Half Year 2018 Results Presentation. 23 August 2018

Transcription

1 1 Half Year 2018 Results Presentation 23 August 2018 ]

2 2 Olivier Brousse Chief Executive Officer

3 Clear strategy for growth 3 Focus on greenfield infrastructure + active asset management throughout construction Recycling of capital by selling assets once operational Continued internationalisation and diversity Expanded capital base giving us access to larger opportunities and international partners Proven business model with NAV per share CAGR of 15.5%: (1) (1) including dividends paid

4 Highlights good first half 4 9.3% increase in NAV per share to 307p (Dec p (1) ) 11.7% increase in NAV per share (including dividend paid in May 2018) Successful rights issue Investment commitments of 39m full year guidance of approx. 250m maintained Growing pipeline at 2.3bn (Dec bn), including c 500m of short to medium term opportunities Realisations of 242m full year guidance of approx. 250m maintained 2.9% increase in interim dividend to 1.80p per share ( p (1) per share) (1) adjusted for the March 2018 Rights Issue bonus factor of 0.918x

5 Growing pipeline of equity opportunities 5 31 Dec Dec June 2018 Asia Pacific 24% North America 41% 1,567m Asia Pacific 29% PPP # of projects Total equity opportunity Preferred bidder 1 7m Shortlisted m Other pipeline 47 1,237m Total 60 1,567m Europe 30% 1,859m 2,150m North America 46% 2,300m Europe 30% North America 57% 733m Asia Pacific 12% Europe 31% Renewable Energy # of projects Total equity opportunity Exclusive 6 185m Other pipeline 9 548m Total m

6 Investment commitments to date 6 Project Region PPP ( m) RE ( m) Total ( m) MBTA Automated Fare Collection System North America A16 Road Europe Total at 30 June Fox Creek / Brantley Solar Farms North America Total YTD Guidance of approximately 250m for 2018 maintained

7 Pipeline at 30 June includes c 500m of short to medium term opportunities London Amsterdam Toronto New York Madrid Los Angeles Europe: North America PPP shortlistings PPP shortlistings Equity opportunity Shortlisted PPP: c 325m Exclusive renewable energy: c 185m Gordie Howe International Bridge, US/Canada Hurontario LRT, Ontario Los Angeles CONRAC, California Hamilton Rail, Ontario Pennsylvania Broadband, Pennsylvania I-75 Road, Michigan Michigan Labs, Michigan I-10 Mobile River Bridge, Alabama Santa Clara Water, California Belle Chasse Bridge, Louisiana National Broadband, Rol Silvertown Tunnel, UK Bogotá Six exclusive renewable energy opportunities North America 1 Europe 4 Shortlisted PPP projects John Laing offices Asia Pacific 1 Sydney Melbourne Auckland 7

8 Importance of active management 8 IEP Phase 2 Denver Eagle P3 New Royal Adelaide Hospital Sydney Light Rail

9 Strong secondary market for operational assets 9 Project Purchaser Total ( m) IEP Phase 1 (1) Third party Lambeth Social Housing JLIF 9.5 Total Guidance for realisations of approx. 250m maintained (1) before costs of disposal

10 External assets under management 10 JLCM supplies asset management services to JLIF and JLEN under Investment Advisory Agreements terminable at 12 months notice Cash offer for JLIF by a consortium comprising Dalmore and Equitix at a 20% premium to NAV/share at 31 March 2018 Investment management fees of 9.4m in H primarily from JLIF and JLEN small in comparison to fair value movement of 193.9m on our portfolio

11 11 Patrick O D Bourke Group Finance Director

12 NAV per share growth of 9.3% (1) 12 NAV per share movement six months ended 30 June p 6p (4p) (7p) 307p p/share p December 2017 Impact of rights issue Fair value movement on portfolio IAS 19 pension gain Other P&L income less costs Dividends paid 30 June 2018 (1) Compared to 281p per share at 31 December 2017, which is the previously reported NAV per share of 306p adjusted for the Rights Issue bonus factor of 0.918x

13 Assets Key line items Summary Balance Sheet re-presented 30 June 2018 ( m) 31 December 2017 ( m) Portfolio value 1, ,193.8 Cash collateral Non-portfolio investments Total investments 1, ,327.2 Other long term assets Cash Pension surplus (IAS 19) Total Assets 1, , Liabilities Working capital and other balances (4.8) (3.7) Cash borrowings (11.0) (176.0) Pension deficit (IAS 19) --- (32.3) Other retirement benefit obligations (7.5) (8.0) Total Liabilities (23.3) (220.0) Net Assets 1, ,123.9

