Foresight Group Holdings Ltd. · LSE:FSG
Foresight — Foresight Solar Fund — H1 2020 Earnings Presentation
26 slides from Foresight's earnings presentation, September 2020
Slide 1: Foresight Solar Fund Limited Interim Results to 30 June 2020
FORESIGHT SOLAR FUND LIMITED INTERIM RESULTS TO 30 JUNE 2020 September 2020
Slide 2: 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 3: Period highlights to 30 June 2020
Period highlights to 30 June 2020 Operationally resilient despite challenging environment ▪ Generated a total of 502,579 MWh of electricity, with performance of the UK portfolio 15.9% above base case driven by high levels of irradiation ▪ Strong operational resilience throughout the COVID-19 pandemi
Slide 4: Key financial metrics as at 30 June 2020
Key financial metrics as at 30 June 2020 Delivery of strong total return to shareholders since inception Net Asset Value (“NAV”) NAV per Share Gross Asset Value (“GAV”) £582.1m 96.0p £1,022.5m* (31 Dec 2019: £628.0m) (31 Dec 2019: 103.8p) (31 Dec 2019: £1,071.5m) Dividend per Share declared Annual T
Slide 5: FSFL performance against major indices since IPO
FSFL performance against major 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 FSFL Share Price Total Return FSFL Cum Fair NAV Total Return FTSE All Share Total Return UK RPI Source: Morningstar, to 30 June 2020 * Total Sh
Slide 6: Portfolio overview as at 30 June 2020
Portfolio overview as at 30 June 2020 Geographically diversified portfolio of operational assets United Kingdom Australia Countries by Capacity Countries by Equity Invested Australia Australia 17% 9% UK UK 91% 83% |6
Slide 7: COVID-19 update
COVID-19 update Foresight FOR A SMARTER FUTURE
Slide 8: COVID-19 impact and operational response
COVID-19 impact and operational response ▪ COVID-19 and associated lockdown measures strong operational resilience from March to June significantly impacted the UK economy, affecting the ▪ Widescale lockdown measures led to a collapse in energy market and working practices within the energy demand a
Slide 9: UK Portfolio Update
UK Portfolio Update Foresight FOR A SMARTER FUTURE
Slide 10: UK portfolio performance
UK portfolio performance Record period of generation by UK portfolio H1 2020 generation was 15.9% above expectations compared to UK irradiation levels 17.1% above base case Portfolio performance has continued to benefit from enhanced spare parts strategy and the continuous development and consol
Slide 11: UK power price forecast
UK power price forecast Reduction in power price forecasts from independent advisers during the period ▪ Power price forecasts decreased by 8.3% ▪ Short and medium term: reduction in the forecast gas and power demand as a result of lower economic output caused by COVID-19 ▪ Long term: Higher deploym
Slide 12: International Portfolio Update
International Portfolio Update | 12
Slide 13: International portfolio performance
International portfolio performance Further progress made across the Australian portfolio Australian assets generated 73,887MWh, 14.7% of total portfolio generation during period Bannerton: Resumed full export in April following resolution of network oscillation issue Longreach: Limited curtai
Slide 14: H1 power prices, forecasts and price hedging strategy - Australia
H1 power prices, forecasts and price hedging strategy - Australia Assets benefit from long-term PPAs and agreements with local State Governments ▪ Power prices declined during H1 in Queensland and Victoria by c.30% compared to H1 2019 predominantly as a result of lower gas prices. ▪ Three of the fou
Slide 15: Financial Review
Financial Review Foresight FOR A SMARTER FUTURE {15
Slide 16: 2020 portfolio revenue breakdown
2020 portfolio revenue breakdown High proportion of fixed revenues offers cash flow visibility in the short and medium term | 16
Slide 17: Dividend update at 30 June 2020
Dividend update at 30 June 2020 Dividends maintained despite challenging power price environment Total dividends declared of 3.45 pence per share for period to 30 June 2020 Dividend cover for the period of 1.10x (30 June 2020: 1.12%) on a 12-month rolling basis despite adverse market environment
Slide 18: Net Asset Value movements - H1 2020
Net Asset Value movements- H1 2020 Valuation declined largely due to weakening of power price forecasts | 18
Slide 19: NAV sensitivities
NAV sensitivities Discount Rates (+/- 0.5%) Energy Yield (+/- 10%) Power Prices (+/- 20%) Inflation Rate (+/- 1.0%) Operating Costs (+/- 10%) Fx rates (+/- 20%) Tax (+/- 1%) 25 Foresight FOR A SMARTER FUTURE NAV: £582.1 million (72.91 £(17.6m) £17.6m £(10.0 £10.0m £1. (1.5)m :81.8m -20 NAV per share
Slide 20: Gearing position at 30 June 2020
Gearing position at 30 June 2020 Revolving credit facility ("RCF") offers flexibility to support future acquisitions at competitive cost ▪ Total outstanding debt of £440.4 million, including: TOTAL ▪ Long-term debt: £400.4 million GEARING 43% ▪ RCF: £40.0 million of GAV ▪ Net debt position when taki
Slide 21: Sustainability Update
Sustainability Update 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 communities, landowners • Signatory of UNPRI since 2013. Management Wo
Slide 22: Outlook
Outlook ▪ Renewable energy market in the UK and Europe expected to continue to grow notwithstanding the impact of COVID-19 in the short and medium-term ▪ Landscape for the acquisition of operational subsidised assets in the UK and European remains highly competitive ▪ Near-term acquisition focus on
Slide 23: Appendix
APPENDIX 1 Appendix Foresight FOR A SMARTER FUTURE | 23
Slide 24: Foresight Group Overview
Foresight Group Overview A leading sustainability-driven global infrastructure and private equity manager 36 year £6.6bn 2.5 GW investment track assets under generating record management capacity 83 20 13 offices investment institutional 240 staff globally professionals funds As at 31 August 2020 |
Slide 25: Contact Details
Contact Details Investment Manager Foresight Group +44 (0)20 3763 6951 Jonathon McManus [email protected] PR Citigate Dewe Rogerson +44 (0)20 7638 9571 Nick Hayns Elizabeth Kittle Lucy Eyles Corporate Broker Jefferies +44 (0)20 7029 8140 | 25
Slide 26: 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