RM Infrastructure Income PLC GBP · LSE:RMII
RM Infrastructure Income PLC GBP — RM Infrastructure Income — Investor Day (January 2023)
19 slides from RM Infrastructure Income PLC GBP's investor day presentation, January 2023
Slide 1: RM Infrastructure Income PLC Capital Markets Day – Investor Webinar
RM Infrastructure Income PLC “RMII LN” Capital Markets Day – Investor Webinar January 2023
Slide 2: Disclaimer
Disclaimer Disclaimer All information and opinions contained in this document has been provided by RM Capital Markets Limited ("Company"), which is authorised and regulated by the Financial Conduct Authority, and have not been independently verified as to their accuracy by either the Company or any
Slide 3: About RM Funds
About RM Funds RM Funds – Specialists in private credit investments, with a 360-degree perspective investing in the debt and equity of businesses operating in the alternatives sector. RM was founded in 2010. Headquarters in Edinburgh and offices in London. RM currently manages c.£376m split across:
Slide 4: RM Funds – Senior Leadership
RM Funds – Senior Leadership Portfolio Management Team Firm Senior Management Team James Robson Henry Caplin (Chair) Portfolio Manager, Private & Public Credit ▪ 27 Years experience Chief Investment Officer ▪ Experience in private equity and corporate finance ▪ Responsible for private credit strateg
Slide 5: RM Infrastructure Income PLC agenda
RM Infrastructure Income PLC ➢ Executive Summary ➢ Performance Highlights ➢ Relative Performance ➢ Investment Strategy & Focus ➢ Portfolio Update ➢ Investment Activities FY2022 ➢ Proactive Portfolio Management ➢ Key Provisions ➢ Outlook 5 5
Slide 6: RMII – Executive Summary
RMII – Executive Summary 6.5p 35.60p £126m Dividend pence per share Total dividends declared Gross assets or paid ITD1 92.50p 37.22% 4.98% NAV December 2022 NAV Total Return ITD1 NAV Total Return LTM2 ✓ Target dividend of 6.5p per annum achieved since inception ✓ Consistent NAV return, minimal durat
Slide 7: NAV Performance Highlights
RMII – NAV Performance Highlights Key Performance Metrics 37.22% 4.98% 7.65% £101m c.5.62% Total NAV Return ITD1 Total NAV Return YTD2 Cash Yield on Mid Price2 Market Cap2 Avg. YTD2 Share Price Discount to NAV Nav Total Return vs. Target 145 10% 140 10.00% 135 9.00% 5% Forecast 8.00% 130 Prem/ Disco
Slide 8: RMII – Income Performance Highlights
RMII – Income Performance Highlights ✓ Portfolio built to generate resilient income ✓ Target dividend of 6.5p/share per annum achieved since inception regardless of conservative income recognition approach. ✓ Conservative income recognition; ▪ c.£12.6m of deployed capital or c.10% of NAV accruing in
Slide 9: Share Price Total Return Relative Performance
RMII – Share Price Total Return Relative Performance Relative Performance vs. Fixed Income Comparables Relative Performance vs. Listed Peers 140 Total Return 1Y 3Y 5Y 130 RMII -2.21% +6.89% +20.73% 120 GABI -6.64% -4.04% +14.54% 110 SEQI -11.14% -10.75% +5.10% 100 RECI -0.51% +6.83% +24.7% SWEF -0.1
Slide 10: RMII – Investment Strategy
RMII – Investment Strategy Investment Priorities Focused on non-benchmark loans, “the missing middle”, of up to c.£15m which are often too complex for traditional bank lending and too small for institutional direct lenders. Bespoke documentation with significant lender-friendly covenants. Targeting
Slide 11: RMII – Investment Focus
RMII – Investment Focus Social Infrastructure Environmental Infrastructure Childcare & Clean Energy & Waste Energy Efficiency & Accommodation Healthcare Education Renewables Management Carbon Reduction Investment highlights Typical loan terms Access to critical infrastructure assets largely uncorrel
Slide 12: RMII – Relative Income Profile
RMII – Relative Income Profile ✓ 70% of the Portfolio invested in the below sub-sectors ✓ Capital invested in Healthcare assets → 29% ✓ Capital invested in PBSA assets → 15% ✓ Capital invested in Hotel assets → 26% Cash Yield vs. Healthcare Listed Peers Cash Yield vs. Listed PBSA Peers Cash Yield vs
Slide 13: RMII – Portfolio Update
RMII - Portfolio Update Sector breakdown, December 2022 Diversified portfolio Food and beverages £126m 39 16 Construction 3% Hotel & Leisure Invested Capital Investments Sub-Sectors 9% 26% Manufacturing 12 11% Sectors Asset Backed Lending ✓ 9.15% - Portfolio weighted avg. yield 15% Accommodation ✓ 1
Slide 14: RMII – Investment Activities for FY2022
RMII – Investment Activities for FY2022 ✓ c.£23m of capital recycled over the last 12 months. ✓ Redeployment of capital in core sectors. New Investments Drawdowns under existing facilities & re- Repayments & divestments Net investments Social Infrastructure £6.4m £15.4m £14.5m +£7.3m Environmental I
Slide 15: Proactive Portfolio Management
RMII – Proactive Portfolio Management Capital reinvested higher up the capital structure – higher risk-adjusted returns with same amount of capital. New Capital Deployed Capital Repaid Senior Secured Junior Secured Senior Secured Junior Secured Increasing portfolio yield – increased the avg. running
Slide 16: RMII – Key Provisions
RMII – Key Provisions NAV Bridge Credit provisions total c.£5.8 million or c.5p/share. Equity Holdings Income provisions total c.£1.1 million or c.1p/share. + NAV bridge 2 Investments have reached successful resolutions whilst maintaining their full credit provisions. 80 82 84 86 88 90 92 94 96 98 G
Slide 17: RMII – Outlook
RMII – Outlook 1. Continue to achieve successful outcomes regarding the investments against which provisions have been recorded 2. Recycle the capital from the Portfolio’s non-core sectors into its core sectors 3. Reduce the leverage 4. Deliver; • Covered annual dividend of 6.5p/share • NAV growth 5
Slide 18: Contact Information
Contact Information RM Funds Distribution James Robson: 0131 603 7069 james.robson@rm-funds.co.uk James Satterthwaite: 0131 603 7068 james.satterthwaite@rm-funds.co.uk David Watts: 0131 603 7064 david.watts@rm-funds.co.uk Thomas Le Grix de La Salle: 0203 697 1772 thomas.legrixdelasalle@rm-funds.co.u
Slide 19: Registered in Scotland No SC380707
Registered in Scotland No SC380707 Registered Office: 4th Floor, 7 Castle Street, Edinburgh, EH2 3AH RM Capital Markets Limited is authorised and regulated by the Financial Conduct Authority (Number 562209) 19
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