14 Investment portfolio at 30 June 2018 Primary investment portfolio Value Weighted Average Discount Rates 30 June December 2017 Overall portfolio 1,259.7m 8.7% 8.8% 14 Primary investments (projects under construction) 12 PPP projects 2 Renewable Energy projects Top 5 Primary investments IEP Phase 2 More than 225m Denver Eagle P3 75m - 100m Sydney Light Rail 50m - 75m New Generation Rollingstock 25m - 50m Cramlington Biomass 25m - 50m Total primary portfolio: 636.2m 9.0% 9.3% Discount rate ranges: PPP: 7.3%-11.8% 7.6%-11.8% RE: 10.1% 8.0%-10.2%

15 Secondary investment portfolio 15 Secondary investments (projects in operation) 10 PPP projects 17 Renewable Energy projects 1 Listed investment Investment portfolio at 30 June 2018 Value Weighted Average Discount Rates 30 June December 2017 Overall portfolio 1, % 8.8% Top 5 Secondary investments Rocksprings Wind Farm 50m - 100m New Royal Adelaide Hospital 50m - 75m Buckthorn Wind Farm 50m - 75m Manchester Waste TPS Co 50m - 75m Klettwitz Wind Farm 25m - 50m Total secondary portfolio: 623.5m 7.9% 7.9% Discount rate ranges: PPP: 7.0%-9.0% 7.0%-9.0% RE: 6.8%-10.0% 6.8%-10.0%

16 Strong value creation 16 Components Six months ended 30 June 2018 ( m) Six months ended 30 June 2017 ( m) Year ended 31 December 2017 ( m) Unwinding of discounting Reduction of construction risk premia Impact of foreign exchange movements (0.9) 3.2 (11.0) Change in macroeconomic assumptions (5.4) (2.1) 4.1 Change in power and gas price forecasts (3.4) (22.9) (54.8) Change in operational benchmark discount rates Value uplift on financial closes Value enhancements and other changes 86.3 (8.9) 15.1 Movement in fair value

17 Key line items Summary Cash Flow re-presented Six months ended 30 June 2018 ( m) Six months ended 30 June 2017 ( m) Year ended 31 December 2017 ( m) Cash yield Operating cash flow (8.6) (5.3) (14.7) Net FX impact 2.5 (0.1) (1.3) Total operating cash flow Cash investment in projects (130.9) (57.7) (209.9) Proceeds from realisations Disposal costs (4.5) (1.7) (2.6) Cash received from acquisition of Manchester Waste VL Co by the GMWDA Net investing cash flow Finance charges (4.4) (4.4) (8.3) Cash contributions to JLPF (26.5) (24.5) (24.7) Dividend payments (35.2) (23.1) (30.1) Rights issue (net of costs) Net financing cash flow (52.0) (63.1) Cash inflow Opening net debt (28.3) (88.2) (88.2) Closing net cash / (debt) (38.6) (28.3)

18 Increased financial resources June 2018 ( m) 31 December 2017 ( m) Committed facilities Letters of credit issued under corporate banking facilities (91.3) (152.3) Letters of credit issued under liquidity facilities (25.2) (50.0) Other guarantees and commitments (3.0) (7.5) Short term cash borrowings (11.0) (176.0) Facility utilisation (130.5) (385.8) Facility headroom Cash and bank deposits Unavailable cash (0.6) (0.7) Net available financial resources Letters of credit issued Cash collateral Future cash investment into projects New 650m committed facilities signed in July 2018

19 Income Statement re-presented 19 Revenue Costs Other Key line items Six months ended 30 June 2018 ( m) Six months ended 30 June 2017 ( m) Year ended 31 December 2017 ( m) Movement in fair value investment portfolio Investment fees from projects Investment Management Services (IMS) revenue Project Management Services (PMS) revenue Recoveries on financial close Movement in fair value other (1.2) (1.4) (2.1) Operating income Third party costs (4.2) (2.5) (8.7) Disposal costs (3.4) (1.0) (2.6) Staff costs (17.8) (17.0) (33.9) General overheads (5.6) (6.3) (12.7) Other net (costs) / income (0.5) Profit from operations Finance charges (5.1) (4.7) (10.1) Pension and other charges (0.9) (1.3) (2.6) Profit before tax Earnings per share (basic) 38.8p 9.4p 31.9p

20 Summary & Outlook 20 NAV per share (1) growth 15.5% CAGR: % in H Strong pipeline of new projects in each core region Strong demand for operational assets Financial resources to take advantage of opportunities Disciplined selection of investment opportunities and active management of projects Guidance for investment commitments and realisations maintained at approximately 250m Embedded value in investment portfolio Confident outlook (1) including dividends paid

