HICL Infrastructure (LSE:HICL) — Interim Results for the six months ended 30 September 2025

0:00 Good afternoon, and welcome to the HICL INFRASTRUCTURE PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time via the q and a tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to the management team. Edward, good afternoon,

0:30 sir. Thanks very much and good afternoon to you all. Welcome to this set of interim results for HICL INFRASTRUCTURE PLC. It's been a busy week for the company regarding Monday's announcement on the proposed combination of HICL and TRIG. That announcement and the investor presentation is on the website. Clearly, we're getting around to speak to investors where possible. Notwithstanding that exciting development and that it remains subject to a shareholder vote, We'll be presenting today's results on a standalone basis reflecting HICL's performance for the six months to September 30. I will make some comments on the transaction at the end of the presentation. So getting to the results, starting on Slide four with a reminder of HICL's core proposition.

1:18 This is a reminder of HICL's differentiated and straightforward purpose, one that has underpinned the company's investment proposition for almost twenty years. HICL sources and executes high quality investments in private markets, develops a well balanced and diversified portfolio and offers this to investors in a highly liquid vehicle. Each and every asset is actively managed to realize its inherent value and perform its specific role within the portfolio, utilizing INFRASTRUCTURE twenty five year plus track record of specialist infrastructure investment. All up a defensive platform positioned for growth and this is evidenced throughout this set of results which we get to on slide five.

2:09 This is a robust interim result underpinned by a strong operating performance. HICL remains on the front foot, meeting the key milestones that we set out for the market at the start of the financial year. This starts on the left of the slide with the company's approach to portfolio rotation. In August, HICL announced the sale of seven UK PPP assets for around £225,000,000 in line with our March 31 valuation. This exceeded the £200,000,000 disposal target for the that we set out for the year and HICL has now delivered over £730,000,000 of strategic divestments over twenty four months and at strong valuations. This divestment activity is supportive to long term portfolio construction, enables capital recycling for accretive investment and importantly provides an engine for growth and that growth is clear. Turning to the middle column, the company's NAV per share increased by 2.9p over the period to 156p, primarily driven by strong operational performance from HICL's growth assets, which saw a combined 7% EBITDA uplift period on period.

3:24 HICL's yield assets complemented this outperformance with pleasing cash generation, bringing the underlying portfolio return to 10.3% on an annualized basis. As you can see on the right of the slide, the strong operational performance puts HICL on track to meet its cash generation targets. Cash cover for the six months reached that important 1.1 times threshold and uplift from 1.07 times at the full year. HICL remains on track to deliver 1.1 times for the full year excluding profits on disposals. This growing cover speaks to the quality of the underlying cash generation notwithstanding the significant reinvestment of cash at asset level into growth CapEx.

4:11 If we were to gross up the dividend cash cover for that CapEx, the dividend cover would be in excess of 1.5 times or a payout ratio of around 65% ensuring significant compounding of free cash. This cash generation also supports HICL's progressive dividend with the Board reaffirming the existing guidance of 8.35p for the year ending March 26 and 8.5p for the year ending March 27 on a standalone basis. Together the three columns on this page showcase HICL's compelling total return proposition. Organic growth at asset level fueled by disciplined CapEx, our portfolio level through accretive asset rotation and that strong growing income that we associate with high quality core infrastructure, a defensive platform position for growth.

5:04 Further metrics for the six month period are set out on slide six. Top left, NAV growth of 1.9% over the six months to 156p contributing to a strong 9.5 annualized NAV return for the period top right. That's a result of the strong performance from HICL's growth assets with EBITDA growth of 7% period on period bottom left. On the bottom right of the slide, this looks at the discount rate or expected returns from the portfolio. 8.4% is the weighted average discount rate and that's the expected gross return if you buy the portfolio at NAV.

5:46 That translates to a 10% net return if you buy at Friday's share price. As active managers, we seek to deliver over and above these expected returns as we have done so in the period. On Slide seven, this is a familiar slide now the yielders and growers slide and it's a useful tool to articulate strategic portfolio construction. Yielders in the light purple HICL's PPP investments with an average life of thirteen years, yielding strongly at around 11% per annum, balanced with HICL's growers, longer life assets, extending cash flows well beyond the maturing yielders, compounding free cash back into growth CapEx and providing a long term earnings base to underpin both NAV growth and dividend growth over the long term.

6:39 The design here is straightforward. The yielders will continue to mature and be handed back. The growers will deliver their growth CapEx and then start their yielding phase. And as active managers, our job is to continue to stoke and balance both sides of this equation to solve for a compelling total return for shareholders. Note that this chart assumes that all cash here is paid out. In reality, that dividend cash cover, that element above one times cover will be reinvested providing valuable funding for organic growth. Passing over now to Mark to run through the financial results. Thank you, Ed, and good morning, everyone. I'm pleased to present to you today a review of HICL's financial performance for the first six months of the year.

