Good morning to you all. It's James Armstrong and Neil Wood from Bluefield Partners, investment advisor to the Bluefield Solar Income Fund. We're delighted to present the interim results for the period ended 30th December 2020. I'm in Wiltshire and Neil is in London. We will go through this in sequence, where we'll start just by way of introduction to the Bluefield Solar Income Fund, as there are now many, many different types of renewables fund listed in the London market. So we're a U.K.-focused sterling income fund with a mandate to invest primarily in solar, but also wind and storage assets. We have delivered so far the highest total return since IPO and the highest earnings and highest dividend per share, and have over 600 MW of operational solar assets. We have one of the lowest risk, but highest performing, obviously, portfolios in the market. Turning over to page two with the period highlights. There's been a lot going on. It's been another solid set of results. Within the period, we've seen a mandate change, so we've broadened the mandate to invest into wind and storage. We've had very oversubscribed equity placements of GBP 45 million. Made close to GBP 200 million worth of acquisitions, and Neil will talk about that in a few moments. We've also had the approval for our first 50 MW solar farm. There's been a lot going on. What we're going to do, because of the consistent, the nature of the results that we've had consistently over the years, is that Neil and I, we're going to go through the results at a fairly brisk pace in order that we have some time to be able to talk about why we have consistently had the success that we've had, how we've managed to drive out the outperformance, and then to talk about how this will work for the next phase of growth for the company. Before we do that, we just want to make a comment about COVID and the pandemic. We need to say a very big thank you to all the Bluefield teams who've been working remotely now since March 21st, 2020, and have managed the operational and financial performance of Bluefield Solar exceptionally well and have delivered exceptional results in very, very difficult circumstances. If you take the calendar year 2020, which obviously includes nine months in the pandemic, we've delivered in excess of GBP 0.11 per share, which is a really stunning performance. We'd also like to thank the management teams for their tireless focus and effort, working really closely with all the teams and making sure that we've looked after their wellbeing at this really challenging time. All we can say is, obviously, based on those earnings, there's been absolutely no disruption to the service provision, and we're delighted with how it's worked during this period. Moving over to page four. What are the results? For the half year, we've had solid underlying earnings of just over GBP 0.045 per share. We've amortized, as typical, a good chunk, so GBP 0.02 per share, and we had some obviously reserves brought forward. We had over GBP 0.045 available for distribution and we've had dividends of GBP 0.02 per share. This period, obviously, for the financial year, we're on target for an GBP 0.08 per share in the full year dividend. We've got good reserves carried forward into the current year. Net asset value has stood up very well as well. In terms of the operational highlights, the radiation has been very stable. That should be no surprise to anyone who's heard Neil and I talk about solar before. It's the most stable of all the feedstocks. It's daylight hours driven. It's a very consistent energy source. Obviously, what's pleasing as well is we've had very solid energy generation as well. That has worked extremely well. The interesting dynamic from the period is on the right-hand side with the revenue generation where we've got higher than expected revenues, and there's a very positive trend coming down the pipe for the sector and also for Bluefield Solar. Hop over to the next slide, we can see that if you look on the top half of page six, you can see that dynamic. Look on the right-hand side of the graph, you can see the green line is the baseload. It's the U.K. baseload prices. You can see from obviously 2020, the energy markets, as everyone knew because of COVID-19, had a really crazy bit. You can see them going down to in the 20s per megawatt hour during that sort of from the lockdown onwards. Then from mid-year onwards, there's been this fairly significant recovery, which has gone back up to obviously above the pre-COVID levels. It's a very interesting and very supportive dynamic. It's come off slightly in the new year in the current quarter, but it's still a very, very strong position. If you look on the bottom left, you can see, obviously, that the commensurate we've had with our power strategy, we've been very, very protected, which has been backed up by the earnings that we've spoken about. Our average weighted power price has come down a little bit from the mid-50s to the high 40s, but still it's been very solid and obviously one of the key elements to that is not only is it a very solid performance, but also we have had very high levels, as always, of fixed contracts giving a great deal of protection for our shareholders and for the income that we're looking to deliver to them. With that, I will hand over to Neil on page seven to talk about the earnings and valuation. Neil. Thank you, James. Now, we've been showing slide seven for a number of reporting cycles, and so we're conscious that many shareholders are familiar with the content. The reason we feel it's important to keep coming back to this slide is because it helps to remind us of why the risk premium attached to solar is lower than any other renewable technology. As we've spoken about before, this is inherently due to the predictability of irradiation levels and the robustness of operating equipment. However, while solar may be the most straightforward renewable technology to achieve consistently high levels of operation, as the company has done since listing in July 2013, takes a highly specialized and dedicated team, and one that performs well whatever the weather. In practice, James was outlining this dedication has never been more evident than in the past 12 months, where, despite unprecedented circumstances created by the COVID-19 pandemic, Bluefield staff have continued to provide