Net Asset Value and Factsheet

22 May 2025

VH Global Energy Infrastructure plc

Net Asset Value and Factsheet

ENRG Overview

ENRG is focused on enabling the energy transition globally through its investments. Its objective is to generate stable returns, principally in the form of income distributions, by investing in a diversified portfolio of global sustainable energy infrastructure assets, predominantly in countries that are members of the EU, OECD, OECD Key Partner countries or OECD Accession countries. The Company's investments in sustainable energy infrastructure seek to make an impact by supporting the attainment and pursuit of key Sustainable Development Goals ("SDGs") where energy and energy infrastructure investments are a direct contributor to the acceleration of the energy transition.

About Victory Hill Capital Partners LLP

Victory Hill is a London-based specialist investment management firm founded by an experienced team of energy financiers. The investment team has participated in more than $200bn in transaction values across 91 conventional and renewable energy related transactions in over 30 jurisdictions worldwide. The Victory Hill team deploys its experience across different financial disciplines in order to assess investments holistically from multiple points of view. The firm pursues operational stability and well-designed corporate governance to generate sustainable positive returns for investors.

Financial Operational Highlights

Dividends

The Company announced an interim dividend of 1.45p per share in respect to the period from 1 January 2025 to 31 March 2025, in line with the dividend target for 2025. Based on the share price as at 31 March 2025, the resulting dividend yield is 10.1%.

As at 31 March 2025, the dividend was 0.96x covered by the strong underlying cash generation from the operating assets. As construction assets achieve operational status, the dividend coverage is expected to improve.

Leverage

Total leverage of the Company is 8.1% of NAV as at 31 March 2025, which comprises of asset-level leverage at its US asset, and Iberian and Swedish assets. The Company does not employ leverage at the fund level.

31 March 2025 Net Asset Value (NAV)

The Company's NAV as at 31 March 2025 was 103.29p per share, broadly in line with the NAV of 103.21p per share as at 31 December 2024. The movements in the NAV during the quarter include:

NAV Movements - Key Drivers:

Fair Value of Assets

· During the quarter, discount rates decreased by 2 bps on average across the portfolio. The movement in discount rates was primarily driven by a decline in the US 20-year government bond yield - from 4.86% to 4.60%.

· Discount rates for operational assets as at 31 March 2025 are 6.84% in the US, 7.57% in Australia, 9.96% for the Brazilian hydro facility, 10.13% for the Brazilian solar PV assets, and 8.97% for the operational assets of the Iberian and Swedish portfolio. The UK asset is held at cost.

Foreign Exchange

During the quarter, movements in foreign exchange led to a 0.13p per share increase in the NAV. GBP strengthened versus USD and AUD by 3% and 2.4% respectively and weakened versus BRL and EUR by 4.6% and 1.2% respectively.

Portfolio Update

During the period under review, key construction milestones were achieved in both Brazil and the UK, a majority of the operational assets delivered strong results, and additional projects are on track to be commissioned in Q2 and Q3 2025. The following points provide further insight into the performance and strategic positioning of the Fund's assets:

US terminal storage assets:

· Since the formal announcement of tariffs on fuel imports from Mexico by the Trump administration in February 2025, there have been no negative effects on the asset's revenue streams. This is consistent with the initial analysis conducted by the Investment Manager and its operating partner, Motus Energy. We continue to closely monitor any developments related to the potential escalation of tariff usage in the US, ensuring ongoing assessment of the asset's valuation.

· With respect to the southbound flows, despite the risk of retaliatory tariffs from Mexico to the US, Mexico's high dependency on lighter and cleaner fuels from the US has remained evident. No disruptions have been observed at the border, and southbound flows have neither stopped nor decreased compared to previous periods.

· During the period under review, Motus was awarded the ILTA (International Liquid Terminals Association) Safety Award for a third consecutive year.

Midstream assets continue to be a highly attractive asset class for institutional investors with many infrastructure funds actively participating in the M&A market. Energy companies are also actively pursuing strategic midstream acquisitions that can facilitate their trading activities.

Brazilian hydro facility:

· EBITDA for the first quarter of the year was 22% above budget on the back of strong hydrological conditions that reduced operating costs.

· The spot wholesale and long-term PPA markets in Brazil remain volatile, offering attractive entry points during heightened dry periods, hence enabling strong revenues to be locked in and the plant to benefit from low operational costs when the hydrological conditions revert. This proactive commercial strategy drove much of the outperformance during the quarter.

· The Brazilian M&A market for hydroelectric plants remains active, with the most recent transaction being the sale of two additional hydro facilities by EDP to Engie.

Australian solar PV with battery storage assets:

· The three assets in New South Wales have been performing well since their hybridisation last quarter. Based on simulations run with actual operational data from our sites and data from the Australian Energy Market Operator (AEMO) published electricity prices, these hybrid solar and BESS assets have been generating 1.5 to 2 times the revenue of standalone solar systems during the first quarter, highlighting the significant potential of this integrated approach.

