Foresight Group Holdings Ltd. · LSE:FSG
Foresight — H1 FY25 Earnings Presentation
24 slides from Foresight's earnings presentation, November 2024
Slide 1: For the half year ended 30 September 2024
For the half year ended 30 September 2024
Slide 2: Performance overview, Financial results, Outlook, Q&A
Performance overview 3 Financial results 7 Outlook 13 Q&A 19 Front cover: Fordie Estate, Scotland, part of Foresight’s portfolio 2
Slide 3: Performance overview
Bernard Fairman Executive Chairman and Co-founder 200 Degrees Coffee, a Private Equity Investment, grew from 6 to 21 sites across the Midlands, Yorkshire and the North West during Foresight’s investment period
Slide 4: By H1 FY25 AUM
By H1 FY25 AUM 1. Source: Estimate by the Scale-Up Institute. 2. Per the Bloomberg NEF “Energy Transition Investment Trends 2024” report published on 30 January 2024. 4
Slide 5: Strategy highlights across divisions
Regional Private Equity Strong rate of realisations generated performance fees, supplementing recurring revenue Target management fees: c.200 bps Tax Efficiency On track for record year with £241 million raised into higher margin retail vehicles €300 million first close of the second vintage of our
Slide 6: AUM and Core EBITDA pre-SBP growth
AUM (£bn) Core EBITDA pre-SBP (£m) 27% CAGR 29% CAGR 12.2 12.1 12.4 8.8 27.6 10.6 15.2 21.5 29.0 7.2 4.5 2.6 3.0 FY18 FY19 FY20 FY21 FY22 FY23 FY24 H1 FY25 H1 FY21 H1 FY22 H1 FY23 H1 FY24 H1 FY25 6
Slide 7: Financial results
Bernard Fairman Gary Fraser Executive Chairman and Co-founder Chief Financial Officer Skaftåsen Wind Farm, Sweden, part of Foresight's portfolio
Slide 8: Growth across all key metrics
Growth across all key metrics AUM FUM Revenue +£0.3 billion +£0.3 billion +£5.4 million FY24 £12.1 billion FY24 £8.4 billion H1 FY24 £67.8 million Recurring Revenue Core EBITDA pre-SBP DPS Stable +£1.4 million +0.7p H1 FY24 87% H1 FY24 £27.6 million H1 FY24 6.7p Glenmuckloch Pumped Storage Hydro sit
Slide 9: Net inflows driven by institutional infrastructure and retail fundraising
Net inflows driven by institutional infrastructure and retail fundraising • Strong investor sentiment supporting institutional (£bn) and retail fundraising o FEIP II: €300 million 0.6 0.0 o Retail tax efficiency: £241 million (0.3) • Positive investment performance from FCM during 12.5 the period, w
Slide 10: High recurring revenue provides strong future visibility of earnings
High recurring revenue provides strong future visibility of earnings £m • Revenue up £5.4 million (+8%) with £4.8 million 67.8 73.2 organic growth • Driven by H2 FY24 and current year fundraising 5.4 into higher margin and longer tenure vehicles 13% 13% • Offset partially by retail outflows for FCM
Slide 11: Staff cost increases expected to normalise
Staff cost increases expected to normalise £m • Underlying administrative expenses in H1 increased by £4 million year-on-year 54.7 • Annualisation of prior year salary inflation and investment in employees 9.3 45.4 during a fundraising cycle 4.0 41.4 23.0 • Current year salary increases returned to
Slide 12: Driven by AUM growth in higher margin strategies
Driven by AUM growth in higher margin strategies Core EBITDA pre-SBP1 (£m) • 5% year on year growth driven by 27.6 29.0 • Successful fundraising into higher margin 1.4 0.3 and longer tenure vehicles 1.3 11.8 • H1 FY25 margin reflects a higher cost 10.0 environment and investment in fundraising capab
Slide 13: Outlook
Bernard Fairman Executive Chairman and Co-founder Plug planting at solar site, Cornwall, to celebrate the launch of Foresight’s Nature Recovery Blueprint
Slide 14: Highly profitable and scalable strategies underpin delivery of growth guidance
Highly profitable and scalable strategies underpin delivery of growth guidance Regional Private Equity Successfully raising Highly profitable Tax Efficiency Successfully raising Energy Transition Successfully raising Highly Decarbonisation Beyond Power Pre-marketing scalable Listed Equities Decelera
Slide 15: On track to deliver record year for retail fundraising
On track to deliver record year for retail fundraising • Strong performance across inheritance tax and Gross inflows 1 (£m) flagship VCT products 42% 3yr CAGR • Large and established in-house distribution team with deep IFA relationships 152 332 327 436 241 • Regulatory support following UK Autumn b
Slide 16: 14th active regional fund launched, Foresight South West Fund
14th active regional fund launched, Foresight South West Fund • £50 million first close, post period end Current Foresight regional offices • Evergreen fund providing permanent pool of capital New offices to be opened in H2 FY25 • Bristol and Exeter offices to open shortly • Second close expected in
Slide 17: Diversified and differentiated strategy targeting the global energy transition market
Diversified and differentiated strategy targeting the significant global energy transition market opportunity Investment strategy • Portfolio construction, prioritising diversification and harnessing negative correlations intended to deliver a superior risk-adjusted return • Value creation & structu
Slide 18: AUM and Core EBITDA pre-SBP growth
AUM (£bn) Core EBITDA pre-SBP (£m) 27% CAGR 29% CAGR 12.2 12.1 12.4 8.8 21.5 27.6 29.0 10.6 15.2 7.2 4.5 2.6 3.0 FY18 FY19 FY20 FY21 FY22 FY23 FY24 H1 FY25 H1 FY21 H1 FY22 H1 FY23 H1 FY24 H1 FY25 18
Slide 19: Appendices
Fordie Estate, Scotland, part of Foresight's portfolio
Slide 20: Appendices
Slide 21: Key metrics: AUM, FUM, revenue, EBITDA, dividends
Actuals Constant currency basis 30 Sep 2024 31 Mar 2024 Period Change 30 Sep 2024 Period Change Assets/Funds Period-end AUM (£m) 12,434 12,144 +2% 12,478 +3% Period-end FUM (£m) 8,665 8,397 +3% 8,701 +4% 30 Sep 2024 30 Sep 2023 YoY Change Revenue Total revenue (£m) 73.2 67.8 +8% Recurring revenue (%
Slide 22: Investment divisions, vehicles, distribution and geography
Investment divisions Vehicles Distribution Geography by Core EBITDA pre-SBP by AUM by AUM by AUM H1 FY25 H1 FY25 H1 FY25 H1 FY25 1% 41% 47% 200+ 53% 70% investors 46% 29% 58% c.40,000 30% investors 16% 5% 2% 2% Infrastructure Private Equity FCM Evergreen LP OEIC Other Institutional Retail UK Austral
Slide 23: Important notice
NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND DEPENDENCIES, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA), CANADA, AUSTRALIA, NEW ZEALAND, JAPAN, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC O
Slide 24: For further information, please contact
For further information, please contact: Foresight Group LLP The Shard t: +44 (0)20 3667 8100 32 London Bridge Street e: info@foresightgroup.eu London SE1 9SG w: foresightgroup.eu United Kingdom
Foresight Group Holdings — H1 FY25 Earnings Presentation on 6ix