Foresight Environmental Infrastructure Limited GBP · LSE:FGEN
Foresight Environmental Infrastructure Limited GBP — JLEN Environmental Assets Group — FY2022 Earnings Presentation
33 slides from Foresight Environmental Infrastructure Limited GBP's earnings presentation, Jun 16, 2022
Slide 1: Annual Results Presentation
JLEN ENVIRONMENTAL ASSETS GROUP LIMITED Annual Results Presentation June 16 2022
Slide 2: Contents
2 CONTENTS Page Contents 4 JLEN overview 5 Annual results – highlights 6 Environmental, Social and Governance 8 JLEN’s Investment Policy 9 Investment outlook 10 Investments in the period 13 Portfolio overview 15 Portfolio performance 17 Portfolio valuation 23 Financial performance 25 Summary
Slide 3: Foresight Group LLP – Alternative Investment Fund Manager
3 FORESIGHT GROUP LLP – ALTERNATIVE INVESTMENT FUND MANAGER CHRIS TANNER, CO-LEAD INVESTMENT MANAGER TO JLEN Chris has been the co-lead investment manager to JLEN £8.7bn2 c.3401 ESG since IPO. He joined Foresight in 2019 as a Partner and currently assets under infrastructure sustainability-led works
Slide 4: Overview
4 OVERVIEW Investment, growth Demonstrated income Preservation of capital and diversification growth for over the longer term shareholders Environmental infrastructure investments Dividend target for year to 31 March 20231 Net Asset Value per share as at 31 March 20222 37 7.14p 115.3p Technology sub
Slide 5: JLEN Annual Results – Highlights
5 JLEN ANNUAL RESULTS – HIGHLIGHTS At At 31 March 2022 31 March 2021 Market capitalisation £746.2m £612.3m Portfolio value £795.4m £571.4m NAV per share 115.3p 92.2p Share price 112.8p 112.0p Dividend per share (declared basis) 6.80p 6.76p Number shares in issue 661.5m 546.7m Gearing 24% 36% Energy
Slide 6: Environmental, Social & Governance
6 ENVIRONMENTAL, SOCIAL & GOVERNANCE ESG PERFORMANCE 2021/22 c. 1,314,000 >905,500 >35.6 billion MWh Renewable energy generated GHG emissions avoided (tCO2e) Wastewater treated (litres) by the portfolio >695,000 >135,000 >473,000 Waste diverted from landfill (tonnes) Waste recycled (tonnes) organic
Slide 7: Environmental, Social & Governance
7 ENVIRONMENTAL, SOCIAL & GOVERNANCE Over the course of the year 2021/22, JLEN has developed a series of KPIs to help the fund track the portfolio’s performance against each of the ESG objectives set out here ENVIRONMENTAL SOCIAL GOVERNANCE Promote the efficient use of resources Develop positive rel
Slide 8: Investment Policy
8 INVESTMENT POLICY Environmental infrastructure is defined by the Company as infrastructure assets, projects and asset-backed businesses that: Support more Utilise natural or environmentally Support the transition Mitigate the effects waste resources friendly approaches to a low carbon energy of cl
Slide 9: Investment Outlook
9 INVESTMENT OUTLOOK PATHWAYS TO DECARBONISATION Phase down coal Investment in green Cut 30% of methane Zero emission and fossil fuels breakthrough by 2030, compared vehicles technologies to 2020 levels All new car and van More than 40 nations to Commitments from Nations to phase-down sales to be ze
Slide 10: Acquisitions and Divestments in the Period
10 ACQUISITIONS AND DIVESTMENTS IN THE PERIOD 3 48.8MW 2 2 acquisitions in the period capacity added to the portfolio new technology sub-sectors assets sold ACQUISITIONS DIVESTMENTS SANDRIDGE BATTERY ENERGIE TECNOLOGIE CRAMLINGTON LE PLACIS VERT & STORAGE AMBIENTE EfW BIOMASS PLOUGUERNEVEL Construct
Slide 11: Cramlington Biomass CHP
11 CRAMLINGTON BIOMASS CHP CRAMLINGTON BIOMASS PROJECT INFORMATION BIOMASS SUSTAINABILITY CHP The EU Green Taxonomy recognises Acquisition Revenue split 1 April 2022 to 31 March 2023 June 2021 Cramlington as making a significant date contribution to climate change mitigation Location Northumberland
Slide 12: Cramlington Biomass CHP – Improvement Works
12 CRAMLINGTON BIOMASS CHP Programme of improvement works Fuel processing area • Construction of a FPA allowing fuel to be delivered and mixed on site • Allows for a more thorough mixing of chipped biomass • Provides a more consistent fuel New mix M&B • Positive impact on boiler Bay efficiency • Red
Slide 13: Portfolio Overview as at 31 March 2022
13 PORTFOLIO OVERVIEW AS AT 31 MARCH 2022
Slide 14: Portfolio Analysis 31 March 2022
14 PORTFOLIO ANALYSIS 31 MARCH 2022 Portfolio value split by sector Portfolio value split by remaining asset life (years) Portfolio split by valuation methodology Portfolio split by operational status Portfolio split by operator exposure Portfolio split by geography
Slide 15: Portfolio Performance – Generation by Technology
