The Renewables Infrastructure Group (TRIG) Investor update summary

Strategic Overview and Capital Allocation

• Targeting a progressive dividend policy with a 2026 dividend of £0.0755 per share and sustainable cover of 1.1x–1.2x.

• Plan to raise £400m in 12 months, mainly via asset disposals and modest debt issuance, with proceeds for share buybacks, debt reduction, and internal investments exceeding a 13% IRR hurdle.

• £150m share buyback programme underway, with £101m completed and £49m remaining as of May 2026; surplus liquidity of £75m expected after buybacks and debt repayment.

• Management fees to shift to a pure market cap basis from July 2026, reducing Q1 2026 fees by 19% and annual fees by £3.4m, with further reductions conditional on a continuation vote.

• Board reaffirmed support for current external managers after shareholder consultation, citing their ability to deliver discount management and growth.

Market Context and Portfolio Strategy

• Energy transition, electrification, and digitalisation drive structural power demand growth in the UK and EU.

• Renewables are now core infrastructure, with policy shifting to support system flexibility and resilience.

• Battery storage and co-location are key for managing price volatility and enhancing revenue; co-located batteries in Spain enhance solar portfolio pricing.

• Regulatory evolution introduces mechanisms like Contracts for Difference, providing revenue floors and supporting active asset management.

• Portfolio is diversified and defensive, with 90% of debt fixed and amortising, and a conservative gearing profile.

Cash Flow, Dividend Cover, and Revenue Management

• Dividend cover projected at 1.1x–1.2x steady state, resilient across power price scenarios, with 100% growth in cover over 20 years through reinvestment.

• 85% of next 12 months’ and 75% of next five years’ revenues are fixed, supporting cash flow visibility; revenue contracts secured for 6% of generation.

• Reinvestment at IRRs of 13%+ is central to sustaining and growing dividends, extending portfolio life.

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

• Conservative balance sheet with fixed-rate, amortizing debt and flexible leverage aligned to revenue mix.