIT portfolio as at 30 September 2024 Diversification by investment, technology, geography and lifecycle stage Portfolio by Portfolio by Portfolio by Portfolio by Geography Project Technology
Slide 25: SEEIT: Key NAV sensitivities
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 25 SEEIT: Key NAV sensitivities Based on investment portfolio at 30 September 20241 September 2024 SEEIT sensitivities (pence per share) Discount Rates +/- 50 bps (5.6) 5.1 Inflation -/+ 50 bps (4.
Slide 26: SEEIT: Foreign exchange hedging
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 26 SEEIT: Foreign exchange hedging Key objective of managing FX risk is to minimise volatility in NAV from movements in FX rates SEEIT’s hedging strategy has been successful in protecting the NAV f
Slide 27: Total gearing at 30 September 2024
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 27 Total gearing at 30 September 2024 Structural gearing remains close to medium-term target Total gearing includes SEEIT RCF has been Total gearing at 35% of c. £110m headroom in Company’s RCF and
Slide 28: Large and diversified portfolio
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 28 Large and diversified portfolio FTSE 250 company which has achieved substantial scale since its IPO in December 2018 Mar-192 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Sep-24 NAV (£ millions) 98 324 694
Slide 29: Illustration of projected cash flows
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 29 Illustration of projected cash flows The long-term, contractual characteristics provides visibility of long-term cash flows – Projected cash flows assuming an Long term cash flow 15 year (£’000)
Slide 30: SEEIT's sustainability framework
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 30 SEEIT’s sustainability framework The SEEIT sustainability framework (the “Framework”) marks a transition from monitoring ESG performance at investments to actively managing outcomes SDCL Sustain
Slide 31: Most energy is lost before reaching the end-user
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 31 Most energy is lost before reaching the end-user SEEIT’s energy efficiency projects reduce energy loss in the system The Problem Energy loss in generation, transmission & distribution, and use E
Slide 32: Market drivers of energy efficiency
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 32 Market drivers of energy efficiency The macroeconomic landscape is driving demand for energy efficiency solutions High Energy Costs Concerns over Focus on Mitigating Policy Support for and Marke
Slide 33: Total return characteristics
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 33 Total return characteristics SEEIT seeks to invest in projects with opportunity for accretive upside to total return Crystallising Value Through Exit Efficiency Improvements Unlocking New Revenu
Slide 34: Market opportunity for energy efficiency
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 34 Market opportunity for energy efficiency Energy efficiency remains largely overlooked by capital markets Centralised/utility Decentralised energy scale renewable generation/efficiency generation
Slide 35: Important notice
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 35 Important notice THIS PRESENTATION IS BEING PROVIDED TO YOU SOLELY FOR YOUR INFORMATION. The aforementioned persons disclaim any and all responsibility and liability whatsoever, whether THIS PRE
Slide 36: Important notice continued
Interim Results Presentation Six months to 30 September 2024 | SDCL Energy Efficiency Income Trust plc 36 Important notice continued This presentation must not be made available to persons who are not Relevant Persons. No person No representation or warranty is made as to the achievement or reasonab
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