Good morning, welcome to the annual results presentation with Triple Point Energy Transition plc, TENT, for the year ended 31st of March, 2023. I am Jonathan Hick, Head of Energy Transition at Triple Point. I'm joined today by our head of portfolio, Christophe Arnoult, and our Finance Director, Chloe Smith. Today, we will be giving you a reminder of the objectives of the trust and the opportunity it is seeking to take advantage of, the financial performance for the year ended 31st of March, an update on the portfolio performance over the course of the year, and a brief overview of the outlook for the trust. Before we get into those details, I think we should start off by acknowledging that a lot has changed this year for infrastructure and renewable energy investment trusts. The increase in Bank of England base rates, rises in gilt rates, and commensurate higher bond yields have changed the game in our sector, perhaps permanently, and it would be remiss to fail to acknowledge this environment today. When TENT launched in October 2020, the 10-year gilt yield was less than half of 1%. Today, it exceeds 4%. In October 2020, making investments that yielded mid-single-digit returns were seen as attractive. That is clearly no longer the case today. As well as telling you about our results for FY 2023, the question I think we need to answer is: How is TENT positioned to succeed going forwards in this new world that we're in? On this slide, we set out what we consider to be some of the key points of difference for TENT and what is a crowded peer group in the energy transition investment trust space, and summarize how we think we are positioned for this new world of energy infrastructure investing. Taking the first point on this slide, it is clear that in this new world, investors need to work harder than ever to find the returns that shareholders are now looking for. The days of entering auction processes for subsidy-backed renewables and hoping to get attractive returns are long over. More than ever, it is vital to look across the full spectrum of the energy transition space to identify those niche areas where risk-adjusted returns are still attractive. We have done that in our time to date, investing in hydroelectric and CHP, for example, technologies that are not typically invested in by many of our peers. We have deliberately refrained from investing in areas with large yield compression, such as large-scale solar and wind. Our quest for finding those interesting returns means that we look across the whole capital structure to achieve that, investing in both debt and equity. As a natural consequence of our strategy of investing holistically across the energy transition, we have built up a diversified portfolio of assets across five different technologies and 19 different individual assets. Those assets earn income from nine offtake counterparties, and the portfolio has assets at the development, construction, and operational stage, offering an interesting blend of risk and return characteristics. One of the things we've always set out for TENT to have is high levels of contracted cash flows to underpin our dividend payments to shareholders. As you can see on the third row on this slide, 100% of our income was underpinned by contract this year, made up of interest income payments on loans and the combination of subsidy payments and fixed-price power purchase agreements that are in place for our equity investments. 46% of our income in the period was linked to RPI. Going forwards, on average, 92% of our annual forecast income is underpinned by contract over the next 10 years. As highlighted in the fourth box, in this, our second full year, we achieved dividend cover of 1.1x on a cash cover basis. Stripping out the impact of exceptional items, dividend cover was, in fact, 1.2x. During this period, TENT achieved NAV returns of 9.2%, which is ahead of our annual target. Looking ahead, in the short run, we are excited by the potential profit growth of the company, while earnings from the portfolio of four battery energy storage assets that are being built out are forecast to provide incremental earnings in future periods, materially further enhancing the dividend cover results from this year once fully deployed. Returning to the question I posed at the start, the real potential of TENT to thrive in this new world of higher base rates can be seen in its pipeline. The average pipeline return is 9%, with many attractive opportunities in EV charging, district heat, and bioenergy yielding higher than that, which I think highlights that whilst a lot has changed this year, one thing that hasn't is the ability of the energy transition sector to offer compelling returns to investors with a track record of identifying those niche growth areas in this market. As investors demand high single or even low double-digit returns from assets in the future, our holistic approach provides them with the opportunity to achieve that whilst tackling the biggest challenge facing our world today. Because it underpins everything we do, and because it is the reference point throughout this presentation today, I wanted to briefly remind you of that holistic approach over on the next slide. It starts with generation. The backbone of a net zero economy is a net zero power system. We need to get there by 2035. Decentralized renewable energy is the key to this, rather than centralized fossil fuel generation. To date, we have invested in hydroelectric generation in this part of the energy transition. As the electrons flow from the point of generation through the transmission and distribution network, more than ever, there is a role for energy storage. In 2021, enough energy was wasted from the wind generation fleet alone to power 1 million homes. Imbalance charges cost consumers over GBP 1 billion. This isn't good for getting to net zero, nor