Foresight Solar H1 2025 Earnings Report

Foresight Solar EPS Results

• Actual EPS: -GBX 0.29
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Foresight Solar Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Foresight Solar Announcement Details

• Quarter: H1 2025
• Date: 9/18/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, September 18, 2025
• Conference Call Time: 5:00AM ET

Foresight Solar (LON:FSFL) Fund Limited (“FSFL”) is a Jersey-registered, closed-end investment company investing in a diversified portfolio of ground-based solar PV and battery storage assets in the UK and internationally. The Company aims to deliver sustainable investment returns alongside strong environmental, social and governance (“ESG”) benefits.

Foresight Solar H1 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Operational performance was strong in H1 2025, with global generation 4% above budget and UK output nearly 9% above base case (13% ex-grid outages) thanks to higher irradiance.
• Positive Sentiment: Power price hedges and PPAs deliver revenue visibility, underpinning a forecast 1.3× dividend cover for 2025 and with further hedge positions being built into 2026–27.
• Positive Sentiment: The £60 million share buyback program has returned £29 million so far in H1, adding just under 3 pence per share to NAV and running for over two years.
• Positive Sentiment: Development pipeline progress includes 100 MW of capacity awards for solar + storage in Spain and a 55 MW UK solar project expected to reach ready-to-build status in early 2026.
• Negative Sentiment: Ongoing Australian asset sale processes face a buyer’s market environment and high financing rates, with management reviewing bidder conditions and project deliverability to protect value.

Presentation

[Operator]

Good day, ladies and gentlemen, and welcome to Foresight Solar Fund interims results presentation. At this time, all participants are in a listen only mode. Later, we'll conduct a question and answer session. If you wish to ask a question, we ask that you please use the raise hand function at the bottom of your Zoom screen. If you've dialed in, please select 9 to raise your hand and 6 to unmute.

[Operator]

Instructions will also follow at the time of the q and a. Participants can also submit questions through the webcast page using the ask a question button. I would like to remind all participants that this call is being recorded. Questions will follow after the presentation. I will now hand over to Ross Driver, managing director at Foresight Group to start the presentation.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Good morning, and thank you for the intro. Flip through to the next slide just in terms of what we're going take you through there, highlights, operational performance, NAV, corporate actions, and the outlook. And just going through the next slide, I see myself and my colleagues, I think, wanting to voice people in the room myself, Sophie Verno, David Goodwin, Finance Director, and Matthijs is our IR lead. Okay. We kick off. I think we'll run through the presentation and then, as always, open to questions from within the room, those of you who've joined us today and online, Zebra as well. So running through and noting that the NAV and a fair amount of this information has already been flagged about six weeks ago, but take you through the highlights for 2025 in general.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

I think not coming through as a bit of surprise, but it has been quite a sunny first half of the year, definitely in comparison to 2024. That has fed through to global production across the portfolio. We have 4% above on our generation, albeit with a radiation that was eight and a half percent higher. You know, outages have limited that UK generation, but UK generation itself was just under 9% above base. We've had a couple of questions already.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

In this case, very sunny year. We have seen a few more DNO outages than usual, and these are sort of more of a grid grid level, not necessarily ones that our colleagues in asset management can always influence. I think it's fair to say that that is quite prevalent across the what we're seeing across the market as well, and it is something that we take very close attention to in terms of budgets and how we put them together because we've always managed to sort of nine out of the twelve years that we've been in operations have actually outperformed our budget, so it is something we will pay close attention to. In terms of power price hedging, PPAs and the financial hedges that we've got there keep providing that revenue visibility. They have helped contribute to the dividend cover in what has been a lower power price environment.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

It is something we are able to we are continuing to build positions in '26 and into '27, and it's something we are actively managing and manage to catch spikes in power prices as we are seeing them. We think that the financial hedges that we got in place are a very strong tool in that area, and that is why ourselves and the board are confident on the 1.3 times dividend cover that we are forecasting for this year. In respect to the capital returns, the share buyback program has, as you'll see, increased to 60,000,000. We've gone past around 50 of that now, and the Fund has returned 29,000,000 to investors in the first six months of this year. It is ongoing.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

That buyback program is consistent in the market where it has been for about over two years now and adding just under 3p to the now. So to the cost control balance sheet management, we did during the period resize extend the revolving credit facility. So it's not being used to the same extent at the moment, but it's a useful tool to have there. That, we expect, will save around a million during the life of that RCF. And as a reminder, we do also have a multicurrency facility where our ability to shift a large portion of that into euros actually gives us quite significant savings on the interest payments there as well.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

On the development pipeline side, where the development at the moment is mainly focused in Spain, I'm happy to take a few questions around that later around that market and what it means. We're delighted that we have now received capacity awards for five projects around a 100 megawatts base in the country. This is coming through from what we are seeing as a very competitive process to be bidding into nodes for base capacity. Obviously, you've seen what's happened with the the grid in Spain and the outages, also what's happening around the solar solar power prices and capture discounts there as well. But the the the market for Besse in Spain, we see, is about five to six years behind The UK at the moment.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

There's a real need for that that balancing capacity there. And what we're seeing in terms of activity bidding for these projects is it's very it's it's very competitive, but we are also seeing, at the trade office, seeing that pricing holding up at the ready to build stage. We do say we have those awards, but there's still quite a bit we need to work through in terms of seeing how those projects actually get through to ready to build. It will take some time, I but think we are continuing with our art to keep bidding into that market at the moment. On the other side, we do have we expect our first solar project out of the pipeline, a 55 megawatt project, to reach ready to build status probably in the New Year.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

And just for a reminder on those, all of those assets are valued at cost. There is no write up in the valuation until they probably reach the ready to build stage. Just in terms of ongoing investments, I think it's fair to say that markets are more challenging than at the outside. It certainly got more difficult during the year. There is a specific slide on that.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

