RM Infrastructure Income PLC GBP · LSE:RMII
RM Infrastructure Income PLC GBP — RM Secured Direct Lending — Investor Presentation (June 2021)
26 slides from RM Infrastructure Income PLC GBP's investor presentation, June 2021
Slide 1: RM Secured Direct Lending Plc – Investor webinar
RM Secured Direct Lending Plc – Investor webinar
Slide 2: Disclaimer
Disclaimer Disclaimer All information and opinions contained in this document has been provided by RM Capital Markets Limited ("Company"), which is authorised and regulated by the Financial Conduct Authority, and have not been independently verified as to their accuracy by either the Company or any
Slide 3: Executive Summary
Executive Summary RM Secured Direct Lending “RMDL” offers investors access to a high yielding, diversified portfolio of loans Liquid Alternatives INCEPTION TO DATE PERFORMACE Mature portfolio with full capital deployment 4 year track record of delivering stable income returns; CBILS/RLS credit enhan
Slide 4: About RM Funds
About RM Funds RM Funds – Specialists in private credit investments, with a 360-degree perspective investing in the debt and equity of businesses operating in the alternatives sector. RM was founded in 2010. Headquarters in Edinburgh and office in London. Private credit : Established origination, cr
Slide 5: Section 1 - Investment Performance
Section 1 - Investment Performance • Relative performance • Portfolio tables • Portfolio breakdown • Covid resilience • Cumulative losses versus MTM • Discount control and share buybacks 5 5
Slide 6: Relative performance since inception
Relative performance since inception 125 120 115 110 105 100 95 90 85 80 NAV % Total return- 23% Share Price Total Return- 10% FTSE ASX % Total Return- 12% S&P Leveraged Loan index % TR- 14% 6
Slide 7: Portfolio tables
Portfolio tables RMDL Distribution Record Investment Status Inception to date, over £256m of capital deployed 10% Capital has been recycled over 1x 35% 55% Consistent distributions ahead of target CBILS 15% / Senior 32% Outstanding - 55% Weighted Average Life 2.86 years Repaid - 35% Divested - 10% 2
Slide 8: Portfolio breakdown
Portfolio breakdown Sector breakdown, December 20 Diverse portfolio Other Average portfolio yield of 8.3% 13% Business Services Circa 30% allocated to Social and Environmental 5% Hotel & Leisure 33% Infrastructure Manufacturing 10% Portfolio focused on defensive industry sectors and real asset secur
Slide 9: 2020 Dividend cover to cash dividend cover bridge
2020 Dividend cover to cash dividend cover bridge Total Income £10.9m PIK £1.87m > two borrowers accounted for 72% of this. Beinbauer represented 52% of this balance, Energie Fitness 20% Net cash income £9.03m Costs of £2.28m Cash net income £6.75m after costs Deduct finance costs £635k ; Deduct tax
Slide 10: Covid resilience
Covid resilience RM Funds investment team assessed all holdings and the Hospitality & Leisure Accommodation Manufacturing degree of exposure to covid related issues Certain borrowers were able to utilise structural features such as interest reserve accounts or PIK toggle features Where the relations
Slide 11: CBILS exposure – credit enhancement
CBILS exposure – credit enhancement 15% RM Funds have £40m of CBILS capability Seek to double CBILS exposure from 15% to 30% by end of Q2 Only listed vehicle which directly offers investors exposure to CBILS Business interruption payment (“BIP”) offers government contracted cashflow for 12 85% month
Slide 12: Cumulative realised losses versus portfolio mark to market
Cumulative realised losses versus portfolio mark to market “MTM” Cumulative realised losses of £86k to date. Excellent track record of downside protection & capital preservation 6.91 pence per share of valuation losses within portfolio . Target min 5.50 pence recovery. RM funds focused on capturing
Slide 13: Discount control & share buy backs