is it helpful for keeping energy affordable. We have invested in battery energy storage across the U.K. to provide crucial services to the electricity system. Finally, as you can see on the right-hand side, the electrons reach the point of demand. We achieve net zero by either reducing demand at the meter, for example, energy reduction measures, or by generating the energy we need on-site. This is the more overlooked part of the energy transition opportunity and the one that we are most excited about going forwards. To date, we have invested in the energy reduction measures through installing LEDs in commercial warehouses and on-site generation through the CHP engines in agricultural growing facilities. Going forwards, EV charging, green hydrogen, electrification of commercial fleets, and heat pumps are all interesting opportunities in this space. These new energy transition opportunities also offer some of the most attractive returns in our pipeline. This holistic approach provides investors with a naturally diversified portfolio of assets, reducing the risk from, for example, legislation such as the Electricity Generator Levy, whilst getting us to net zero across all parts of our economy more quickly than a narrow focus in one sector. As you can see on the next slide, we are proud to share how that holistic strategy has manifested itself in our performance for FY 2023. As I mentioned earlier, our total NAV return for the period was 9.2%, which is ahead of our stated target at IPO. We are proud of this outcome from what is still a growing asset base, this result should be seen in the context of the strong downside protections and lower risk associated with the returns that TENT delivers as a function of its uniquely high contracted cash flow profile of 92% over the next 10 years. We are also proud of our dividend cover of 1.1x, which should also be seen in the context of a growing portfolio, with more earnings due to come online in the coming years as the battery storage assets are built out. Again, I would highlight that our future dividend payments are underpinned by an average of 92% contracted cash flows over the next 10 years, which we think makes our risk-adjusted return one of the most robust and downside protected in the sector. As mentioned before, once exceptional items are excluded, dividend cover was actually 1.2 cash cover basis. The underlying portfolio valuation grew, driven by higher inflation and power price outlooks than when that was envisaged a year ago, offset partially by increases to discount rates. The company expects to deploy a further GBP 35.5 million over the 12 months of FY 2024 into its portfolio of battery energy storage assets and development financing opportunities. In the year, the company extended its RCF, locking in a fixed rate of interest and paid dividends of GBP 0.055. Triple Point evidenced its conviction in the company by acquiring a little under 400,000 shares in the period, further purchases were made in the post-balance sheet period. The company illustrated its environmental credentials through generating around 19,000 megawatt hours of energy and avoided a little over 27,000 tons of carbon. I will now hand over to Chloe to take you through the financial highlights. Thank you, Jonathan. I am very pleased with the financial results of the year. Following the full deployment of the IPO proceeds and committing the group's revolving credit facility, we have benefited from strong investment performance and income, and as a result, delivered a profit growth of 85%, which drove dividend coverage of 1.1x, which, as Jonathan mentioned earlier, is a key highlight for the financial year. The annual profit for the year of GBP 8.8 million was delivered through interest and dividend income of GBP 7.3 million, and an unrealized fair value gain of GBP 4 million, which relates to the company's equity investment in the hydroelectric portfolio. This was partly offset by expenditure, which has increased compared to prior year, but is in line with budget. The increase in the investment management fee is driven by greater level of deployed capital, on which the fee is predominantly charged. In October 2022, we were admitted to the premium segment of the London Stock Exchange, which was an important step for the company, allowing us to market our company to new groups of potential shareholders and improving liquidity for our existing shareholders. The financial impact of moving to the premium segment was approximately GBP 600,000, and this one-off cost was the main driver behind the increase in the other expenses during the financial year. It is also worth noting that our dividend coverage increases to 1.2x when excluding this one-off cost. From the profits generated of GBP 8.8 million, the company has paid a GBP 0.055 per share dividend for the year. This successfully achieved the full dividend coverage when taking into account the overall cash income and expense, including financing costs of both TENT and TENT Holdings, the company's wholly owned subsidiary. Turning to the statement of financial position, we are pleased to report the net asset value for the company of GBP 99.4 million, which has increased by GBP 3.3 million during the financial year, and as a result, delivered a total return to shareholders, including dividends paid of 9.2%, as Jonathan outlined at the start. Overall, the group has GBP 132.1 million of investments that are committed. This comprises of investments deployed, held at fair value, and two committed facilities held at cost. The total investments of... at fair value of GBP 90.1 million is representative of debt and equity investments held through TENT Holdings of GBP 87.7 million, and the cash balance within this subsidiary of GBP 2.4 million. During the year, the group deployed funds into the committed battery storage asset facility and has continued