7:26 We touched on HICL's strong disposal track record at the beginning. So before we review the NAV bridge for the period, I would like to take a closer look at August's portfolio sale to APG, the manager of Europe's largest pension fund. Beyond meeting the FY twenty twenty six disposal target well ahead of the end of the financial year, transaction has several strategic benefits for the company. From a portfolio construction perspective, Sale continues our portfolio rotation efforts and improves key portfolio construction metrics, including reducing HICL's exposure to short duration assets and life cycle risk, while continuing to rightsize exposure to health care assets. On valuation, the disposals are in line with our 03/31/2025 valuation, providing an important transactional data point along with net proceeds that support the growth of the company.

8:17 SAIL also establishes a new partnership framework with APG, which creates opportunities for future divestments and potential co investments as attractive opportunities arise. Finally, to reiterate that disposal proceeds now total in excess of £730,000,000 over the past twenty four months, highest in the sector, at an average premium to NAV of 7%. We expect this transaction to close in the next few weeks. On Slide 10, we show the NAV per share bridge for the period to 09/30/2025. Starting with opening NAV per share of 153.1p, portfolio generated 7.2p of value accretion in the year. 6.2p of this arose from the unwind of the weighted average discount rate, which was unchanged in the six months at 8.4%.

9:08 While government bond yields rose slightly in the period, the transactional evidence we saw, including our own disposal of assets at March NAV, did not point to an increase in discount rates from the March level. And as a result, we have maintained a weighted average discount rate at 8.4%. We are pleased by an extra one point of NAV accretion coming from outperformance on the portfolio. This was driven by higher than expected inflation in our countries of operation, particularly The UK, and the effects in the period of the investment managers' value enhancement initiatives, particularly on the growth assets. Changes in forecast economic assumptions used in the portfolio valuation models contributed a further 0.1p. And the company's share buyback program, which was renewed in March targeting a further £100,000,000 of buyback over the course of the year, contributed NAV accretion in the period of 0.9p or 1.8p since the beginning of the program in May 24.

10:06 Total of 116,000,000 shares have been bought back at an average price of £118.8 Fund expenses of £1.5 per share include the management fee calculated on the new reduced basis for three months of the period. Small foreign exchange gain, 0.4p after hedging and the 4.2p of dividends paid in the year, reflecting the full year target of 8.35p, completes the bridge to our September 30 NAV per share of 156p. The operating expense ratio was 1.04 by annualizing the six month costs. On a pro form a basis, assuming that the management fee reduction is in place for a whole year, OCR is 1%, a 10 bps decrease from the prior year. Net debt at the end of the period was 142,200,000 a £40,000,000 increase over the six months, rising from liquidity deployed into the buyback program during the period.

11:02 HICL's net debt principally comprises £30,000,000 of drawn RCF and £150,000,000 of private placement notes offset by £38,000,000 of cash and led to a fund gearing percentage of 8%, marginally up over the period from 7.4%. Available liquidity at the end of the period, including undrawn RCF amounts, was $4.00 £2,000,000 We move to Slide 11. Here we take a look at the portfolio level debt profile and key portfolio valuation sensitivities. On the left, can see from the donut that 84% of the debt is concession project finance, amortizing debt with no refinancing requirement. Only 16% of portfolio level debt has any refinancing requirement.

11:48 And of that amount, only 1% falls due in the next two years. HICL's portfolio gearing is 65% overall on a non recourse basis. And the average gearing of those assets with refinancing risk is lower, as you would expect, at 50%. On the right, we present key portfolio sensitivities. While the weighted average discount rate has not changed in the period, it if were to increase by 0.5%, for example, there would be a 7.3p negative effect on NAV per share.

12:20 Due to the nature of the long term contracts in our portfolio, higher inflation has a positive correlation to NAV, reflecting the portfolio's 0.7 times inflation correlation. We also note the slight positive overall correlation of the NAV to interest rates. This reflects the large interest earning cash balances in the PPP portfolio especially and the fact that practically all interest payable on the portfolio debt is fixed in nature. Turning to Slide 12. Here, we refresh the cash generation analysis presented at full year. Cash flows after the six month period show the relative contribution of the yields and growers, each now 50% of the portfolio to cash generation. In the period, the yield has contributed £86,000,000 after debt amortization and life cycle costs.

13:10 Growers generated EBITDA of £131,000,000 in the period, a strong 7% increase in the prior comparable period. And after payment of interest, tax and CapEx, contributed £28,000,000 to dividend cover. At fund level, in the central box, total distributions of £114,000,000 cover finance costs of £6,000,000 and operating costs of £19,000,000 resulting in £89,000,000 to cover the two quarters dividends 1.1 times. The dividend is also covered 1.42 times by earnings, demonstrating the ability of the NAV to grow over time. Turning to Slide 13. We would expect this sustainable NAV growth to be supported by a dividend cash cover target of 1.1 times or more in future years.

14:00 We are keen to maintain a balance between a progressive dividend well covered and the ability to redeploy surplus cash into the portfolio to generate future returns through growth CapEx, reinvestments or bolt on acquisitions where appropriate. This is why we are targeting a minimum of 1.1 times dividend cover to give shareholders comfort that the dividend is suitably covered and within the portfolio to make the most efficient use of remaining capital. Finally, on a standalone basis, we reaffirm the dividend guidance of 8.5p FY 2027. Before moving into portfolio performance, it's worth revisiting the company's market positioning, which you can see here on Slide 15.

