Renewables Infrastructure Group Limited GBP Red.Shs · LSE:TRIG
Renewables Infrastructure Group Limited GBP Red.Shs — The Renewables Infrastructure Group — H1 2015 Earnings Presentation
32 slides from Renewables Infrastructure Group Limited GBP Red.Shs's earnings presentation, Aug 27, 2015
Slide 1: Interim results for the six months to 30 June 2015
THE RENEWABLES INFRASTRUCTURE GROUP Interim results for the six months to 30 June 2015 27 August 2015 www.TRIG-Ltd.com
Slide 2: Contents
CONTENTS Section Page Introduction to TRIG 3 Overview of Interim Results (Richard Crawford – InfraRed Capital Partners) 5 Portfolio and Operations (Jaz Bains – RES) 8 Financials (Phil George – InfraRed Capital Partners) 12 Growth in Renewables Market 18 TRIG – A Differentiated Proposition 19 Appendi
Slide 3: TRIG – Experienced Management
TRIG – EXPERIENCED MANAGEMENT Independent Board Investment Manager Operations Manager Helen Mahy CBE (Chair) Strong, 15+ year track record in One of the world's leading renewable infrastructure and real estate funds energy developers and operators Jonathan Bridel Over US$8 billion of equity un
Slide 4: Introduction to TRIG
INTRODUCTION TO TRIG Investment Proposition ▲ Investing in operating renewables projects in UK & Northern Europe, and in proven technologies (onshore wind & solar PV) ▲ Inflation-linked dividend yield of c.6% p.a.1 o Met performance and distribution targets since IPO with dividends comfortably cash-
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS For the six months to 30 June 2015 Results1 Profit before tax: £15.1m (H1 2014: £10.8m) TRIG Dividend Schedule Earnings per share: 3.2p (H1 2014: 3.2p) Period Dividend Schedule NAV per share: 98.6p after Budget (Dec 2014: 102.4p) per share Total Shareholder Return: 10.9%
Slide 6: Portfolio Growth and Funding
PORTFOLIO GROWTH AND FUNDING Net generating capacity and portfolio value expanded by c.50% in H1 2015 Portfolio Data Jun 2015 Dec 2014 IPO Production 570 GWh, 6% above P50 # of projects 36 29 18 Acquisitions total: £255m Net generating capacity1 658 MW 439 MW 276 MW Equity funding: Portfolio v
Slide 7: Investment in Fred. Olsen Portfolio
INVESTMENT IN FRED. OLSEN PORTFOLIO Agreement signed on 23 June 2015 Crystal Rig I Rothes II Six operational onshore wind projects in Scotland o Gross generating capacity of 433MW £246 million investment o 49% of the equity and 100% of a mezzanine loan Partnering with Fred. Olsen Renewables (F
Slide 8: Operational Performance to June 2015
OPERATIONAL PERFORMANCE TO JUNE 2015 Benefits of diversification – on target production since IPO Electricity Production1 Against P50 Estimates At Acquisition Operational Output H1 2015 IPO to June 2015 Produced 570 GWh of electricity in H1 2015 Segment (6 months) (23 months) (H1 2014: 399 GWh) UK
Slide 9: Portfolio Diversification
PORTFOLIO DIVERSIFICATION By Jurisdiction / By Technology / Power Market1 2 Weather System2 3 (by portfolio valuation) (by portfolio valuation) 1. Northern Ireland and the Republic of Ireland form a Single Electricity Market, distinct from that operating in Great Britain. 2. Segmentation by estimate
Slide 10: Portfolio Map (30 June 2015)
PORTFOLIO MAP (30 JUNE 2015) 658 MW net generating capacity / 36 projects – largest, most diversified portfolio in the sector *Additions to TRIG’s portfolio since 1 January 2015 10
Slide 11: Operations – Key Activities
OPERATIONS – KEY ACTIVITIES Solar • Asset value protected on one project following contractor administration – by RES stepping in to arrange interim asset management cover, maintaining operational performance • RES actively investigating performance enhancements through detailed monitoring and close
Slide 12: Portfolio Valuation Bridge – H1 2015
PORTFOLIO VALUATION BRIDGE – H1 2015 Robust performance despite power price fall and removal of LECs (UK Summer Budget) 12
Slide 13: Valuation – Key Assumptions
VALUATION – KEY ASSUMPTIONS 30 June 2015 31 December 2014 Discount Rate1 Weighted Average 9.0% 9.0% Energy Yield All markets Third party acquisition P50 – central case Third party acquisition P50 – central case Based on updated third party forecasts (with Based on updated third party forecasts (with
Slide 14: 2014 Change in Accounting Basis
2014 CHANGE IN ACCOUNTING BASIS ▲ December 2013: TRIG adopted IFRS 10 o Enabled TRIG to carry its investments at fair value (“Investment Basis”) rather than line-by-line consolidation ▲ December 2014: IFRS 10 was amended to clarify treatment of Investment Entity subsidiaries o TRIG UK (TRIG’s portfo
Slide 15: Summary Income Statement
SUMMARY INCOME STATEMENT A continuation of TRIG’s robust performance since launch Six months ended Six months 30 June 2015 ended 30 June 2014 £m £m Statutory Basis Adjustments Expanded Basis Expanded Basis Total operating income 12.7 4.4 17.1 13.5 Acquisition costs - (0.5) (0.5) (0.4) Net operating
Slide 16: Summary Balance Sheet
SUMMARY BALANCE SHEET Portfolio growth through acquisitions; incremental uplift in NAV after power price adjustments At 30 June 2015 At 31 Dec 2014 £m £m Post Summer Statutory Basis Adjustments Expanded Basis Budget1 Expanded Basis Portfolio value 516.4 203.3 719.7 699.4 472.9 Cash 18.8 0.4 19.2 19.