We will go into where we are in terms of the Australia process, where we have had some bids in on that, but we are reviewing and what is what we are undertaking about the core markets where processes have kicked off at the moment. I think the only other thing to note on the the case side from there is UK valuation is about 1,090,000.00 per megawatt, which we think is is reasonable in the current markets, but again, will continue to be reviewed, particularly as we see where gilt rates, risk free rates and everything else is sitting at the moment, but that strong 1.3 times dividend cover for the year. I'll just move to the the operational side on page six there. I think this is where you'll see really coming out in terms of performance. UK, just under 9% above above budget there, which wasn't surprise to us given the given the strong radiation during the year.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

I think one thing, we've just sort of increased the size of the footnotes here just so that do what's I'll say that I I think there are some differences in how these numbers are reported, and we always strip out the DNO outages from our numbers. If we were to put the DNO outages back in, I think they they are to an extent outside our controls of these larger grid ones. We do, wherever possible teams or more localized grid outages, seek to work with the DNO's for those out of hours. But if you if you had excluded those network outages, UK would have been up 13% of base case. We are seeing more level high levels of outages on the grid at the moment, although those numbers also include levels of compensation where they are received from either the ONF or the grid in certain circumstances.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Let's say going down the list there that Spain did have lower variation to base case in the year and and slightly worse than the same period last year as well. This is partly due to the higher, let's see, more negative pricing that we're seeing during the during the period there and of and of grid outages as well. That's something we're going to keep a close eye on in terms of the in terms of the budgets that we're looking at for that. Australia or despite the challenges, absolutely, the underlying portfolio is working well, and I think it's fair to say that the even with the irradiation down because of the negative pricing, it has a bit of a perverse effect on the market there. The higher the irradiance can lead to higher levels of economic curtailment.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

But when the radiation is slightly below, the assets, the the revenues tend to perform better. So I think we've got the budgets on the Australian portfolio more in line with what is happening at the moment, but it's helpful for as we progress the investment case there. Just hand over to Toby on power price hedging.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

Sure thing. Thank you, Ross, and good morning, everyone. So I'm gonna start by talking about power price hedging and our contract revenues forecast for the next couple of years, probably throughout the of market. The portfolio continues to benefit from very, very high levels of contracted revenues in 2025, continuing to benefit from the attractive forward flexes secured in the aftermarket invasion of Ukraine and the European energy crisis. Combined with the strong operational performance of this year, there's very high degree of confidence in delivering on that dividend cover target of 1.3 times for the full year.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

As we look ahead to 2026 and 2027 and we move past this period of heightened electricity prices that funds such as that were able to secure, we are returning to more normalized levels. And in fact, what we're seeing, slightly bearish markets in terms of electricity forwards, and that's driven in part by reduced expectations for economic growth, geopolitical barriers, American tariffs, conflicts around the world, and also increased LNG output from key markets, both of which dampening prices. There's a slight balance to that with relatively low levels of gas storage in Europe at the moment at markets needing to get there ahead of winter such that they're depleted if there is a cold snap over the six months. In spite of this bearish outlook, as Ross mentioned earlier, Foresight Solar has continued to deliver on its hedging strategy at us continued to secure hedges at levels which are accretive to dividend and at attractive prices, and we remain on course to deliver contract revenues in line with the company's hedging policy target. That's 75% contracted revenues target looking out to the kind of two years ahead, and that is to leave an appropriate level of market exposure whilst securing a good proportion of revenues in order to underpin our stable dividend.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

We've been able to achieve this through ongoing active management. We've expanded our toolkit of instruments that we're able to hedge through during the period. And during periods of volatility, we've been able to execute these attractive hedges, and the team will continue to build the portfolio's hedge position 2027 and years to come thereafter. If we move to the next slide, please, I'll then move on to the financial gearing position of the portfolio. This remains stable at around 40% versus the last reported results.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

The key developments in the period, which we touched on earlier, was the resizing of the RCF, so shrinking from 150,000,000 to 100,000,000, and a renegotiation of the terms to tailor it to the near term strategic objectives of funds and priorities in the near term. This leaner structure is expected to save around a million pounds in debt costs over the term of the facility, which is a great result while still maintaining the flexibility and, you know, high value the utilization value of that facility, so it continues to be of benefit fund. Portfolio level debt continues to be paid down. It remains fully amortizing and fully hedged to interest rate movement, and so we look forward to continuing to target repaying debt over periods to come. Clearly, material reductions in the level of RCF will be dependent on successful outcome of sales processes in the absence of, you know, more material dividend cover in years ahead.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

I'll hand back now to Ross to take us through the NAB bridge. That's the first half of the year.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Oh, to the NAB, I mean, this is the bridge for the first half of the year. This has been announced already. I think in terms of the main drivers, won't be a surprise to you. I think in terms of the again, going back to the buybacks that have now delivered about just under 3p of now of accretion since we started those in May 2023. The first half of the year, that's added $0.00 pence back there.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Other major, although I'd say that the project actuals always come through with a bit of a lag, so they were slightly negative due to the sort of that's probably the first quarter we should see that tick up in the either by the q three in terms of the the cash generation out of that given the good second quarter that we've had. Major driver of downside. I think no surprise coming through there in terms of the power price forecasts. We are well hedged, and I think you will have seen one of the other funds, I think, make specific reference to one power provider in particular that that changed their forecast quite significantly. I think it's the same the same as what we saw as well.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

It was what appeared to be some level of refacement in that for one of the providers, whether that flows through and there is a a subsequent change again later, but it's exactly the reason we use a a blended blended curve internally of of free forecast that's there. There was a small change in the discount rate for Australians that's more, I would say, at this stage influenced by movements we're seeing in the market, but not yet sort of valuing that at specific bids that we've received. We'll talk through that in the the next couple of pages. And a small adjustment there for the for the sale of the Lunenhead project. A minor downside on those those project rights is there was a small adjustment for grid costs there in that sale.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

But, otherwise, it was through the in line with the revalued revalued valuation there. Think all of that, so happy to take any any questions on that at the end. In terms of the the divestment program, like, just jumping straight in there to sort of phase two on Australia at the moment. I think the heading, just to give a bit of flavor of this, look, we're trying to be as transparent as possible with yourselves and the market. This is these processes are very live at the moment.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

