The Renewables Infrastructure Group Interim Results Presentation: Six Months to 30 June 2020 Generating Sustainable Value. Hill of Towie, Scotland trig-ltd.com
Important Information This document has been issued by and is the sole responsibility of The Renewables Infrastructure Group Limited ("TRIG"). This document has not been approved by a person authorised under the Financial Services & Markets Act 2000 ("FSMA") for the purposes of section 21 of FSMA. The contents of this document are not a financial promotion. None of the contents of this document constitute (i) an invitation or inducement to engage in investment activity; (ii) any recommendation or advice in respect of the shares in TRIG ; or (iii) any offer for the sale, purchase or subscription of shares in TRIG. If, and to the extent that this document or any of its contents are deemed to be a financial promotion, TRIG is relying on the exemption provided by Article 69 of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005/1529 (the "Order") in respect of section 21 of FSMA. If this document is sent only to investment professionals and/or high net worth companies, etc. (within the meanings of Articles 19 and 49 of the Order) and it is deemed to be a financial promotion, TRIG is relying on the exemptions in those Articles. Although TRIG has attempted to ensure the contents of this document are accurate in all material respects, no representation or warranty, express or implied, is made to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. Neither TRIG, its investment manager, InfraRed Capital Partners Limited, its operations manager, Renewable Energy Systems Limited, nor any of their respective advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. Nothing in this paragraph shall exclude, however, liability for any representation or warranty made fraudulently. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. The document is intended for information purposes only and does not constitute investment advice. It is important to remember that past performance is not a reliable indicator of future results. Furthermore, the value of any investment or the income deriving from them may go down as well as up and you may not get back the full amount invested. There are no guarantees that dividend and return targets will be met. 2 trig-ltd.com
Generating Sustainable Value. Overview Purpose: To generate sustainable returns from a diversified portfolio of renewables infrastructure that contribute towards a zero-carbon future ▲ Diverse independent Board Portfolio construction 1 to ▲ Sets and monitors adherence to the enhance resilience & strategy and policies sustainability of ▲ Oversight of Managers Sustainable investment returns practices, reporting transparency ▲ Day-to-day management, investments ▲ 25-years investment track record ▲ 450+ transactions ▲ £10bn equity under management ▲ Operational oversight of the portfolio ▲ 38 years experience in renewables Proactive asset management to ▲ 18GW+ developed and/or constructed preserve & enhance value 2 ▲ 6GW operational assets supported £2bn Attractive 5% High levels 0.96% Diversified Portfolio Value, of liquidity 5 , dividend cash portfolio OCR 6 >70 projects yield 3,4 cost efficient yield UK & Europe 1. Taking into account power markets, regulatory frameworks, weather patterns & technology classes. 2. Through optimising generation, minimising downtime and operating safely. 3 3. Past performance is not a reliable indicator of future results. There can be no assurance that targets will be met or that the Company will make any distributions, or that investors will receive any return on their capital. Capital and income at risk . 4. The dividend yield is based on target aggregate dividends for trig-ltd.com 2020 & share price of 133.5p at 31 July 2020. 5. c.4m shares traded daily based on 90-day average volumes as at 31 July 2020. 6. Ongoing Charges Ratio.
Strong track record over seven years Sustainable dividend growth, continued financial outperformance, scaling portfolio Dividend increased by 13% over 7 years NAV per share increased by 15% over 7 years 2020 target 1 reaffirmed NAV total return since IPO 8% 1 160p 6.76p per share 140p 120p 100p 80p 60p 40p 20p 0p 2 IPO 2014 2015 2016 2017 2018 2019 H1 2020 NAV per share Cumulative Dividends Sustained share price outperformance and low beta 3 Portfolio growing in scale (investments made) 2,250 TSR return since IPO 9.3% 1 281 2,000 462 1,750 1,500 £ millions 144 1,250 230 1,000 78 255 1655 750 178 500 21 250 280 0 2013 2014 2015 2016 2017 2018 2019 H1 2020 1. Past performance is not a reliable indicator of future results. There can be no assurance that targets will be met or that the Company will make any 4 distributions, or that investors will receive any return on their capital. Capital and income at risk. 2. 2.50p per share was paid relating to the first five months of operations following IPO and represents 6.00p on an annualised basis. trig-ltd.com 3. Source: Thomson Reuters Datastream. Using 250 day rolling beta.