to progress further with this since the year-end date, with 22% now being deployed. We have also deployed GBP 2.2 million into our LED portfolio and committed funds against a development loan facility of GBP 5 million, which was deployed directly after the year-end date. The decrease in cash is primarily reflective of this deployment throughout the year. The investment portfolio has also benefited from a fair value uplift relating to the hydroelectric portfolio, which leads me on to the next slide. The movement in the portfolio valuation during the year is demonstrated in the bridge graph provided, showing the movement of the underlying portfolio of investments, which has increased by 11% during the financial year. During the year, the company deployed into the committed battery storage facility and the LED portfolio, with scheduled capital repayments of GBP 2.5 million received from the CHP and the LED portfolio. The valuation uplift of GBP 3.6 million is attributable to our hydroelectric portfolio, with the power price curve and the change in short-term inflation rate assumptions being accretive to the valuation, partly offset by the discount rate. Taking each of those in turn, our approach to inflation assumptions is to use the Office for Budget Responsibility one-year forecast for the 12-month period ahead. A long-term assumption is used for both RPI and CPI, which is set out on this slide. In the year, we aligned our power price curve forecast inflation assumptions to be consistent with RPI, in line with our peers. We consider our inflation assumptions to be at the lower end of our peer group in respect of both RPI and CPI. The forward-looking power price assumptions is reflective of the prices from a leading third-party consultant, with the valuations using a blend of the last two quarter forecasts to smooth the volatility in the market forecasts and applying this against the future cash flows of the operations. With the broader market seeing rises in base rates and gilt yields, the discount rate of our hydro portfolio was increased by 60 basis points during the financial year to reflect the macroeconomic environment. As the company invests in a diverse range of different technologies, the average discount rate will be driven by a mix of the technologies at the time of reporting. This can be seen by our weighted average discount rate, currently at 6.6%, but expected to increase to 7.2% once the battery storage assets are fully deployed. It is also important to note that the company's mix of debt and equity investments will mean that the comparison of discount rates in equity-only investment trusts should be considered the lower risk associated with TENT's cash flows. Overall, we are pleased with the performance of the investment portfolio during the financial year, with 100% of revenues in the period being supported by contractual obligations, serving as a stable foundation for the group to cover its dividends paid. Finally, circling back to the net asset value of GBP 99.5 million on the next slide. The bridge demonstrates the increase during the financial year of GBP 3.3 million, which was retrieved by interest income and dividends received as GBP 7.3 million, offset by fund expenditure of GBP 2.5 million and dividends paid of GBP 5.5 million, with the investment portfolio being accretive to the NAV by GBP 4 million. The sensitivity table of the key input assumptions in relation to our valuations are taken from an independent source. The table demonstrates the key sensitivities to the company's portfolio and the impact this would have on the company's valuation and, in turn, the net asset value. We believe the company is more resilient to changes in power price, inflation, and other key assumptions than other investment trusts, given the mix of debt and equity investments held. I will now hand you back to Jonathan to cover the portfolio overview. Thank you, Chloe. In this next section, we will give you an overview of our portfolio: the exposure by technology and the income stream that company derives from those assets and then Christophe will summarize the performance and current status of those assets over the course of the year. As you can see on this slide, we have shown the five investment areas of our portfolio, how they map to the three sectors of our holistic approach that I outlined at the start, as well as the debt and equity split. As before, we start firstly with generation and the largest single holding, the hydroelectric portfolio of nine run-of-river assets in the Highlands of Scotland, which is valued at GBP 54.3 million. We have also invested GBP 5 million into one of the most established solar and BESS developers in the U.K., Innova Renewables, to fund the development of its pipeline of projects at different stages of development in the U.K. Turning to the second part of the transition, storage, we have committed GBP 45.6 million to a portfolio of four battery storage assets spread across the U.K. As at the 31st of March, GBP 6.2 million had been drawn on this facility, which is expected to fully draw over the course of FY 2024. In the third and final sector, we have made investments that are currently worth GBP 25.1 million into three combined heat and power energy service centers and GBP 2.1 million into LED lighting with an investment grade off-taker. Currently, our investments are predominantly weighted towards equity, but as the battery energy storage facility draws, more will be orientated towards debt. Our approach going forwards will remain focused on targeting the most attractive parts of the capital structure for different technologies as they evolve as part of the energy transition. Nonetheless, over the long run, we would expect the majority of investments to be in equity rather than debt. On this next slide, we have shown the invested and committed capital by