And I would just say it's it's quite clear that markets are definitely in Australia. We may see some of that in other markets as well, although we're waiting to receive feedback in those. It is with the continuing rates in the in the gilt rates. I think we'll see for The UK if we're looking at Spain as well. But in Australia, the gilt rates have sustained at higher levels now for the for the whole of this year.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

It is definitely more of the buyers' market out there, and I think we have to be flexible in terms of how we're approaching that market and also with interest and bids that are coming through. In Australia in particular, there are it's fair to say we have had a small number of bids there for those projects. They are not yet firm. It's a is still quite a bit of detail to be worked through, and there will be conditions attached to those. And I think as we are where we are this morning is we are working through ourselves, our colleagues in us, in the office, and the local adviser working through the deliverability of those.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

I was saying, too much, I think they would be this is not just a question of pricing. Values could be within an acceptable range. We might put a specific price on that, but it's in terms of that deliverability to be able to break those through. It may be we need to run those discussions since they are at the moment, run those to their conclusion, and we may need to be flexible in how we how we look at that. It may be a case where we find something that we could work with.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

My gut feel is that this is going to take take a long period in terms of being able to work through those. It may be that there there is a need to to pivot the process slightly as well. The important thing about that market is there are still a lot of transactions out there, and, also, what we want to make sure is that you're able to get through bidders who are able it would be great to get some of the local bidders into that process who maybe didn't have capacity at the time. So potentially focusing, potentially giving a bit of space for I would say one of the things is we are still waiting for some further potential bids to arrive.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

So that's the need to be flexible. To point to give as much transparency at the moment, it is difficult to give an ongoing commentary while you're running the live process without prejudice. In terms of the other ongoing, have and the board is committed as well to further projects that are settling around at least 75 megawatts of these other markets. I think we do have processes underway, appointment of financial advisers. I think it's fair to say on those, we are we are awaiting feedback, but looking to push those ahead.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

But, again, I think we need to be flexible in these markets in order to protect value and make sure that we are getting best value for shareholders is absolutely key. But happy to take any questions on that as I can at the end.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

I'm going to talk us through our development activities, and there have been some very exciting updates in the first half of the year in respect to, of course, our service development pipeline primarily in Spanish markets. Ross touched on some of these at the outset. So in the period, we secured about a 100 megawatts of grid capacity for plant storage projects in Spain, and we're working with our local development team to evaluate the best opportunities possible to progress. Alongside, our leading solar development project is advancing steadily through its permitting process, and it's expected to reach ready to build in the coming months. We continue to see a blended pipeline of solar and storage being optimal in the Spanish markets, and we've already touched on earlier some of the curtailment issues and negative pricing that have been seen in the market.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

And that really emphasizes the importance of flexible storage assets for that market. And that's why our balanced pipeline, we feel, is really well targeted and also really well aligned to investor appetite. And as we know, this development strategy presents a high level of optionality. We illustrated in the chart just on the slide that for these projects, through development, once successfully ready to build, and then operations, there are multiple milestones at which you could choose to go to market and crystallize some of the valuation uplift. And what we're seeing is in the Spanish market that investors are very focused on diversified portfolios, which include both generation and storage.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

And so we think that our pipeline is very well matched to that market and presents that optionality to crystallize value and crystallize liquidity in periods to come, albeit development is dynamic process, it does take some time. And there will be an attrition rate. Just to reiterate the overarching strategy, are targeting between two and three gigawatts of rolling pipeline. But as I just said, there will be some attrition in that, and we certainly don't expect a 100% success through that, but we're very pleased with the success that we've seen come through as we started the journey throughout the course of this year so far. Can we move on to the next slide, please, and I'll hand back to Ross.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Go ahead. Through the corporate actions. Taking this as more of an update from ourselves and reflecting the views of the board in terms of where where the sort of company is at the moment. And it is a case of ongoing action here to seek to address the share price discount, quoting the rerate the debrating that has happened across the entire sector. So we are playing with things that are within our control to an extent, and that is initiatives to generate cash, return capital, continue to pay down debt.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

So there is strong support for a consistent share buyback there, returning up to £60,000,000 to shareholders. That is consistent, and we'll be continuing to do that. I think the de rating of the share price, that absolutely makes sense at the moment. The fund is continuing to pay down debt. It is fully amortizing at the moment and seeking those opportunities to to continue to reduce that further.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

We will say focus on unlocking additional capital from the portfolio, which can come through the divestments, but can come through other means that we're investigating as well. And we will continue to invest those modest sums into higher yielding development assets because as we are starting to see in Spain, we do think that that has the value to bring through some quite attractive returns out of that even in what could be seen as more more challenging markets. In terms of the capital returns, there again, we we have now gone over the 50,000,000 level in terms of in terms of buybacks today, dividend of 22, two and a half pay million paid out in h one and confidence in that 1.3 times target dividend cover for this year. I think we can expect that to sort of come down over the next couple of years, but still we're still confident of being north of one to 1.1 times over the next couple of years in in terms of that. We are still benefiting at the moment in terms of some of those higher power prices that were locked in to the post Ukraine.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

And I think we'd get back to a more normalized level in terms of that where we were sort of pre pandemic. Capital right recycling key to realizing that value, but it, again, coming back to that point, we we're just gonna need to be flexible in those processes in order to do that in order to protect value for shareholders. On the governance side, the continued shareholder engagement, so we'll be receiving feedback. There has been quite a bit of change in our shareholder register as with others as well. The board and ourselves are very keen to get on the road and be hearing from particularly the new investors, all those building building higher stakes in the company to get their views, particularly in the current market conditions.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Our phased board succession plan completed effectively yesterday when Alex Alst stepped down and retired. We said said a fond farewell to him, and and Tony Roper now sitting stepping into the chair role, chance to know who's well known to many of you, and Paul Masterson in place said, I think we have a we have a strong board there at the moment who is well placed to advise shareholders and act in their interests in the current time. And I think the the plan is to we are at the moment to add another in due course as well. The directors, I would say, acknowledge the the AGM results that gave support to their current their current direction of trouble, but they are aware of the task ahead, particularly in the current markets, we need to make progress with this, and I'll commit to that. In terms of strategic options, a couple of things in there.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

