Half Year 2017 Results Presentation

Transcription

1 1 Half Year 2017 Results Presentation 24 August 2017 [New images that match annual report design for background]

2 2 Olivier Brousse Chief Executive Officer

3 Highlights 3 2.3% increase in NAV to 1,040m (4.6% including dividend paid in May) NAV of 284p per share (277p per share at 31 December 2016) Investment commitments of 111m Pipeline at 1.9bn, including 11 shortlisted PPP positions Realisations of 151m 7% increase in external assets under management to 1.58bn 3% increase in interim dividend to 1.91p per share 2017 guidance for investment commitments and realisations maintained

4 Importance of active management 4 New Royal Adelaide Hospital, Australia Manchester Waste, UK

5 Projects under construction 5 Intercity Express Programme New Perth Stadium Denver Eagle P3 New Generation Rollingstock

6 Strong pipeline 6 31 Dec Dec June 2017 North America 36% Asia Pacific 29% North America 38% 1,383m Asia Pacific 26% Europe 36% PPP 1,494m 1,859m 1,885m Europe 35% North America 30% Europe 34% 502m Asia Pacific 36% Renewable Energy

7 Shortlisted / exclusive opportunities 7 North America: George Massey Bridge, British Columbia Central 70 Road, Colorado MBTA Fare Collection, Massachusetts Gordie Howe International Bridge, US/Canada Hurontario LRT, Ontario Los Angeles CONRAC, California Hamilton Rail, Ontario Europe: National Broadband, Rol Silvertown Tunnel, UK A16, Netherlands Asia Pacific: Melbourne Metro, Aus John Laing offices Shortlisted PPP projects Plus eight exclusive renewable energy opportunities.

8 Strong international partners 8

9 Investment commitments in line with guidance 9 Project Region PPP RE Total New Grafton Correctional Centre Asia Pacific Hornsdale 3 Wind Farm Asia Pacific Solar House Europe Total at 30 June July 2017: Buckthorn Wind Farm North America Total YTD

10 Realisations of assets in line with guidance 10 Project Holding sold JLEN JLIF Other Total M6 Hungary Road 30% A1 Poland Road 29.69% Croydon & Lewisham Street Lighting 50% Total at 30 June

11 Growth in external assets under management (AuM) 11 1,472m 1,582m Secondary issues totalling 175m by JLIF and JLEN in H AuM: Revenue: 1,136m 1,020m 796m 537m 5.7m 8.2m 10.3m 12.0m 15.8m 8.1m H % increase in external AuM to 1.58 billion Growth in external AuM revenue to 8.1m (H m) AuM revenue makes an important contribution towards reducing Group cost base

12 12 Patrick O D Bourke Group Finance Director

13 Liabilities Assets Summary Balance Sheet re-presented 13 Key line items 30 June December 2016 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 Working capital and provisions (4.8) (5.6) Cash borrowings (64.7) (165.0) Pension deficit (IAS 19) (30.1) (61.3) Other retirement benefit obligations (8.1) (8.0) Total Liabilities (107.7) (239.9) Net Assets 1, ,016.8

14 NAV growth of 2% 14 Net asset value movement six months ended 30 June , (14.2) (23.1) 1, , , December 2016 Fair value movement on portfolio Pension deficit Other P&L items Dividends paid 30 June 2017

15 Balanced investment portfolio 15 Investment portfolio at 30 June 2017 Value Weighted Average Discount Rates 30 June December 2016 Primary Investments (projects under construction) PPP projects 8 Renewable Energy projects 656.5m 8.9% 9.1% Secondary Investments (projects in operation) PPP projects 10 Renewable Energy projects Shareholding in JLEN (at 30 June 2017 share price) 452.7m 7.8% 8.4% 10.1m - - 1,119.3m 8.6% 8.9%

16 Diversified and balanced portfolio at 30 June 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 At 30 June 2017, ± 5% movement in Sterling would decrease / increase portfolio valuation by c. 30m

17 Continuing value creation 17 Components Six months ended 30 June 2017 Six months ended 30 June 2016 Year ended 31 December 2016 Unwinding of discounting Reduction of construction risk premia Foreign exchange movements Macro economic impacts (2.1) (12.6) (13.8) Change in power and gas price forecasts (22.9) (16.3) (17.6) Change in operational benchmark discount rates Uplift on financial closes Value enhancements and other changes * (8.9) 21.2 (17.2) Fair value movement * Includes 25.5m reduction in the value of Manchester Waste investments