investment area as a function of the total committed of GBP 132.1 million. As can be seen, in the post-balance sheet period, GBP 3.9 million was invested into a second 20 MW, one-hour duration battery storage asset at Gerrards Cross, as well as the deployment of GBP 5 million committed to Innova, the storage and solar developer, bringing further diversification to the portfolio. The remaining GBP 35.5 million is expected to be drawn down against storage assets over the course of the financial year. On the right-hand side, what we've tried to show is to set out the breakdown by each of the five technology areas, but also by asset. No technology area exceeds more than 41% of the total, you can see the portfolio has limited concentration or weighting to a single asset, whilst being spread across the five different technologies we spoke about. On the next slide, we draw together the cash flows from that portfolio, we find that the company has strong earnings visibility as a function of the long-term contracts that underpin our earnings in our investment areas. The weighted average life of contracts underpinning earnings is about 14 years, with our major investments having the most visibility. Over a 10-year period, on average, 92% of our earnings are underpinned by contract, which, as stated earlier, is comprised of either interest from debt investments or subsidy and PPA payments for equity-owned investments. In terms of inflation protection, the company's investees benefit from strong inflation linkage. In some instances, such as in the case of our hydroelectric assets, investees benefit from a contractual inflation uplink in prices achieved for energy sold. This comprises 47% of our earnings. In other cases, given the long-run positive correlation between energy prices and inflation, the investees' income typically grows in line with inflation. I will now hand over to Christophe to talk you through the current state of each of the five portfolio areas. Thank you, Jonathan. In the next slides, I will provide an update of the assets forming the portfolio and illustrate their contribution to the company performance. It is also a good opportunity to highlight the efforts and the expertise of our partners involved into the development and operation of these assets. Part of the distributed energy generation segment, the portfolio of nine hydroelectric schemes spread across Scotland, represent 41% of the company investments at fair value. TENT hold 100% of these operational assets, with a track record of steady performance over the last seven years. run-of-the-river hydropower is a niche investment into the renewable sector, generating green electricity with the lowest levelised carbon intensity. The portfolio benefits from the Feed-in Tariff regime until 2035, and the rates have been adjusted by 13.4%, effective from the 1st of April 2023, in line with RPI over the last 12 months. The schemes have a very long asset life, with low replacement cost, even when they are aging, and they will continue to provide a steady income well beyond the FiT period. The FiT regime, the seasonality of the generation, weighted toward the winter when the electricity export prices are high, and the protection offered by the diversified location in Scotland makes an attractive investment case. There are some opportunity for value creation or optimization currently explored. For example, the creation of a small reservoir at our Loch Blair site. The next slide presents you with the most recent investment. Innova Renewables Limited, part of the wider Innova Group, is a leading developer in subsidy-free renewable energy project in the U.K. To date, Innova Renewables has created a large portfolio of fully consented and development stage projects. The conservative loan-to-value ratio provides significant protection for project rights coverage for a high return. The early stages of an asset life offer more attractive returns for projects deploying mature technology, such as solar, while the yield for operating assets are typically too low to suit our targeted returns. We are proud of facilitating the development of more renewable energy projects across the U.K. In our next slide, we turn to energy storage. This is the second largest investment in our portfolio. I will be providing an update on the portfolio of battery energy storage system developed by our partner, Field, and financed by TENT, for a GBP 45.6 million loan to build four projects. This is the third of the company's committed portfolio value, with one asset operational, one under construction, and two expected to be commissioned in 2024. The loan is drawn in line with construction milestones. As Jonathan highlighted earlier, the deployment into the BESS asset will lead to incremental earnings growth for the fund. So far, 2023 has been a challenging environment for BESS projects in the U.K. The saturation of ancillary services auctions, reducing the revenue streams available, reinforce a conviction to support the battery project by providing carefully sized debt. It supports the rollout of the technology by developers and accelerate the transition of the grid to accept more intermittent renewable generators into the energy mix, while limiting the risk exposure of investors into this emerging asset class. In the next slide, we turn to our third segment, on-site energy generation, directly supporting the end customer. The three on-site generation energy centers, delivering heat and power to greenhouses, were the seed assets of the portfolio. The period of challenging environment for food growers, leading to some shortage of fresh products in the supermarket, has highlighted the importance of these CHP centers and their role not only into the energy transition, but also in supporting local food growing industry. The diversified revenue streams, including heat and electricity payment