Slide 17: Summary Cash Flow
SUMMARY CASH FLOW Distributions on target Six months ended Six months ended 30 June 2015 30 June 2014 £m £m Statutory Basis Adjustments Expanded Basis Expanded Basis Cash from investments 17.0 7.8 24.8 14.5 Operating and finance costs outflow 0.1 (3.9) (3.8) (0.3) Net cash inflow before acquisitions
Slide 18: Growth in Renewables Market
GROWTH IN RENEWABLES MARKET Extensive further portfolio opportunities expected from target markets Generating Capacity Under UK Government Programmes (June 2015) ▲ Strong multi-year deal flow expected in UK onshore Onshore Solar PV 1 Category Wind wind in spite of early closure of RO (GW) (GW) ▲ UK
Slide 19: TRIG: A Differentiated Proposition
TRIG: A DIFFERENTIATED PROPOSITION ▲ Largest portfolio among London-listed peers, diversified across technologies and markets ▲ Solid operating performance since IPO ▲ Delivering target returns: c.6% cash yield with surplus reinvested ▲ Distinct management combination of InfraRed and RES 19 www.TRIG
Slide 20: Appendices
ATRIG APPENDICES 20
Slide 21: Overview of Fred. Olsen Portfolio
OVERVIEW OF FRED. OLSEN PORTFOLIO Crystal Rig 1 Rothes 1 Paul’s Hill Crystal Rig 2 Rothes 2 Mid Hill East Lothian, Moray, Moray, East Lothian, Moray, Aberdeenshire, Location Scotland Scotland Scotland Scotland Scotland Scotland Commercial Oct 2003 May 2005 May 2006 Jun 2010 Jun 2013 Jun/Nov 2014 Ope
Slide 22: Counterparty Exposures
COUNTERPARTY EXPOSURES Broad spread of high quality equipment, maintenance and off-take counterparties ▲ Main credit exposure is to national governments through subsidy commitments (both directly and indirectly) ▲ Commercial counterparties performing as expected – power off-takers, equipment and mai
Slide 23: NAV Sensitivities
NAV SENSITIVITIES Based on portfolio as at 30 June 2015 Impact on NAV per share at 30 June 2015 (£ labels represent impact on Portfolio Value of £699.4m) 23
Slide 24: Cash Flow and NAV Outlook
CASH FLOW AND NAV OUTLOOK Based on portfolio as at 30 June 2015 Illustration of Long-Term Cash Flows and NAV (including effect of re-investment of surplus after dividend payment) 1. The chart is illustrative only and is not a profit forecast. There can be no assurance that these levels of performanc
Slide 25: Senior Management Team
SENIOR MANAGEMENT TEAM Over 100 years of relevant experience on the TRIG Advisory Committee TRIG Independent Board Helen Jonathan Klaus Shelagh (Non-Executive) Mahy CBE Bridel Hammer Mason (Chairman) Investment matters TRIG Investment Werner Chris Tony James Richard von Gill Roper Hall-Smith Crawfor
Slide 26: RES & Operations Management
RES & OPERATIONS MANAGEMENT TRIG’s leading edge in unrivalled experience, in-house IP and technical expertise RES brings a complete reliability monitoring service to TRIG Full access to an integrated team of experts in engineering, technical and asset management (50+ staff) RES knowledge from a
Slide 27: Operations Management
OPERATIONS MANAGEMENT Breadth and depth of capability provided by RES Managing performance RES: Resourcing Structure • Availability – minimising lost production, fault rectification • Generation – maximising output, maintenance planning, turbine & grid settings • Financial – budget control, minimisi
Slide 28: EU – New Power Capacity Installations
EU – NEW POWER CAPACITY INSTALLATIONS Onshore wind and solar PV dominating European new power capacity 2013 Share of EU New Power Capacity Installations (Total = 35GW) 2014 Share of EU New Power Capacity Installations (Total = 27GW) Source: Data from EWEA Annual Statistics (Copyright The European Wi
Slide 29: TRIG: Key Facts
TRIG: KEY FACTS Fund Structure ▲ Guernsey-domiciled closed-end investment company Return Targets1 ▲ Initial 6.0p annualised dividend (2013-14), increasing progressively with inflation; targeting 3.11p for 6 months to 31 December 2015 Issue / Listing ▲ Premium listing of ordinary shares on the Main M
Slide 30: Glossary
GLOSSARY ▲ CfD contract for difference: typically , a contract between a buyer and seller, stipulating that the seller will pay to the buyer the difference between a pre-agreed price of an asset or commodity and its actual (if higher) value at contract time (if the value is lower, then the buyer pay
Slide 31: Contacts
CONTACTS INVESTMENT MANAGER OTHER ADVISERS INFRARED CAPITAL PARTNERS LTD ADMINISTRATOR / COMPANY SECRETARY REGISTRAR 12 CHARLES II STREET DEXION CAPITAL (GUERNSEY) LTD CAPITA REGISTRARS (GUERNSEY) LTD LONDON SW1Y 4QU 1 LE TRUCHOT MONT CREVELT HOUSE +44 (0)20 7484 1800 ST PETER PORT BULWER AVENUE KEY
Slide 32: Important Information
IMPORTANT INFORMATION By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This document is an advertisement and is not a prospectus. Any decision to purchase shares in The Renewables Infrastructure Compa
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