You will have noticed the the comments around having made another a proposal for another investment trust in May. That was very much driven by the the synergies between the two that could be sitting there that was felt that's very much in shareholders' interests. Exploring other pathways to release capital, as we're saying, and even potentially valuation of the bank structure itself. None of those necessarily on its own are deemed as being a panacea to the issues and challenges that we have, just to give a sense that everything is on the table and being explored at the moment in conjunction with ourselves and the board. And the board remains focused on delivering the best possible outcome for shareholders, and I'm highly committed to that.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Toby, if you wanna talk through the the outlook and some of the sort of wider factors we've been experiencing.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

Yeah. Sure thing. So we're going to draw on three key highlights here that are probably most pertinent to Foresight Solar from the period. The first being Riemann, well, upsized and discussed, but we welcomed the confirmation that zonal pricing isn't going to be pursued, and instead, there's going to be focus on reform of the single national markets. Whilst our portfolio wasn't set to particularly gain or lose dramatically through zonal pricing, we do think that it helps dispel a bit of a regulatory crack cloud that was hovering over the sector, and I would just encourage investments and, you know, should offer some awards to expel tangentially at least.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

The second point that we'd make is on AR seven and the kind of enhanced legislative support there through the CFD mechanism. Now a, a r seven is, you know, currently live, appropriate to fit again, but some of the initiatives such as extending the support period to up to twenty years and also the slight change in approach to announcing budgets that should, we believe, leads to a very successful auction for solar in The UK. This gives a much a great opportunity for the continued deployment of solar in The UK, and that's something that, you know, Foresight Solar in its home market should look to benefit from in years to come. So we do think that there's some quite helpful developments there in that level of support, all targeting, of course, the ambitious net zero targets, 2030, 2035, etcetera. We also want to touch on Spanish fares.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

We we've mentioned, you know, our success in the commencement of our development activity there, and the need for Spanish fares is clearly recognized within governments and within the grid operators. There have been introductions of support regimes, including capital subsidies and reduced hurdles for permitting, in particular, for operational assets that are seeking to hybridize battery storage and co locate that alongside. In short, both XPEL's operational portfolio and development pipeline could stand to potentially benefit these sorts of initiatives, and so we think that that can add value to our development activity in Spain. I'll pass that over now to Ross.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Just to just to summarize on the conclusion thoughts, really, looking at this cost of performance. So I'd say the operating performance of the first half of year really builds on the strong track record of the fund. Again, we come back to I think it's fair to ask those questions about high levels of outages, but we've always been very careful looking at our production and looking at forecast yields. UK portfolio has a really good track record there, bit above budget in nine of twelve years operation. That's something that we will look to look to cons look to replicate going forwards.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Very good availability there and dividend accretive power price hedging. We do think that that is something that is gonna start to show the benefits, especially during the next few years while power prices are sort of a bit further depressed at the moment. We don't see that many others hedging out into the years years ahead, so that will come through. Collections, again, buyback program up to 60,000,000, already one of the largest sectors relative to NAV, implementing those initiatives to reduce finance costs, sale process is starting, and analyzing the board itself analyzing all those options to deliver the best outcome for shareholders. There are some industry tailwinds out there, less volatility in fire prices despite the turmoil in the in The Middle East, Strong support, continued support in The UK for renewables to be pushed ahead.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

As Toby was just saying, we do see more opportunities there. It's interesting dynamics in those markets, and we just want to be safe. We are looking still at development opportunities, particularly in The UK, but making sure we've got the right partners with the right right assets that are there. And capital returns, consolidation amongst investment trusts, probably positive from what is required for the for the sector, but it's not a not an easy choice. So I'll there.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

That's, I think, everything that we had to update on, and happy to hand over to those other questions. Charlie, you're right in front of me there if I can. Good morning. Starting Spain. Given the diss the capture discount rates you're seeing in Spain, is new solar economically attractive from an investment perspective?

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

How does it how does stack up? It it can still be. I think it all comes down to what the what the prices are at a at ready to build level. And I think if you go back, the the important thing to note about the Spanish market there is that the power curves already have quite a high level of curtailment built into them. So they are at the 40 to 50% level of curtailment.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

What is what is being coming through and being reflected there is the the upfront cost of rent for the projects. I think we could see a bit of for those kind of projects, we could see a bit of market rebalancing there. But if you were going off just a couple of years back, those project rights will be trading hands at over 200 k per megawatt hour. I mean, they are decisively less than that now and less than 100, maybe within the sort of 60 to a 100 k range. So it all comes down to expectations from from developers around what they're gonna what they're going to receive for those, and there will be some, clearly, some market market shakeout there.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

I think the key thing for as we keep saying, I think the key thing that the Spanish market is gonna need, and you see those large periods of negative pricing during the peak hours of the day, is going to be best to balance the grid, further grid balance. That was my next question. Is there a big enough intraday spread to make an attractive term for BES, or do you still need to government subsidy as well to provide ancillary services or some other They have had Spain has had FTA sign up from the EU with in terms of that what the model with what they're looking at is a capacity market at the moment. I'd say that is still yet to be yet to be formalized in terms of what it is. I think all of the consultants, teams that we we and our team in Madrid are looking at and say, there is a lot of good examples of what's been done in The UK, and they are they are looking to that in certain areas.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

I wouldn't say all the support mechanisms in terms of things that we've seen here in The UK before in terms of FFR and those kind of things, they they quickly get bid up. So don't necessarily think about in terms of long term support. But I'd say, at the moment, we are we are not saying we would necessarily even if we have the capital to be pushed ahead to build these projects out. We are looking to explore that market, but what we can say is that there is there is significant appetite there in terms of acquiring these projects at the outset. Under the deal that we've got, we are getting in, and we are getting those projects at a at a good level of return, and we are seeing prices for ready to build projects holding up very strongly as well.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