15 PORTFOLIO PERFORMANCE PORTFOLIO GENERATION BY TECHNOLOGY 1,314GWh 16% >695,000 >35.6bn green energy generated above CNG fuel dispensed target tonnes of waste diverted from landfill litres of wastewater treated 2021/22 GENERATION 359 Wind portfolio actual generation (GWh) (FY 2020/21 - 432) Variat
Slide 16: Portfolio Performance
16 PORTFOLIO PERFORMANCE In 2021/22, overall generation from the renewable energy portfolio was 1,314 GWh, 6% below generation target WIND PORTFOLIO WASTE & BIOENERGY SOLAR PORTFOLIO • Negative variance of 15.6% against • Negative variance of 9.3% against • Generation 0.7% above budget generation ta
Slide 17: Portfolio Valuation Movement
17 PORTFOLIO VALUATION MOVEMENT
Slide 18: Portfolio Valuation Methodology
18 PORTFOLIO VALUATION METHODOLOGY Short term Approach of using market forwards or fixes where applicable remains unchanged – at 31 March 2022, 76% of the renewable energy portfolio’s electricity and gas price exposure was subject to a fixed price for the summer 2022 season and 64% for the winter se
Slide 19: Portfolio Valuation – Energy Prices
19 PORTFOLIO VALUATION – ENERGY PRICES Near term energy price fixes by sector Energy price fixing policy as at 13 June 2022 • JLEN's policy is to reflect contractual fixed price arrangements, where they exist, and short-term market forward prices for the next two years where they do not Summer '22 W
Slide 20: Portfolio Valuation – Key Assumptions
20 PORTFOLIO VALUATION – KEY ASSUMPTIONS Value enhancements Discount rate • Continued roll out of asset optimization initiative, with key • Reduction in discount rates applied to UK wind and solar results this year focusing on solar and AD portfolio assets, driven by continued strong demand for inco
Slide 21: Portfolio Revenue Evolution
21 PORTFOLIO REVENUE EVOLUTION Revenue type Contribution to portfolio value Subsidy 56% Merchant power 29% Long-term contracts 6% Other revenues 9% • Table shows contribution of different revenue categories to portfolio value on an NPV basis • 62% of lifetime portfolio revenues on an NPV basis are e
Slide 22: Dividends
22 DIVIDENDS Dividend declaration Dividend cover • JLEN declared Q4 dividend of 1.70p, on track to deliver full • FY23 dividend cover expected to be in excess of 1.5x, largely year dividend of 6.80 pence for year to 31 March 2022 in line driven by: with target • First full year’s contribution from a
Slide 23: Financial Performance – Summary
23 FINANCIAL PERFORMANCE – SUMMARY 31 MARCH 2022 31 MARCH 2021 Portfolio valuation £795.4m £571.4m Cash £18.0m £13.5m Net Debtors £3.1m £1.3m Revolving credit facility (£53.6m) (£82.0m) Net assets £762.9m £504.2m Number of shares in issue 661.5m 546.7m Net asset value per share (pence per share) 115
Slide 24: Financial Performance – Group Cash Flow
24 FINANCIAL PERFORMANCE – GROUP CASH FLOW Year ended Year ended 31 March 2022 31 March 2021 £m £m Cash received from environmental infrastructure investments 56.5 48.2 Administrative expenses (1.1) (1.1) Directors’ fees and expenses (0.3) (0.3) Investment manager fees (6.3) (5.5) Financing costs (n
Slide 25: Summary
25 SUMMARY • NAV per share appreciation of 25% • Disciplined approach to three acquisitions completed during the year, giving a total of 37 assets • Company completed its first divestment of assets, selling its two French wind farms • Outlook supports the continued build out of a resilient and diver
Slide 26: Q&A Thanks for listening
26 Q&A Thanks for listening
Slide 27: Appendices
27 oe ntge es: fee Ore ® APPENDICES
Slide 28: NAV Sensitivity Analysis at 31 March 2022
28 NAV SENSITIVITY ANALYSIS AT 31 MARCH 2022
Slide 29: Leverage Use at 31 March 2022
29 LEVERAGE USE AT 31 MARCH 2022 Low level of fund All long-term debt fully No refinancing risk on Interest rate risk hedged gearing – 23.7% long-term project including RCF drawn amortising within the finance debt out on project finance balance subsidy life LEVERAGE AS TECHNOLOGY % PORTFOLIO REVENUE
Slide 30: ESG Metrics Methodology
30 ESG METRICS METHODOLOGY CO2 avoided ESG KPIs • This calculation works on the premise that the marginal fuel type This was the first full year that the Investment Manager has collected the being displaced is coal extended set of ESG data. Care has been taken to validate this data and it is accurat
Slide 31: Investment Policy
31 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 mor
Slide 32: Fund Governance and Terms
32 FUND GOVERNANCE AND TERMS • Domiciled in Guernsey The Fund • Independent Board of Directors • Premium listing on the LSE (Chapter 15) • Foresight Group LLP Alternative Investment Fund • Authorised and regulated by the Financial Conduct Authority (“FCA”) under firm reference number 198020 Manager
Slide 33: Disclaimer
33 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
JLEN Environmental Assets Group — FY2022 Earnings Presentation on 6ix