14:46 HICL is a core infrastructure investor. All of our assets are positioned towards the lower end of the infrastructure risk spectrum benefit from three key characteristics: high cash flow quality through contracts, entrenched demand or regulated revenues defensive market positioning, where there are high barriers to entry and low competition and criticality, essential assets that form the foundation of modern society. This framework guides our approach to new acquisitions and also describes the existing portfolio, which is summarized on the next page. So you'll be familiar with the charts on this slide, which really underscore the diversification of HICL's portfolio across sectors, geographies and revenue types.

15:33 Our active approach to portfolio construction remains central to the company's business model with the agreed sale of seven PPP assets in the period expected to further enhance key metrics and diversify risk. For example, company's exposure to health assets reduces from 22% to 16%, P and P and Southleaf hospitals falling outside of the top 10. And the top ten's percentage increases due to the sale because of the denominator effect and also through outperformance. For example, Affinity steps up to 12%. Following pages provide the usual performance updates, vehicle's largest holdings. So I'll hand you back to Ed, who will take you through these. Thanks, Mark. So starting on Slide 17 with Affinity Water, which remains HICL's largest investment accounting for over 12% of the portfolio by value.

16:27 Business delivered solid operational performance achieving material EBITDA growth in line with our forecast. Ofwat's recent performance report highlighted Affinity as a strong performer in several categories and a top performer in supply interruptions for a second year. Affinity was ranked within the average band with only one company above and five in the category below. Day to day operations are supported by a robust capital structure. Credit ratings are two notches above Ofwat's requirements. There is very limited Holdco debt and no refinancing is needed until 2033. Evaluation uplift was recorded to reflect a small increase to future weighted average cost of capital. Other regulatory developments included the CUNLIFE review, which included a proposal to streamline the regulatory regime, a recommendation welcomed by HICL.

17:23 HICL is on track to deliver its £50,000,000 investment into Affinity Water by 03/31/2026, supporting substantial RCV growth in the company. We expect dividends from the business to resume this financial year. And finally to note that CEO, Keith Haslett will be moving across to Pennant and remains in post supporting the appointment of a new CEO. Moving across the slide to TNT, operational performance of this asset remains strong with both networks Cross Texas Transmission and One Nevada Transmission achieving 100% availability over the period. Shortly after period end, Cross Texas Transmission concluded latest regulatory settlement was granted and allowed return on equity in line with HICL's valuation.

18:17 In the near term, Cross Texas Transmission is experiencing strong demand for transmission capacity driven by renewables developers accelerating projects ahead of federal tax credit expirations. Additionally, a refreshed study of CTT's long term growth outlook confirmed that total future energy demand is expected to be higher than previously assumed. Both factors contribute to increased reinvestment of free cash into CapEx earlier than assumed, expanding the company's asset base and the future earnings potential of the business. On slide 18, we provide an overview of HICL's largest demand based assets.

19:03 Focusing on the A63 firstly, traffic for both light and heavy vehicles continues to grow. The numbers were marginally below our forecast due to fewer summer holiday journeys. We're closely monitoring France's political situation, which remains unsettled after recent government changes. However, there's been no material impact on the A63's performance highlighting its strategic role as a major trans European transport corridor. Moving to London St. Pancras High Speed, again formerly known as High Speed 1. Internationally, the chart shows that Eurostar bookings for the period surpassed our valuation assumption buoyed by higher than expected spot bids from Eurostar. These bookings averaged 99% of pre COVID levels, supporting EBITDA, which was broadly in line with HICL's assumption.

19:56 Domestic bookings remained below the contractual revenue underpinned provided by the DFT, but it's positive that future December 25 to May 26 timetables include over 400 more paths than previously forecast. Although pre COVID levels are not anticipated until 2028, this move suggests that the government run Southeastern operator is responding to underlying demand growth. A key announcement was made after the period. The UK rail regulator approved Virgin Trains' application for access to the Temple Mills depot. This is a major milestone for introducing a second operator for cross channel services and a major growth driver for London St.

20:44 Pancras High Speed. On Slide 19, we cover HICL's two large digital assets. And starting with forty South on the left. Forty South revenues are secured by an availability based anchor tenancy agreement with One New Zealand supporting financial performance and providing the foundation for the 11% EBITDA growth that we saw period on period, which exceeded HICL's valuation assumption. The management team is focused on enhancing earnings by securing additional co locations, mainly from public sector clients, largely offsetting softer

21:20 demand from the mobile network operators. Since HICL's 2022 acquisition, 104 new agreements have been signed with efforts underway to reduce the commissioning lead time and accelerate revenues from those co locations. The core tower deployment program remains on track to reach nearly 300 towers by 2027 supporting New Zealand's five gs expansion. Tower upgrades are marginally behind schedule year to date, but are expected to accelerate over New Zealand's summer months to meet the target by March 2026. Finally, to note that last week INFRASTRUCTURE announced a conditional agreement to sell its 20% stake in 40 South to an investor managed by Infrared giving Infrared managed investors a combined 60% stake in the asset and enhanced asset level governance.