So we are looking at this as more of a development play at the moment. There is only a few 100 megawatts of BES operational currently in Spain. Only the first few projects are built through,

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

but there is a huge pipeline coming through there as well. And then I think taking a step back for the markets, you know, there's a number of European markets with similarly high levels of renewable penetration, but in Spain, it's the one amongst the highest and one of the least interconnected countries in the market. So, you know, just the bird's eye of The UK. So theirs is very, very strong in the markets. And, yeah, the capital subsidy that we mentioned is limited.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

It's a limited budget, and so, you know, it's very much been those in the market. Those have been early movers that will start to benefit from that, and that was really to accelerate the build out. That's, you know, it's clearly needed.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

I think the other point just going to that is clearly, it's a competitive market for CapEx as well because Spain is going down that route. You've seen Italy giving out other tolling agreements there onto the MAXIM auctions that's just CPI linked to. So it is the the grid and the energy drivers of government actually looking to compete for capital across Europe, especially those countries that know they need to build out additional storage generation. I've got a couple more questions, but I'm happy to hand over to someone else. Can I just ask on I was on page seven looking at the contracted revenues?

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

So I think it's 77% fixed for 2026. I think you'd say that PPA pricing is a bit softer given that the market price is, so at the moment, relatively high. I mean, would you just be happier running with a higher merchant level than you have historically? Rather than metric PPAs, I guess, significantly lower prices than current market. That was a of a trade off, if you

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

Yeah. No. Absolutely. And, you know, we you'll have seen, I guess, a relatively common sense approach to the level of contract revenues that we've targeted over the last few years, you know, in the depths of COVID leaving open a great level of market exposure and, you know, peak European energy crisis fixed the math because it makes absolute sense to do so at on those unsustainable levels. Yep.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

The policy target is around 75% total contract revenues, and that includes our subsidy revenues that we received kind of from various markets as well. So, you know, roughly speaking, we're looking to hedge that 50% of our electricity sales. And so that's what what we what we target. At the moment, we we do see sort of, you know, normalization of prices, and we are taking that balance to see that actually that 25% exposure is appropriate. We will continue to appraise that.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

You know, clearly, the advantage of hedging is that you can avoid a situation where, you know, gas prices appraise it for any reason and have that not gonna affect electricity prices. And, you know, for our safe investment objective, that would be, you know, you know, a a situation we'd want to avoid. So we do feel it's appropriate to continue to build those positions and maintain that level of hedging because it's an uncertain and volatile market. But, equally, it is appropriate to have a bit potential upside exposure as well as we've seen. And it's literally paid dividends from the last, you know, few years with that concern.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Right. And I'll just add to that in in terms of I our strategy hasn't changed in terms of that way we look at it. I think if we are all we've done is add additional strings to our boat in a way, in terms of the way we can we can access that, particularly when there is this volatility in pricing with the sort of limitals we have there, we can capture those peaks. I think we would much rather we've always said we are not energy traders. We're not trying to second guess on those.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

We are actually working with former heads of energy trading companies that are helping us put this process in place. If those opportunities come to allow us to build up those positions so we can kind of scout those scamp those peaks and when there's I say, we think that that's so much better. What we want to do is build that sort of level of dividend cover, but we're always happy to maintain that level of. Makes sense. I think it's in in terms of the extra years, I would say we're not in a different position to where we've been historically.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

This sort of this sort of chart is four years I've been here has always been sort of quite similar in that, maybe with the exception of being the peaks in the peaks in terms of pricing, but we all just filled our boots. I think now as you're seeing those those hedges, those hedges are starting to roll off forever. Yeah. I think the question of matter is, what can you do now with more in more time? Are you just waiting for the merchant prices to go through and taking those risks and stuff?

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Or can you do anything to sort of hedge in advance? We would very much like to build that position in in '26 and '27 as well.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

In this area, as with other areas, we're just saying that consistent delivery of that strategy. So, you know, as you look at our reporting in the last year, you'll see those percentages and those levels increase consistently as we, you know, target for that strategy. And so far, that's not been at the detriment of, you know, a brief different cover levels of pricing, etcetera. So it's by being nimble, being active in your management, but you could, you know, continue to deliver.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Anything else? I'll let someone else forget. Just on consultant power curves, because you mentioned that your average had come down because the lowest, you know, app free came down markedly. Just sort of what feedback have you had for them, you know, as to the drivers of of why it was such a material move, but also in particular, you know, given you're also in Spain, why they had such a big move in The UK compared to other European move markets?

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

I'm truly being a little bit cautious around that in terms of is our valuations colleagues have the the direct conversations without wanting to say too much about what particular power curve provider in terms of that. I think I think they they do in fact, they do all have their own independent views in terms of things. Have we seen I might have to just answer that question a little bit more generically rather than putting one on on spot. But do we sometimes see movements in the other direction and then things come through and correct that back in other ways? Are there times when it feels like they have maybe rebased their assumptions?

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

I think we have had to dig into that in quite a bit of detail because, actually, the narrative that comes alongside it doesn't always necessarily claim to the big moves that we're seeing,

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

to be fair.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

So I it's not the most straightforward answer, I think, in terms of that. But, again, we we want to see that. We want to see that versus the curve before and the next curve as well in terms of to see where they can help. But we have had this we have had this this was quite a quite a specific and quite a large move, and I think we're still digging into it with them into fully understanding that and see where they go next. But that is that is the whole reason for using multiple.

