Gresham House Energy Storage Fund Plc GBP · LSE:GRID
Gresham House Energy Storage Fund Plc GBP — Gresham House Energy Storage Fund — H1 2022 Earnings Presentation
19 slides from Gresham House Energy Storage Fund Plc GBP's earnings presentation, Sep 27, 2022
Slide 1: Interim Results Presentation for the half-year ending 30 June 2022
Cleator (c)2017 NEC Energy Solutions, Inc. Gresham House Energy Storage Fund plc (GRID or Company) Interim Results Presentation for the half-year ending 30 June 2022 27 September 2022 Powering the Renewable Energy transition
Slide 2: Presentation Team
PRESENTATION TEAM Ben Guest Rupert Robinson Managing Director, Gresham House New Energy & Managing Director, Gresham House Fund Manager, Gresham House Energy Storage Fund plc Founded Hazel Capital (now Gresham House New Over 30 years’ experience in asset management Energy) in 2007. and wealth manage
Slide 3: H1 2022 Performance Highlights
H1 2022 PERFORMANCE HIGHLIGHTS ▪ Net Asset Value (NAV) up 53.5% to £785.4mn (FY21: £511.7mn) ▪ NAV per share up 24.2% to 145.11p (FY21: 116.86p) and NAV total return of 27.2% ▪ Underlying Operational Portfolio Revenue rose 20.6% to £30.1mn (H1 21: £24.9mn) and EBITDA stood at £22.7mn (H1 21: £22.4mn
Slide 4: H1 2022 Deployment & Fundraising
H1 2022 DEPLOYMENT & FUNDRAISING ▪ GRID remains GB market leader with a market share of c.30%1 ▪ Operational capacity remained unchanged at 425MW as at 30 June 2022 ▪ Operational capacity rose to 500MW in August 2022 as Arbroath (35MW) and Stairfoot (40MW) projects were commissioned ▪ Commissioning
Slide 5: H1 2022 Other Highlights
H1 2022 OTHER HIGHLIGHTS ▪ UK renewable penetration reached a record 45.5% in Q1 22 driven by offshore wind ▪ 11GW of renewable capacity contracted in latest Contracts for Difference (CfD) subsidy auctions could drive renewable penetration above 65% within 5 years underpinning the need for Battery E
Slide 6: NAV per Share Bridge
NAV PER SHARE BRIDGE NAV (p/Share) bridge from 31 Dec 21 to 30 Jun 22 NAV/Share Increase Decrease 150 145 3.88 140 6.68 135 130 p/Share 12.12 125 145.11 120 2.32 3.98 3.15 (0.11) (0.27) 115 (3.50) 110 116.86 105 100 31 December Net Share Net Fund and Dividends Transaction Debt Costs Roll-forward New
Slide 7: Revenue Breakdown
REVENUE BREAKDOWN Revenue breakdown is evolving H1 2022 revenue split 100% 90% 0.1% 80% 5.7% 0.2% 5.7% 70% 26.2% 60% FFR 50% EFR 40% DC 30% 9.2% DM 20% DR 52.8% 10% Trading 0% 2020 2021 H1 2022 CM CM EFR FFR DC DM DR Trading Triads Past performance is not necessarily a guide to future performance. C
Slide 8: Portfolio Revenue by Month
PORTFOLIO REVENUE BY MONTH Portfolio revenue split by month 8,000,000 6,000,000 Revenues (£) 4,000,000 2,000,000 0 Jan 2022 Feb 2022 Mar 2022 Apr 2022 May 2022 Jun 2022 CM EFR DC FFR Trading TRIAD DM DR Past performance is not necessarily a guide to future performance. Capital at risk. Source: Gresh
Slide 9: Portfolio & Pipeline Summary
PORTFOLIO & PIPELINE SUMMARY Capacity Battery size Operational Capacity Battery size Revalued Project Location Project Location Operational status (MW) (MWh) status (MW) (MWh) (DCF) 1. Staunch Staffordshire 20 2.9 Operational 18. Enderby Leicestershire 50 50.0 Target COD: Q3 2022 Yes 2. Rufford Nott
Slide 10: Volatility Has Remained High Supporting Trading Revenues
VOLATILITY HAS REMAINED HIGH SUPPORTING TRADING REVENUES ▪ Volatility is expected to remain high as renewables market share continues to rise contributing to intermittent electricity supply and as the market share of baseload continues to fall ▪ High gas and carbon prices are also contributing to vo
Slide 11: Sustainable Investment Framework (SIF)
SUSTAINABLE INVESTMENT FRAMEWORK (SIF) Five ESG factors considered most material to Supply chain Employment, health, GRID operations and investments: sustainability safety and well-being ✓ Carbon emissions and pollution ✓ Natural resource management Community care Marketplace and engagement responsi
Slide 12: Summary & Outlook
SUMMARY & OUTLOOK Summary ▪ Importance of BESS increasing as renewable installations accelerate ▪ Energy security and inflation concerns at the top of the national agenda ▪ Eventful first half for GRID: successful fundraising, significant advances in project construction, important Investment Policy
Slide 13: Appendix Slides
APPENDIX SLIDES 13
Slide 14: Investment Valuation Bridge
INVESTMENT VALUATION BRIDGE Change in investment value from 31 Dec 2021 to 30 Jun 2022 Valuation Increase Decrease £620 £570 £23.1 £17.0 £0.4 (£2.1) £520 £30.9 (£2.4) £30.6 (£18.8) £5.2 £470 £61.2 £mn £420 £30.2 £564.7 £370 £320 £389.3 £270 £220 Valuation at Additional New Roll forward New CM Revenu
Slide 15: Driving Profitability & Competitiveness
DRIVING PROFITABILITY & COMPETITIVENESS The Investment Manager is focused on creating value by maximising the spread between the cost of capital and profitability of projects to make GRID the most competitive operator of BESS Lowering the cost of capital Alpha generation ▪ Debt fundraising demonstra
Slide 16: Depiction of GB Electricity System
DEPICTION OF GB ELECTRICITY SYSTEM Battery energy storage is a “relief valve” for system instabilities and, increasingly, for the growing supply-demand imbalances caused by the growth in renewable generation Electricity Generation has migrated BESS can import and export to address BESS can operate l
Slide 17: Renewables Growth & Fossil Fuel Decline Trends Continue
RENEWABLES GROWTH & FOSSIL FUEL DECLINE TRENDS CONTINUE ▪ Intermittent renewable generation creates the need for energy storage ▪ Visibility in renewable deployment with latest CfD auction slated to deliver c.12GW in contracts in addition to 5.5GW from last auction ▪ Growth in renewable generation i
Slide 18: Revenue Model
REVENUE MODEL ▪ Two key uses for Battery Energy Storage Systems - trading and frequency response ▪ Trading algorithms continually assess whether more can be earned from trading or frequency response ▪ Trading and frequency response are inherently profitable on account of GRID’s asset-backed business
Slide 19: Disclaimer
DISCLAIMER This presentation (the Presentation) is issued by Gresham House Asset Management Ltd (GHAM), Investment Manager for Gresham No person, especially those who do not have professional experience in matters relating to investments, may rely on the contents of this House Energy Storage Fund pl
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