22:18 And finally, Altitude Infrastructure, which is now HICL's sixth largest asset, approximately 3.5 of the total portfolio value. As a reminder, this asset benefits from France's favorable rural market framework. These are concession based regional monopolies supported by national deployment targets. The company earns inflation linked revenues wholesale basis from all major Internet service providers under a regulated tariff. Since acquisition, management has prioritized fiber rollout across the 27 concessions. By September, this was up to 97% complete with a focus now on migrating customers onto the fiber network. Fiber take up currently stands at 59%, which is in line with our valuation assumption.

23:07 Our forecast assumes long term fiber penetration at 89%, which is in line with current broadband penetration with the existing copper network scheduled for decommissioning by 2030. More broadly, the management team continues to explore new growth opportunities through the outright acquisition of networks, acquiring neighboring networks or developing new networks in new markets, capitalizing on Altitude's in house construction and operations expertise. On slide 20, we cover the PPP portfolio, which now makes up 52% of the portfolio by value following the recent divestment activity. These assets benefit from availability based contracted revenues, indexed to inflation and long term fixed rate debt. Operationally, the vast majority of the PPP portfolio performed well during the year with aggregate availability exceeding 99%.

24:05 Notwithstanding the contracted revenues, INFRAS takes a very active approach to managing the PPP portfolio both at asset level and through its leadership role within the public sector and the association of investors in PPPs. The portfolio sale in the period further reduced HICL's exposure to both UK healthcare and life cycle delivery risks. This transaction is another example of HICL's ongoing portfolio rotation strategy, strengthening portfolio construction and better positioning the company to protect and create value going forward. We turn now to the market outlook, which starts on slide 22, where we consider market activity across HICL's key markets and sectors. Deal flow remains below historic averages, mostly due to ongoing macroeconomic and geopolitical volatility.

24:56 However, it's also clear that there remains a healthy liquid market for high quality infrastructure assets demonstrating its through cycle appeal to a range of investor types. Our own observation is that following a period of transition in the rate environment, we're now seeing valuations stabilize as is the case with HICL along with increased institutional interest in core infrastructure given its attractive risk reward profile, for example, the transaction with APG. On this basis, we expect further uplift in market activity going forward. Fundamental drivers of infrastructure development, decarbonization, digitalization and demographic change continue to offer strong long term growth prospects for the asset class. HICL is well positioned to benefit from these trends as we discuss on this next slide, Slide 23.

25:51 Key to HICL's long term investment proposition is that its portfolio is self sustaining and self funded and we see that in action on this slide. There are three key enablers. Firstly, surplus cash flow, driving free cash over and above the dividend through active management of the assets. This is evident through the increase in cash generation and dividend cover to 1.1 times. This is over and above the substantial asset level growth CapEx itself an investment in future cash generation. Secondly, asset rotation, strategically divesting assets to improve portfolio construction and generate additional cash flows from profits on disposal. Over £200,000,000 of disposals have been made so far this financial year, over £730,000,000 of disposals over the last twenty four months, all at strong valuations and with profits reinvested.

26:45 That comes on to the third element here, accretive reinvestment. This includes share repurchases and additional investments where these advance HICL strategy at attractive risk adjusted returns.

26:57 The buyback program continues and we continue to evaluate investment opportunities on a highly selective basis. Market for investments remains attractive with variable conditions presenting opportunities for outsized returns for well capitalized and nimble investors. Finally, as we think about the outlook for the company, I would like to talk about Monday's announcement and how this fits in with and enhances HICL's strategy. Slide 24 sets out the key highlights from the transaction, but I want to specifically address why this transaction is the right thing for HICL's strategy and the right thing for HICL shareholders. There are three key reasons. Firstly, it expedites growth.

27:43 TRIG's portfolio is the most diversified in its peer group and the most contracted in its peer group. 70% of its revenues are contracted over the next ten years. These assets generate huge levels of cash and it's that cash that provides the foundation from which HICL can transition to a higher total return strategy, one that pays a higher dividend from day one, delivers more cash cover and reinvestment

28:11 in support of long term growth. Secondly, it precipitates a re rating. To re rate the shares, HICL needs to attract new buyers and appeal to a global investor base. The prerequisites to achieve that are a compelling total return strategy and scale. This combination is more likely to lead to a rerating of HICL shares all things considered versus HICL stand alone. Thirdly, it follows the assets. It updates the investment focus to reflect the evolution of the infrastructure market where traditional core infrastructure and the energy transition are converging.

