The Renewables Infrastructure Group (TRIG) Investor update summary

Strategic Overview and Board Commitments

• Persistent discount to NAV and an upcoming continuation vote have prompted a strategic review and new commitments, including reaffirming a progressive dividend policy with a 2026 target of £0.0755/share and a sustainable net cover of 1.1x–1.2x.

• £400m to be raised over 12 months, mainly from asset disposals and modest debt, to fund share buybacks, debt reduction, and internal investments exceeding a 13% IRR hurdle rate.

• Share buybacks prioritized, with a £150m program underway (£101m completed, £49m remaining as of May 2026), and surplus liquidity expected to extend buybacks at current share price.

• Management structure retained after consultation; management and operations fees to be based solely on market capitalization from July 2026, reducing fees by 19% and saving £3.4m annually, conditional on a continuation vote.

• Achievements include meeting dividend targets, accelerating buybacks, repaying £192m project-level debt, and securing revenue contracts for 6% of generation.

Market Context and Portfolio Positioning

• European and UK energy markets are experiencing structural demand growth driven by energy security, electrification, digitalisation, and AI.

• Renewables are now core infrastructure, with policy shifting from subsidising capacity to enabling system flexibility, including battery storage.

• Portfolio is diversified and defensive, spanning wind, solar, and battery storage across six European markets, with 2.3GW net operational capacity and 90% of debt fixed and amortising.

• Conservative leverage approach: 90% of debt fixed rate, repaid over fixed-price revenue terms, supporting resilience through market cycles.

• Value creation is increasingly driven by active asset management, operational optimization, and dynamic contracting.

Capital Allocation, Cash Flow, and Dividend Cover

• Portfolio projected to generate £2bn operational cash flow by 2030, repaying £1bn debt and paying £850m in dividends.

• Dividend cover projected at 1.1x+ in the near term, with robust cover across power price scenarios and 85% of next year's revenues fixed.

• Five-year distributable cash flow per share CAGR of ~4%, with reinvestment at c.13% IRR central to income and capital growth.

• Active revenue management through PPAs, hedges, and government contracts enhances cash flow visibility and reduces risk.

• Surplus liquidity of £75m expected after buybacks, debt repayment, and internal investments.