Foresight Environmental Infrastructure Limited GBP · LSE:FGEN
Foresight Environmental Infrastructure Limited GBP — JLEN Environmental Assets Group — FY2021 Earnings Presentation
34 slides from Foresight Environmental Infrastructure Limited GBP's earnings presentation, Jun 10, 2021
Slide 1: Annual Results Presentation
JLEN ENVIRONMENTAL ASSETS GROUP LIMITED Low carbon & energy efficiency Annual Results Presentation June 10 2021
Slide 2: Contents
CONTENTS Page Contents 4 JLEN overview 5 Annual Results — highlights 6 Environmental, Social and Governance 8 JLEN’s Investment Policy 10 Investment pipeline 11 Investments in the period 15 Portfolio overview 17 Portfolio performance 20 Portfolio valuation 27 Financial performance 29 Summary
Slide 3: JLEN overview
£7.2bn 300+ ESG assets under infrastructure sustainability-led management projects investments 244 12 2.9GW renewable Staff globally Offices globally energy generation Statistics as at 31 March 2021 (unaudited)
Slide 4: Investment, growth and diversification
Investment, growth and diversification Environmental infrastructure investments 6 Technology subsectors 310.7MW Total diversified capacity JLEN FUND OVERVIEW AT 31 MARCH 2021 Demonstrated income growth for shareholders 6.80p Dividend target for year to 31 March 20221 6.76p Dividend declared for the
Slide 5: JLEN Annual Results — Highlights
JLEN ANNUAL RESULTS — HIGHLIGHTS At At 31 March 2021 31 March 2020 Market capitalisation £612.3m £606.9m Cash flow from operations £39.5m £36.2m Portfolio value £571.4m £537.1m Share price 112.0p 111.0p Dividend per share (declared) 6.76p 6.66p NAV per share 92.2p 97.5p Gearing 36% 35% Number of ass
Slide 6: Environmental, Social & Governance
ENVIRONMENTAL, SOCIAL & GOVERNANCE ESG PERFORMANCE 2020 “> >970,000 + >445,000 (7) MWh Renewable energy generated Stas GHG emissions avoided (tCO2e) by the portfolio 2is> >500,000 <s, >140,000 Waste diverted from landfill (tonnes) Waste recycled (tonnes) jose >380,000 7 35 Community funding (£) a He
Slide 7: Environmental, Social & Governance
ENVIRONMENTAL, SOCIAL & GOVERNANCE Over the course of the year 2020/21, JLEN has developed a series of KPls to help the fund track the portfolio’s performance against each of the ESG objectives set out here ENVIRONMENT, SOCIAL GOVERNANCE nships with in which JLEN works Develop po: the commu: Ensure
Slide 8: JLEN's Investment Policy
8 JLEN’S INVESTMENT POLICY Anaerobic ® b Waste & digestion 6S wastewater a) Low carbon & *[18 energy efficiency
Slide 9: JLEN's Journey
JLEN’S JOURNEY IPO 3 technology sectors — wind, solar and waste & wastewater 8 assets 1st investment into hydro & co-located battery storage 5 technology sectors 30 assets (as at 31.03.2020) 1st investment into AD 4 technology sectors 24 assets (as at 31.03.2018) JLEN shareholders approve updated in
Slide 10: JLEN Outlook and Pipeline
10 JLEN OUTLOOK AND PIPELINE Investment a ach JLEN invests in environmental infrastructure assets, projects and asset-backed businesses that utilise natural or waste resources or support more environmentally friendly approaches to economic activity, support the transition to a low carbon economy or
Slide 11: Investments in the Period
11 INVESTMENTS IN THE PERIOD Peacehill AD Plant P fae 5MW capacity AD Project description plant Acquisition date April 2020 Location Fife, Scotland Ownership 49% Accreditation RHI, FiT 2) Codford Waste Plant e West Gourdie Battery 3.8MWe Waste Project description processing AD plant Acquisition date
Slide 12: Investments Post the Period End
