Good morning, ladies and gentlemen. Welcome to the Premier Miton Global Renewables Trust plc investor update. Throughout this recorded meeting, investors will be in listen-only mode. Questions are encouraged. They can be submitted at any time via the Q&A tab that's just situated on the right-hand corner of your screen. Please just 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 will publish those responses where it's appropriate to do so on the Investor Meet Company platform. Before we begin, as usual, we would just like to submit the following poll, and if you could give that your kind attention, I'm sure the company would be most grateful. I would now like to hand you over to Claire Long, Head of Investment Trusts. Claire, good morning. Good morning, Jake. Good morning, everyone. Thank you for taking the time to join us this morning. We're going to do things slightly differently this time and focus on a more Q&A format rather than having a formal presentation, and the primary purpose of today's discussion is really to talk about the interim results, which were published last week. Many of you may already have seen the interim report. That's going to be the main focus but very happy to take questions as they come in. Sorry. Take questions, I'll come to those at the end. Please do add anything that you'd like to hear from us about, and we'll do our best to answer them. Before we go any further, if I can just draw your attention to the important information on the attached slide. We'll now go ahead. Good morning, James. Morning. Let's get straight into it. The first half of 2025 saw an improvement in performance of the renewable energy sector. What was driving this? Yeah, I think. There's quite a number of factors. I mean, as you'll know, the last couple of years have been fairly difficult, and that's, I believe, been quite correlated to, this change in the interest rate cycle with interest rates now having gone up, quite substantially and quite quickly. Over the first half of 2025, we saw the environment become slightly more benign, more stable. U.K. gilt yields, kind of leveled out at about 4.5% for the 10-year, for instance, and we saw a similar situation in both the U.S., and in Europe. While they haven't necessarily come down, the environment has been more benign in the fact they haven't been going up. Mm-hmm. That's certainly been a positive. As I mentioned, after a couple of years of difficult performance, valuations at the end of last year were looking, I think, quite attractive as we had set out in the 2024 annual report. Mm-hmm. For instance, the U.K. investment company sector was generally speaking trading at quite a wide discount to published net asset values. Those companies, normal trading companies were trading at relatively modest valuation metrics in terms of price earnings or whatever. They were in a position, I think, you know, ready for a bounce back. Yes. We've seen that to an extent. Turning to the U.S., I think in the latter part of 2024, the market had become quite pessimistic about the prospect of a Trump presidency. Mm-hmm. What that meant for the sector. Perhaps we can come onto this later. In reality, while there have been some changes in laws, the overall picture is not quite as apocalyptic as perhaps some people might have expected. Again, that's been a positive. Turning to the overall macro commodity environment, we've seen gas prices and by implication from that, electricity prices, while they've softened slightly, they remain fairly well bid. Mm-hmm. Again, another relatively benign environment in terms of commodities. And then lastly, we've seen some self-help from some of the companies. Some of our companies within the portfolio and within the sector, for instance, have been pulling back their growth ambitions. Yeah. That has positive implications for dividends, for instance, because the companies would have more cash. Positive implications maybe for share buyback prospects. In the U.K., some of the investment companies have been continuing to sell down some assets to prove out their net asset values, for instance. Yes. Overall, the past six months have been a relatively benign, positive environment for renewable energy investment. The trust portfolio outperformed the global clean energy sector. You're saying that that's had a better six months, but the trust did better still. What were the main reasons behind that? Yeah. That's pleasing to see, and we have actually outperformed over the past couple of years as well in a deteriorating environment. Mm-hmm. It's good to see that we were able to also outperform in a positive environment. Yeah. When the sector was actually increasing value. Just to put some numbers on that. Over the first half, the total assets total return, so that's measuring the performance of the portfolio, including all the costs within the trust. The gross asset