CS1412219 Results Presentation 25 March 2015
Olivier Brousse Chief Executive Officer 1
John Laing – a platform for growth Strong • Strong first set of results following listing results • Our successful flotation in February 2015 marks a new chapter in the Successful Group’s development IPO Dividend • Expect to propose our first dividend at interim stage in August 2015 • Track record and pipeline provide us with confidence for the future Outlook 2
Financial highlights • Record year for new investments with £217 million committed (2013 - £112 million) • Realisations of £199 million from the sale of investments • Investment portfolio valued at £772 million, up 13% on 2013 • 23% 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
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
New investment commitments PPP RE Total Project Region £m £m £m IEP (Phase 2) UK 72.7 --- 72.7 East West Link, Melbourne Asia Pacific 62.7 --- 62.7 New Perth stadium Asia Pacific 28.6 --- 28.6 Speyside biomass UK --- 13.3 13.3 I-4 Ultimate, Florida North America 18.3 --- 18.3 IEP (Phase 1) - variation UK 1.0 --- 1.0 City Greenwich Lewisham (DLR) – UK 6.0 --- 6.0 additional 12% shareholding Other renewable energy projects UK/Europe --- 14.6 14.6 189.3 27.9 217.2 • PPP = Public Private Partnerships; RE = renewable energy 5
Realisations JLEN JLIF Other Total Project £m £m £m £m • East London Waste • Dumfries & Galloway Waste • Amber Solar Parks JLEN seed 97.8 --- --- 97.8 • portfolio Bilsthorpe Wind Farm • Hall Farm Wind Farm • WALLP Wind Farms • Shareholding in JLIF --- --- 38.9 38.9 • Groningen Tax Office • Metropolitan Police SEL PPP sales --- 37.1 --- 37.1 • Kirklees Social Housing to JLIF • Surrey Street Lighting • Croydon BWH • Kinnegar --- --- 24.7 24.7 • 50% of New Perth Stadium 97.8 37.1 63.6 198.5 • 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
Primary Investment – key projects under construction Projects under construction Greater Manchester Waste, UK New Royal Adelaide Hospital, Australia Intercity Express Programme, UK Denver Eagle P3, United States Dungavel Wind Farm, 26MW, UK 7
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
Pipeline at 31 December 2014 PPP Renewable Energy Expected financial close Total 2015 2016 2017 Total Project status No. Project status No. (£m) (£m) (£m) (£m) (£m) Commercial close 2 22 Preferred bidder 2 49 - - 49 Shortlisted 3 74 - - 74 Exclusive 4 72 Pipeline 9 170 Pre-qualification 4 13 71 - 84 Total 15 264 Pipeline 43 257 340 263 860 Total 52 393 411 263 1,067 UK & Ireland Asia 7% Pacific North 23% America 35% UK & Ireland Rest of 46% Europe Rest of 54% Europe 35% 9
Patrick O’D Bourke Group Finance Director 10
Key Performance Indicators 2014 2013 KPI £m £m NAV 649.8 528.0 Investment portfolio - net 772.0 684.4 Investment portfolio - gross 1,076.3 851.1 Cash yield from investments 24.3 29.3 New investment committed 217.2 112.4 Disposals 198.5 110.5 External Assets under Management £1.0bn £0.8bn 11
Summary Balance Sheet – at 31 December 2014 Pro-forma – re-presented Adjusted IPO Balance Sheet adjustments 31 Dec 2013 30 Sep 2014 31 Dec 2014 31 Dec 2014 Key line items (£m) (£m) (£m) (£m) (£m) Portfolio book value 684.4 780.5 772.0 (79.8) 692.2 Cash collateral 7.9 47.7 60.5 - 60.5 Non-investment assets 5.5 7.0 8.1 - 8.1 Assets Total investments 697.8 835.2 840.6 (79.8) 760.8 Other long term assets 9.1 8.6 3.4 - 3.4 Cash 49.3 57.1 19.5 99.8 119.3 Total Assets 756.2 900.9 863.5 20.0 883.5 Working capital and provisions (17.8) (20.2) (27.9) - (27.9) Cash borrowings (6.0) (53.5) - - - Liabilities Pension deficit (IAS 19) (196.8) (189.6) (177.6) 100.0 (77.6) Other retirement benefit (7.6) (7.8) (8.2) - (8.2) obligations Total Liabilities (228.2) (271.1) (213.7) 100.0 (113.7) Net Assets 1 528.0 629.8 649.8 120.0 769.8 1. Exclude shareholder loan which was capitalised / waived in January 2015 12
