Full Year 2016 Results Presentation

Transcription

1 1 Full Year 2016 Results Presentation 7 March 2017 [New images that match annual report design for background]

2 2 Olivier Brousse Chief Executive Officer

3 Highlights 3 14% increase in NAV to 1,017m NAV of 277p per share (2015:242p) Investment commitments of 182m Pipeline at 1.86 billion Importance of active asset management Realisations for dividend purposes of 127m 30% increase in external assets under management to 1.47bn Final BE THE dividend BEST MARKETING of 6.3p COMPANY per share (Total dividend for 2016 of 8.15p)

4 Projects under construction active management 4 New Royal Adelaide Hospital, Australia Manchester Waste VLCo, UK

5 Projects under construction steady progress 5 Intercity Express Programme, UK Speyside Biomass, UK Hornsdale Wind Farm, Aus I-77 Managed Lanes, US

6 Renewable Energy PPP Growing and well diversified pipeline 6 31 Dec Dec Dec 2016 North America 35% 1,067m Asia Pacific 23% North America 37% 1,135m Asia Pacific 31% North America 32% 1,408m Asia Pacific 35% Europe 42% Europe 32% Europe 33% 31 Dec Dec Dec 2016 Europe 100% 264m Europe 73% 359m North America 13% Asia Pacific 14% North America 22% Europe 47% 451m Asia Pacific 31%

7 Shortlisted PPP projects at 31/12/16 7 North America: Central 70 Road George Massey Bridge Gordie Howe International Bridge MBTA Fare Collection Europe: National Broadband, Rol Asia Pacific: Grafton Prison NSW NZ Schools III Plus one bid not yet disclosable John Laing offices Shortlisted projects

8 International spread of investment commitments 8 Project Region PPP ( m) RE ( m) Total ( m) IEP Phase 1 (additional shareholding) UK Llynfi wind farm UK A6 Parkway Europe Nordergründe offshore wind farm Europe Sommette wind farm Europe Horath wind farm Europe Saint-Martin-L Ars wind farm Europe I-77 Managed Lanes (additional investment) US Sterling wind farm US Hornsdale wind farm (Phase 2) Asia Pacific Kiata wind farm Asia Pacific Total

9 Realisations of assets ahead of guidance 9 Project Holding sold JLEN m JLIF m Other Total m British Transport Police (BTP) Oldham Housing 54.17% 95% Dungavel Wind Farm 100% New Albion Wind Farm 100% A55 Wales 100% IEP (Phase 1) 6% Shareholding in JLEN 2.2% Total Realisation of A1 Poland investment completed in March 2017

10 Growth in external assets under management (AuM) 10 Fees: AuM: 5.7m 537m 8.2m 796m 10.3m 1,020m 12.0m 1,136m 15.8m 1,472m Successful secondary issues by JLIF and JLEN in % increase in external AuM to 1.47 billion 32% growth in external AuM revenues Important contribution towards cost base from AuM fee income

11 11 Patrick O D Bourke Group Finance Director

12 Liabilities Assets Summary Balance Sheet re-presented 12 Key line items 31 December 2016 ( m) 31 December 2015 ( m) Portfolio value 1, Cash collateral Non-portfolio assets Total investments 1, Other long term assets Cash Total Assets 1, Working capital and provisions (5.6) (22.1) Cash borrowings (165.0) (19.0) Pension deficit (IAS 19) (61.3) (38.9) Other retirement benefit obligations (8.0) (7.3) Total Liabilities (239.9) (87.3) Net Assets 1,

13 ( m) NAV growth of 14% 13 Net asset value movement year ended 31 December ,200 1,100 1, (11.9) (39.2) (9.9) (26.2) , December 2015 Fair value movement on portfolio Cost of FX hedges Pension deficit Other P&L items Dividends paid in December 2016

14 Balanced investment portfolio 14 Investment portfolio at 31 December 2016 Value Weighted Average Discount Rates 31 December December 2015 Primary Investments (projects under construction) PPP projects 10 Renewable Energy projects 696.3m 9.1% 9.7% Secondary Investments (projects in operation) PPP projects 6 Renewable Energy projects Shareholding in JLEN (at 31 December 2016 share price) 469.6m 8.4% 8.9% 10.0m - - 1,175.9m 8.9% 9.5%

15 Diversified and balanced portfolio at 31 December Volume (including RE investments) Shadow Toll JLEN Environmental - waste and biomass Social JLEN Transport - other Australian dollar US dollar NZ dollar Sterling Availability Environmental - wind Transport - rolling stock Euro By Revenue By Sector By Currency

16 Strong value creation 16 Components Year ended 31 December 2016 ( m) Year ended 31 December 2015 ( m) Unwinding of discounting Reduction of construction risk premia Foreign exchange movements 74.7 (9.2) Macro-economic impacts (13.8) (9.4) Change in power and gas price forecasts Change in operational benchmark discount rates (17.6) (10.7) Uplift on financial closes Value enhancements and other changes (17.2) 31.0 Fair value movement Embedded value released as assets move through construction phase and cashflows draw closer Positive impact from FX, partly offset by macroeconomic changes and lower energy prices Other changes include reduced valuations for New Royal Adelaide Hospital and Manchester Waste VL Co investments.

