Greencoat UK Wind Plc · LSE:UKW
Greencoat UK Wind — FY2024 Earnings Presentation
36 slides from Greencoat UK Wind's earnings presentation, February 2025
Slide 1: Annual Results
Annual Results February 2025 For Professional Investors Only
Slide 2: 2024 Highlights
2024 Highlights £278.7m / 1.3x(1) Cash generation resilient despite generation 13% below budget Net cash generation / dividend cover £3,409.1m / 151.2p Financials NAV impacted by normalisation of power prices and P50 revision £3,794.0m / 164.1p at 31 Dec 2023 39.7% gross debt to GAV Successful £725m
Slide 3: Simple Business Model
Simple Business Model 6-49 wind Generating capacity UKW generates a net 10% return farms increased from 127 to to investors at NAV 1,982MW since IPO Total reinvestment Dividend increases with RPI Equity 12 consecutive annual Total renewable increases of RPI or better 29.0TWh electricity produced
Slide 4: Consistent Delivery with 1.8x dividend cover
Consistent Delivery with 1.8x dividend cover Period Net Cash Generation Cash Dividend Reinvestment Dividend Cover 2013(1) £21.6m £3.9m £17.7m 2014 £32.4m £20.8m £11.6m 1.6x 2015 £48.3m £35.9m £12.4m 1.7x(2) 2016 £49.0m £35.1m £13.9m 1.4x 2017 £80.1m £52.3m £27.8m 1.5x 2018 £117.3m £72.3m £45.0m 1.6x
Slide 5: Investment Portfolio
Investment Portfolio Generating sufficient electricity to power 2.2(1) million homes (1) Homes powered based on average annual household energy consumption (2.7MWh p.a. (Ofgem)), and reflects the portfolio’s annual electricity generation 5
Slide 6: Portfolio Overview
Portfolio Overview Well diversified generating portfolio of 1,982MW – 6% market share Note: breakdown by value as at 31 December 2024 6
Slide 7: UK Wind Market Developments
UK Wind Market Developments Clean Power 2030 targets Clean Power 2030 targets 3x offshore capacity by 2030 2014 CAGR 2024 CAGR CP 2030 (43-50GW) and 1.7x onshore capacity (27-29GW) Onshore Significant progress needed in Allocation Round 7 8.6GW 6% c.16.1GW 8% 27-29GW Wind auction this summer 1.7
Slide 8: Performance and Key Themes
iE — Performance and Key Themes
Slide 9: Financial Performance – Dividend Cover
Financial Performance – Dividend Cover (1) Past performance is not a reliable indicator of future results (1) 2024 dividend cover adjusted for additional 1.24p per share / £28.6m paid in respect of 2023 dividend 9
Slide 10: Financial Performance – Net Cash Generation
Financial Performance – Net Cash Generation Past performance is not a reliable indicator of future results 10
Slide 11: Net Asset Value
Net Asset Value NAV movements largely driven by lower power price assumptions and review of portfolio's energy yield estimates (P50) Robust near term power prices 1.3x dividend cover more than offset by reduced 180.0 longer term curve 175.0 12.4 (10.0) Portfolio generation forecast Capital All
Slide 12: Portfolio Generation and P50 Review
Portfolio Generation and P50 Review P50 revisions distribution (GWh weighted) 9% Energy yield review 13% Holistic exercise in conjunction with an expert third party to update correlation 26% data across the portfolio 52% Added in data from recent years, serving to lower the long term average w
Slide 13: Power Prices
Power Prices Modelled power price (1) Short term power prices updated to reflect forward curve (as at year end 2024) A discount of 10-20% applied to power price assumptions in all years to reflect wind capture pricing Portfolio achieved a price of £64.64/MWh in 2024 versus the £72.45/MWh avera
Slide 14: Sustainable debt structure, with strong lending base
Sustainable debt structure, with strong lending base NAB 2.34% NAB 3.10% CIBC 2.21% Project Finance Lloyds 7.34% RCF 6.35% Term Debt Total debt of £2.27bn CBA 2.97% RCF ABN AMRO £1,490m term debt 6.88% Barclays 6.84% ANZ 7.23% £270m RCF (£400m facility) Virgin Money 6.84% ANZ 5.24% NAB 5.22% £
Slide 15: Investment Performance
Investment Performance Outperformed sector since listing Past performance is not a reliable indicator of future results Note: total return from IPO to 31 December 2024 15
Slide 16: Portfolio Returns
Portfolio Returns UKW levered portfolio IRR unchanged at 11% across 2024 14.0% Levered portfolio IRR increased 2% 12.0% in last two years and is 1% above IPO levels 10.0% The 11% levered portfolio IRR results in 8.0% a >10% return to investors (net of all fees and costs), assuming investment a
Slide 17: Capital Allocation
Capital Allocation Over £1bn of potential excess cashflow in next 5 years Acquisitions, Repay and refinance Dividends Share buybacks investments and debt disposals Successful and Initial £100m buyback oversubscribed £725m Increased 2025 dividend Initial £41m disposal, at completed, delivering refina
Slide 18: ESG
ESG
Slide 19: Sustainability Related Commitments and Reporting