Primary and Secondary portfolio overview Investment Portfolio Book Value at 31 December 2014 Value £m Valuation WADR 17 PPP projects £414m 10.0% 4 Renewable Energy projects Primary Investment (projects under Book value excludes associated construction) future cash injections of £304.3m 1 9.8% 14 PPP projects £292m 9.2% 5 Renewable Energy projects Secondary Investment (projects in operation) Stake in JLEN (held at JLEN £66m share price) £772m 1. Representing letters of credit and cash collateral outstanding 13
Portfolio valuation bridge 25.9% increase on rebased portfolio valuation Portfolio valuation movement – year ended 31 December 2014 800 700 158.6 600 198.5 63.5 24.3 88.3 500 772.0 (£m) 684.4 613.4 400 300 200 Portfolio Realisations Cash Yield Cash invested: Cash invested: Rebased Movement in Portfolio valuation Projects JLEN valuation fair value valuation December 2013 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
Pension deficit • The IAS19 deficit on the John Laing Pension Fund was £177.6 million at 31 December 2014, based on a discount rate of 3.6% 10% reduction in 31 December 2013 liability of £196.8 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 2014 £26.1m (paid) £26.1m (paid) IPO (Feb 2015) - £100m assets / cash March 2015 £27.0m £27.0m March 2016 £28.0m £18.0m March 2017 £29.0m £19.0m • Next triennial actuarial valuation as at 31 March 2016 15
Pro-forma Cash Flow – re-presented Year ended Year ended Key line items 31 Dec 2014 (£m) 31 Dec 2013 (£m) Cash yield 1 27.9 32.0 Operating cash flow (5.5) (11.9) Total operating cash flows 22.4 20.1 Cash investments in projects 2 (92.3) (122.2) Proceeds from disposals 159.6 119.6 Disposal of JLIF shares 38.9 - 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) 51.2 75.9 Closing cash balances (net) 80.0 51.2 1. 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
Corporate banking facility - utilisation 31 December 2014 31 December 2013 (£m) (£m) Corporate banking facility 1 353.9 305.0 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 109.0 139.1 Cash and bank deposits 2 19.5 49.3 Net available financial resources 128.5 188.4 Letters of credit issued 243.8 158.8 Cash collateral 60.5 7.9 Future cash investment into projects 304.3 166.7 1. New 5 year £350m corporate banking facility signed in February 2015 2. Excludes cash collateral balances of £60.5m (31 Dec 2013 - £7.9m) 17
Pro-forma Income Statement – re-presented Year ended Year ended Key line items 31 Dec 2014 (£m) 31 Dec 2013 (£m) Investment Management Services (IMS) revenue 22.1 17.7 Project Management Services (PMS) revenue 14.6 15.5 Revenue Bid cost recoveries on financial close 13.2 9.7 Investment fees from projects 7.1 4.6 Movement in fair value – investment portfolio 158.6 134.0 Movement in fair value – other 2.6 7.7 Total Income 218.2 189.2 Third party bid costs (7.1) (8.9) Costs 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 147.1 153.6 Others Finance charges (16.7) (10.2) Pension and other charges (10.0) (9.3) Profit before tax (before discontinued operations) 120.4 134.1 18
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