17 Pension deficit under IAS19 17 IAS19 deficit on JLPF: 64.2 million at 31 December 2016 ( 38.9 million at 31 December 2015) Decrease in IAS19 discount rate from 3.75% at 31 December 2015 to 2.80% at 31 December 2016 Increase in RPI assumption from 3.0% at 31 December 2015 to 3.20% at 31 December million scheduled cash contribution Actuarial valuation of JLPF as at 31 March 2016 Agreed actuarial deficit of 171m Average contributions of 26m per annum over seven year repayment period million IAS19 (deficit)/ surplus John Laing Pension Fund (64.2) John Laing Pension Plan 2.9 Summary Balance Sheet (61.3)

18 Summary Cash Flow re-presented 18 Key line items Year ended 31 December 2016 ( m) 1 include cash collateral balances and are net of cash borrowings Year ended 31 December 2015 ( m) Cash yield Operating cash flow (10.9) (15.9) Net FX impact (18.2) 2.8 Total operating cash flow Cash investments in projects (301.5) (142.9) Proceeds from realisations Net investing cash flow (154.9) (57.0) Finance charges (6.8) (13.4) Cash contributions to JLPF (incl. PPF levy) (18.4) (47.5) Capital raise (net of costs) Dividend payments (26.2) (5.9) (51.4) 56.2 Cash (outflow)/inflow (198.6) 30.4 Opening cash 1 (net) Closing (net debt)/ cash 1 (net) (88.2) 110.4

19 Other Costs Revenue Income Statement re-presented 19 Key line items Year ended 31 December 2016 ( m) Year ended 31 December 2015 * ( m) Movement in fair value investment portfolio Investment fees from projects Investment Management Services (IMS) revenue Project Management Services (PMS) revenue Bid cost recoveries on financial close Movement in fair value other (3.2) (7.5) Total Income Third party costs (7.7) (6.6) Staff costs (34.1) (32.5) General overheads (13.2) (11.7) Other and exceptional charges (0.7) (3.6) EBIT Finance charges (7.7) (6.6) Pension and other charges (2.9) (4.2) Profit before tax from continuing operations Earnings per share (basic) 51.9p 27.6p *pro forma

20 Dividends up 7% 20 Dividend policy Base dividend of 20m in 2015 growing with inflation Special dividends of 5%-10% of realisations, subject to specific investment requirements Final dividend of 6.3p for 2016 Base dividend of 3.7p per share Special dividend of 2.6p per share calculated as 7.5% of realisations of 127m Total dividend of 8.15p for 2016 (2015: 6.9p) 7% increase (after adjusting 2015 base dividend for timing of IPO)

21 Outlook 21 Strong focus on Origination Risk management Projects under construction Platform capable of handling growth while controlling risks and costs Recognised as an expert international investor in greenfield infrastructure Well positioned to take advantage of increased public investment in infrastructure in our three regions Portfolio of investments will continue to grow and diversify across countries and asset classes. Guidance for 2017: c10% increase in investment commitments versus 2016 Realisations at broadly similar level to investment commitments Confident outlook

22 Q & A 22

23 Appendices 23

24 million million million million Portfolio at 31 December By project discount rate - Primary By project discount rate Secondary * Total 696.3m % 8-9% 9-11% Discount rate % Total 451.3m* % 7-8% 8-9% 9-11% Discount rate % By remaining construction period - Primary By value of each investment Total 696.3m years 2-3 years 1-2 years 0-1 year Total 1,175.9m Listed < 25m 25-50m 50-75m 75m- 125m *excluding assets not valued on a DCF basis valued at 28.3m

25 Secondary discount rate benchmarks % 8.0% 8.4% 8.3% 7.8% Listed PPP Infrastructure Funds 7.3% 7.9% 7.9% Listed Environmental Funds 8.5% 8.7% 8.4% 6.0% 4.0% 2.0% 0.0% John Laing Secondary Investment Portfolio Balfour Beatty Investments Bilfinger Berger Global Infrastructure HICL Infrastructure Company Limited International Public Partnerships Limited John Laing Infrastructure Fund Greencoat UK Wind The Renewables Infrastructure Group John Laing Environmental Assets Group (JLG) (BBY) (BBGI) (HICL) (INPP) (JLIF) (UKW) (TRIG) (JLEN) Publicly reported discount rates at 30/06/2016 for BBGI, INPP and JLIF. For Balfour Beatty s UK portfolio at 31/12/15 and for JLG s secondary portfolio at 31/12/2016, Greencoat and TRIG reported discount rates are at 30/06/16 and JLEN at 30/09/16.

26 Positive contribution from each division 26 Year ended 31 December 2016 Primary Investment m Secondary Investment m Asset Management m Central m Total m Total income Third party costs (6.3) --- (1.4) --- (7.7) Staff costs (9.6) --- (17.1) (7.4) (34.1) General overheads (2.1) --- (5.0) (6.1) (13.2) Intra-group reallocation 1 (15.3) (7.6) Other and exceptional charges (0.8) (0.7) Operating profit Finance charges (5.5) (2.2) (7.7) Pension and other charges (2.9) (2.9) Profit before tax internal fees/charges and reallocation of certain central costs Asset Management: includes revenue of 7.9 million and costs of c 6.0 million attributable to UK activities of PMS at 30 November 2016

27 Financial resources available 31 December 2016 ( m) 31 December 2015 ( m) Committed facilities Letters of credit issued under corporate banking facilities (112.6) (154.2) Letters of credit issued under additional surety facilities (50.0) --- Other guarantees / commitments (6.5) (1.1) Short term borrowings (165.0) (19.0) Utilisation of facilities (334.1) (174.3) 27 Headroom on committed facilities Cash and bank deposits Unavailable cash (0.9) (1.1) Net available financial resources Total letters of credit issued Cash collateral Future cash investment into projects