uninterrupted services to all aspects of the company's operation. What were the results of that? Well, the results were lower than expected irradiation and generation have been converted into above target revenues. If we turn over onto slide eight, Consolidated Portfolio Earnings. We've outlined since first listing in 2013, the company's financial performance has been built on three central tenets. Consistent portfolio operational performance, a power fixing strategy, as James has mentioned, that smooths out market volatility and prudent management of operational costs. As a business that is judged on its earnings, it's also imperative the financial performance of the portfolio is straightforward to reconcile to the distributions available and made to shareholders. That's evidenced on the slide by the interaction between the financial results table and the graph below, detailing distributions to shareholders during the financial period. As has already been mentioned in the presentation, during the period, the company completed the material acquisition of a 64 MW portfolio with a bespoke GBP 110 million three-year term loan from NatWest. It's crucial to note that the financial figures at 31st of December 2020 include the full benefit of this significant acquisition. Taking the component parts of the table in turn, portfolio income of GBP 33.1 million is slightly ahead of target, despite generation being fractionally behind as the company took advantage of rising power markets and secured PPA pricing ahead of expectations. Portfolio costs, so those are the operational costs within the underlying SPVs of GBP 8.6 million were in line with expectations, with the increase against December 2019 driven principally by the addition of 64 MW of assets acquired in the period and the limited financing costs associated with this. Group operating costs, GBP 3.7 million, have risen compared to December 2019, driven principally by the company's GBP 45 million equity raise in November 2020 and moderate increase in corporate tax estimates for the period to June 2021. Deducting interest costs of GBP 2.1 million in relation to the company's 18-year fully amortizing loan with Aviva and its three-year RCF with RBSI results in underlying earnings for the period, pre-amortization of long-term debt of GBP 18.7 million or GBP 0.0459 per share. Finally, on the table, the slight drop in underlying earnings compared to December 2019 is simply a product of the fact the period July 2019 to December 2019 benefited from irradiation levels over 6% above expectations, as well as James was referencing, slightly higher weighted average PPA price. As the chart below the table illustrates, the strong financial performance over the first half of the year to December 2020 means after debt repayments of GBP 0.0196 per share and a declared first interim dividend for the period to June 2021 of GBP 0.02 per share, the company has grown effective carried forward dividend reserves to GBP 0.0266 per share. If we turn over the page to valuation parameters in slide nine. Now, in the same way that earnings represent the most important figures for distributions, the director's valuation is the most important number in respect of the company's NAV. As it is prepared on a willing buyer, willing seller basis, it's crucial it is a comparable reflection of transaction values for the reporting period. Now, as the bar chart at the bottom of the slide on discount rates illustrates, since Bluefield Solar Income Fund listed in 2013, investor appetite, understanding and comfort with renewable assets has increased year on year. As such, given increasing competition for non-correlated income from sustainable sources, it is no surprise this has resulted in market participants continuing to apply ever lower discount rates and extended asset life assumptions in transactions across the renewable spectrum. By continuing to apply a levered equity discount rate of 6%, the latest power curves from the company's three leading forecasters and increased asset life assumptions of between 30-40 years across 306 MW, circa 56% of the company's portfolio as at 31st of December 2020. The directors valuation of GBP 1.28 million per megawatt peak continues to sit prudently below the middle of the value range of GBP 1.2 million-GBP 1.4 million per megawatt for comparable subsidized U.K. solar assets. Furthermore, this range is supported by two recent examples of transactions of equivalent ROC rating to the company's portfolio for sale by EFG Hermes, shown by the largest green dot on the right of the chart of a 365 MW peak portfolio to circa GBP 1.37 million per megawatt, and the acquisition post period end by the company of Bradenstoke for 70 MW, 1.4 ROC asset for GBP 1.27 million per megawatt. That's shown as the light blue circle beneath the dark blue hollow circle. Finally, in August 2020, the company completed the acquisition of a 64 MW ground mounted portfolio, which we've discussed earlier, and that's shown by the top right blue dot for potential consideration, excluding working capital of up to GBP 104 million. This portfolio benefits from an average subsidy tariff of 1.8 ROCs, and its high proportion of regulated revenue being close to 66% at the time of acquisition, until 2033, is a significant benefit to the earnings profile of the company's portfolio as a whole. If we turn over onto slide 10, and NAV movements. This slide illustrates the correlation between NAV movement, the top graph, and the numerical impact on the portfolio valuation in the bottom graph, as a result of the core valuation assumptions shown on the previous slide. As the NAV per share has remained constant between June 2020 and December 2020, at circa GBP 1.17 per share. The NAV movement chart highlights that the absolute value change has effectively been driven by the GBP 44.5 million equity raise in November 2020. Whilst the NAV per share has remained at GBP 1.17 per share between the periods, there has been a fall of GBP 15.9 million within the director's valuation itself. As the portfolio valuation movement graph illustrates, the drivers behind this fall are inherently the combination of further reductions in long-term power forecasts, lowering the valuation by GBP 6.2 million, as well as a net GBP 2 million decrease driven from transaction costs between the GBP 110 million NatWest loan and