[Matheus Fierro, Head - Communications & IR at Foresight Group]

Okay. Thank you. Hi. Do you apply the cash discounts to those curves? Or We do. Yes.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

And as you always say, something we'd like to give some more transparency on, but what we do is in terms of in terms of the near term, it's always guided by what we're actually seeing coming through the portfolio itself. So we've been applying capture discounts to the curves sort of before the power price curve providers themselves did. So we've always taken an in house view of this, and this is based the data is based on what we're seeing coming off the portfolio sort of over over the last few years. We have seen a tick up in the last year, but it's been an incredibly when you tend to have very, very sunny years, you have higher higher percentages of capture discount, and that is where it's points there. I think fair to say sort of in the longer term, we bring ourselves on with the with the consultant averages as well.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

But it's it's also driven a lot higher level of rollout in terms of that assumed. It's fair to say, I think we could start to see, particularly with the support from from the CFD market, a lot goes through. There will be a lot of capacity coming on probably in the next few years, but it's always been at a lower level of deployment, I think, with the consultants have have forecast So I think we it's something we're coming forward with at the moment, but we will continue to continue to monitor that. Have your further out assumptions changed at all over the past year?

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

That they are evaluated in the same same way as the the near term ones are. In general, we, you know, we obviously do take agreements of what the providers, you know, produce from their models. As you know, that's pretty excellent forecast that we use there, you know, with very specific models that turn out the, you know, the long term results. And our final position ends up in a pretty similar place to where they are. The shape along the way is obviously slightly different, in the near term where, you know, we're informed by our actual cash price, you know, from last year to last five years, which is very specific to our portfolio because clearly, it depends on top of size of our performance in the individual size as to, you know, how how they'll perform. So, you know, the best proxy, but certainly our UK portfolio is in the next year is what it's up for the last five years or so. We wouldn't add that there's been a differentiated approach to markets where we've had a credit for that for long period of time where we do put a lot more weight on the.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

So we use consultant codes. And, also, just going back to PPAs, do you fix corporate PPAs as well, or is it mainly utilities or mix? Spending with the utilities at the moment, we are we continue to explore the options through through corporate. Yes. Right.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

So it's been a very interesting few years for corporate BPO market, swinging widely from buyers market to sellers market Yep. You know, as pressures have gone either way. So, yeah, it will continue to play an important role. Relatively shallow market in the scheme of things and the scheme of the rollout of renewables over the coming years, but, you know, it would certainly play an important role as for such projects.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

The UK portfolio valuation on a per megawatt basis has been largely sort of static for a few years now. Have you seen any sort of material transactions which triangulate your valuation? I mean, just thinking it's been it's been a couple of years since Toucan, for example.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

Yeah. There's been a bit of a of transactions. Largely, people are enjoying the yield, think, from, you know, largely well optimized operator portfolios. Mean, certainly, ours continues to generate extremely attractive cash flows, guess, and supports all sorts of our activities. So there haven't been that many, but I'm not actually aware of any material UK rock transactions for solar over the last couple of years.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

There has been less than a handful of rock back wind projects that have changed hands, smaller scale. But, yeah, when they do come up, they do tend to be to be brought over because of those cash flows that still, you know, set up solar that's, you know, ten years circa to run on the rock sport Yeah. Which, you know, you can't get that sort of, you know, cash flow from from any other investors at the moment.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

What we do see is in the in the sort of run its bill Oh, absolutely. Price for the Yeah. Potentially coming through backed by CFDs or even pre CFDs. We see that as being even more competitive than the best price. So is that is it maybe there is some more premium for newer projects that have got maybe twenty year index linked?

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Maybe for the that market at the moment and as broader foresight, we are are bidding into that actively and seeing those risk. There is still a lot of a lot of interest and with valuations that are even even higher than this, really. So in all concerned, there is we will find out more as well. And I think that the it's it's a good case because you look at the you look at how the guilt rates moved at the moment. It's almost been a case of sort of boiling the frog over the last over the last year or so.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

You look at it, we are now or long term now far higher than they were even under the trust's short lived administration. So we are we are aware and conscious of that and looking to try and go away to lock this price. But, I mean, Watch this space. We will continue to update and review that through the second half. Charlie, you answer Two questions.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

One, is the market more challenging in The UK? Anything particular that stands out? And then if if some comment around whether a long term PPA market is developing or have you seen in signs of growth Yeah. In The UK. And I I wouldn't say look.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

At the moment, I wouldn't say we're singling out The UK as being more challenging. I think if you just look across across the piece globally in terms of that, where we are, particularly because of the macroeconomic side of it as well, I think a continued theme is there will be a lot of buyers set on the sidelines waiting to things happen to see how things pan out at the moment. It's too premature for us to say that the The UK is particularly challenged market. It's more I take that as more of a general comment. And this is feeding into these look.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

It's I mean, just to be transparent, it's no surprise. It's that sort of divestments across the across the market have taken longer than people would have liked or would have hoped for as well. I think we're just being transparent about that, and and the fact is we do have to protect shareholder value as well. There are there are pockets of capital. There are interested parties out there in the assets, but it takes time, and you need to you don't want to be seen to be a forced seller in these markets where the where the the power is with the clients, really.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

We just want to be honest and open about that.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

Yeah. Maintaining discipline is really key for sellers in the vast markets, such as where we're at. And so I bet, know, that's absolutely what we're doing. And I think all of them need to be, you know, flexible at times and pragmatic about these processes and the feedback you receive, but at the same time, maintaining that to maintain value to shareholders is is key. Just touching on your second question on long term PPAs.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

So the corporate PPA markets and recent years is largely been focused on these work projects, but for a number of factors, including sort of, you know, marketing and PR benefits that go with it. However, we are seeing a growing market for midterm PPAs, I'd say, for operational renewables projects, and that's in part for corporates to lock in price up to, you know, whether it's written rollercoaster for the last few years. I may actually see that, you know, supporting a renewables project even as well as got a subsidy, you know, brings benefits to them in terms of that price stability for a meaningful portion of their their demand. So I would say sort of, you know, five year term type PPAs are growing. It is not certainly the norm yet, but we hope that that will continue to build and could present optionality for, you know, a strong portfolio such as us, particularly as we start to stare down, you know, the end of the rock period over the next few years.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

We still want, you know, little over ten years to go. But, you know, there will come a time when, you know, these projects are going to be looking for extending their contract revenue structure. And so, yeah, it'd be helpful for that market to continue to grow and be nurtured.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Let's mark it up. Our colleagues in our portfolio, so management team, we constantly need having conversations with. So this is it. If everyone Have you one more? In terms of you say You do get preference if you turn up.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

You'll allocate modest sums to the development pipeline. Is that a kind of 1 to 2,000,000 here or there or maybe 5 to 10?