28:58 This is where the growth is and successful investors will be those that position their mandates to fully benefit from these powerful tailwinds. It's our job as managers to look around the corner. HICL has evolved before and the time is right that it evolves again. I greatly appreciate your time this morning and we're very happy now to take questions. Thank you. That's great. Thank you very much for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just following the Q and A tab situated on the right hand corner of your screen. Just while the company take a few moments to review those questions submitted today, I'd like to remind you

29:35 that recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard. As you can see, we have received a number of questions throughout today's presentation. And Mo, could I please ask you to read out the questions to share with the team and I'll pick up from you at the end. Brilliant. Thank you. And so we've had a number of questions often overlapping in theme and sentiment. So what we'll do is we'll start with questions that relate to results in the portfolio and then we'll move on to the transaction, the proposed transaction that Ed just discussed there. But I'm starting off with questions on the portfolio. How does there have been a number of questions on the role that Affinity plays within the portfolio, whether it's water nature of its regulator and the sector that it's in is off putting to retail investors and whether its dividend distribution is expected dividend distribution is included within the company's dividend guidance?

30:38 Yes. So in terms of Affinity's role in the portfolio, it is a growth asset, but it's also beginning to transition to its yielding phase. So for example, it's we plan for it to deliver around a 4% to 5% return, but its overall discount rate is much higher than that and the rest of it's going into growth and development of the asset. And the dividend yield that we expect to recommence before the end of the financial financial year is factored in our cash forecast. And we obviously take a view on the probability of that and the levels of cash that we'll get out of that company over time. But there is an affinity component included in the forecast.

31:26 In terms of its attraction to investors, Affinity is an asset that has really turned itself around over the recent years. It had a very good PR24 processor regulatory outcome, which reflected

31:40 a significant improvement in operational performance, a significant improvement in its financial standing. So, no, we think it's a water only company. It has no exposure to sewage, which is really where the public focuses on underperforming water companies. And we see that investors understand that and appreciate the renewed prospects for Affinity within our portfolio. Thanks, Ed. And then another question on the existing portfolio. Could you talk through whether the portfolio is able to grow both distributions and NAV over time? Yes. So maybe I'll kick this off and then Mark will come in. Absolutely and that's what we've guided to market. So if you look at our yield growth chart on Slide seven, we are maintaining a balance where we are able to continue to grow the dividend as guided and supported by not just cash, but earnings and that's where the growers come in. And then over time, those growers will increase their yield contribution and will support the dividend not just in five years' time, ten years' time, but in twenty five years' time. And that's really important factor. Matt, would Yes, add to absolutely.

32:56 So I mean these six months results are a good example of this. We have not changed the discount rates in the period. And so you can see the unwind of the discount rates and the value accretion that we've added to the portfolio giving a positive NAV movement even though 4.15p has been paid out to shareholders during the period. And we would expect that that would continue into the future. And just looking a little bit about where that NAV growth comes from, not only as a weighted average discount rate of 8.4%, you would expect that to be a good proxy for the IRR each year going forward. But also you would look at long term NAV growth And in our growth portfolio, this is primarily driven by CapEx deployment.

33:42 And it's that CapEx deployment that drives EBITDA growth, that drives value growth of those assets, which keeps the NAV growing and increasing period on period notwithstanding the payment of the dividend.

33:56 Thanks, Mark. And then moving on to the questions on the proposed transaction, these are broadly in three different areas. They are on the strategic rationale and why renewables make sense in HICL's portfolio. They are then on some questions on the deal economics and then some on the forward looking strategy. So most of the questions on the portfolio itself address why we are asking why we are introducing trig's assets into HICL's portfolio given that the sense that trigs NAV is more volatile and its cash flows are more volatile?

34:41 Yes, sure. So the first thing to say is that, HICL's the characteristics of HICL's portfolio, the attributes of HICL's portfolio sit firmly within HICL's core infrastructure focus which we set out here on slide 15. HICL's TRIG's portfolio is the most diversified in its peer group and it is also the most contracted in its peer group with over 70% of revenues contracted over the next ten years. So this is a relatively low risk portfolio that sits within a core infrastructure definition. In terms of the attributes that it brings to the portfolio, as I mentioned in the presentation, brings significant cash generation to the portfolio. And we are on the basis of that cash generation, we're able to actually moderate the dividend for the ongoing combined company strategy delivering an increase for HICL shareholders, but also a higher level of cash cover overall on a go forward basis, which allows us to invest in growth year higher returning assets and deliver that more improved total return proposition.

35:47 In terms of the NAV volatility, we have seen some NAV volatility over recent years due to wind and power prices. But within our portfolio that's able to be managed again through the contracting of the revenues and Triggs continued focus on contracting more of the merchant revenues that announced corporate PPA only a couple of weeks ago. In terms of the cash flow profile, as I said, moderated the dividend to generate higher levels of cash cover. We expect that that's going to really be a growth engine within the HICL portfolio. So a similar question, but on risk profile, so how would you consider the differences between risk profile of Trig and HICL and how will you manage the perceived increased risk on Trigs now?

