Parvus Energy Efficiency Trust plc · LSE:AEET
Parvus Energy Efficiency Trust — Aquila Energy Efficiency Trust — Shareholder Meeting (July 2022)
26 slides from Parvus Energy Efficiency Trust's shareholder meeting presentation, Jul 25, 2022
Slide 1: Aquila Energy Efficiency Trust PLC
Aquila Energy Efficiency Trust PLC (the “Company“ or “AEET“) FOR PROFESISONAL INVESTORS ONLY | CONFIDENTIAL | © 2022 AQUILA CAPITAL 1
Slide 2: Table of Contents
Table of Contents 1 Executive Summary 3 2 Investment Adviser Overview: Aquila Capital 4 3 Energy Efficiency Market Outlook 7 4 Portfolio 12 5 Financials and Cash Flow 19 6 Conclusion 22 7 Appendix 23 FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL | © 2022 AQUILA CAPITAL 2
Slide 3: Executive Summary
Executive Summary Energy Efficiency: large and attractive opportunity, boosted by increase in energy prices and drive for energy independence 1 AEET focus on attractive returns - target dividend of 5% p.a . - from long-term contracted cash flows Diversified Renewables Portfolio AEET: only LSE listed
Slide 4: Investment Advisor Overview: Aquila Capital
Investment Advisor Overview: Aquila Capital Installed capacity1 ESG5 Current renewables portfolio of Aquila Capital in Europe6 Hydropower Wind energy Overall avoidance of Onshore wind 2,628 MW CO2 eq emissions in 2021 Solar PV 655 WTGs 1.8m tonnes Offices Solar PV Green energy Produced in 2021 7,253
Slide 5: Investment Team: Comprehensive Experience in Development and Financing of Energy Efficiency
Investment Team: Comprehensive Experience in Development and Financing of Broad Range of Energy Efficiency and Renewable Energy Projects Franco Hauri Alex Betts Senior Investment Manager Senior Investment Manager − More than 5 years investment experience in energy − Over 25 years investment experien
Slide 6: Origination Team: Further Strengthened Pan European Origination Capabilities
Origination Team: Further Strengthened Pan European Origination Capabilities to Accelerate Deployment Chris Russell (since 02/2022) Daniel Cerveró (since 09/2021) Origination Partner, United Kingdom Origination Partner, Spain − 10 years experience in renewable and sustainable − More than 10 years ex
Slide 7: Market: Substantial rise of electricity prices and volatility lead demand
Market: Substantial rise of electricity prices and volatility lead demand Wholesale electricity prices (EUR/MWh)1 Global liquified natural gas (LNG) market shortfall (Bcm)2 450 16 400 14 350 300 12 250 10 200 150 8 100 6 50 0 4 Mär 21 Mär 22 Feb 21 Nov 21 Dez 21 Feb 22 Aug 22 Nov 22 Apr 21 Aug 21 Se
Slide 8: Market: New RePower EU Target Aims to Decrease Overall Gas Dependency
Market: New RePower EU Target Aims to Decrease Overall Gas Dependency Gas from Russia imported from the EU (in Bcm)1 EU gas consumption by sector and scenario targets (in Bcm)2 160 450 140 400 -30% -56% 120 350 100 300 135 80 250 88 60 200 105 40 150 93 42 20 100 54 137 0 50 94 62 0 EU gas consumpti
Slide 9: Market: Corporate Behaviour Creates Investment Opportunities
Market: Corporate Behaviour Creates Investment Opportunities Most important reasons to invest in energy efficiency (EE)1 Expectations to increase investment in EE over the next 5 years1 Cost Savings 59% 11% Corporate Sustainability Commitment 56% Increased Competitiveness 44% Improving Brand Reputat
Slide 10: Roof Top Solar PV Panels to Increase Energy Efficiency
Roof Top Solar PV Panels to Increase Energy Efficiency Annual capacity additions residential and commercial rooftop solar (in MW)1 − EU plans a rooftop-solar initiative targeting double the annual capacity from 2021 to 20221 − Rooftop solar is going to become mandatory for commercial buildings and s
Slide 11: Space Heating is a Key Driver to Achieve the RePower EU Targets
Space Heating is a Key Driver to Achieve the RePower EU Targets EU housing market by year of construction1 Energy consumption in residential buildings in the EU2 Efficiency standards were introduced in year 2000 Lighting and Oil appliances 22% Cooking Solid fuels 21% Water heating Gas Derived Heat S
Slide 12: Key Milestones: Acceleration of Capital Commitment and Deployment in Q2 2022
Key Milestones: Acceleration of Capital Commitment and Deployment in Q2 2022 Evolution of Capital Commitment and Deployment, GBP M (commitments as of 25/07/22) 48.5 − Q2 and the beginning of Q3 have seen − Further increase in deployment and − Following initial concerns on slow deployment, growth of
Slide 13: Portfolio in Evolution with Focus on Investment Grade Counterparties
