Full Year 2017 Results Presentation. 8 March 2018

Transcription

1 1 Full Year 2017 Results Presentation 8 March 2018 ]

2 2 Olivier Brousse Chief Executive Officer

3 2017 results highlights strong growth 3 1. Not adjusted for rights issue 10.5% increase in NAV to 1,123.9m (13.5% including dividends paid) NAV of 306p per share (277p per share at 31 December 2016) (1) Investment commitments of 383m well ahead of guidance Pipeline at 2.15bn ( bn) Realisations of 289m 12% increase in external assets under management to 1.6bn 30% increase in total dividend (1) Final base dividend of 3.82p per share (1) Special dividend of 4.88p per share (1)

4 210m rights issue to fund further growth 4 Growing pipeline of opportunities Flexibility to access more and / or larger opportunities Group investments of 383m in a significant step change Growing pipeline of 2.15bn in both PPP and RE opportunities and across our three geographic markets Continue to grow relationships with international partners Increase in investment opportunity leads to potential risk of realising assets earlier than optimally Equity raise will provide additional capital and enable the Group to take advantage of more and larger opportunities Self-funding model and disciplined approach to investment to continue Strong track record of NAV growth Continuing strategy to create value for shareholders through growth in NAV and dividends. NAV CAGR of 15.5% (1) since IPO 1.Includes dividends paid

5 Growing and well diversified pipeline of equity opportunities 5 31 Dec Dec Dec 2017 North America 40% Asia Pacific 28% North America 40% 1,585m Asia Pacific 27% PPP Europe 33% 1,494m 1,859m 2,150m Europe 32% North America 41% 565m Asia Pacific 31% Europe 28% Renewable Energy Other potential geographies: selected countries in Latin America & South East Asia

6 Strong partner relationships across all geographies Amsterdam Toronto London New York Los Angeles Partner relationships straddle both geographies and sectors Late stage investment opportunities arise from partner relationships John Laing continues to grow partner relationships Melbourne Sydney Auckland John Laing s offices 6

7 Shortlisted / exclusive investment opportunities Europe: North America: Gordie Howe International Bridge, US/Canada Hurontario LRT, Ontario Los Angeles CONRAC, California Hamilton Rail, Ontario Pennsylvania Broadband, Pennsylvania I-75 Road, Michigan National Broadband, Rol Silvertown Tunnel, UK A16, Netherlands John Laing offices Shortlisted PPP projects Plus four exclusive renewable energy opportunities. 7

8 Projects under construction in New Perth Stadium Intercity Express Programme Sydney Light Rail New Generation Rollingstock

9 Investment commitments well ahead of guidance 9 Project Region PPP ( m) RE ( m) Total ( m) Buckthorn Wind Farm North America Rocksprings Wind Farm North America I-66 Managed Lanes North America Solar House Europe New Grafton Correctional Centre Asia Pacific Hornsdale 3 Wind Farm Asia Pacific Melbourne Metro Asia Pacific Total

10 Realisations of assets ahead of guidance Project Holding sold JLEN ( m) JLIF ( m) Other ( m) Total ( m) M6 Hungary Road 30% A1 Poland Road 29.69% Croydon & Lewisham Street Lighting 50% Lambeth Social Housing 50% Coleshill Parkway 100% Aylesbury Vale Parkway 50% City Greenwich Lewisham (DLR) 5% IEP (Phase 1) 9% Llynfi Wind Farm 100% Total realisations agreed Not completed in 2017: Lambeth Social Housing (9.9) Total realisations for

11 11 Patrick O D Bourke Group Finance Director

12 NAV growth of 10.5% 12 Net asset value movement year ended 31 December , (29.9) (30.1) 1,100 1,000 ( m) 900 1, , December 2016 Fair value movement on portfolio Pension deficit Other P&L income less costs Dividends paid 31 December 2017

