Foresight Environmental Infrastructure Limited GBP · LSE:FGEN
Foresight Environmental Infrastructure Limited GBP — John Laing Environmental Assets Group — H1 2016 Earnings Presentation
19 slides from Foresight Environmental Infrastructure Limited GBP's earnings presentation, Nov 23, 2016
Slide 1: Results for the six months to 30 September 2016
John Laing Environmental Assets Group Limited Results for the six months to 30 September 2016 23 November 2016
Slide 2: Overview of JLEN
2 Overview of JLEN • Diversified portfolio of environmental infrastructure projects - long-term, predictable, wholly or partially inflation linked cash flows Investment profile • Invest in operational projects with well-established technologies and demonstrable track record of operational performanc
Slide 3: Highlights
3 Highlights • NAV per ordinary share of 98.3 pence (March 2016: 96.7 pence) – increase per share primarily due to increased electricity prices during the period • Portfolio value of £320.7m (March 2016: £264.5m) • Three acquisitions totalling £52m, bringing number of investments to 18 and capacity
Slide 4: Portfolio Overview as at 30 September 2016
4 Portfolio Overview as at 30 September 2016 United Kingdom Waste & Water Management 1) Tay – 33%, PFI for Scottish Water 2) D&G – 80%, PFI for Council France (Brittany) 3) ELWA – 80%, PFI for Waste Authority 1 11 Wind 4) Carscreugh – 100%, 15MW ROC 12 5) Hall Farm – 100%, 25MW ROC 6) Bilsthorpe – 1
Slide 5: Acquisitions and pipeline
5 Acquisitions and pipeline Acquisitions • Dungavel wind farm Purchased in June 2016 and located in South Lanarkshire, South West Scotland. 13 Vestas 2MW V80 turbines with a total generating capacity of 26MW. Accredited for 0.9 ROCs. • New Albion wind farm Purchased in July 2016 and located near Ket
Slide 6: Portfolio analysis at 30 September 2016
6 Portfolio analysis at 30 September 2016 ¹Based on project revenues from volumes/generation during the year and assumes project cash flow distributions reflect revenue spilt at each project.
Slide 7: Portfolio performance
7 Portfolio performance • Good availability across all asset classes apart from Branden & Monksham solar due to technical issues and a lightning strike • Wind generation in line with budget. Solar generation 5% below budget due to low irradiation and 7% due to issues at Branden & Monksham • Waste an
Slide 8: Balance sheet
8 Balance sheet Summary – Investment basis 30 September 2016 31 March 2016 (£m) (£m) Portfolio valuation 320.7 264.5 Cash 15.7 6.2 Net debtors 0.2 1.0 Revolving credit facility (65.0) (54.8) Net assets 271.6 216.9 Number of shares in issue 276,356,435 224,356,435 Net asset value per share 98.3p 96.7
Slide 9: Portfolio valuation movements
9 Portfolio valuation movements Six months to 30 September 2016
Slide 10: Portfolio valuation – key assumptions
10 Portfolio valuation – key assumptions • Generation – assumes base case of “P50” level of electricity output for renewable assets based on technical advisors analysis • Electricity prices for the next 2 years fixed prices or short term market forward prices o generation weighted average fixed pr
Slide 11: NAV sensitivity analysis
11 NAV sensitivity analysis Impact on NAV At 30 September 2016 Discount rate (+/- 0.5%) £(11.9m) £12.7m Energy Yield (P90/P10) £(30.9m) £31.0m Electricity price (-/+ 10%) £(14.5m) £14.5m £(13.7m) £14.5m Inflation rate (-/+ 0.5%) -20p -15p -10p -5p p 5p 10p 15p 20p NAV per share
Slide 12: Group cash flow
12 Group cash flow Summary – six months to 30 September 2016 £m Cash at 31 March 2016 6.2 Net share issue proceeds 49.9 Acquisition of investment assets (net) (51.4) Borrowings under credit facility 10.2 Distributions from projects 12.4 Operating and other costs (3.4) Acquisition costs (0.7) Dividen
Slide 13: Funding
13 Funding • £75m revolving credit facility facility increased from £65m to £75m in July 2016 £65m drawn at 30 September 2016 – reduced to £53m from proceeds of post period-end tap issues in October 2016 • Project-level gearing across portfolio 43.4% (31 March 2016: 43.6%) renewable energy ass
Slide 14: Conclusion
14 Conclusion • Continue to deliver on promises at IPO in March 2014 • Increase in NAV per share reflects improved forecasts for electricity prices • Successful equity fund raise in June 2016 raising £35.2m, with a further £22.9m raised under the tap issuance programme (including £6.6m post the peri
Slide 15: Q&A
Q&A JLEN
Slide 16: Appendices
16 JLEN Appendices
Slide 17: Fund Governance and Terms
17 Fund Governance and Terms • Domiciled in Guernsey The Fund • Independent Board of Directors • Chapter 15, premium listing on LSE • John Laing Capital Management Limited Investment • FCA authorised and regulated Adviser • Advisers dedicated to the fund and highly experienced • Monitors and reviews
Slide 18: Investment Policy
18 Investment Policy JLEN’s investment policy is to invest in Environmental Infrastructure projects that have the benefit of long-term, predictable cash flows Sector • Environmental Infrastructure projects that utilise natural or waste resources or support more environmentally-friendly approaches to
Slide 19: Disclaimer
19 Disclaimer This document contains information provided solely as an update on the financial condition, results of operations and business of John Laing Environmental Assets Group Limited ("JLEN"). Nothing in this document or in any accompanying management discussion of this document constitutes,
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