Portfolio in Evolution with Focus on Investment Grade Counterparties and Greenfield Projects on Track to Deliver Target Return of 7.5% to 9.5% Project Type Geography Client Credit Rating1 Asset Status 1% As percentages of total investment value 4% 5% 9% 4% 8% 100% 30% 26% 28% 43% 57% 3% 5% 66% 61% 5
Slide 14: Case Study: Refurbishment of Apartment Buildings in Italy
Case Study: Refurbishment of Apartment Buildings in Italy Asset Type Various Project Size 32 buildings Total Investment Volume EUR 7.2 million Expected IRR 9% unlevered return Refurbishment of a Contract Lifetime condomemium in 12 – 18 months Buccinasco, Italy Context Investment Impact – Range of en
Slide 15: Case Study: Installation of CHP Plant for Food Manufacturing Company in UK
Case Study: Installation of CHP Plant for Food Manufacturing Company in UK Asset Type CHP Project Size 0.92 MW Total Investment Volume EUR 1.6 million Expected IRR 8.4% unlevered return Improving energy efficiency of Contract Lifetime major UK food manufacturer 7 years Context Investment Impact – Fi
Slide 16: Trajectory to Full Capital Deployment Supported by Strong Pan-European Partnerships
Trajectory to Full Capital Deployment Supported by Strong Pan-European Partnerships: A Further GBP 143M in Potential Deals over the next 12-18 months1 AEET Current Investment Pipeline from Key Partnerships, as at 25th July DACH (Germany, Austria, Switzerland): Spain: - 1 established partner company
Slide 17: Investment Pipeline: Increasing Demand for Self Consumption Solar PV in Spain and CHP in UK
Investment Pipeline: Increasing Demand for Self Consumption Solar PV in Spain and CHP in UK Total weighted Pipeline split by Country Projects by country Pipeline breakdown, by Technology (by value, in %) Technology, in value, Technology, by % in % 0% 20% 40% 60% <1% Solar PV CHP <1% Various 16.9% Pr
Slide 18: Statement of Profit and Loss and Comprehensive Income
Statement of Profit and Loss and Comprehensive Income For the Period From 9 April 2021 (Date of Incorpration) to 31 December 2021 FY21, GBP k Unrealised losses on investments (17) Net foreign exchange losses (29) Investment Income 91 Investment Advisory fees (77) Other expenses (587) Loss on ordinar
Slide 19: Statement of Financial Position
Statement of Financial Position As at 31 December 2021 FY21, GBP k Fixed Assets Investment at fair value through profit or loss 12’307 Current Assets 85’403 Trade and other receivables 5’274 Cash and other cash equivalents 80’129 Creditors: amounts falling due within one year (329) Net current asset
Slide 20: Summary Cash Flow
Summary Cash Flow As at 31 December 2021 FY 2021, GBP k Operating activities Profit on ordinary activities before taxation (619) Adjustment for unrealized losses / (gains) on investments 17 Increase in trade and other receivables (5,274) Increase in creditors 329 Net cash flow from / (used) in opera
Slide 21: Conclusion – A Highly Attractive, Differentiated Strategy
Conclusion – A Highly Attractive, Differentiated Strategy − The market for energy efficiency investments is more attractive than one year ago − The favorable market environment has demonstrated attractive investment returns within the target range − While deployment has been slower than expected – b
Slide 22: Appendix
Appendix FOR PROFESSIONAL INVESTORS ONLY | CONFIDENTIAL | © 2022 AQUILA CAPITAL 23
Slide 23: Appendix: The Impact of Inflation on AEET's Typical Contract Types
Appendix: The Impact of Inflation on AEET’s Typical Contract Types Operating Lease Power Purchase Agreements (PPA) Energy Performance Contracts Description An Operating Lease is a rental of an asset An agreement between energy producers Investment revenues are driven by energy by a lessor usually in
Slide 24: Appendix: The Impact of Rising Interest Rates
Appendix: The Impact of Rising Interest Rates Increase in interest rates Distribution of Returns (yield 10y government bonds in %) Average Return 3.5 8 8.22% 3 7 2.5 6 2 Frequency 5 % 1.5 Jan 22 4 1 Dez 21 3 0.5 Jun 22 2 0 1 -0.5 0 -1 7.00% 7.50% 8.00% 8.50% 9.00% 9.50% 10.00% 10.50% Germany France
Slide 25: Appendix: Corporate Structure
Appendix: Corporate Structure Investors, UK / EU Yielding Dividends Stocks in GBP GBP Sanne Fund Management Aquila Capital Investment Aquila Energy Efficiency GmbH, Germany (Guernsey) Limited Trust Plc, UK [GBP] Investment AIFM Agreement (AIFM) Advisory (Investment Advisor) Agreement SHL↔Interest 10
Slide 26: Contact details
Contact details Germany Czech Republic Japan Luxembourg Netherlands New Zealand Hamburg (Headquarters) Prague Tokyo Senningerberg Amsterdam Invercargill Valentinskamp 70 Palladium BUREX FIVE Airport Center Luxembourg Tower F, World Trade Center 173 Spey Street 20355 Hamburg Náměstí Republiky 1 2-11-
Aquila Energy Efficiency Trust — Shareholder Meeting (July 2022) on 6ix