performance, the way of thinking about it, that was 13.4%. Mm-hmm. Over the six months to June versus 5.8% for the index. Yeah. That's the S&P Global Clean Energy Transition Index. Yes. Both those obviously in sterling terms. Yes. As our shareholders are, of course, very well aware, we have a geared capital structure within the trust, whereby we have the two classes of share, the ZDP Shares, Zero Dividend Preference shares, and then the ordinary share. That acts to magnify the performance either up or down, whichever way, in the ordinary shares net asset value. Looking at the performance of the NAV, including dividends, that was 23.9% over the six months. Mm-hmm. Slightly better still. In terms of why in the six months we outperformed the index, I think firstly allocation, geographical allocation. I think most people are aware that over the six months, the U.S. market performed fairly modestly. Yes. Particularly in comparison to previous years. Yes. Whereas the European markets did quite well. We have higher weightings than the index to Europe and less weighting to the U.S. That was a positive. Secondly, we have a relatively high weighting to the U.K. Mm-hmm. Again, that was a positive because those companies tend to be quite interest rate sensitive, and they benefited from this more benign environment, as we've discussed. Thirdly, we've never tried to track the index, so we have a very high, you know, what could be termed active share. We benefited from some of the second tier kind of companies, the smaller companies that we have large weightings to, which outperformed. I'll give you an example. If you take offshore wind, for example, we have a good holding in a company called Northland Power. Mm-hmm. Which performed very well. Perhaps we can come onto this later. Certainly outperformed the sector leader, which would be Ørsted, for instance, which is a, you know, a bigger component of the index, which we have a very modest position to. Yes. Yes. Again, that worked in our favor. Fourthly, as a specific, we have exposure to things like battery storage, for instance, which also performed very well, which isn't really a particular large component of the index. Is in the trust? It is in the trust. That worked in our favor as well. Yes. Okay. I mean, you mentioned Northland Power there, and obviously you've mentioned battery storage. I mean, are there more examples you'd give of companies that performed well over the six months? Yeah. I think most of the portfolio actually was in positive territory. Uh-huh. Among the larger companies, I mean the biggest one, which we did very well on in March was a Spanish listed company called Grenergy. Although it's listed in Spain, its business really is development of solar assets, both in Spain but also in Latin America, particularly in Chile. Mm-hmm. They're currently building what they claim to be the world's largest hybrid solar and battery storage project in northern Chile. That's going very well for them and looks to be an extremely good investment. They were able to sign contracts for the power at good prices. Yeah. Buy the panels and the batteries in a market that is relatively saturated at a falling cost. They're earning good margins, good returns. I'm pleased to say those shares were up 88% in the first half. That was, you know, a big position for us coming into the year. You can see. Yeah. That will have an outsized effect on our overall performance. Yeah. Northland Power, one we mentioned, that was very strong. Again, another big position for us. That gained 19%. Mm-hmm. In the first half. In contrast to Ørsted, sector leader in offshore wind power. Yes. Which fell in value. Northland's doing very well. They're currently in the final stages of building a new offshore wind farm off Taiwan. They're building one in the Baltic Sea off Poland. This is on top of their three operational North Sea assets which they already have. Yes. The earnings growth is looking very good for that company, and it's managed to avoid the issues in the U.S. that Ørsted have had, for instance. Yes. Also, in Europe, staying in Europe, RWE performed very well, another one of our large holdings, and that's a company which has some quite large U.S. exposure. They benefited from this slightly more rational view of what's going on in the states. They also pulled back some of their growth ambitions. Company looks, I think, in a better position financially than perhaps it was. RWE shares gained 24%. Also just sticking in the U.S., one of our larger holdings that we've held for some time at the top end of the portfolio, Clearway Energy, they gained 24% again, on this more rational view of the U.S. market. Yes. I see. Any companies that didn't perform well? I mean, you mentioned Ørsted, but that may be not one to focus on. Others to mention? Yeah, a few that were slightly disappointing. Greencoat UK Wind. Mm-hmm. Which has been