underlying value of the 64 MW acquisition of GBP 108 million. As well as a cumulative drop of GBP 7.7 million between the negative movement of cash released from the portfolio of GBP 35.6 million, i.e., cash paid from the SPVs to Bluefield's investments, and the positive contribution of GBP 27.9 million for the balance of portfolio return. Essentially, the impact of six months unwinding of the discount rate, as well as small changes from capital structure and asset extensions outside of the 64 MW acquisition. Turning over the page to slide 11 and concluding the section on valuation, is a tornado chart of key assumptions and the impact flexing them has on the director's valuation as at 31st of December 2020. As expected, they highlight valuation returns are most impacted by long-term swings in overall energy yield, with power price movements of ± 10%, and asset life changes of ± 5 years making up the second and third biggest value drivers. With that, I will hand back over to yourself, James. Neil, thank you very much. Moving on to page 12. We're talking about some ESG considerations. Obviously, you can see that as a renewables investor, we've got a lot of obvious benefits being shown from the portfolio that we have under management currently. Moving on to page 13 is probably the more important part of the consideration. We've been talking to shareholders and stakeholders about ESG considerations and the reporting of ESG from companies. What has come back to us is that there is some level of confusion about the basis upon which companies are making ESG disclosures and what it actually really means for a shareholder to understand what those considerations mean in terms of the risk or opportunity that ESG poses to a particular company. With this in mind, we have agreed with the board is that we are going to undertake a materiality assessment, which is akin to an audit for the company, for Bluefield Solar, but in relation through the prism of ESG considerations, so that we can really evaluate what risks and opportunities there are for the company. We're going to do this with a third-party consultancy. We're going to obviously work very closely with the board and also engage shareholders in this process. What will come out at the end will be what's obviously a very robust materiality assessment that will then have certain actions that will enable us to put forward a very sensible and methodical approach to our ESG strategies and also reporting. We look forward to talking to our shareholders more about that during our annual results. Moving forward, just to conclude, there's two concluding parts we would like to discuss. What we've looked to try and evaluate is to try and give some examples for people of the reasons for the very consistent outperformance of the company since IPO in 2013. In fact, if you look at the period between July 2017 and June 2020, we've delivered over GBP 0.11 per share on average, annually in that period. It is also coming from, as we've said, one of the lowest risk portfolios in the market. Indeed, we've mentioned again, it was just over GBP 0.11 per share that we've delivered in the calendar year 2020, which obviously had a period of very challenging period with obviously COVID, with lockdowns and remote working. We thought it would be helpful for people to try and understand what are the sort of contributing factors to how we have actually delivered so successfully and so consistently, and also why that is relevant for the next phase of growth, which I will conclude this presentation on. If you go forward to page 15, one of the key things about first point for us is our focus on the technologies we have selected. Renewables and storage, if we bring that in, storage solutions, are not equal in terms of risk and complexity. In a world of very loose credit and low interest rates, it is quite difficult sometimes to see where appropriate valuations should be because discount rates are being lowered across the board. Neil showed that, where there is a sort of general lowering of discount rates. Just to be clear, there is no comparison in terms of operational risk between, say, for example, an anaerobic digestion plant and a solar farm. It means that investors should demand significantly higher returns for obviously the riskier assets. What we're actually finding and what we've demonstrated is, in fact, when you look at the lower risk assets such as solar, such as wind, is that actually the predictability, the simplicity, the proven nature of those technologies has meant that we have been able to deliver what we expected to and have been able to deliver very strong, consistent earnings. This is linked to the second part, which is very key in terms of understanding that you can build on that point about having a focus on the simplest and the lowest risk technologies. It's been our operational strategy. When you think about Bluefield is a group of companies with individuals who are each dealing with different aspects of both value protection and value enhancement for our shareholders. We have expertise at every stage of the investment cycle. It's a sort of quite an old-fashioned industrial approach, where the vast majority of people who are employed by Bluefield are not in the investment team, but they're looking at the long-term performance of the portfolio. They're looking at the nuts and bolts of the portfolio. We have around about 60 individuals, 60 individuals covering all aspects of the value chain. On page 16, we just wanted to show you the fact that there's a very, very deep and broad set of expertise which have enabled us, have contributed very significantly to this consistent high performance. You can look at it in different examples, but when you're looking at, say, the example of Neil, who's led the transactions of Bradenstoke and Ample, both those deals had their areas of complexity. When Neil's going into a deal like that, you've got not just the investment team, but you have an engineering team, you've got a legal team, you've got a finance team, all coming in at the same time. It enables Neil to make evaluations on the viability of the investments in an efficient, in a very educated way. Equally, when you're looking at the post-acquisition phase, there are teams of people who are dealing with all aspects of the operational solar farms and energy plants. Looking