CS Results Presentation. 25 March 2015

Transcription

1 CS Results Presentation 25 March 2015

2 Olivier Brousse Chief Executive Officer 1

3 John Laing a platform for growth Strong results Strong first set of results following listing Successful IPO Our successful flotation in February 2015 marks a new chapter in the Group s development Dividend Expect to propose our first dividend at interim stage in August 2015 Outlook Track record and pipeline provide us with confidence for the future 2

4 Financial highlights Record year for new investments with 217 million committed ( million) Realisations of 199 million from the sale of investments Investment portfolio valued at 772 million, up 13% on % increase in NAV, from 528 million to 650 million Adjusted NAV of 210p per share Group profit before tax of 120 million, up 7% on 2013 on a like-for-like basis 28% increase in external assets under management to 1 billion 3

5 Operational highlights Further international growth with two PPP investment commitments in Australia and one in the US Expansion of renewable energy activities with the Group s first investment in a biomass project Both phases of the Manchester Waste project, one of our largest investments, became operational in early 2015 Successful launch of JLEN, a new listed fund targeting environmental infrastructure assets 4

6 New investment commitments Project Region PPP m RE m Total m IEP (Phase 2) UK East West Link, Melbourne Asia Pacific New Perth stadium Asia Pacific Speyside biomass UK I-4 Ultimate, Florida North America IEP (Phase 1) - variation UK City Greenwich Lewisham (DLR) additional 12% shareholding UK Other renewable energy projects UK/Europe PPP = Public Private Partnerships; RE = renewable energy

7 Realisations Project East London Waste Dumfries & Galloway Waste Amber Solar Parks Bilsthorpe Wind Farm Hall Farm Wind Farm WALLP Wind Farms JLEN seed portfolio JLEN m JLIF m Other m Total m Shareholding in JLIF Groningen Tax Office Metropolitan Police SEL Kirklees Social Housing Surrey Street Lighting Croydon BWH Kinnegar 50% of New Perth Stadium PPP sales to JLIF Money multiples on sales to JLIF were above long term average of 2.0 times Budget for realisations in 2015 of c. 100 million 6

8 Primary Investment key projects under construction Projects under construction Greater Manchester Waste, UK Intercity Express Programme, UK New Royal Adelaide Hospital, Australia Denver Eagle P3, United States Dungavel Wind Farm, 26MW, UK 7

9 Secondary Investment operational highlights A1 Gdansk, Poland M6, Hungary Severn River Crossing, UK Four wind farm projects became operational during 2014: Burton Wold, UK 14.4MW Carscreugh, UK 15.3MW Wear Point, UK 8.2MW Svartvallsberget, Sweden 20MW 8

10 Pipeline at 31 December 2014 Project status No. PPP Expected financial close Total Preferred bidder Shortlisted Pre-qualification Pipeline Total ,067 Project status Renewable Energy No. Total Commercial close 2 22 Exclusive 4 72 Pipeline Total North America 35% UK & Ireland 7% Asia Pacific 23% Rest of Europe 35% UK & Ireland 46% Rest of Europe 54% 9

11 Patrick O D Bourke Group Finance Director 10

12 Key Performance Indicators KPI 2014 m 2013 m NAV Investment portfolio - net Investment portfolio - gross 1, Cash yield from investments New investment committed Disposals External Assets under Management 1.0bn 0.8bn 11

13 Liabilities Assets Summary Balance Sheet at 31 December 2014 Key line items 31 Dec 2013 Pro-forma re-presented 30 Sep Dec 2014 IPO adjustments Adjusted Balance Sheet 31 Dec 2014 Portfolio book value (79.8) Cash collateral Non-investment assets Total investments (79.8) Other long term assets Cash Total Assets Working capital and provisions (17.8) (20.2) (27.9) - (27.9) Cash borrowings (6.0) (53.5) Pension deficit (IAS 19) (196.8) (189.6) (177.6) (77.6) Other retirement benefit obligations (7.6) (7.8) (8.2) - (8.2) Total Liabilities (228.2) (271.1) (213.7) (113.7) Net Assets Exclude shareholder loan which was capitalised / waived in January

14 Primary and Secondary portfolio overview Investment Portfolio Book Value at 31 December 2014 Value m Valuation WADR Primary Investment (projects under construction) 17 PPP projects 4 Renewable Energy projects Book value excludes associated future cash injections of 304.3m 1 414m 10.0% 9.8% Secondary Investment (projects in operation) 14 PPP projects 5 Renewable Energy projects Stake in JLEN (held at JLEN share price) 292m 66m 9.2% 772m 1. Representing letters of credit and cash collateral outstanding 13

15 Portfolio valuation bridge 25.9% increase on rebased portfolio valuation Portfolio valuation movement year ended 31 December Portfolio valuation December 2013 Realisations Cash Yield Cash invested: Projects Cash invested: JLEN Rebased valuation Movement in fair value Portfolio valuation December 2014 Movement in fair value of 158.6m includes discount rate unwind ( 53.0m), reduction of construction risk premia ( 16.3m), FX movements (negative 7.8m), value enhancements and other changes to forecast cash flows ( 97.1m, 38.4m of which from new financial closes) 14

16 Pension deficit The IAS19 deficit on the John Laing Pension Fund was million at 31 December 2014, based on a discount rate of 3.6% 10% reduction in 31 December 2013 liability of million 100m special contribution in February 2015 as part of the IPO process Estimated deficit of 94.9 million at 28 February 2015, based on a discount rate of 3.4% Schedule of Contributions Date Original Revised March m (paid) 26.1m (paid) IPO (Feb 2015) - 100m assets / cash March m 27.0m March m 18.0m March m 19.0m Next triennial actuarial valuation as at 31 March

