Foresight Group Holdings Ltd. · LSE:FSG
Foresight — Foresight Solar Fund — H1 2018 Earnings Presentation
26 slides from Foresight's earnings presentation, Aug 22, 2018
Slide 1: Foresight Solar Fund Limited Interim Results 30 June 2018
Foresight Solar Fund Limited Interim Results 30 June 2018 Analyst Presentation 22 August 2018
Slide 2: Interim Results Highlights
Interim Results Highlights 1 The NAV decreased to £473.1 million over the period, being 105.2 pence per share (31 December 2017: 107.0 pence). The reduction was primarily driven by a continued softening of UK power price forecasts. 2 The Company has declared dividends per share of 3.28 pence. The Co
Slide 3: Key Financial Metrics
Key Financial Metrics Progress as at 30 June 2018 As at 30 June 2018 As at 31 December 2017 As at 30 June 2017 GAV £749.0 million £680.8 million £625.3 million NAV £473.1 million £481.3 million £432.8 million NAV per Share 105.2 pence 107.0 pence 104.6 pence Profit after Tax for the Year £6.1 millio
Slide 4: Dividends
Dividends Declared dividends per share of 3.28 pence during the period • Total dividends of £27.9 million were paid during the 12 months to 30 June 2018, resulting in a dividend cover of 1.14 times (excluding new shares issued during the period). • On track to deliver the FY2018 target dividend of 6
Slide 5: Net Asset Value Movements
Net Asset Value Movements NAV per share decreased by 1.8 pence primarily driven by a continued softening in power price forecasts 5
Slide 6: UK Power Prices
UK Power Prices Downward revision over period; long term trend remains upwards • The Company continues to take advantage of current attractive short term forward electricity prices and has increased the proportion of fixed price arrangements from 29% (31 December 2017) to 54% of the electricity sale
Slide 7: Investment Activity in H1 2018
Investment Activity in H1 2018 53.3MW operational portfolio located in the UK • Acquisition of a 53.3MW portfolio for a consideration of £36.6 million, including £4.2 million of cash balances, in April 2018. • All assets are operational and accredited under the RO scheme, with the exception of the 5
Slide 8: Portfolio Performance - Overview
Portfolio Performance - Overview Improved portfolio performance supported by strong irradiation levels • Adjusted generation was 0.9% above expectations during the period. Adjustments include insurance proceeds and liquidated damages. • Two isolated events at Shotwick and Kencot caused production va
Slide 9: Capital Structure
Capital Structure Aiming to further optimise the capital structure through refinancing opportunities • The Company has raised £511.0 million of equity to date, including £48.1m raised in July 2018. Gearing position as of 30 June 2018 (% GAV) • GAV represented £749.0 million at period end. • Total ou
Slide 10: Post Period Acquisition 114MW
Post Period Acquisition 114 MW operational portfolio located in the UK • Acquisition of a 114MW portfolio for a consideration of £47.0m in August 2018. • All assets are operational an accredited under the RO scheme, receiving a weighted average of 1.41 ROCs/MWh. 15 • Portfolio has been in operation
Slide 11: Portfolio Overview (incl. post period acquisition)
Portfolio Overview (incl. post period acquisition) The largest UK-listed dedicated solar energy investment company by installed capacity UK total: 642MW Australia total: 146MW 11
Slide 12: Portfolio Geographical Analysis
Portfolio Geographical Analysis (at 30 June 2018) Installed Capacity Electricity Generation* Equity Invested** 9% 22% 37% 674 MW 791 MWh £560m 63% 78% 91% UK Australia UK Australia UK Australia * UK is based on actual figures for H1 2018 and projected figures for H2 2018. Australia’s figures are bas
Slide 13: Portfolio Revenue Analysis