our largest investment, for quite some time, their share price fell about 6%, almost 6% in the half. What we saw in the half in the U.K., and this is probably worth just touching on slightly, we had a review by the government of the wholesale electricity trading arrangements. Yeah. With the idea that the U.K. could be split into various regional markets. Okay. Those markets that have an excess of power, like Scotland, for instance, would see price declines. Mm-hmm. Those areas like the Southeast where there is an excess of demand and not enough supply would see higher electricity pricing. Mm. The idea being to try and encourage development of new generation in areas that are underserved. Yes. To save on transmission costs. Yes. I've never been a big fan. I think it would add complexity, and you know, if you're looking at building renewable assets, there's a reason you build them in Scotland. Yeah In terms of wind, cause that's where it's windiest, right? You solve the issue by investing more in transmission. Yes. Now over the half that review was ongoing, and that led to pressure on share prices for things like Greencoat, which predominantly generate through wind, and that's in the north of England and Scotland. Yes No surprise they fell. In contrast, our solar generators like NextEnergy Solar and Foresight Solar. Mm-hmm. Both did very well, for instance. Yeah. In July, shortly after the period end, the government announced they weren't continuing with that and they were gonna continue with the existing market. Yeah. Which I think is a sensible decision. Greencoat performed not very well based on that. Also another disappointment would be Bonheur, which is a Norwegian company. Again, it's been one of our larger investments. It's been very disappointing because it's a company that develops wind both in the U.K. and also in Scandinavia. Uh-huh. It also has a business that has offshore wind installation vessels, and it also has a cruise business. Right. For ocean cruises. Okay. Now all three of its businesses have been doing well, but particularly the offshore installation vessels business and the cruise business has seen a great recovery following the difficulties of the pandemic. Yes. Of course. Yeah. Yet its shares continued to be relatively weak. That was a disappointment. Mm-hmm. Lastly, one or two of the companies that did well for us in 2024 were fairly poor in the first half of 2025. Right. One that I would mention would be Cadeler, which is a company that owns offshore wind installation vessels. Another one. That's all they do. Right. That is their sole business. It did very well for us in 2024, and I think it just kind of pulled back a little bit in 2025. Right. Mainly because of, I think, negative headlines around the offshore business in the U.S. Yes, yeah. Which obviously was a negative force then as well, for instance. Although Cadeler is primarily focused on the European market. Yes. Again, you know, sentiment driven, the shares fell. Yes. Yeah. Overall, you know, most things were solidly up. Yes. There were only a few stocks that fell. Yes. Okay. Turning to revenue, the revenue account. Mm-hmm. Can you say a bit about revenue side of performance and is the portfolio performing well in terms of the income that it's generating? Most companies increase their dividends as they have over several years. Overall, for the half, our revenue earnings were actually down about 8%. Right. From GBP 0.0446 per share. This is all dividends received in the portfolio, less all the costs that are charged to revenue. Yes. From GBP 0.0446 in the first half of last year to GBP 0.0409 in the first half of 2025. That's down just over 8%. Mm-hmm. There's a few specific reasons for that. The U..K battery storage companies we only own Harmony Energy and [Gore Street Energy Storage in the half. Harmony Energy had cut its dividend entirely due to difficult trading conditions, and Gore Street had cut back its dividend quite substantially. Mm-hmm. That was a negative. Yeah. Confined to that sector. That sector. We also had another company which we've now sold in entirety actually earlier last month. Aquila European Renewables, which has entered a process of wind down. Yes. They canceled their usual dividend. That was another negative for earnings in the half. Then lastly, we saw a rights issue at National Grid, whereby they, as they have done in the past, actually kept their total dividend the same. Mm-hmm. Because of the extra number of shares, the dividend per share fell. Those things taken together, cut our earnings per share. Lastly, no doubt you will have seen sterling has been relatively strong versus the U.S. dollar. Yeah. Also the Canadian dollar. About level against the euro, but certainly stronger against the U.S. That means that the dividends we have coming from companies denominated in those currencies are obviously worth less in the