Foresight Group Holdings Ltd. · LSE:FSG
Foresight — Foresight Solar Fund — FY2019 Earnings Presentation
21 slides from Foresight's earnings presentation, March 2020
Slide 1: Foresight Solar Fund Limited Annual Results 2019
Foresight Solar Fund Limited Annual Results for the year ending 31 December 2019 Investor Presentation March 2020
Slide 2: Foresight Group Overview
Foresight Group Overview A leading sustainability-driven global infrastructure and private equity manager 36 year £4.5bn 2.2 GW investment track assets under generating record management capacity 77 19 12 offices investment institutional 228 staff globally professionals funds As at 31 December 2019
Slide 3: FSFL – Investment Objective
FSFL – Investment Objective FSFL aims to provide investors with sustainable and progressive dividends, and enhanced capital value, through investment in ground-based solar assets predominantly located in the UK Focused asset acquisition strategy: creating portfolio diversity through a disciplined ap
Slide 4: 2019 Highlights
2019 Highlights • Strong operational performance of the UK Portfolio - 3.9% above budget • £65m raised through an oversubscribed fundraising • Delivered value enhancing initiatives across the portfolio, including the refinancing of 28 UK assets Bilsthorpe and a PPA re-tender for 22 UK assets • Chang
Slide 5: 2019 Key Metrics
2019 Key Metrics Delivery of strong total return to shareholders since inception Net Asset Value (“NAV”) NAV per Share Gross Asset Value (“GAV”) £628.0m 103.8p £1,071.5m* (31 Dec 2018: £610.3m) (31 Dec 2018: 111.2p) (31 Dec 2018: £1,114.7m) Dividend per Share declared Annual Total Shareholder Market
Slide 6: FSFL Performance Against Major Equity Indices Since IPO
FSFL Performance Against Major Equity Indices Since IPO Total Shareholder Return* of FSFL vs. Key Indices, Rebased to 100 180 170 160 150 140 130 120 110 100 90 80 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Oct-19 Foresight Solar Fund Limited FTSE 100 FTSE Al
Slide 7: Portfolio Overview 2019
Portfolio Overview 2019 Geographically diversified portfolio of operational assets United Kingdom Australia See Appendix for full list of sites COUNTRIES BY INSTALLED CAPACITY DISTRIBUTION BY PRODUCTION COUNTRIES BY EQUITY INVESTED Australia Australia 17% Australia 9% 28% 869 964 £664m MW GWh UK 83%
Slide 8: UK Portfolio Performance
UK Portfolio Performance Continued strong performance of the UK portfolio • FY2019 generation was 3.9% above expectations compared to UK irradiation levels up 3.8% versus base case Summary of FSFL portfolio generation 100,000 800,000 90,000 700,000 80,000 600,000 70,000 500,000 60,000 MWh MWh 50,000
Slide 9: Portfolio Optimisation
Portfolio Optimisation Medium and long-term value enhancing initiatives • Foresight's Infrastructure Team contains 48 portfolio and asset management professionals, many of whom have technical engineering backgrounds • Beyond prioritising solar output, value-enhancement projects have been pursued: Sh
Slide 10: Australia Portfolio Performance
Australia Portfolio Performance Further progress achieved across the portfolio • Longreach and Oakey 1: Fully operational and performing in line with expectations, with the exception of minor curtailment levels at Longreach • Bannerton: First electricity export in July 2018 and reached full export c
Slide 11: Portfolio Revenue Analysis
Portfolio Revenue Analysis High predictability of cash flows in the short and medium term PROJECTED 2020 GLOBAL PORTFOLIO REVENUE SPLIT 11
Slide 12: UK Portfolio Power Prices 2019
UK Portfolio Power Prices 2019 Fixed electricity price arrangements supported stable cash flow generation • 8.4% decrease in average power price achieved to £45.38/MWh (FY2018: £49.54/MWh)* • Continued to take advantage of attractive forward electricity prices through fixed price arrangements: • 31
Slide 13: Dividends
Dividends Delivered on all target dividends since IPO 2019: • Total dividends of £36.0 million were paid during the year to 31 December 2019, equating to 6.76p per share. • Dividend cover for the period was 1.19x (excluding dividends paid to new shares issued in the period and including the impact o
Slide 14: Gearing Position
Gearing Position Further optimisation of the capital structure • Refinancing Terms: improved debt terms secured in the refinancing of the TOTAL Company’s UK debt facilities in August 2019, resulting in a positive impact GEARING 41% on NAV per share. Fully amortising term loan eliminates refinancing
Slide 15: Net Asset Value Movements
Net Asset Value Movements Key drivers 15
Slide 16: NAV Sensitivities
NAV Sensitivities December 2019 NAV - £628.0m 16
Slide 17: Power Price Forecasts
Power Price Forecasts Conservative forecast based on independent power price analysis UK Wholesale Power Prices (£/MWh) • FY2019 forecast decreased 11.5% year-on-year • Long term increase in real terms of 0.4% per annum Australian Wholesale Power Prices (A$/MWh) 100.00 • FY2019 forecast: 90.00 decli
Slide 18: Sustainability
Sustainability ESG Best Practice Environmental Stewardship Social Engagement Good Governance • Partner of the Solar Trade • Engagement with contractors, • Actively reviews all consents Association’s Large-Scale Asset local residents, community • Signatory of UNPRI since 2013. Management Working Grou
Slide 19: Outlook
Outlook Explore subsidy-free solar opportunities, particularly in Southern European markets due to higher production profile and longer PPA contracts Opportunistic approach to secondary market opportunities in the UK and other European markets Continue to focus on portfolio optimisation initiatives
Slide 20: Contact Details
Contact Details Foresight Group +44 (0)20 3763 6951 Jonathon McManus [email protected] Citigate Dewe Rogerson +44 (0)20 7638 9571 Nick Hayns Elizabeth Kittle Lucy Eyles
Slide 21: Important Notice
Important Notice General This document and the presentation have been prepared by Foresight Group LLP for information purposes only. By being in receipt of this document, you will be deemed to have (a) agreed to all of the following restrictions and made the following undertakings and (b) acknowledg