Foresight Environmental Infrastructure Limited GBP · LSE:FGEN
Foresight Environmental Infrastructure Limited GBP — John Laing Environmental Assets Group — FY2018 Earnings Presentation
24 slides from Foresight Environmental Infrastructure Limited GBP's earnings presentation, Jun 14, 2018
Slide 1: Annual Results
John Laing Environmental Assets Group Limited Annual Results 14 June 2018
Slide 2: Overview of JLEN
1 Overview of JLEN Diversified portfolio of environmental infrastructure projects – long-term, predictable, wholly or partially inflation linked cash flows Investment Investor Future Management profile returns growth • Invests in operational • Sustainable dividend, paid • Independent Board of five •
Slide 3: Highlights
2 Highlights Performance • NAV per share 99.6p (March 2017: 100.1p) • Portfolio value of £429.5m (March 2017: £327.6m) • Dividend of 6.31p declared for the year to 31 March 2018, in line with target. Dividend cover of 1.2 times • Dividend target 2018/19 of 6.51p Portfolio • Six acquisitions complete
Slide 4: Highlights
3 Highlights Funding • £55.5m of equity capital raised via placings during the year • Improved revolving credit facility of £130m, extended post-year end to June 2021 • Strong pipeline of assets for further growth both under First Offer Agreement with John Laing Group plc and from third parties Team
Slide 5: Portfolio Overview as at 31 March 2018
4 Portfolio Overview as at 31 March 2018 WASTE AND WASTEWATER D&G - 80%, PFI for Council ELWA - 80%, PFI for Waste Authority Tay - 33%, PFI for Scottish Water WIND Bilsthorpe - 100%, 10.2MW, ROC Burton Wold - 100%, 14.4MW, ROC Carscreugh - 100%, 15.3MW, ROC Castle Pill - 100%, 3.2MW, ROC Dungavel -
Slide 6: Acquisitions and pipeline
5 Acquisitions and pipeline Six acquisitions made in the period to 31 March 2018: Moel Moelogan 2 wind farm Moel Moelogan 1 wind farm • April 2017 • May 2017 • £22.7m • £3m • 11.7MW • 2.6MW • 1.0 ROC • NFFO CSGH Solar portfolio Vulcan Renewables • June 2017 • August 2017 • £12.2m • £15.3m • 33.5MW •
Slide 7: Pipeline – First Offer Agreement with John Laing
6 Pipeline – First Offer Agreement with John Laing JLEN ROFO Project Country TPSCo UK Speyside UK Cramlington UK Klettwitz Wind Farm Germany Horath Wind Farm Germany Somette Wind Farm France St Martin Wind Farm France Nordergründe Wind Farm Germany Rammeldalsberget Wind Farm Sweden Svart Windfarm Sw
Slide 8: Timeline – Financial year 17/18
7 Timeline – Financial year 17/18
Slide 9: Portfolio analysis at 31 March 2018
8 Portfolio analysis at 31 March 2018 1 1 ¹Based on project revenues from volumes/generation during the year and assumes project cash flow distributions reflect revenue spilt at each project.
Slide 10: Portfolio performance
9 Portfolio performance 31 March 2018 31 March 2017 (GWh) (GWh) Wind generation 399 217 Variation from budget 0% -15% Solar generation 64 40 Variation from budget -9% -12% AD generation 51 - Variation from budget +8% - • 514GWh generation across the portfolio • Wind generation on budget • Solar gene
Slide 11: Portfolio performance
10 Portfolio performance • Waste volumes in line with budget and wastewater volumes below budget following dry winter period • Total distributions from portfolio in line with budget • Good availability across all asset classes apart from solar due to technical issues at Branden and Crug Mawr • Progr
Slide 12: Balance sheet
11 Balance sheet 31 March 2018 31 March 2017 (£m) (£m) Portfolio valuation 429.5 327.6 Cash 11.8 26.1 Net liabilities (0.5) (1.2) Revolving credit facility (48.4) (12.5) Net assets 392.4 340.0 Number of shares in issue 394,077,029 339,642,078 Net asset value per share 99.6p 100.1p
Slide 13: Portfolio valuation movements
12 Portfolio valuation movements As at 31 March 2018
Slide 14: Portfolio valuation – key assumptions
13 Portfolio valuation – key assumptions • Electricity prices • For the next 2 years fixed prices or short term market forward prices: • 72% fixed for Summer 2018, 53% fixed for Winter 2018 • Market forward averages for next 2 seasons: £49/MWh for winter; and £43/MWh for summer • Then central case f
Slide 15: Portfolio valuation – Additional observations
14 Portfolio valuation – Additional observations • Electricity prices • JLEN continuing to use long-term price forecasts from a single market-leading energy market consultant • Switch to using a ‘blended’ curve made up of from forecasts of multiple consultants would add an estimated 1.4 pence per sh
Slide 16: NAV sensitivity analysis
15 NAV sensitivity analysis Impact on NAV At 31 March 2018
Slide 17: Group cash flow
16 Group cash flow Year ended 31 March 2018 £m Cash at 31 March 2017 26.1 Net share issue proceeds 54.7 Acquisition of investment assets (net) (104.8) Drawdown under credit facility 35.9 Distributions from projects 33.4 Operating and other costs (incl. financing costs) (7.9) Acquisition costs (2.5)
Slide 18: Transparent use of leverage at 31 March 2018
17 Transparent use of leverage at 31 March 2018 Technology % Portfolio Revenue Sources Leverage of as % of GPV 1 Solar 28% Merchant Power, Green Benefits 19% Wind 53% Merchant Power, Green Benefits 41% Anaerobic digestion 6% Merchant Power, Green Benefits 0% Sub-Total 87% 32.9% PFI/PPP Waste and 13%
Slide 19: Conclusion
18 Conclusion • NAV per share 99.6p (March 2017: 100.1p), down due to a decrease in forecast electricity prices during the period and the D&G project, partially offset by value enhancements and changes to wind discount rates • £55m equity capital raised in the year to 31 March 2018 • RCF increased t
Slide 20: Q&A
#0 JLEN Q&A
Slide 21: Appendices
a fs JLEN Appendices esiee cs # iw
Slide 22: Fund Governance and Terms
21 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 • Monitors and reviews projects • 1.0% of Adjusted Portfolio Value(1) up to an
Slide 23: Investment Policy
22 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 24: Disclaimer
23 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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