U.K. Mm-hmm. In sterling terms, even though in dollar terms or Canadian dollar terms, the dividends themselves haven't been cut. Yes. Yes, I see. Mm-hmm. Okay. Down a little, but. Down a little. Yeah. Okay. Right. I'm just going to have a quick look at questions that we've received to make sure we cover these off. There's a question here about oh yes the requisition by RM Funds on Gore Street to hold a general meeting. Yeah. Any comments on that? Yeah, it's a live situation. Yeah. We haven't voted yet. Yeah. I have to be quite careful what I say here. No, that's fair enough. If as you say, you think it's more appropriate to leave that one. I think I'll leave that here. Yeah. Okay. I just think. No, that's. Might be disappointing, but. Absolutely. That's absolutely fine. Okay. How concerned are you about the phase out of U.S. renewable tax credits under the new administration, and what portion of the portfolio is exposed to U.S. policy risk? Okay. That's a good question. We don't have a particularly high U.S. exposure. Mm-hmm. It's only about just over 10%. Right. Now, if we take some of our larger holdings, for instance, the largest one is Clearway Energy. Which you mentioned. Yeah. Now, that operates more as a yield company. Mm-hmm. Their business model is to buy existing assets. Mm-hmm And then run them. When they buy the asset, the amount they'll pay for it, they'll work out based on a required rate of return. Mm-hmm. Now, if that particular asset is in receipt of tax credits, that will potentially affect what they will pay for it, but it won't necessarily affect the return they require. Yeah. For them, it doesn't really have any particular effect. Of course, really the value of that company is based on the value of their existing asset base. All those wind farms or solar farms that they currently operate, they may be in receipt of tax credits, but they are grandfathered and will continue for the life because when I say grandfather, what I mean is they're not gonna be cut, you know, they're basically. Yeah. Contractual entitlements. Yes. We're only really talking about new development of new assets. Mm-hmm. Which they're not principally involved in. Yes. On the other side of the coin, if we look at a company like AES, which we also own further down the portfolio, and they had their first half results out the other day, and they have some quite interesting things to say. Mm-hmm. Firstly, you can get around a lot of the phase-out by having bought in advance various bits of equipment. All the assets they're currently developing will continue to qualify for tax credits. Yeah Because they're buying them from onshore American suppliers. Yeah. They have arranged those in advance. That's one thing. The second thing they say is that the projects that they are undertaking would be worth doing even without. Yeah. The tax credit. Yeah. All right? That's a benefit on top that they share with the off-taker, i.e., with the underlying client that wants to buy the energy. Yes. That's quite an important point because these days when these companies build a wind farm, they're not building it on spec to sell the power into the market. They're building it because they've been approached by Meta or Alphabet or Tesla or whoever it is. Yeah that we have a demand for power over here. Could you build us a renewable energy asset that will satisfy that demand? Yes. Now, if there is no tax credit, the demand for that power is still there. What it means is that the underlying client will just have to pay a little bit more for the electricity. Now, if we take a data center, for example, and a lot of this new demand is coming from data centers. Yeah, AI. Absolutely. Yeah. They say that about. Well, I read anyway. I'm not an expert on data centers, but I read that the electricity part of it is only about 10% of the overall cost. Mm-hmm. I don't know if that's correct or not, but what I'm hearing from renewable companies is that the underlying client is not that sensitive to the actual power. Yes. What they do know is that they want a data center, and they need the power by 2029. You cannot build a new gas-fired power station to service that power in that timeframe, and you certainly can't build a new nuclear power station. In that time. You're left with renewable energy. Yes. Whatever the price is that they need to pay for that power is the price that they will end up having to pay for that power. Yeah. Okay. Fine. Thank you. Let me just see. We've got quite a few questions here. Okay. I think you largely answered this one. Does the rejection of zonal pricing in the U.K. improve the long-term outlook for listed solar and wind assets? Yes, I think it does because you could say it's positive for the same reasons that the wind stocks suffered in the first half and the solar ones outperformed. You could say that keeping status quo is positive for wind and maybe