Renewables Infrastructure Group Limited GBP Red.Shs · LSE:TRIG
Renewables Infrastructure Group Limited GBP Red.Shs — The Renewables Infrastructure Group — H1 2016 Earnings Presentation
29 slides from Renewables Infrastructure Group Limited GBP Red.Shs's earnings presentation, Aug 18, 2016
Slide 1: Interim results for six months to 30 June 2016
THE RENEWABLES INFRASTRUCTURE GROUP Interim results for six months to 30 June 2016 18 August 2016 www.TRIG-Ltd.com
Slide 2: 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
Slide 3: Contents
CONTENTS Introduction 4 Speakers: Overview of Results 5 Richard Crawford, InfraRed Capital Partners Growth and Funding 6 Phil George, InfraRed Capital Partners Stability of Project Revenue Sources 7 Valuation 8 Jaz Bains, Renewable Energy Systems Financial Results 10 Operations 13 Growth in Renewabl
Slide 4: Introduction to TRIG
INTRODUCTION TO TRIG The leading London-listed renewables investment company1 TRIG is invested in 51 operational onshore wind and solar projects in the UK, France and Ireland About Us London-listed Guernsey investment company (IPO in 2013) with independent board of non-executive directors Advi
Slide 5: Overview of Results
OVERVIEW OF RESULTS For the six months to 30 June 2016 FINANCIAL NAV per share: 97.0p (Dec 2015: 99.0p), reflects dividends relating to 9 months1 Earnings per share: 2.6p (H1 2015: 3.2p), affected by lower power prices Ongoing charges: 1.15% (H1 2015: 1.24%) Funding: Revolving acquisition facility r
Slide 6: Growth and Funding
GROWTH AND FUNDING Scale, diversification, strategic partnerships INVESTMENTS EVOLUTION OF TRIG’S PORTFOLIO January 2016: £44m in French solar portfolio (21MW)1 Jun-2016 Dec-2015 IPO o Diversified across four French regions of Provence, Corsica, Jul-2013 Guadeloupe and La Réunion Number of Projects
Slide 7: Stability of Project Revenue Sources
STABILITY OF PROJECT REVENUE SOURCES More than two-thirds of near-term revenues not linked to power prices PROJECT REVENUE BY TYPE1 Next 12 months2 £250m £200m £150m £100m £50m - 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Fixed
Slide 8: Portfolio Valuation Bridge – June 2016
PORTFOLIO VALUATION BRIDGE – JUNE 2016 Movement of key elements in the Directors’ valuation 3 1 2 1. Consists of changes in interest rates and discount rates 2. At the Company level there was a £6.1m loss on FX hedges. The net FX impact for the Company is hence a £5.7m gain for the period. 3. This r
Slide 9: Valuation – Key Variables
VALUATION – KEY VARIABLES 30 June 2016 31 December 2015 Discount Rate1 Weighted average 8.7% 9.0% Power Prices2 Weighted by market Based on third party forecasts Based on third party forecasts UK 2.75% 2.75% Inflation France & Rep. of Ireland 2.00% 2.00% Foreign Exchange EUR / GBP 1.20 1.36 BLENDED
Slide 10: Summary Income Statement
SUMMARY INCOME STATEMENT Reflects lower power prices partially offset by reduced discount rates and FX movements Six months to Six months to 30 June 2016 30 June 2015 £m £m Statutory Adjustments Expanded Basis1 Expanded Basis Basis Total operating income 25.9 6.9 32.8 17.1 Acquisition costs - - - (0
Slide 11: Summary Balance Sheet
SUMMARY BALANCE SHEET NAV per share impacted by acceleration of dividend in H1 30 June 2016 31 December 2015 £m £m Statutory Basis Adjustments Expanded Basis Expanded Basis Portfolio value 743.0 16.5 759.5 712.3 Working capital (4.5) (1.2) (5.7) (0.9) Debt - (15.9) (15.9) - Cash 5.6 0.6 6.2 15.2 Net
Slide 12: Summary Cash Flow
SUMMARY CASH FLOW Resilient cash flows; lower dividend cover in current power price environment Six months to Six months to 30 June 2016 30 June 2015 £m £m Statutory Basis Adjustments Expanded Basis Expanded Basis Cash received from investments 23.8 7.0 30.8 24.8 Operating and finance costs outflow
Slide 13: Diversification – Technology / Location
DIVERSIFICATION – TECHNOLOGY / LOCATION June 2016: 680 MW net capacity / 51 projects France 13% Rep. of Ireland / SEM 2% England / GB 30% N. Ireland / SEM 8% BY JURISDICTION/ POWER MARKET1 Scotland / GB 47% Solar Onshore Wind / 31% Atlantic 63% BY TECHNOLOGY/ WEATHER SYSTEM2,3 Onshore Wind / Mediter
Slide 14: Operational Performance (1)
OPERATIONAL PERFORMANCE (1) Challenging weather conditions in H1 – mitigated by diversification UK AVERAGE WIND SPEED4 OVERALL PRODUCTION / WEATHER H1 aggregate portfolio generation was 738 GWh1 o Up 29% on H1 2015 with increase in portfolio scale o 9% below P50 budget for portfolio o Largest contri
