Foresight Solar Fund (FSFL) investor relations material

Executive summary

• Achieved strong operational performance in 2025, with UK generation 3.4% above budget offsetting underperformance in Spain and Australia due to curtailment and negative pricing periods.

• Delivered a dividend of 8.10 pence per share for 2025, with 1.3x cover, and set a target of 8.10pps for 2026, representing a 13.4% yield at the March 2026 share price.

• Board focused on narrowing share price discount through buybacks, reduced IM fees, and ongoing strategic review, including asset cycling, consolidation, and private market solutions.

• Largest sector-relative buyback program, with £55m of £60m budget executed and £56.1m returned to shareholders via dividends and buybacks, accretive to NAV per share.

• Technical assumptions for UK portfolio revised upward, increasing energy yield budget by 2.8%.

Financial highlights

• Net Asset Value (NAV) at 31 December 2025 was £545.9m (99.2p per share), down from £634.4m (112.3p) at end-2024, driven by lower long-term power price forecasts, Australian portfolio write-downs, and tax review impacts.

• EBITDA for 2025 was £112.2m, up from £105.4m in 2024.

• Dividend yield stands at 13.4% on a fully covered basis, with EV/EBITDA ratio of 6.0x.

• Gearing at 41.2%, below the 50% policy limit, with a low weighted average cost of 3.6% per annum.

• Resized and extended revolving credit facility expected to save £1m in interest.

Outlook and guidance

• Target dividend of 8.10pps for 2026, with expected 1.1x cover; 87% of 2026 revenues contracted, with upside from merchant exposure.

• Dividend held flat for 2026 to ensure sustainability and build further cover as energy markets normalize.

• Focus on asset cycling, targeting 75 MW of operational sales and reinvestment into new projects.

• Directors continue to evaluate consolidation, partnerships, and capital structure optimisation.

• Anticipates further opportunities from UK CFD auction rounds and development pipeline in Spain.