Discount control & share buy backs 105 SHARE BUYBACK UNITS 100 2,000,000 95 1,500,000 90 Share buyback used tactically to help reduce the share price discount. 85 Target discount of < 6% as per prospectus 1,000,000 Keen to help shareholder liquidity where 80 required whilst not reducing vehicle mate
Slide 14: Section 2 - Outlook
Section 2 - Outlook • Investment priorities • Investment strategy overview • Strategy focus benefits 14 14
Slide 15: Investment priorities
Investment priorities E | 4 O NET ASSET VALUE SUSTAINABILITY IMPACT FRAMEWORK (ee 15 RMFunds
Slide 16: Investment Strategy - overview
Investment Strategy - overview Private credit non-benchmark deal sizes: Sector Focus & Sustainability: Focus on non-benchmark direct loans, “the missing middle”, Investment focus on two areas comprising six sectors of up to £15m which are too complex for traditional bank lending Social infrastructur
Slide 17: Strategy focus benefits
Strategy focus benefits Portfolio investments to date by sector Focus on Loans with tangible asset backing in sectors that are essential to society: often highly-regulated sectors Social Infrastructure strong cash flow visibility 7% 4% 26% reinforces non-cyclical sector focus limited LTV/tangible as
Slide 18: Section 3 – Sustainability; ESG & Impact Framework
Section 3 – Sustainability; ESG & Impact Framework • RMDL sustainability evolution • Impact objectives • Sustainable development goals and impact outcomes • Investing with Impact & framework alignment • Positive Impact Score 18 18
Slide 19: Company evolution - from avoiding ESG risks to creating positive impact
Company evolution - from avoiding ESG risks to creating positive impact ESG ESG Exclusions/ Positive Impact integration engagement Negative ESG screening measurement screening (ESG impact) Now “RM Secured Direct Lending PLC” Proposed “RM Secured Direct Lending PLC Responsible Investm
Slide 20: Impact objectives
Impact objectives Meet housing Meet education Meet health Support energy Promote a circular Improve building needs needs needs solutions economy sustainability Improved supply of Improving quality and Improving quality and Improving availability of Improved recycling, waste Improving sustainability
Slide 21: SDGS & Impact outcomes
SDGS & Impact outcomes Social infrastructure Environmental assets Clean Energy & Waste Energy Efficiency & Healthcare Childcare & Accommodation Renewables Management Carbon Reduction Education Impact Outcomes: Impact Outcomes: • Improving availability of sustainable energy solutions • Improving supp
Slide 22: Investing with Impact & framework alignment
Investing with Impact & framework alignment RM Funds have an Impact Measurement & Management framework aligned with: The Impact Management Project (IMP) The IFC Operating Principles for Impact Management PRI - Principles for Responsible Investment RM Funds have partnered with The Good Economy to pro
Slide 23: Positive Impact Score – aligning with IMP dimensions of impact
Positive Impact Score – aligning with IMP 5 dimensions of impact 1. Assessment of E&S outcomes 2. Capital Impact Ratio 3. Impact Strategy Ratio (score sum max 15) (Apply factoring x 1,2,3) (Apply factoring x 1,2,3) (Energy Efficiency & Carbon Reduction, What is the contribution of the funding Are th
Slide 24: Summary
x8 RMFunds. é The art of investment Summary 7 . i Tg Stable investmen offering long-term returns — RM Funds: Artists in protecting capital and generating income
Slide 25: Summary
Summary Resilient portfolio; income generative, downside protected through a challenging period Conservative valuation policy which will lead to NAV growth Near term increase exposure to CBILS and aim to utilise Recovery Loan Scheme Exciting pipeline in Social Infrastructure & environmental assets;
Slide 26: Registered office and regulatory details
Registered in Scotland No SC380707 Registered Office: 7 Melville Crescent, Edinburgh, EH3 7JA RM Capital Markets Limited is authorised and regulated by the Financial Conduct Authority (Number 562209) 26
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