12 INVESTMENTS POST THE PERIOD END @° 60 @ Sandridge Battery Storage Construction stage 50MW Project description battery storage project Acquisition date May 2021 Location Wiltshire, England Ownership 50% Accreditation nla (0) Energie Tecnologie Ambiente 16.8MWe energy-from- Project description wast
Slide 13: Low Carbon Transport (CNG) — Market Overview
LOW CARBON TRANSPORT (CNG)— MARKET OVERVIEW Low carbon transport market drivers Sector benefits + There are c.130,000 HGVs over 31 tonnes with numbers * Natural gas fuel duty differential to diesel is fixed at 1/3 until increasing to meet consumer demands 2032 * HGVs are the hardest road vehicles to
Slide 14: Battery Storage — Market Overview
14 BATTERY STORAGE — MARKET OVERVIEW Energy storage market drivers In order to meet its UK “net zero” targets by 2050, renewables are expected to comprise a growing proportion of the overall capacity mix Intermittency of generation expected to increase as a result of : o Increasing deployment of pri
Slide 15: Portfolio Overview as at March 2021
15 PORTFOLIO OVERVIEW AS AT 31 MARCH 2021 BAB Wind EFA solar Bilsthorpe — 100%, 10.2MW, ROC Amber — 100%, 9.8 MW, UK FiT Burton Wold — 100%, 14.4MW, ROC Branden - 100%, 14.7MW, ROC Carscreugh — 100%, 15.3MW, ROC CSGH Solar — 100%, 33.5MW, ROC Castle Pill — 100%, 3.2MW, ROC Monksham — 100%, 10.7MW, R
Slide 16: Portfolio Analysis March 2021
16 PORTFOLIO ANALYSIS 31 MARCH 2021 Portfolio value split by sector 2% 2% 17% 329, MiWind HAnaerobic digestion Misolar 21% Hi waste & wastewater Hydro Hi Low carbon & energy efficiency Portfolio split by operational status Woperational Wiconstruction 99% 9% 38% Portfolio value split by remaining ass
Slide 17: Portfolio Performance
PORTFOLIO PERFORMANCE . . A 432 @ Wind portfolio actual generation (GWh) (FY 2019/20 - 458) Variation from budget! -1% AD portfolio actual generation (GWh) act (FY 2019/20 - 352) Variation from budget +2% Solar portfolio actual generation (GWh) 7A @ (FY 2019/20 — 75) Variation from budget! +2% . . 5
Slide 18: Portfolio Performance — Energy Generation Assets
18 PORTFOLIO PERFORMANCE — ENERGY GENERATION ASSETS During the year, overall generation from the renewable energy portfolio was 977GWh - in line with budget 2X Wind portfolio ~~ AD portfolio 8 Solar portfolio Marginal negative variance of 14% against budget Contributed to 44% of JLEN’s total generat
Slide 19: Portfolio Performance
19 PORTFOLIO PERFORMANCE (2) Waste and Wastewater ELWA waste management irs GEES AD Ents) Tay Wastewater treatment plant * Strong performance against key * Bio Collectors’ throughput was + Stable operational performance contractual ‘diversion from landfill impacted by the three national _ P p target
Slide 20: Portfolio Valuation Movement
20 PORTFOLIO VALUATION MOVEMENT £m 610.0 600.0 590.0 580.0 570.0 560.0 550.0 540.0 530.0 520.0 510.0 500.0 Key valuation movements for the year to 31 March 2021 63.0 537.1 Acquisitions and further investments. Portfolio valuation 31 March 2020 (48.2) Distributions JLEN Includes impact of: * Green ga
Slide 21: Portfolio Valuation Methodology
21 PORTFOLIO VALUATION METHODOLOGY Short term Approach of using market forwards or fixes where applicable remains unchanged — at 31 March 2021, 87% of the renewable energy portfolio’s electricity price exposure was subject to a fixed price or a floor arrangement for the summer 2021 season and 70% fo
Slide 22: Portfolio Valuation — Key Assumptions
22 PORTFOLIO VALUATION — KEY ASSUMPTIONS Economic Discount rate * Corporation Tax assumption increased to 25% from April * No reductions in discount rates used for renewables 2023, in line with the budget statement portfolio * 25% tax rate applies for the remainder of portfolio life * Discount rates