· The overall Australian energy system is subject to seasonal trends with summer months registering lower morning and evenings margins and winter months generating higher margins. In the quarter, lower irradiation levels, and negative prices in the summer months resulted in asset performance below budget. The variance to budget was also more pronounced because positive price volatility events which may occur later in the year (and not in the current quarter) are nevertheless averaged out across each quarter of the year in the forecast asset budgets. It is therefore more likely that performance will improve in Q2 and Q3 as a result of an unwinding of the factors above.

· The remaining two hybridised assets in the programme are still expected to come online in Q3 2025.

UK flexible power with carbon capture and reuse (CCR) asset:

· It is still our expectation that the integrated plant will be fully commissioned in H1 2025.

· Following the announcement on 21 February 2025 of the successful production of the first stream of purified CO2, the asset is currently in the midst of commissioning the full production of liquefied CO2. This includes the transfer into on-site storage tanks in preparation for offtake by Buse Gases Ltd - a global leader in the industrial and specialty gases sector - which is expected in May 2025.

Brazilian solar PV assets:

· Two solar sites, totalling 7.0 MWdc, were successfully energized in January 2025. A third site, with a capacity of 6.25 MWdc, is expected to be fully operational by the end of Q2 2025.

· In Q1 2025, revenues were below budget due to lower-than-expected solar generation, primarily driven by weather-related factors-most notably, heavy rainfall across several Brazilian states.

· The energy tariffs that underpin the PPAs in this programme have continued to increase above inflation during the period under review.

· Brazil's distributed generation (DG) market is currently undergoing a phase of consolidation, with the largest players looking for attractive portfolios with a meaningful size. Industrial players seeking to generate cleaner and cheaper energy are also active buyers in the market, with multinationals such as Dow Chemicals and Schulz having recently announced DG-related transactions.

Spanish, Portuguese and Swedish solar onshore wind assets:

· The recent disruption to power systems in Spain and Portugal has not affected the ENRG's assets, as less than 20% of the portfolio of solar and wind assets have been built and are primarily located in Sweden and the Canary Islands.

· In the operational portion of the portfolio, the revenues of the 3.7MW solar PV asset in the Canary Islands were above expectations in the quarter due to captured prices exceeding budget. Conversely, the 6MW Swedish wind farm underperformed due to depressed prices in the SE2 Nordpool market and maintenance activities in the period. We expect this to reverse over the medium-term.

· With respect to the remainder of the programme, the 10.3MW Spanish solar PV asset is mechanically complete and energisation is expected in H1 2025, while the 20MW Portuguese solar PV asset is expected to be operational by the end of H2 2025. The solar panels have been acquired, and early works have started on the remaining 98.3MW Spanish solar PV site, while notice-to-proceed on the 20MW onshore wind farm in Sweden is expected in the second half of the year.

· This programme offers robust protection against delays and cost overruns through two key transaction structure components: i) a developer premium, subject to automatic adjustments on any deviations from the plan, ensuring a minimum return level is maintained; and ii) the option to abort projects that do not achieve full "ready-to-build" status to the required standard.

Sustainability Update

· A total of 86,969 tonnes of greenhouse gas emissions were avoided in the first quarter of 2025.

· A total 275,095 of renewable energy was generated from the portfolio over the same time period, equivalent to over 101,887 average UK homes powered annually.

· Almost 5,847 tonnes of sulfur were avoided in the first quarter, attributable to the US terminal storage assets.

* Sustainability data is calculated internally at Victory Hill as at 31 March 2025. Historical data and analysis should not be taken as an indication or guarantee of any future.

www.globalenergyinfrastructure.co.uk

The Company's LEI is 213800RFHAOF372UU580. 

For further information, please contact:

Edelman Smithfield (PR Adviser)

Ged Brumby +44 (0)7540 412 301

Hamza Ali +44 (0)7976 308 914

Victory Hill Capital Partners LLP (Investment Manager)

Navin Chauhan [email protected]

Deutsche Numis (Corporate Broker)

Hugh Jonathan +44 (0)20 7260 1000

Matt Goss

Ocorian Administration (UK) Limited (Company Secretary)

[email protected]

About Victory Hill Capital Partners LLP

Victory Hill Capital Partners LLP ("Victory Hill") is authorised and regulated by the Financial Conduct Authority (FRN 961570).

Victory Hill is based in London and was founded in May 2020 by an experienced team of energy financiers that have spun-out of a large established global project finance banking group. The team has participated in more than $200bn in transaction values across 91 conventional and renewable energy-related transactions in over 30 jurisdictions worldwide. Victory Hill is the investment manager of the Company.

The Victory Hill team deploys its experience across different financial disciplines in order to assess investments holistically from multiple points of view. The firm pursues operational stability and well-designed corporate governance to generate sustainable positive returns for investors. It focuses on supporting and accelerating the energy transition and the attainment of the UN Sustainable Development Goals.

Victory Hill is a signatory of the United Nations Principles for Responsible Investing (UN PRI), the United Nations Global Compact (UN GC), Net Zero Asset Managers Initiative (NZAMI), a member of the Global Impact Investing Network (GIIN) and is a formal supporter of the Financial Stability Board's Task-Force on Climate-related Disclosures (TCFD).

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