21 Q & A 21

22 Appendices 22

23 Strong track record of growth 23 NAV p/share CAGR: 15.5% (including dividends paid): p/share (1)307 Dividends p/share 2015 (2) 2016 (2) 2017 (2) H12018 Interim 1.60p 1.85p 1.91p 1.80p Final 3.20p 3.70p 3.51p n/a H12018 Special 2.10p 2.60p 3.66p n/a Total 6.90p 8.15p 9.08p n/a Investment commitments Full year guidance for 2018 maintained at approximately 250m million H12018 Realisations Full year guidance for 2018 maintained at approximately 250m million H12018 (1) adjusted for the March 2018 Rights Issue bonus factor of 0.918x (2) dividends paid to shareholders

24 NAV bridge 24 Net asset value movement six months ended 30 June ,700 1,600 1, (18.7) (35.2) 1, ( m) 1,300 1,200 1,100 1, , , , December 2017 Rights issue proceeds Rights issue adjusted NAV Fair value movement on portfolio IAS 19 pension gain Other P&L income less costs Dividends paid 30 June 2018

25 Regional organisation strong oversight from HQ North America Europe Portfolio valuation: 337m Pipeline: 1,056m Portfolio valuation: 607m(1) Pipeline: 697m Toronto London New York Los Angeles Three regional MDs Each region responsible for both primary investment and asset management Amsterdam Madrid Sydney Asia Pacific Portfolio valuation: 306m Pipeline: 547m (1) excluding investment in JLEN: 9.7m Melbourne Auckland 25

26 Strong partner relationships across all geographies Amsterdam Toronto London New York Madrid Los Angeles Partner relationships straddle both geographies and sectors Late stage investment opportunities arise from partner relationships John Laing continues to grow partner relationships Bogotá Melbourne Sydney Auckland John Laing s offices 26

27 Portfolio at 30 June By discount rate Primary (1) By discount rate Secondary (1) By remaining construction period - Primary million Total: 633.8m (1) % 8-9% 9-11% 11-13% Discount rate million Total: 613.3m (1) % 7-8% 8-9% 9-11% Discount rate million Total: 636.2m years 2-3 years 1-2 years 0-1 year (1) excluding assets not valued on a DCF basis: 2.4m in the Primary portfolio and 10.2m in the Secondary portfolio

28 Secondary discount rate benchmarks 28 Overall portfolio Secondary investment portfolio UK secondary discount rate benchmarks Listed PPP Infrastructure Funds Listed Environmental Funds 10.0% 8.0% 8.2% 8.6% 7.5% 7.4% 7.5% 7.7% 7.7% 7.9% 8.1% 6.0% UK 16.9% 4.0% 2.0% Secondary Investment 49.5% 0.0% John Laing UK Secondary Investment Portfolio (JLG) Balfour Beatty Investments (UK porfolio) (BBY) 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 (BBGI) (HICL) (INPP) (JLIF) (UKW) (TRIG) (JLEN) Publicly reported weighted average discount rate at: - 30 June 2018 for JLG s UK secondary portfolio, BBY (UK portfolio), UKW & TRIG - 31 March 2018 for HICL & JLEN - 31 December 2017 for BBGI, INPP & JLIF

29 Diversified and balanced portfolio at 30 June Shadow Toll Volume 1.6% JLEN 0.8% (including RE investments) 38.8% Environmental - JLEN waste and biomass 0.8% 8.2% Social 11.0% Transport - other 27.3% US dollar 26.8% NZ dollar 1.7% Sterling 31.4% Availability 58.8% Environmental - wind and solar 30.3% Transport - rolling stock 22.4% Australian dollar 22.6% Euro 17.5% By Revenue By Sector By Currency At 30 June 2018, ± 5% movement in Sterling would decrease / increase portfolio valuation by c. 40m

30 Increasing internationalisation portfolio values by region Dec Dec Dec June 2018 North America 10% Asia Pacific 13% Listed investment 2% 841m Europe 25% Asia Pacific 17% North Listed investment America 1% 10% 1,176m Europe 29% North America 24% Listed investment 1% Europe 17% 1,194m North America 27% Listed investment 1% 1,260m Europe 17% UK 50% UK 43% Asia Pacific 24% UK 34% Asia Pacific 24% UK 31%

31 Pension surplus under IAS19 31 Net IAS19 surplus: 24.0 million at 30 June 2018 ( 32.3 million deficit at 31 December 2017) 26.5 million scheduled cash contribution to JLPF during the half Average contributions of 26m per annum to JLPF agreed over seven year repayment period from 31 March 2016 million IAS19 surplus at 30 June 2018 IAS19 (deficit) / surplus at 31 December 2017 John Laing Pension Fund 21.0 (35.2) John Laing Pension Plan Summary Balance Sheet 24.0 (32.3)