Slide 23: Portfolio Revenue Evolution
23 PORTFOLIO REVENUE EVOLUTION Revenue type Contribution to portfolio value Changing mix of underlying portfolio revenues over time Subsidy 61% Merchant Power 24% — + Table shows contribution of Long term contracts 9% different revenue categories to Other revenues 6% Portfolio Value on an NPV basis
Slide 24: Dividends
24 DIVIDENDS Dividend Declaration + JLEN declared Q4 dividend of 1.69p, on track to deliver full year dividend of 6.76 pence for year to 31 March 2021 in line with target * Dividend cover of 1.07x for dividends paid in the year * Dividend increased progressively to target 6.80 pence for year to 31 M
Slide 25: NAV Sensitivity Analysis at March 2021
25 NAV SENSITIVITY ANALYSIS AT 31 MARCH 2021 Di Energy yield: (P90/P10) Energy yield: (P90/P10) Electricity (-/4+10%) Feedstock (+/-10%) FX rates (+/-5%) (€0.2m) | £0.2m -8p -6p -4p -2p Op 2p 4p 6p 8p NAV per share
Slide 26: Leverage Use at March 2021
26 LEVERAGE USE AT 31 MARCH 2021 JLEN Leverage as % of Technology % Portfolio Revenue Sources GPV Solar 21% Merchant power & green 12% benefits Wind 32% Merchant power & green 46% benefits Anaerobic digestion 26% “ewer ankk Se Nene green - benefits Hydro 2% Merchant power & green 34% benefits Sub-To
Slide 27: Financial Performance — Summary
27 FINANCIAL PERFORMANCE — SUMMARY 31 March 2021 31 March 2020 Portfolio valuation £571.4m £537.1m Cash £13.5m £22.0m Net Debtors £1.3m £3.2m Revolving credit facility (£82.0m) (£29.3m) Net assets £504.2m £533.0m Number of shares in issue 546.7m 546.7m Net asset value per share (pence per share) 92.
Slide 28: Financial Performance — Group Cash Flow
28 FINANCIAL PERFORMANCE — GROUP CASH FLOW Year ended 31 March 2021 Cash received from environmental infrastructure investments 48.2 45.0 Administrative expenses (1.1) (1.0) Directors’ fees and expenses (0.3) (0.3) Investment advisory fee (5.5) (5.5) Financing costs (net of interest income) (1.8) (2
Slide 29: Summary
29 SUMMARY * Good operational performance with energy generation meeting targets * Disciplined approach to six acquisitions completed during the year, giving a total of 36 assets * Outlook supports the continued build out of a resilient and diversified portfolio of assets * Cash dividend cover of 1.
Slide 30: Thanks for listening
30 Q&A Thanks for listening
Slide 31: Appendices
31 owe es: tee ALY APPENDICES
Slide 32: Fund Governance and Terms
FUND GOVERNANCE AND TERMS The Fund Investment Adviser formance Fee Asset Origination Fee Investment Adviser Term Discount Control Continuation Vote JLEN Domiciled in Guernsey Independent Board of Directors Premium listing on the LSE (Chapter 15) Foresight Group LLP FCA authorised and regulated Monit
Slide 33: Investment Policy
INVESTMENT POLICY The Company seeks to achieve its objectives by investing in a diversified portfolio of environmental infrastructure JLEN defines environmental infrastructure as infrastructure assets, projects and asset-backed businesses that utilise natural or waste resources or support more envir
Slide 34: Disclaimer
DISCLAIMER This document contains information provided solely as an update on the financial condition, results of operations and business of JLEN Environmental Assets Group Limited ("JLEN"). Nothing in this document or in any accompanying management discussion of this document constitutes, nor is it
JLEN Environmental Assets Group — FY2021 Earnings Presentation on 6ix