13 Summary Balance Sheet re-presented 13 Assets Key line items 31 December 2017 ( m) 31 December 2016 ( m) Portfolio value 1, ,175.9 Cash collateral Non-portfolio assets Total investments 1, ,199.9 Other long term assets Cash Total Assets 1, ,256.7 Liabilities Working capital and provisions (3.7) (5.6) Cash borrowings (176.0) (165.0) Pension deficit (IAS 19) (32.3) (61.3) Other retirement benefit obligations (8.0) (8.0) Total Liabilities (220.0) (239.9) Net Assets 1, ,016.8

14 Balanced investment portfolio 14 Investment portfolio at 31 December 2017 Value Weighted Average Discount Rates 31 December December 2016 Primary Investments (projects under construction) PPP projects 3 Renewable Energy projects 580.3m 9.3% 9.1% Secondary Investments (projects in operation) PPP projects 16 Renewable Energy projects Shareholding in JLEN (at 31 December 2017 share price) 603.2m 7.9% 8.4% 10.3m - - 1,193.8m 8.8% 8.9%

15 Diversified and balanced portfolio at 31 December Volume (including RE investments) Shadow Toll JLEN Environmental - waste and biomass Social JLEN Transport - other US dollar NZ dollar Sterling Availability Environmental - wind and solar Transport - rolling stock Australian dollar Euro By Revenue By Sector By Currency At 31 December 2017, ± 5% movement in Sterling would decrease / increase portfolio valuation by c. 38m

16 Continuing value creation 16 Components Year ended 31 December 2017 ( m) Year ended 31 December 2016 ( m) Unwinding of discounting Reduction of construction risk premia Foreign exchange movements (11.0) 74.7 Macro economic impacts 4.1 (13.8) Change in power and gas price forecasts (54.8) (17.6) Change in operational benchmark discount rates Uplift on financial closes Value enhancements and other changes 15.1 (17.2) Fair value movement

17 Pension deficit under IAS19 17 Net IAS19 deficit: 32.3 million at 31 December 2017 ( 61.3 million at 31 December 2016) 24.7 million scheduled cash contribution to JLPF during the year Average contributions of 26m per annum to JLPF agreed over seven year repayment period from 31 March 2016 million IAS19 (deficit)/ surplus John Laing Pension Fund (35.2) John Laing Pension Plan 2.9 Summary Balance Sheet (32.3)

18 Summary Cash Flow re-presented 18 Key line items Year ended 31 December 2017 ( m) Year ended 31 December 2016 ( m) Cash yield Operating cash flow (17.3) (10.9) Net FX impact (1.3) (18.2) Total operating cash flow Cash investments in projects (209.9) (301.5) Proceeds from realisations Cash received from acquisition of Manchester Waste VL Co by the GMWDA Net investing cash flow (154.9) Finance charges (8.3) (6.8) Cash contributions to JLPF (incl. PPF levy) (24.7) (18.4) Dividend payments (30.1) (26.2) (63.1) (51.4) Cash inflow / (outflow) 59.9 (198.6) Opening net (debt) / cash (88.2) Closing include net cash debt collateral balances and are net of cash borrowings (28.3) (88.2)

19 Financial resources available December 2017 ( m) 31 December 2016 ( m) Committed facilities Letters of credit issued under corporate banking facilities (152.3) (112.6) Letters of credit issued under additional surety facilities (50.0) (50.0) Other guarantees / commitments (7.5) (6.5) Short term borrowings (176.0) (165.0) Utilisation of facilities (385.8) (334.1) Headroom on committed facilities Cash and bank deposits Unavailable cash (0.7) (0.9) Net available financial resources Total letters of credit issued Cash collateral Future cash investment into projects