18 Pension deficit under IAS19 18 Net IAS19 deficit: 30.1 million at 30 June 2017 ( 61.3 million at 31 December 2016) Small decrease in IAS19 discount rate from 2.8% at 31 December 2016 to 2.7% at 30 June 2017 No change in RPI assumption of 3.2% 24.5 million scheduled cash contribution to JLPF in March 2017 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 (32.9) John Laing Pension Plan 2.8 Summary Balance Sheet (30.1)

19 Summary Cash Flow re-presented 19 Key line items Six months ended 30 June include cash collateral balances and are net of cash borrowings Six months ended 30 June 2016 Year ended 31 December 2016 Cash yield Operating cash flow (7.0) (11.1) (10.9) Net FX impact (0.1) (3.5) (18.2) Total operating cash flow Cash investments in projects (57.7) (53.5) (301.5) Proceeds from realisations Net investing cash flow (154.9) Finance charges (4.4) (3.9) (6.8) Cash contributions to JLPF (incl. PPF levy) (24.5) (18.1) (18.4) Dividend payments (23.1) (19.4) (26.2) (52.0) (41.4) (51.4) Cash inflow / (outflow) 49.6 (32.6) (198.6) Opening net (debt) / cash 1 (88.2) Closing net (debt) / cash 1 (38.6) 77.8 (88.2)

20 Other Costs Revenue Income Statement re-presented 20 Key line items Six months ended 30 June 2017 Six months ended 30 June 2016 Year ended 31 December 2016 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 (1.4) (9.1) (3.2) Total Income Third party costs (3.5) (3.4) (7.7) Staff costs (17.0) (16.8) (34.1) General overheads (6.3) (5.9) (13.2) Other and exceptional charges 1.9 (1.2) (0.7) EBIT Finance charges (4.7) (2.9) (7.7) Pension and other charges (1.3) (1.5) (2.9) Profit before tax from continuing operations Earnings per share (basic) 10.2p 29.1p 51.9p

21 Outlook 21 Full year guidance for both investment commitments and realisations maintained Strong pipeline Increasing opportunity in North America Exclusive renewable energy opportunities 11 shortlisted PPP positions due to close in next 18 months Signs of renewed greenfield activity in some European countries Opportunities to scale up our business in our three core regions Confident outlook

22 Q & A 22

23 Appendices 23

24 million million million million Portfolio at 30 June By discount rate - Primary By discount rate Secondary * Total 656.5m % 8-9% 9-11% Discount rate % Total 416.3m* % 7-8% 8-9% 9-11% Discount rate By remaining construction period - Primary By value of each investment Total: 656.5m years 2-3 years 1-2 years 0-1 year Total 1,119.3m Listed < 25m 25-50m 50-75m 75m + *excluding assets not valued on a DCF basis valued at 46.5m

25 Secondary discount rate benchmarks % Listed PPP Infrastructure Funds Listed Environmental Funds 8.0% 7.8% 8.3% 7.6% 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 rates at 30/06/2017 for JLG s secondary portfolio, BBY, UKW & TRIG Publicly reported discount rates at 31/12/2016 for BBGI, INPP and JLIF. Publicly reported discount rates at 31/03/2017 for HICL and JLEN.

26 Divisional contribution re-presented 26 Six months ended 30 June 2017 Primary Investment m Secondary Investment m Asset Management m Central m Total m Total income 75.4 (22.9) Third party costs (3.5) (3.5) Staff costs (5.3) --- (7.3) (4.4) (17.0) General overheads (1.1) --- (2.5) (2.7) (6.3) Intra-group reallocation 1 (8.7) (3.6) Other and exceptional charges Operating profit 56.8 (26.5) Finance charges (3.5) (1.2) (4.7) Pension and other charges (1.3) (1.3) Profit before tax 53.3 (27.7) internal fees/charges and reallocation of certain central costs

27 Financial resources available June December 2016 Committed facilities Letters of credit issued under corporate banking facilities (150.0) (112.6) Letters of credit issued under additional surety facilities (50.0) (50.0) Other guarantees / commitments (2.3) (6.5) Short term borrowings (64.7) (165.0) Utilisation of facilities (267.0) (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