Slide 15: Operational Performance (2)
OPERATIONAL PERFORMANCE (2) Active management to maximise operational performance SPECIFIC FACTORS (H1 2016) ENHANCEMENT INITIATIVES Unusual levels of grid outages: Comprehensive portfolio monitoring: enabling multi-site initiatives due to new (mainly solar) plant connections and interventions Equip
Slide 16: Growth in Renewables Market
GROWTH IN RENEWABLES MARKET Further portfolio opportunities UK RENEWABLES: CAPACITY OUTLOOK ▲ UK pipeline remains strong, driven by historic build March March Estimate Estimate Generation activity in onshore wind and solar PV 2015 2016 2020 2020 2015 Capacity1 Capacity2 Capacity3 EV3 TWh4 ▲ UK new d
Slide 17: Outlook
OUTLOOK Distinct management InfraRed and RES: active management of portfolio combination Diversified Substantial portfolio Low ongoing charges ratio Power price forward Impetus from currency movement post Brexit market improving Long term supply / demand dynamics Generating attractive Ca
Slide 18: Appendices
ATRIG APPENDICES 18
Slide 19: TRIG – Experienced Management
TRIG – EXPERIENCED MANAGEMENT INDEPENDENT BOARD INVESTMENT MANAGER OPERATIONS MANAGER Helen Mahy CBE (Chair) 20 years of experience in One of the world's leading renewable infrastructure and real estate funds energy developers and operators Jonathan Bridel Over US$9 billion of equity under P
Slide 20: 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 Jon Richard von Gill Roper Entract Crawford Com
Slide 21: Operations Management
OPERATIONS MANAGEMENT Breadth and depth of capability provided by RES MANAGING PERFORMANCE RES: RESOURCING STRUCTURE o Availability – minimising lost production, fault rectification o Generation – maximising output, maintenance planning, turbine & grid settings o Financial – budget control, minimisi
Slide 22: Counterparties
COUNTERPARTIES Broad spread of high quality equipment, maintenance and off-take counterparties COUNTERPARTIES BY RELATIVE VALUE OF ASSOCIATED PROJECTS AND NUMBER OF PROJECTS1 The supplier that TRIG has the largest exposure to is Siemens who provide turbine maintenance services to 46% of the TRIG pro
Slide 23: NAV Sensitivities
NAV SENSITIVITIES Based on portfolio as at 30 June 2016 23
Slide 24: Dividend Schedule
DIVIDEND SCHEDULE Dividend target of 6.25p per share, with upside from inflation Period Aggregate annual dividend per share Interim dividends per share Payment timing Q4 2016 1.5625p Target 3/2017 Q3 2016 1.5625p Target 12/2016 6.25p Q2 2016 1.5625p Due 9/2016 Q1 2016 1.5625p Paid 6/2016 H2 2015 3.1
Slide 25: Enhancing Diversification – Akuo Portfolio
ENHANCING DIVERSIFICATION – AKUO PORTFOLIO Investment in January 2016 15 operational French solar PV projects o Gross generating capacity of 49MW Euro €57m (£44m) investment1 o 49% of holding company equity + 100% of a mezzanine loan Partnering with Akuo Energy - a major renewables developer i
Slide 26: Outlook: EU Power Capacity Installations
OUTLOOK: EU POWER CAPACITY INSTALLATIONS Wind + Solar PV: dominating European new power capacity 2013 Share of EU New Power Capacity (Total = 35GW) 2014 Share of EU New Power Capacity (Total = 27GW) 2015 Share of EU New Power Capacity (Total = 29GW) Source: Data from EWEA Annual Statistics (Copyrigh
Slide 27: UK Government Benchmark Yields
UK GOVERNMENT BENCHMARK YIELDS Low rate environment makes yielding assets attractive UK GILT YIELDS (LAST 5 YEARS) 5 4.5 IPO 4 30-yr Gilt 3.5 3 10-yr Gilt 2.5 2 1.5 1 3-yr Gilt 0.5 0 Source: InfraRed, Thomson Reuters 27
Slide 28: TRIG: Key Facts
TRIG: KEY FACTS Fund Structure ▲ Guernsey-domiciled closed-end investment company Performance ▲ Quarterly dividend of 1.5625p ▲ Maintained annual dividend yield of c.6.0% Issue / Listing ▲ Premium listing of ordinary shares on the Main Market of the ▲ 2015 Total Shareholder Return of 8.1% (versus 0.
Slide 29: Contacts
CONTACTS INVESTMENT MANAGER OTHER ADVISERS INFRARED CAPITAL PARTNERS LTD ADMINISTRATOR / COMPANY SECRETARY REGISTRAR 12 CHARLES II STREET AZTEC FINANCIAL SERVICES (GUERNSEY) LTD CAPITA REGISTRARS (GUERNSEY) LTD LONDON SW1Y 4QU EAST WING MONT CREVELT HOUSE +44 (0)20 7484 1800 TRAFALGAR COURT BULWER A
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