from the growers, as well as the wholesale electricity revenues from the power exported to the grid and the capacity market contract, provide a natural downside protection. The underlying performance of these assets have been ahead of budget, driven by attractive electricity wholesale trading condition. The last asset and the final investment in the portfolio is the LED lighting. TENT provides a financing solution to LED installer, replacing existing fluorescent lights at the premises of a global logistic business. To date, GBP 2.2 million have been deployed to finance the installation of just under 11,000 bulbs, supporting the reduction in energy consumption for the lighting needs by 58%. While a small investment in the current portfolio, it provide a high adjusted return accretive to the portfolio performance. The pipeline of project with the same counterparty is a good opportunity to quickly reinvest the capital return by the amortization of the other investment at an attractive return and in small increments. This reduces our risk of cash drag. I will conclude by a summary of our ESG approach in the next slide. Our conviction is that a low carbon eco- economy and a net zero future can only be achieved through adoption of transition technologies. Technologies which offer a decarbonized energy and enable existing economic activity to continue while reducing carbon footprint, until more radical carbon-free solutions become available. To implement a meaningful energy transition strategy, it is also essential to consider the social and environmental impact of our assets. In practice, this means that ESG has been embedded in our management processes. This involved a continuous review of our methodology to report the performances and organizing workshop with leading industry experts to address the risks posed by climate change. Our annual report provides the detail of our approach, our alignment, and performances into the format of the key industry frameworks, which is important to let our investors benchmark TENT. We continue to monitor the progress of these new regulations and engage with industry working groups. During the financial year, as Jonathan already mentioned, the portfolio exported 18.9 GW hours of renewable electricity to the grid and avoided the emission of 27,000 tons of CO2. I will now hand back to Jonathan for the rest of the presentation. Thank you, Christophe. The company continues to originate attractive opportunities across the energy transition sector. The company has opportunities in its pipeline across the breadth of the energy transition, the majority of our long-term opportunities are in the on-site and lower carbon consumption segment, where returns are around 11% on a weighted average basis. This compares with returns witnessed at present in distributed energy generation, where returns are typically around 6%, as you can see on this slide. It is well documented that yields have been compressing for some time in this part of the energy transition, we have now also seen evidence of yield compression in U.K. energy storage, given falling revenue expectations and higher upfront development and capital costs. I think this is an important trend that we see across the sector of a few years of attractive returns, followed by rapid yield compression, as we've seen in wind, solar, and now battery storage. This is increasingly a hallmark of the energy transition. Accordingly, the ability to adapt and be flexible, to seek out new and more attractive returns in emerging areas and niches, particularly in an environment of higher rates, is imperative for investment funds and trusts operating in the energy transition sector. We believe this ability to target the areas of the transition with more attractive risk-adjusted returns, based on our proven track record of identifying assets in interesting niches to date, is a key point of difference for TENT. Any new capital raises could be deployed into these opportunities, increasing the overall fund level return. To conclude, it has been a transformational year for TENT PLC in FY 2023. We have fully committed the IPO proceeds and GBP 40 million RCF into a diversified portfolio of assets across the breadth of the energy transition. These assets are performing and delivering strong returns, which has led to a 1.1x covered dividend on a cash basis for FY 2023, and rising to 1.2x if you exclude exceptional items. With earnings on nearly GBP 40 million of deployment still to be factored in as the battery energy storage assets are deployed, which could further enhance dividend cover. Our investors can have confidence in the future, given that on average, 92% of long-term earnings are underpinned by contract, given strong downside protection to TENT in an environment of falling power prices and inflation. Tent succeeds because it offers something different to investors, targeting niche technologies and deliberately avoiding the increasing number of areas in the energy transition where returns are compressed. Tent is flexible in how it invests, looking for the part of the capital structure where the returns are most compelling on a risk-adjusted basis. At a time when investors are looking for higher returns following increases to base rates, Tent's attractive pipeline average return of 9%, with many opportunities being 11% or more, can drive higher returns to investors as it scales, building on a platform of uniquely highly contracted cash flows. Despite everything we've seen over the past 12 months, the energy transition remains a highly investable proposition, but only for investors who look across the full spectrum of the sector to find those interesting niches. All of us that work on TENT look forward to accelerating all aspects of the energy transition with our shareholders in the years ahead.
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