Portfolio Revenue Analysis (at 30 June 2018) Portfolio Projected Revenue Split* Revenue from Subsidies - 53% 5% UK Subsidy - Fixed Revenue from Electricity Sales - 47% 15% AUS Subsidy - Merchant AUS Subsidy - Fixed 9% 674MW 46% of installed capacity UK Electricity Sales - Merchant AUS Electricity Sa
Slide 14: Key takeaways
Key takeaways 1 Production has been above base case assumptions driven by strong irradiation levels in the UK in the second quarter of 2018. Improved performance compared to FY2017 2 The Company remains on track to deliver its targeted full year dividend of 6.58 pence for FY2018 (FY2017: 6.32 pence)
Slide 15: Appendices
Foresight Appendices 15
Slide 16: Portfolio Overview - As at 30 June 2018
Portfolio Overview - As at 30 June 2018 Installed Capacity Asset Country Status Ownership Net MW Connection Date Subsidy (MW) 1 Wymeswold1 UK Operational 34 100% 34 March 2013 2.0 ROCs, 1.4ROCs 2 Castle Eaton UK Operational 18 100% 18 March 2014 1.6 ROCs 3 Highfields UK Operational 12 100% 12 March
Slide 17: Portfolio Acquired Post Period End
Portfolio Acquired Post Period End Installed Asset Country Status Connection Date Subsidy Capacity (MW) 25 Abergelli UK Operational 8 March 2015 1.3 ROCs 26 Crow Trees UK Operational 5 February 2016 1.3 ROCs 27 Cuckoo Grove UK Operational 6 March 2015 1.4 ROCs FSFL Portfolio post 28 Field House UK O
Slide 18: Portfolio Performance - By Asset
Portfolio Performance - By Asset Site MW Production Production Variance Irradiation Variance (MW hours) Atherstone 14.8 7,807,744 7.3% 8.1% Bournemouth 37.3 21,621,975 2.7% 0.1% Castle Eaton 17.8 9,050,875 4.2% 4.9% Coombeshead 9.8 3,972,193 1.6% 0.9% Copley 30.0 15,854,259 5.6% 2.2% High Penn 9.6 4
Slide 19: Debt structure
Debt structure Foresight Solar Fund Limited (Jersey) Foresight Solar (UK Holdco) Ltd FS Holdco 1 FS Holdco 2 FS Holdco 3 FS Holdco 4 Project Project Project Project Investments Investments Investments Investments Includes Includes Bannerton, Includes first 16 UK Coombeshead, Park Longreach, Oakey 1
Slide 20: Historic Electricity Prices at Portfolio Level
Historic Electricity Prices at Portfolio Level Average power price achieved across the portfolio in H1 2018 was £46.54/MWh (H1 2017:£40.61/MWh) Source: Foresight Group 20
Slide 21: Fund Sensitivities
Fund Sensitivities Discount Rate ▪ The weighted average discount rate used is 7.60%. The Directors do not expect to see a significant change in the discount rates applied within the Solar Infrastructure sector. Therefore a variance of +/- 0.5% is considered reasonable. -0.50% -0.25% Base +0.25% +0.5
Slide 22: Fund Sensitivities – cont.
Fund Sensitivities – cont. Inflation ▪ A variable of 1.5% is considered reasonable given historic fluctuations. A long term inflation rate of 2.75% has been used. -1.50% -0.75% Base +0.75% +1.50% Directors’ valuation (£m) 565.5 599.3 635.7 675.3 718.6 NAV per share (pence) 89.5 97.1 105.2 114.0 123.
Slide 23: Fund Sensitivities – cont.
Fund Sensitivities – cont. Power Price ▪ DCF models assume power prices that are consistent with the Power Purchase Agreements (“PPA”) currently in place. At the PPA end date, the model reverts to the power price forecast. ▪ During the period c. 47% of revenue derived from electricity sales which ar
Slide 24: FSFL: Managed by Foresight Group
FSFL: Managed by Foresight Group A leading independent Global Infrastructure & Private Equity manager 33 year £2.5bn 10 offices investment track assets under 200 staff globally record management 14 £2.2bn 1.6 GW Institutional funds Invested in energy Installed generation infrastructure capacity unde
Slide 25: Foresight Solar Global Solar Portfolio
Foresight Solar Global Solar Portfolio as at 30 June 2018 UK 73 Assets Australia • £1.3bn Solar AUM globally 857MW 5 Assets 252MW • Over 80 solar assets under management • Portfolio of over 1.1GW capacity • 78 strong global energy infrastructure team Spain Portugal 3 Asset 1 Asset 14MW 7MW 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