Gresham House Energy Storage Fund (GRID) Trading Update summary

Trading progress and financial position

• Capital allocation in 2024 prioritized cash preservation, supporting resilience amid operational challenges.

• Installed MWh capacity projected to grow 116% from Dec 2023 to Q1 2025, with a 13% increase in total capital.

• EBITDA for 2025 targeted at approximately £45mn, with two-thirds contracted, enhancing revenue visibility.

• Ongoing asset disposals aim to reduce debt, with net debt expected to peak at 20% of Gross Asset Value.

• Refinancing process underway to secure sustainable amortising debt aligned with contracted revenues.

Strategic plan and sector outlook

• Three-year plan targets £150mn EBITDA, with incremental gains from portfolio augmentation and new projects.

• Clean Power 2030 initiative and NESO's Open Balancing Platform rollout provide sector tailwinds.

• Blended contracting approach to size debt off long-term contracted revenues, reducing risk and supporting dividend payments.

• UK BESS sector expected to benefit from favorable regulatory changes and reduced competition.

• Board expresses confidence in sector recovery and reinstating covered dividends in 2025.

Dividend policy and investment approach

• Dividend policy to be reinstated in 2025 post-refinancing, focusing on sustainable, fully covered payouts.

• Plan includes three smaller quarterly distributions and a larger final payment linked to performance.

• Cashflow per share projected at 4.5-6.2p if EBITDA reaches £45-55mn in 2025.

• Equity investment in 50MW Glassenbury project under exclusivity, with deal expected to close in Q1 2025.

• Company targets unlevered NAV total return of 8% and levered NAV total return of 15% per annum.