Contents Section Slide Introduction and Highlights 6 Financial Highlights & Valuation 9 Operations & Sustainability 15 Portfolio & Market 20 Concluding remarks 24 Appendices 26 Contacts / Important Information 41 5 trig-ltd.com
Generating Sustainable Value. TRIG in H1 2020 ▲ Resilient financial and strong operational Powering 1 million homes with clean energy 2 performance, in a challenging environment impacted by Covid-19, benefitting from portfolio diversification 1.1 million tonnes of CO 2 avoided p.a. 2 ▲ Target 2020 Dividend 6.76p 1 reconfirmed 12 Operational and Active Environmental Management Projects 3 ▲ InfraRed has achieved the top A+ rating from PRI for six consecutive years c. £1.4m budgeted for community projects in 2020 ▲ RES ensures ESG integration and implementation by asset managers 1. Past performance is not a reliable indicator of future results. There can be no assurance that targets will be met or that the Company will 6 make any distributions, or that investors will receive any return on their capital. Capital and income at risk. 2. The committed portfolio is capable of powering a million homes and saving around 1.1 million tonnes of CO2 annually based on average household electricity consumption figures and the IFI Approach to trig-ltd.com GHG Accounting. 3. Number of operational TRIG sites engaged in pro-active habitat management plans that exceed standard environmental maintenance.
Highlights H1 2020 Robust performance amidst the pandemic Strong generation ▲ Production nearly 10% above budget ▲ Lock-downs have had limited impact on asset availability and construction program due to robust contingency planning ▲ Grid curtailments mitigated through participation in the UK’s balancing mechanisms which provide financial compensation Power prices low, but signs of recovery ▲ Low power demand leading to lower wholesale power prices (GB average achieved price £36/MWh, down £10/MWh v H1 2019); impact tempered by subsidies and power price fixes ▲ The outlook for economic activity remains uncertain, but winter forwards indicating recovery (c. £40/MWh) Acquisitions and fund raising ▲ Additions/disposals have reduced portfolio’s power price exposure ▲ Limited deal flow in period, although pipeline healthy with high demand for the assets ▲ Strong support for capital raise in May 2020 Roos Past performance is not a reliable indicator of future results. There can be no assurance that targets will be met or that the Company will 7 make any distributions, or that investors will receive any return on their capital. Capital and income at risk. trig-ltd.com
Highlights H1 2020 (continued) Robust performance amidst the pandemic 113.0p 1.0p NAV per share; -2.0p Earnings per share (Dec 2019: 115.0p) (H1 2019: 9.3p) £281m £120m Investments made Equity raised (H1 2019: £347m) (H1 2019: £302m) 1. Altahulion, Northern Ireland Past performance is not a reliable indicator of future results. There can be no assurance that targets will be met or that the Company will 8 make any distributions, or that investors will receive any return on their capital. Capital and income at risk. trig-ltd.com
Financial highlights & valuation Penare Farm, England trig-ltd.com
Portfolio valuation bridge Valuation movement in the six months to 30 June 2020 £2,250m 98.9 281.3 £2,000m 56.0 29.2 (78.2) (123.1) £1,750m £1,500m £1,250m £1,000m 1,948.3 2,009.3 1,745.2 £750m £500m £250m £m 31-Dec-19 New Cash Rebased Change in Movement in Foreign Balance 30-Jun-20 Valuation Investments Distributions valuation Power Price Discount Rates Exchange of Portfolio Valuation 1 from Portfolio Forecast Movement Return 1. Changes in foreign exchange rates (£56.0m gain) is stated before the offsetting effect of hedges which are held at the Company level. Foreign exchange gains reduce to 10 £22.4m after the impact of foreign exchange hedges. trig-ltd.com
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