36:42 So bringing renewables assets of this type into the HICL portfolio introduces new risks, but it also introduces a more diversified portfolio, a resilient set of cash flows, which have a lower exposure overall to individual risk factors on the back of also stronger balance sheet and stronger portfolio construction. And there are variables in TRIG's portfolio just as there are variables in HICL's portfolio. So we see that it introduces new risks rather than introducing higher risks. Thanks, Ed. If we now move on to some of the questions around the deal economics. Why has this deal been done on a essentially a NAV for NAV basis rather than a share price basis?

37:37 Interesting question. So traditionally these types of combinations do get done on a FAV for FAV, so a formulaic asset value rather than share price. If you look at share price performance between the two companies there is a little bit of a gap at the moment in terms of HICL's 20 plus discount and TRIG's 30 plus discount to NAV. But that's relatively recent. If we look back

38:03 even just to July to the summer, TRIG was actually trading at a narrower discount to HICL. Over the last three months, the average differential between the two share prices has been a 4% differential and over the last two years, it's been less than 2%. And so we recognize that there'll be fluctuations in sentiment around the portfolios from time to time depending on the factors. But an Afinav is an absolutely robust way to do this and those share price variances over any reasonable length of time are pretty minor. Thanks, Ed. And the related question that we've had from a number of investors is, do you believe that the valuation of the renewables funds are attractive or in fact undervalued?

38:53 Yes, I think they are attractive. I think there's a cyclical component to this where you're acquiring a portfolio that's being valued at the highest discount rate that it's ever been valued at on a power price curve, which is at a cyclical low and Trig also adopts a lower power price than others in the peer group. So from our perspective, we see a cyclical logic to this. There are elements that we see in the portfolio that aren't in the NAV sort of beyond the current assumed asset life. But that's not factored into the economics. And so we that's an in house view. I think in terms of how the Boards have come at this, they've appointed independent valuation experts on both sides.

39:40 But from a HICL INFRASTRUCTURE PLC perspective, big four firm valuation expert independent appointed to opine on the valuation and also review the independent valuation that Trig already produces on behalf of its

39:54 own assets. So an independent review of an independent review of a valuation. So there's significant belt and braces around the approach to valuation, the approach to NAV. And again, it underscores why a NAV for NAV transaction here is appropriate. And we also wholeheartedly agree with that approach. On another aspect of the transaction and there are a number of questions around why the cash component was required for HICLIN shareholders in this transaction?

40:32 Yes. So again, probably one for the Board and their independent advisors in terms of the deal structure. I mean, the rationale is that there's a balance in the deal for both sides be it a higher dividend or cash exit. I think there's some recognition that there'll be shareholders in the current rig vehicle that can't hold the other vehicles. So there's a little bit of a release valve there. Additionally, there is GBP100 million investment being undertaken by INFRASTRUCTURE Parent in the secondary market post combination. That also provides secondary market liquidity for both sets of shareholders should that be required and will also provide shareholder support.

41:18 Thanks, Ed. So moving on to a number of questions we've had on the forward looking strategy, post strategy of the combined entity. And there are questions around the 20% allocation to Enhancers and that being an exit driven strategy and whether the market at the moment is receptive to an exit driven strategy? Yes. So, I mean the rationale behind the enhancers is really to introduce a higher returning element into the portfolio over and above the yielders and growers that you see on the HICL stand alone strategy. And we're able to do that because we enhance the yielding portion of the portfolio through the Trig acquisition. So we're able to balance that dividend total return equation effectively by adding more cash and then being able to add higher return.

42:06 In terms of that return, it also allows us to bring to bear the existing expertise

42:11 of the manager in infrared, which has a very long track record in delivering the value add strategy over twenty five plus years. We're mid market equity specialists. We've delivered high teens returns over twenty five years on a realized basis, which is a key differentiator for INFRASTRUCTURE. And it's objectively ranked in the top 10 by pitch book. And so it is to the point around it being an exit driven strategy. It is an exit driven strategy generally and that we seek to do the value add components, be it CapEx build out or some other components of EBITDA expansion and then realize value. And then in the portfolio construction approach for the combined company, we assume it's rotated back into Enhances and that provides a spooling of growth over time. INFRASTRUCTURE has a very good track record of divestments as I mentioned on the value add side. It's our level of realizations that's actually a key differentiator for us.

43:08 We've sold multiple assets this year out of the value add strategy notwithstanding difficult market conditions. And as shareholders of HICL, you're also probably aware of what we've been able to achieve for HICL over £730,000,000 of divestments over the last two years in difficult market conditions. So we're not concerned that the exit nature of that strategy inhibits what it can bring to the portfolio and we're comfortable that we'll be able to deliver that.

43:37 So similarly on portfolio construction, there are a number of questions around the yielding nature of TRIG's portfolio and whether that then creates a portfolio allocation that is over allocated to yield versus growth enhancements? Yes. Mean, even just going through the HICL results now on the when we talk about yield as growers slide, I highlight the need that we need to continue to stoke and balance both sides of the yield as growers equation. And the reality is that you've got to pull one lever and then pull the other lever. So we had a very yielding portfolio. Over time we've added more growth assets. And this is a fantastic opportunity to now increase the yielding part of the portfolio in order to then add higher returning growth year assets that lift the total return proposition of the vehicle.