20 Income Statement re-presented 20 Revenue Costs Other Key line items Year ended 31 December 2017 ( m) Year ended 31 December 2016 ( 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 (2.1) (3.2) Total Income Third party costs (11.3) (9.8) Staff costs (33.9) (34.1) General overheads (12.7) (11.1) Other and exceptional charges 2.1 (0.7) EBIT Finance charges (10.1) (7.7) Pension and other charges (2.6) (2.9) Profit before tax from continuing operations Earnings per share (basic) 34.7p 51.9p

21 210m Rights Issue summary 21 Fully Underwritten Rights Issue Terms (1) Rights Issue Timetable Net proceeds 210m John Laing results announced 8 March 2018 Rights issue terms 1 for 3 Issue price 177p Rights issue announcement and prospectus published 8 March 2018 Theoretical ex-rights price (TERP) 250p Nil-paid trading commences 9 March 2018 Issue discount to TERP 29.2% New shares to be issued 122.3m Latest date for acceptance and payment Announcement of rights issue results 23 March March 2018 Ex dividend date 20 April New shares will be entitled to FY17 final base and special dividend. Based on closing share price of 274.2p on 7 March 2018

22 Dividends 22 John Laing will continue with its existing dividend policy Progressive base dividend targeting growth at least in line with inflation Special dividends of 5-10% of realisations, subject to specific investment requirements Rights Issue Shares issued pursuant to the Rights Issue will rank pari passu with the existing shares and will be eligible for dividends declared and paid following the Rights Issue Special dividend calculated as 6.2% of realisations of 289m

23 Outlook 23 From a UK PPP player to an international greenfield infrastructure investor Strong pipeline of future opportunities spread over three regions 580m of projects under construction to generate further value From 2018: Regional organisation with strong oversight from HQ able to scale up Strong discipline in investment analysis and decision making Confident outlook Guidance for 2018: investment commitments of c. 250m realisations at broadly similar level to investment commitments Potential to increase investment commitments guidance with benefit of rights issue

24 Q & A 24

25 Appendices 25

26 Portfolio at 31 December By discount rate Primary * By discount rate Secondary * million Total 577.2* % 8-9% 9-11% 11-13% Discount rate million Total 584.8m* % 7-8% 8-9% 9-11% Discount rate By remaining construction period - Primary By value of each investment million Total: 580.3m years 2-3 years 1-2 years 0-1 year million Total 1,193.8m Listed < 25m 25-50m 50-75m 75m + *excluding assets not valued on a DCF basis: 3.1m in the Primary portfolio and 28.7m in the Secondary portfolio

27 Secondary discount rate benchmarks % Listed PPP Infrastructure Funds Listed Environmental Funds 8.0% 7.9% 8.3% 7.5% 7.4% 7.9% 7.9% 8.5% 8.1% 8.2% 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 rate at: - 31 December 2017 for JLG s secondary portfolio - 30 September 2017 for HICL & JLEN - 30 June 2017 for BBY, BBGI, INPP, JLIF, UKW & TRIG

28 Divisional contribution re-presented 28 Year ended 31 December 2017 Primary Investment m Secondary Investment m Asset Management m Central m Total m Total income (18.8) Third party costs (7.5) (2.7) (1.0) (0.1) (11.3) Staff costs (10.2) --- (13.9) (9.8) (33.9) General overheads (2.3) --- (4.3) (6.1) (12.7) Intra-group reallocation 1 (17.9) (8.2) Other and exceptional charges Operating profit (29.7) Finance charges (8.4) (2.2) (10.1) Pension and other charges (2.6) (2.6) Profit before tax (31.9) internal fees/charges and reallocation of certain central costs

29 Increasing internationalisation portfolio values by region Dec Dec Dec Dec 2017 North America Asia 7% Pacific 8% UK 66% 772m Europe 19% North America 10% Asia Pacific 13% UK 52% 841m Europe 25% Asia Pacific 17% North America 10% UK 44% 1,176m Europe 29% North America 24% Asia Pacific 24% 1,194m Europe 17% UK 35% Note: UK includes the listed investment in JLEN