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Do you have any idea? No. Comes down to this. I think it will form part of the the capital rotation part of things as well in terms of how much capital we have to work in that, and we've got to look at the what I think if I'm trying to summarize the views of the board as well, I would say we've had a very disciplined capital allocation approach at the moment. And it's our trade off, especially when the share price discount is a much higher level, like, pushing nearly 30% down.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

It's a bit an upgrade. The majority of that money goes into there. I think what we'll be able we should hopefully be able to prove with the what's coming through the Spanish development pipeline is that it still makes sense. You know? There is there is good returns to be made out of this, albeit it's on a low value marketplace.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

I think part of it will be we are seeing good opportunities in The UK market. I think that will come down to how much capital we have deployed into into such things at the moment. We do like, I think single digit millions of moments is probably a reasonable, unless there is something more material and strategic that we can we can Yeah. And I think there would be it is is true to say, right, so I had to we've we've been in this sort of situation in the macro for a couple of years now, and we all know that if you if you don't continue to invest in these funds as well, the NAP will will start to decline and and run off, David. And we do have a dual mandate to continue to invest and protect NAV as well.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

I think there is there is part of that we need to think about in at some point, potentially pivoting out of the the legacy assets and into and into newer assets as well to protect the income stream longer term.

[David Goodwin, Director - Real Assets Finance at Foresight Group]

But, yeah, that's something more strategic with that people than a couple of. But, yeah, continue to embrace. Yep. K.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

That's it. Online. We got one?

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Yeah. I think can we start with Trevor? I can't hear anything at the moment. Yeah.

[Operator]

We will now we will now start the q and a on the webinar. If you wish to ask a question, please use the raise hand function at the bottom of your Zoom screen. As a reminder, participants can also submit questions through the webcast page using the ask a question button. We'll take our first question from Joe Pepper at RBC Capital Markets. Please unmute your line and go ahead.

[Joseph Pepper, VP - Equity Research at RBC Capital Markets]

Good morning, everyone. Thanks a lot for the presentation. Just three from me, if possible, please. Firstly, just on the cash cover. So looks like a strong start to the year, H1 twenty five, roughly at zero point six seven versus 0.44 this time last year.

[Joseph Pepper, VP - Equity Research at RBC Capital Markets]

It was going to recognize that negative project's actual movement in the NAV bridge due to timing effects, which is a bit of a surprise given the stronger radiation, but presumably in price and even greater weighting to H2 than expected. Guess, my question is guidance is 1.3 versus 1.4 in the prior year. So just wondering what the moving parts here in terms of net cash generation, presumably there's a material cash outflow yet to come in H2? Or do you really see 1,300,000,000.0 as a cautious target there? Secondly, Justin, you mentioned that you're reviewing deliverability on the Australian asset sales.

[Joseph Pepper, VP - Equity Research at RBC Capital Markets]

Is this really a case of debating payment terms and structure, potential conditions for upgrades you need to do? Is it really just about pricing and it's too much below NAV at the moment, you're waiting for more offers? And then just finally on budget, obviously, we've seen the whole sector be impacted by DNO outages this year. Appreciate it's a slightly counterfactual question, but what proportion of the underperformance in that regard do you think is down to the exceptional radiation we've seen this summer? And what proportion do you think is more structural that we can expect going forward as obviously you see the kind of grid composition changing? Thanks.

[David Goodwin, Director - Real Assets Finance at Foresight Group]

Okay. Thanks, Eric. Yeah. I think we just sort of worked through those. I'm just David here as well at the moment.

[David Goodwin, Director - Real Assets Finance at Foresight Group]

I think in terms of the cash cover, we've we've literally been having our board and going through this with the with the directors. I think the 1.3 the 1.4 from the prior year, and as I've sort of indicated before, we're still benefiting from the from the roll off of those higher fixed PPAs at the moment. So it's a combination of those alongside the the high cash generation. Fair to say that there is a bit of a lag in the the timing of the cash receipts as well.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Yeah.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Absolutely. But it's not not something we would not see otherwise. I think the 1.3 dividend coverage isn't overly prudent. It's very transparent. It's what we expect to land on the end of the year. The the cash flows are in line with with what we're seeing operationally.

[David Goodwin, Director - Real Assets Finance at Foresight Group]

That's been covered in the presentation.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

Yeah. And I I

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

think we're saying that now as we are best part of nine nine months through the year, Joe. So it is what you're seeing in project actuals coming through does does involve a bit of a cash lag there at the time, but putting those snaps together, given those kind of out sort of six weeks ago. It still takes time for that to flow through the structure. And and just to sort of add to that, yeah, I do think 1.3 is still good. A major factor of this will be the roll off of those higher higher power prices.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

You can see it on the average power prices if you go to that if you go to that slide as well.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

Yeah. And I think a more normalized level of dividend dividend cover, particularly for the solar sector, you know, renewables generally is below that 1.3 times level. And if you look at historic dividend cover levels, more like 1.1. I think that'd much more normal and appropriate, such a stable asset class. So, yeah, obviously, we benefited from some great power prices.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

They see benefit from great power prices and greater radiation, but, you know, we are sliding down to more normalized trajectory going forwards.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Yep. And let me although I talked about it a little bit there yet, let me pick up on the deliverability point around Australia because it specifically put that in for a reason and because this is still live. It is potentially around other conditions and other factors that are included within the closed bids. The reason putting there is it is this is not a point of price alone, I think. Although these are non firm bids at the moment, there's still quite a bit to be worked through in the Australian market as well in terms of given the debt there and the debt is that has to be refined every it's sort of mini firm debt, all assumptions that they've made around that.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