Sustainability Related Commitments and Reporting GHG emissions reporting TCFD TCFD related climate disclosures reported for the third time SDR Sustainability Focus label adoption in 2024(1) Article 9 fund SFDR Annexes 1 and 5 published in the Annual Report Schroders Greencoat signatory 2
Slide 20: Environmental
Environmental Portfolio can produce renewable electricity to power 2.2 million homes(1) Recycling third party capital enables more renewable generation capacity to be built out 2.4m tonnes of CO2 per annum(2) can be avoided through the displacement of thermal generation Co-existence of energ
Slide 21: Social and Health & Safety
Social and Health & Safety Social £5.7m of local community funding in 2024 Significant number of jobs in rural communities. The portfolio is estimated to have created 1,014 direct and indirect jobs from operational assets(1) Require contractors to have appropriate workforce policies in place,
Slide 22: Governance - Independent UK Board
Governance - Independent UK Board Lucinda Riches – Chairman Ex-Head of Equity Capital Markets at UBS ECM and financial markets experience Independent board approves all acquisitions Nick Winser – Senior Independent Director UKW’s domicile enables Ex-CEO of National Grid UK UKW to appoint Policy
Slide 23: Highly Experienced Greencoat UK Wind Team
Highly Experienced Greencoat UK Wind Team Investment Managers Stephen Lilley – 30 years of Matt Ridley – 23 years of Stephen Packwood (from 24 investment experience in the investment management April 2025) – 20 years of infrastructure, utility and experience, including 16 years experience in the ren
Slide 24: Summary
Summary
Slide 25: 2024 Highlights
2024 Highlights £278.7m / 1.3x(1) Cash generation resilient despite generation 13% below budget Net cash generation / dividend cover £3,409.1m / 151.2p Financials NAV impacted by normalisation of power prices and P50 revision £3,794.0m / 164.1p at 31 Dec 2023 39.7% gross debt to GAV Successful £725m
Slide 26: Appendix
Appendix
Slide 27: UKW – Addressing a Convergence of Needs
UKW – Addressing a Convergence of Needs Designed to deliver RPI linked Addressing the growing need for dividend and real NAV growth asset recycling as market scaled Providing long term growth and Investors Industry Allowing utilities to free-up inflation protection capital to build new proje
Slide 28: Investment Performance: NAV vs RPI
Investment Performance NAV vs RPI 52% NAV growth(1) since listing vs RPI growth of 58% Annual dividend increasing with RPI inflation and real NAV preservation over the long term Past performance is not a reliable indicator of future results (1) Per share and adjusted for accrued dividends 28
Slide 29: Investment Performance
Investment Performance Significantly outperformed the FTSE 250 since listing Past performance is not a reliable indicator of future results Note: total return from IPO to 31 December 2024 29
Slide 30: Diversified Asset Portfolio (1)
Diversified Asset Portfolio (1) 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 Andershaw Scotland Vestas Statkraft 35.0 100% 35.0 Feb-17 Sep-21 0.9 34.5% Bicker Fen England Senvion EDF 26.7 80
Slide 31: Diversified Asset Portfolio (2)
Diversified Asset Portfolio (2) 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 Corriegarth Scotland Enercon Centrica 69.5 100% 69.5 Apr-17 Aug-17 0.9 34.3% Cotton Farm England Senvion Sainsbur
Slide 32: Diversified Asset Portfolio (3)
Diversified Asset Portfolio (3) 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 Hornsea 1 England Siemens CFD 1200.0 12.5% 150.0 Dec-19 Aug-22 CFD 50.4% Humber Gateway England Vestas RWE 219.0
Slide 33: Diversified Asset Portfolio (4)
Diversified Asset Portfolio (4) 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 North Rhins Scotland Vestas E.ON 22.0 51.6% 11.4 Dec-09 Aug-14 1.0 37.7% Red House England Senvion EDF 12.3 80% 9
Slide 34: Diversified Asset Portfolio (5)
Diversified Asset Portfolio (5) 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 Tappaghan N Ireland GE SSE 28.5 100% 28.5 Jan-05/Jun-09 Mar-13 1.0 21.9% 75% plus Tom nan Clach Scotland Vestas C
Slide 35: Disclaimer (1)
Disclaimer (1) Important Information This presentation and its contents are confidential. Past Performance is not a guide to future performance and may not be repeated. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES (OR TO ANY US PERSON), AUSTRALI
Slide 36: Disclaimer (2)
Disclaimer (2) Any subsequent offer may only be made in Jersey where the offer is valid in the United Kingdom or Guernsey and is circulated in Jersey only to persons similar to those to whom, and in a manner similar to that in which, it is for the time being circulated in the United Kingdom or Guern