44:32 So it's not possible to really add in very small movements to add to each side. You do need to pull one lever and then the other and that's what this transaction represents. But it's a fantastic opportunity to add high quality yielding assets to the portfolio, which are generally in pretty scarce supply across the market.

44:57 Thanks, Ed. And then a number of questions on the topic of governance. Is this transaction being done defensively for the manager for INFRASTRUCTURE PLC? Well, from an INFRASTRUCTURE PLC no, don't think so. This idea has generated from the Boards, from shareholder feedback around looking for something more ambitious and more fundamental to address the persistent share price discounts, NAV discounts in the market. So this is that ambitious and fundamental proposal to the market and has been presented by the Boards. In terms of the infrared position, it represents over time a decrease actually in our notice period for HICL, so a step down from three years to two years.

45:47 It also represents a fee reduction on day one. And so, yes, I think we're doing our bit in terms of trying to kind of support this transaction for what is effectively an expanded strategy, new geographies, new sectors, more complex assets and higher returns and higher dividend.

46:08 So we'll play our part, but this doesn't lock in anything for infrared and the notice period still applies and is available to the Boards.

46:21 Thank you. And then a couple of questions on the Sun Life liquidity and around the how that will be deployed and whether there are any specific parameters around it? So the Sun Life commitment is really a strong demonstration of support for the ongoing strategy of the vehicle and a desire to be seen to be side by side with shareholders in terms of share price performance from here. So it represents significant skin in the game, significant alignment with shareholders in respect of this strategy. In terms of how that's operating, it's a binding commitment. So it's not up to CHF100 million, it's CHF100 million. The timing will depend naturally on market conditions.

47:07 I'd expect more purchases at wider discounts, fewer purchases at narrower discounts and that's in shareholders' interest as well to make sure that it's used most effectively.

47:17 And we see that going into the market over the next six, nine, twelve months in support of the share price using those promises that I've just described. And then we've had a number of questions kind of I guess on the market reception to the transaction. And so can you comment on the market reaction, the share price reaction of the two of HICL? And can you comment on

47:44 there are questions around kind of analyst and investor feedback that we're receiving and whether we can comment on that? Yes, absolutely. I mean, think the first thing to say is that this is something that I've been supporting the Board on for over eight months and have had plenty of time to think about it and to really understand the strategic rationale for this particular combination recognizing that it challenges some of the well established principles within the investment trust market that renewables and core infrastructure need to live separately. And we recognize that a lot of market participants have only been only really had the chance to think about it for the last day or so. And before we came out to market with this proposal, the chairs and myself as manager went and met with a large number of shareholders on both sides of the register.

48:44 Clearly wouldn't have come out to market with such an ambitious and fundamental proposal if we didn't have the support of the company's large shareholders. We do recognize that there'll be people that are less enthused about the transaction about any transaction and there's clearly been some vocal minority investors that have come out and said so. But we continue to believe that we have the support of the large majority of our share base and we're continuing to meet with them over the coming weeks ahead of any

49:18 vote on the proposal. So we look forward to more of that engagement. But generally, we feel quite comfortable with the support that we're seeing. Thanks Ed. And just coming around to a couple of more topics that have come up on the deal

49:36 economics. How does the or how has the CPI RPI consultation on rock revenues. How has that been recognized in the transaction economics? So this is in relation to a consultation that the government has announced in respect of indexation of one part of its subsidy regime. We it's open for consultation now. There were a couple of options put on the table and we'll see where that gets to, but by no means certain. And

50:13 the last proposal that was put to the market for consultation was withdrawn with no action. So we expect a similar industry response to this one. From a HICL perspective, we were very reassured by the fact that TRIG's portfolio is among the least affected in the renewables market really owing to the fact that its portfolio is so diversified.

50:38 And hence as it provided a range of potential outcomes option one 0 point 6p option two 2.4p and not discounting option three, which is absolutely zero impact at all. So we are

50:56 quite comforted by that. In terms of the actual deal economics that was very much known at the time that the heads of terms between the two parties were agreed between the boards. And so the economic impact of that was reflected in the overall deal economics.

51:15 Thanks, Ed. And then back to a strategic question that's come up a couple of times now. Do you believe that investors

51:22 are ready for the idea that there is a convergence between infrastructure and energy? Yes, we're getting there. I think we're in this phase at the moment where I think the reaction as I said before, the reaction has been well this is different, this is new. Renewables have always been in a separate category. There was a time when HICL was composed only of PPP investments. And I can tell you that when we started to add growth investments into HICL's portfolio, it wasn't the most popular move. There were a lot of shareholders that didn't like it, some sold their shares.

51:58 When we look at HICL's investment proposition today, investors are most excited about the prospects for our growth assets. So this type of portfolio evolution often isn't incredibly consensual or well supported, but we do think that there is strong logic for it and that the market will come around as we go around and talk to investors.

52:22 As mentioned, we have a large number of investors that are already on board. We're continuing to meet with those that are still getting their head around it and explaining the rationale. And I'm confident that we'll continue to be successful in explaining merits of why this portfolio belongs together.

