Gore Street Energy Storage Fund Plc · LSE:GSF
Gore Street Energy Storage Fund — FY2023 Earnings Presentation
25 slides from Gore Street Energy Storage Fund's earnings presentation, Mar 31, 2023
Slide 1: Gore Street Energy Storage Fund plc Annual Results presentation
Gore Street Energy Storage Fund plc Annual Results presentation For the year ended 31 March 2023
Slide 2: Presentation Team: Investment Manager
Presentation Team: Investment Manager Alex O’Cinneide Sumi Arima Paula Travesso Chief Executive Officer Chief Investment Officer Principal Before founding GSC, Alex was Head of Sumi led Renewable Energy transactions as Paula's expertise is in merger and Europe for Paladin Capital, a Senior Advisor M
Slide 3: Investment Objective and Policy Summary
Investment Objective and Policy Summary INVESTMENT OBJECTIVE INVESTMENT POLICY Invest in a Geographical Revenue Diversification Asset Diversification diversified portfolio Diversification and Stacking and Stacking of utility-scale • Geographical targets • Achieved through the • Intend to cap any ene
Slide 4: Financial Highlights
Financial Highlights NAV PER SHARE OPERATIONAL EBITDA DIVIDEND YIELD 115.6p £27.8m 6.9% (2022: 109.1p) (2022: £23.3m) (2022: 6.2%) 12 MONTH NAV TOTAL RETURN OPERATIONAL CAPACITY TOTAL CAPACITY 12.3% 291.6MW 1.17GW (2022: 13.1%) (2022: 231.7MW) (2022: 628.5MW) • Net asset value (NAV) up 47.8% to £556
Slide 5: Strong Track Record
Strong Track Record Total and Operational Portfolio Growth 1400 1200 1000 800 +392 MW MW 600 +130 MW +60 MW 400 +22 MW +181 MW 200 +19 MW 0 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Operational capacity GB Ireland Germany ERCOT CAISO Consistent growth in NAV per share Total EBITDA 120 115 +5.
Slide 6: Consistent Delivery Against Strategy
Consistent Delivery Against Strategy Best in class Industry-leading Growth Diversification portfolio performance Operational capacity increased by Assets located across five Average revenue of £135,000 per 26%, reaching 291.6 MW uncorrelated markets MW/yr, resulting in portfolio revenue of £39
Slide 7: Financial Highlights and Valuation
Financial Highlights and Valuation
Slide 8: NAV Bridge
NAV Bridge NAV Offering Offering + Dividends Cash Generation Revenue Inflation Discount CM Contracts Asset New investments NAV March 2022 Proceeds Fund + Subsidiary Curves Rates Awarded deprecation to FV March 2023 Holding + other DCF Companies changes Operating Expenses • Fund operating expenses an
Slide 9: Key Assumptions
Key Assumptions Blended Curve of Ancillary Services and Trading, by Grid. Portfolio weighted average Revenue curves (+4.7p) • Central case revenue curves are sourced from independent third parties • Fast-evolving markets see higher forecasts over the short term • Portfolio revenue curves across geog
Slide 10: Assumptions Continued & Sensitivities
Assumptions Continued & Sensitivities GB NAV Scenarios (£m) 250 The GB NAV Scenarios graph illustrates the effect on the +41% +30% Compared to Company’s GB NAV when taking the high-case curve from 200 Compared to base case third-party specialists and the impact of applying curves 150 base case pub
Slide 11: Portfolio Operational Performance
Portfolio Operational Performance
Slide 12: Operational capacity
Operational capacity GSF’s operational portfolio stands at 291.6 MW The Company has a portfolio capacity including construction assets of 1.17 GW GB & Northern Ireland (GBP) 1. Boulby 6.0 MW | 6.0 MWh 9. Larport 19.5 MW | 19.5 MWh 2. Cenin 4.0 MW | 4.8 MWh 10. Ancala 11.2 MW | 11.2 MWh 3. POTL 9.0 M
Slide 13: Market Overview – Available Revenue
Market Overview – Available Revenue 19 Revenue Streams Available 3 Types of Service GB Grid Balancing Peak Shifting Trading • Dynamic Containment • Dynamic regulation • Capacity Market • Market Arbitrage • Dynamic Moderation • Triads • Balancing Mechanisms • Firm Frequency Response Trading IRELAND 3
Slide 14: Revenue Breakdown
Revenue Breakdown Average revenue per grid during the reporting period £131,000/ £138,000/ MW/yr MW/yr NI/ROI £234,000/ Great £150,000/ MWh/yr Britain MWh/ yr The DS3 programme is the Ancillary services continued to predominant source of revenue 43.3% 38.6% play a key role in GB, accounting in this
Slide 15: Revenue Split by Grid
Revenue Split by Grid Average GB Revenue Per MW 60.0 Revenues Across Grids Revenue Per Grid 60 50.0 50 40.0 40 30.0 £000s £000s 30 20.0 20 10.0 10 - 0 Jun-end Sep-end Dec-end Mar-end 2022 2022 2022 2023 2018 2019 2020 2021 2022 National Grid - Revenue/MW (£k) EirGrid/Soni - Revenue/MW (£k) European
Slide 16: Operational Performance Indicators
Operational Performance Indicators Financial performance with installed capacity progression The operational portfolio generated a strong cash EBITDA totalling £27.8m was derived from multiple flow per share of 6p during the reporting period grids as follows: resulting in a cash yield per unit N
Slide 17: Portfolio Growth
Portfolio Growth
Slide 18: Portfolio Growth
Portfolio Growth (1) Portfolio capacity buildout 1.17 Total portfolio GW capacity 2.8x increase in operational capacity (+521.8 MW) by end of 2024 521.8 Additional MW operational capacity MWs by 2024-end (1) Operational capacity 26% increased from March 22 to March 2023 Total Stony Ferrymuir Enderby
Slide 19: Fully Committed Portfolio
Fully Committed Portfolio (1) Capex Deployment schedule 250,000 £161m Operational NAV 200,000 £269.6 m of assets at Millions (£’s) the Construction and 150,000 Pre-construction phase 100,000 50,000 -- Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 A
Slide 20: Sustainability
Sustainability
Slide 21: Environmental, Social and Governance
Environmental, Social and Governance 3,590 tCO2e Net CO2 emissions avoided 9,055 MWh Total renewable energy stored Fair Cobalt Alliance Gore Street Energy Storage Fund | 21
Slide 22: Outlook
Outlook
Slide 23: Conclusion
Conclusion Consistent over delivery against targets Best in class revenue The Company continues to generation create value for shareholders Competitive cost per despite challenging GB market Supported by the Manager’s in- conditions due to appropriate MW fully installed house asset management and va
Slide 24: Contact
Contact Gore Street Capital – Shore Capital – Joint J.P. Morgan Cazenove – Joint The Investment Manager Corporate Broker Corporate Broker Alex O’Cinneide / Paula Travesso Anita Ghanekar (Corporate Advisory) William Simmonds/ Jérémie Birnbaum Tel: +44 (0) 20 4551 1382 Fiona Conroy (Corporate Broking)
Slide 25: Disclaimer
Disclaimer This presentation has been prepared by Gore Street Capital Limited ("Gore Street Capital") for certain exceptions, taken or transmitted into Canada, Australia, New Zealand or the Republic of information and discussion purposes only and should not be considered to be an offer or South Afri
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