at portfolio management, asset management, PPA sales strategies, operational maintenance. When you put it together, it's all about making incremental changes and incremental benefits to drive out higher returns. Putting those two things together with the selection of technology is very important. The final bit, which we've spoken about before, and it was touched on a little bit earlier, is our power sales strategy. Again, it's about incremental gains for people. If you'll notice on page 17, on the right-hand side, is that you've got the green line there, which is obviously the day-forward baseload power strategy. You can see there's been very significant sort of gyrations, obviously, particularly in the last 12 months or so. The blue line is the average weighted power price that Bluefield has achieved. You'll notice that interesting during this period is that we have outperformed the baseload, and we've actually made more money for our shareholders through adopting a defensive strategy of contract fixing than if we'd been actually taking a floating power sales strategy. Where that comes from are this, it was built really since the IPO in 2013, where we had some very clear principles about how we wanted to put the company together, which each year and each period of restriking of power contracts benefits our shareholders. The first thing is that where we can, we absolutely avoid having financing at the asset level. We've spoken about this a lot before. It's very key. It's a really simple principle that means that you're not going to be forced into sub-optimal power contracts by a bank who wants to have long-term security of revenues. Because we've created that flexibility of not having those financing contracts in place, it enables us to go out to the market and get the best contracts and get the best revenues that we can from both our ROC and power sales. That's really working the short end of the power market, so it's 6 - 36 month contracts typically, and that means you can maximize the returns. The final bit is obviously that we've also means that we can create a very systematic contract structure where we have contracts rolling on and off periodically, which enables us to flatten the undulations you see in the day-forward power markets. What it does is it basically maximizes revenue. At the same time, it's lowering risk. As I say, my opening comments on this slide is that we've actually outperformed, and this is the reverse of what should happen. We've actually outperformed what is more of a trading strategy during this period. It's been very successful. When you look at those three things put together, they are very significant contributors to why we've outperformed. It's very relevant as we go on to the next slide and sort of our final slide, which is that having that sort of backbone of approach is very important to us in terms of our next phase of growth. We mentioned, obviously, we had the mandate change in July last year, and really it was a mandate from the shareholders for growth, and they want to see the business grow sensibly. The key considerations for us is how do we manage to marry our focus on continuing to deliver the most attractive income and dividends per share in the sector, but managing the risks of obviously a slightly broader mandate, but also the challenge of the change in the U.K. energy mix. With that, we see three very interesting opportunities for the company, which can play on those strengths of that focus that we've spoken about, which is this very industrial focus that we have. The first one is very obvious for us, obviously, it is a focus on new build solar. Solar is, and solar development and construction funding is the DNA of Bluefield. It's how we built the business. It's why it's driven huge success. Neil has been working with third-party developers and in-house development team, and we've got a pipeline of over 450 MW with the first 50 MW consented. Not all of that will come through, obviously, but it gives you an idea of the sort of the opportunity we see. We think it's incredibly exciting because this approach enables us to control pipeline pricing, quality, and also to use our deep talent pool, where we've got our investment and operational expertise which can come into play. The second area is wind. Obviously, we've got that mandate. We're not going to be too specific at this stage in terms of where we see the opportunity. With Baiju Devani, who joined about a year ago, who's heading up the wind strategy, we have a very clear view of where we see value in this market. Also, there are some very specific segments which we think are very interesting. Again, we've got this great benefit of having both the investment and technical expertise which will enable us to make good evaluations of that market. We're very excited about that as a part of the overall portfolio. Last but not least, is battery storage. Now, we have moved, and I should probably say I particularly have moved from being fairly skeptical about this market certainly two or three years ago, to now being very excited about it and seeing it as a really good complementary minority part of the portfolio. I think it's for reasons that what's become clear for us from our analysis over the last year or so is that we're seeing, first of all, the conditions for battery storage are improving in terms of the sort of the backdrop, both regulatory and support-wise. It's becoming much clearer that there is a very good framework for battery operators. Also what's becoming clear also is the understanding of how the revenues really do work, because obviously that's been sort of moving around quite a lot. Certainly, the initial analysis we looked at, it wasn't as clear as possibly people were first representing, but it looks very interesting. We will say it's a very different market, and you need to be compensated for that. Therefore, commensurately, we expect the returns to be higher than you would find in sort of something like a very defensive asset like solar, but we are very excited about it. Great. With those three areas that we've discussed, so obviously the solar, the wind, the battery storage, we're very excited about the next phase of growth for the company, and we look forward to talking to you all about it soon. With that, thank you, Philip.
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