17 Pro-forma Cash Flow re-presented Key line items Year ended 31 Dec 2014 Year ended 31 Dec 2013 Cash yield Operating cash flow (5.5) (11.9) Total operating cash flows Cash investments in projects 2 (92.3) (122.2) Proceeds from disposals Disposal of JLIF shares Investment in JLEN shares (63.5) - Net investing cash flows 42.7 (2.6) Net finance charges (9.0) (17.2) Cash contributions to JLPF (incl. PPF levy) (26.3) (25.5) (35.3) (42.7) Effect of FX rate changes (1.0) 0.5 Cash inflow/(outflow) 28.8 (24.7) Opening cash balances (net) Closing cash balances (net) Includes cash distributions from portfolio projects plus distributions from non-portfolio assets (e.g. JV with Croydon council) 2. Includes cash injections into portfolio projects plus investments in non-portfolio assets (e.g. JV with Croydon council) 16

18 Corporate banking facility - utilisation 31 December December 2013 Corporate banking facility Letters of credit issued (243.8) (158.8) Other guarantees / commitments (1.1) (1.1) Short term borrowings --- (6.0) Net facility utilisation (244.9) (165.9) Facility headroom Cash and bank deposits Net available financial resources Letters of credit issued Cash collateral Future cash investment into projects New 5 year 350m corporate banking facility signed in February Excludes cash collateral balances of 60.5m (31 Dec m) 17

19 Others Costs Revenue Pro-forma Income Statement re-presented Key line items Year ended 31 Dec 2014 Year ended 31 Dec 2013 Investment Management Services (IMS) revenue Project Management Services (PMS) revenue Bid cost recoveries on financial close Investment fees from projects Movement in fair value investment portfolio Movement in fair value other Total Income Third party bid costs (7.1) (8.9) Staff costs (33.2) (30.1) General overheads (14.7) (12.8) Internal Asset Management fee charge (10.2) (8.2) Exceptional gains/(losses) (5.9) 24.4 EBIT Finance charges (16.7) (10.2) Pension and other charges (10.0) (9.3) Profit before tax (before discontinued operations)

20 External Assets under Management Strong external AUM growth reaching 1,020m of assets under management as at 31 December 2014 John Laing Infrastructure Fund Raised 270m at IPO in November 2010; additional 577m equity raised since launch Portfolio value at 31 December 2014 of 865m Market capitalisation at 31 December 2014 of 997m Targets public sector or government-backed investments JLIF acquired four investments from John Laing in 2014 for 37m John Laing Environmental Assets Group Raised 160m at IPO in March 2014 Portfolio value at 30 September 2014 of 155m Market capitalisation at 31 December 2014 of 165m Targets environmental infrastructure investments At 31 December 2014, JL held a 39.7% stake in JLEN within its Secondary Investment portfolio 29.9% shareholding in JLEN transferred to JLPF in February 2015, leaving John Laing with a 9.8% share holding 19

21 Outlook Investment portfolio: Further progress on projects under construction Positive signs in secondary market Budget for realisations in 2015 of c. 100 million million budget target for 2015 new investment commitments Sydney Light Rail ( 41 million) closed February 2015 PPP: a number of opportunities being pursued most scheduled to reach financial close in the second half Renewable energy: expect to convert some exclusive positions in next few months Track record and pipeline provide us with confidence for the future 20

22 Q&A 21

23 Appendices 22

24 Portfolio valuation bridge Q Portfolio valuation movement Q Portfolio valuation September 2014 Realisations Cash Yield Cash invested: Projects Rebased valuation Movement in fair value Portfolio valuation December 2014 Movement in fair value of 24.0m includes discount rate unwind, reduction of construction risk premia, FX movements, value enhancements and other changes to forecast cash flows 23

25 Portfolio characteristics By Geography By Sector APAC 9% North America 6% Europe 18% JLEN 9% UK 58% Environmental 13% Social 14% Renewable Energy 16% JLEN 9% Transport - other 33% Transport - rolling stock 15% By Project Size By Revenue basis Others 29% JLEN 9% Top 5 projects 42% Shadow toll 2% Volume (Incl. RE investments) 20% JLEN 9% Availability 69% Next 5 projects 20% 24

26 John Laing Pension Fund De-risking measures: Transfer of all risks relating to c.40% of liabilities in respect of pensioner members under a buy-in policy implemented with Aviva in 2008 Inflation hedging with long-dated zero coupon inflation swaps with a notional amount of c. 75 million Interest rate hedging via a pooled hedging vehicle, equivalent notional amount of c. 190 million as at 31 December 2014 De-risking of the investment portfolio, including a reduction in the allocation to riskier asset classes Asset allocation 31 Dec 2014 Special contribution 31 December 2014 adjusted Percentage Gilts % Corporate bonds % Aviva buy-in policy % Equities % Property % PPP assets % Cash % Total % 25

27 Segmental reporting Primary Investment Secondary Investment Asset Management Total m Profit before tax excluding JLIS JLIS profit before tax Total profit before tax on continuing operations Post retirement charges (10.0) (8.8) Costs relating to discontinued operations and other (8.8) 8.0 Profit before tax excluding gain on disposal of JLIS Gain on disposal of JLIS Profit before tax (before discontinued operations)