There is also the fact that I would say that the values could be within an acceptable range. I would say it is conditions that have been put in there as well, and this is goes to this point around flexibility, is that we that we may hold out a little longer to see if there's others that come into that process as well. I think having time to do that and having time to work through these and what what conditions buyers may be putting against them is absolutely key. But I think the point to make out of that is it is not a question of value alone. It is also a question in the suppliers' market of of what conditions are coming with these these bits as well.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

It will just take time to work through to see if it's something that's acceptable not just for us, but we also have a have a co shareholder in there as well. Yep. Okay. That's up. And then in terms of the budget, D and A outages, it has been it's been a very, very sunny year, and that's been marked down particularly in The UK by this level of grid outages.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

We have seen more in the last year than we have in prior years. And I think just going back to that point, it's a little bit difficult to say at the moment. We do so management team has visibility through to a few, particularly affecting our portfolio, a few large network outages. There were ones on sort of close to one of our large projects, Sandbridge, where also we have the best coming online there, and those will now be complete. I I think this has been a high year, but we will we'll look at this in terms of our availability going forward as well. Yeah.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

And I I think, yeah, a couple points there. So, you know, warmly, know, high production year, you know, percent or another generators will have an impact on some good outages, but also just as you're connecting more and more with distribution generation and intermittent transmission connected generation, you know, those works do trigger outages. So, you know, we are in a period of aggressively targeting, you know, certain build out by twenty thirty, twenty thirty five. And so, you know, it's probably expected that there's, you know, to be seen some slightly higher levels of of outage. I think that what, you know, we always would point back to is our overall production targets and, you know, our performance against those and track record there.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

And, you know, we clearly do have assumptions around levels of asset availability, which includes both asset availability and grid availability. And, you know, the balance of our well diversified operating UK portfolio has shown that, you know, nine nine out of twelve years with attributing those budgets. So, you know, we'll step back and sort of bring it around as well.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Hope that's helped with those questions, Joe. But That's

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

great. Thanks a

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

if there's anything further. Perfect. Thank you.

[Operator]

We'll take our next question from Colette Ord with DB Numis. Please go ahead and ask your question.

[Colette Ord, Director at Numis Securities Ltd]

Hi. Good morning, everybody. Just a couple of slightly cheeky ones for me as you've covered off most of the sort of financial stuff I had. The comments around, you know, the strategic options and specifically transparency and appropriateness of structure have piqued my interest. As you know, transparency is is something we talk about often.

[Colette Ord, Director at Numis Securities Ltd]

Can we expect to look forward to hope for some sort of additional earnings based sensitivities in addition to the sort of typical NAV based stuff. What what have you got in mind around transparency, piece with regards to the business? And and on the appropriateness of structure, you know, could you give a bit more sort of color on thoughts of that? Is it is it something, you know should we be thinking about internalizations as a as a potential option or or or is it anything and everything in that regard? We're just keen to get a bit of color around those two points, please.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Yeah. No. In Colette, not not cheeky because we put them in there, so I'm not surprised you picked up on them, to be honest. Well, when when the discussion on the transparency point is particularly yeah. You're right.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

It is about the earnings based approach and things like that. We've started to put out more metrics that I think a number of you have picked up on as it carries the way that we actually are accounting that we go through at the moment, but that is a key point that we're keen to put out to put out more more financial information there based on the mix targets that would be more in line with sort of operating companies to give that transparency and read across to those those of you who look at both both sectors as well, not just the investment trusts, but others as well. So we will be continuing to look to develop develop that, collect. I think you're banging on the money there. Look.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

In in terms of the appropriate infrastructure, it it it has been put in there for a reason, and it is a little bit of a everything is potentially on the table at the moment. I'm not gonna say any one thing, and this is discussion with the board, with ourselves in terms of trying to think of think of options. The only thing I'd say is that the and it could go down any of those in terms of at least the thinking that it's being done. I think what we just want ourselves forward is to give a sense to yourselves, investors as well. It's look.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

A lot of things are challenging out there at the moment, but there is this is not a case of us sat there, just kicking back in the office saying, oh, there's only so much we can actually do here. We've been working for about the last two and a half years to come up with as many options and ideas as a tandem number of projects that we've looked at. Everything is on the table, but I wouldn't say that the the structure of the fund in itself is a panacea. So if we were to change to an operating company, that doesn't necessarily just save the solve the issues of the sector as well. I think we could be looking in in terms of those options alongside alongside more strategic groups as well, but we can only say so much on the private.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

But I I think it needs message from the board and supported by ourselves, Colette, that every everything is on the table and everything is being considered.

[Colette Ord, Director at Numis Securities Ltd]

Noted. Thank you.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Hope that helps, and you're you're always welcome to ask the cheeky ones.

[Colette Ord, Director at Numis Securities Ltd]

Yeah. No. I I I've got a view on that anyway, so that's that's great. Thank you.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

I'm sure you have. Do we have anyone else on online?

[Operator]

There are no further questions on the webinar, so I'll now hand back to management for closing remarks.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Yep. Well, look, just to wrap things up and appreciate me playing on the hour there that I it it it is that message really about and what are continued challenging markets, the moment that we continue to push ahead and look for values, all aspects of value that we can, which will be through the capital recycling program and other more strategic moves that we are looking at in consensual there with the board as well, sort of where we are where we are currently. Yep. Yep.

[Toby Virno, Investment Manager at Foresight Solar Fund Limited]

Okay. Thank you very much, everyone, for coming. Thank you very much.

[Ross Driver, Investment Manager at Foresight Solar Fund Limited]

Thank you.

[Operator]

Thank you for joining today's call. We're no longer live. Have a nice day.

Participants

Executives

• Ross Driver, Investment Manager
• Toby Virno, Investment Manager

Analysts

• Matheus Fierro, Head - Communications & IR at Foresight Group
• David Goodwin, Director - Real Assets Finance at Foresight Group
• Joseph Pepper, VP - Equity Research at RBC Capital Markets
• Colette Ord, Director at Numis Securities Ltd