52:41 Thank you. And then a few more questions on strategy and what kind of sectors or assets are you targeting for the Enhancers section of your portfolio allocation? That's interesting. So there's a really exciting pipeline in respect of our INFRASTRUCTURE's value add strategy. And I should mention firstly that Trig already has a number of value add or enhancer assets really through its early stage development position. So that will be a key part of the enhancers. But the other part of it is INFRASTRUCTURE's value add strategy. And maybe just to give you a flavor of the

53:19 last three deals that our value add funds have completed and this is the type of opportunity that we'll have access to. So the three latest deals are a Canadian data center business, which is a carve out from a large Canadian telecommunications company, an existing portfolio, but with development opportunities alongside it. We also recently bought a Finnish

53:48 district heating business. So this is a business that uses ground source heat pumps in The Nordics in relation to district heating and cooling and is a really interesting business. And then the other one that I've mentioned, which is one of the three is a Nordic Norwegian ferries and ambulatory vessels business. That market is really interesting because it's undergone huge disruption due to the electrification of ferry fleets and that has meant that there's a lot of contracts up for grabs for those that have electric ferry fleet. So this is again a market that's been disrupted by that convergence of energy and core infrastructure.

54:36 It has an incumbent business with contracted revenues, but it has the opportunity also to win new contracts and build new ferries on the back of it. So that's a really exciting opportunity as well that we see in our value add space. So that just gives you a bit of a flavor. These are all assets that are very much in those megatrends that we described, very much assets at the intersection of core and energy infrastructure.

55:00 Okay. We've got a question around investor preferences and whether and what you would say to those investors who prefer to do their own diversification between core infrastructure and renewables? I absolutely understand the point. I think there's that needs to be taken in the context of the arguments for scale. So the alternatives infrastructure listed spaces had a huge number of options for diversification but subscale vehicles. And the reality is that in order for these companies to re rate, in order to attract new buyers to

55:46 the companies, which is the strongest way to get the share price higher and closer to NAV, we need to be able to market something to new investors and to a global investor audience. And that's where scale is key. So we recognize that investors will want to make their own decisions about

56:06 diversification. At the same time, we think it's in all investors' interests that we get a better share rating and we improve share price performance. And this is that compromise between finding a compatible business in terms of the underlying attributes, contribute to HICL's strategy positively, but also create that scale that allows us to market this to an international audience that wants to buy vehicles of scale and vehicles with compelling total return propositions. Thanks, Ed. And this will be the final question that we have time for running right up against it. But the

56:45 balance towards renewables in the combined portfolio is about half of the portfolio. Do you think this is too much?

56:53 Do you intend to reduce that in the near future? And then a related kind of investment question, would you consider other generation electricity generation technologies and some askers have specifically flagged whether we would consider nuclear?

57:11 So in terms of the concentration of renewables within the portfolio, I think really important just to reiterate, Triggs portfolio is highly diversified across sectors and across geographies. So it's not one big batch of UK solar. It is a diversified portfolio which has underpinned its resilience. Absolutely, we intend to continue to rotate assets on a go forward basis.

57:38 As we have done with HICL for a number of years now. And we believe that the opportunities to rotate assets are enhanced by having a more diversified asset mix. So we can package up portfolios that span renewables core and we can put the right assets into the market at the right time in order to continue to generate strong returns. So absolutely there will be opportunity to

58:04 realize renewables assets and I think that ability is enhanced on a combined basis. In terms of other technologies, as part of the presentation on Monday, we signaled that there was an unlocking of opportunities at the nexus of core energy infrastructure. We highlighted a few things like interconnectors, district heating. We also highlighted more conventional generation. In respect of nuclear that wasn't something that we put on the page. That's not an asset type that infrared has huge experience or expertise in and we like to stick to our knitting. So that's not something that we'll necessarily be pursuing. There are other funds that are

58:43 happy to invest in that particular risk profile and that's not something that we're looking at. We're looking at really leveraging our existing skill sets and our existing expertise from around the business for the benefit of this strategy.

59:02 Thanks Ed. That concludes the Q and A and the formal presentation. That's great. Thank you for answering all those questions you have for investors. And of course, the company can review all questions submitted today and we'll publish those responses on the Investor Meet company platform. Just before redirecting investors to provide you with their feedback, which I know is particularly important to the company, Edward, could I please just ask you for a few closing comments? Just to thank you all very much for your time and your engagement with the company, both on HICL stand alone, but also on the combined proposal that's with shareholders. We're very happy to take further questions. I know that a number of retail investors are emailing the inbox. We're also looking at putting a FAQ onto the website. We need to put it behind a firewall for regulatory reasons, but that will help address a number of the questions and comments that we're getting. But just to say thank you, we really appreciate the engagement and thank you for your support of HICL.

59:59 Thank you.

1:00:00 That's great. Thank you for updating investors today. Can I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations?

1:00:11 This may take a few moments to complete and I'm sure be greatly valued by the company. On behalf of the management team of HICL INFRASTRUCTURE PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.