mildly negative for solar. I mean, markets love certainty, right? Yeah. Having a regional position, I think, just adds to complexity, and that's not in anyone's interest. Yeah. Also, you know, I think anyway, the way you solve this problem is through improvements in the transmission grid, improvements in storage. Yeah. That's the lowest cost way to solve it. Now, there's no point building wind farms in the Southeast that will generate with a load factor of 20% when you can build them in Scotland with a load factor of 40%. Yeah. It doesn't make much sense. Now the portfolio would also benefit, you know, under the existing environment from improvements in the transmission grid in the sense that we have companies like SSE or National Grid that are seeing huge new required investments, with, I think, what will turn out to be, we're currently in the middle of a transmission review as it is from Ofgem, with good rates of return in order to solve that mismatch of where the supply is and where the demand is. It leads to opportunities. Again, you could say the same thing with the battery storage companies, for instance. Mm-hmm. Mm-hmm. Overall, I think, the conclusion that was reached to keep the status quo is a net positive. Let me just check I'm not missing anything there. The other remaining questions are all about the future of the trust. Perhaps we'll sort of. Yeah. Deal with those in the round. Okay. I think that's probably the easiest way, and hopefully I'll cover off the questions people are asking. Turning to the future of the trust, as investors will have seen, the directors have said in the recent interim report that the trust is likely to be wound up. Can you explain the reasoning behind this? As I mentioned earlier, and I'm sure shareholders understand, we have two classes of share. We have the Zero Dividend Preference share and ordinary share. The Zero Dividend Preference share is a fixed life share, which matures at the end of November this year. At which point, those shareholders will be entitled to a return of GBP 1.2761. Yeah. Per share. Now the ZDP, Zero Dividend Preference market is not what it was and there isn't the same level of demand for those shares. The expectation as of right now is it's gonna be difficult to roll those over and that instead they will be repaid. Yeah. As is, as they are entitled to. Yes. Yeah. Now assuming that to be the case, that would then leave the company as a whole too small to be commercially viable as an investment trust. Mm-hmm. Unfortunately. Yes. That's why the directors are in the position that they're in and the likelihood is that the trust would be wound up shortly after that November date. Right. Okay, just sort of drawing on a question that's sort of raised there. How will that affect how you approach the management of the portfolio over the coming months? Yeah. Obviously with that in mind, if that does come to pass, I mean, firstly we will have to repay these ZDP shareholders. Of course you don't want to. The capital value of those at the end of November is just over GBP 18 million. You don't want to be selling assets the day before to. To meet that To meet that liability. There will be a process whereby we sell assets, realize value from the portfolio, and invest in shorter dated fixed return instruments like short dated U.K. gilts for instance, or money market type instruments. Mm-hmm. Very low risk comparison to equities in order to meet that liability. Yes. Now fortunately, the vast majority of the portfolio is relatively liquid. Yeah. We're not a huge trust in the first place, so we shouldn't have a particular problem in doing that. Yes. Yes. Okay. I mean, I think it's, you know, it's important to say here that these decisions are decisions that will be made by the board and that James and I can't really go further than that at this stage 'cause it is their decision to be made, but obviously further announcements will be forthcoming'. Okay. Well, I think I've answered all the questions there. Apologies if I've missed anything in my summary questions. Really just to say a big thank you to James. Good to see a good six months of performance. Thank you. Thank you very much for taking the time to join us today. Thank you. Perfect. Claire, James, if I may just jump back in there. Thank you very much indeed for updating investors this morning. Could I please ask investors not to close this session, as you'll now be automatically redirected for the opportunity to provide your feedback in order that the management team can really better understand your views and expectations. This will only take a few moments to complete, but I'm sure it will be greatly valued by the company. On behalf of the management team of the Premier Miton Global Renewables Trust plc, we would like to thank you for attending today's presentation. That now concludes today's session. Good afternoon to you all.