Good afternoon, everybody, both in the rooms and online. I'm John Roberts, chairman of Triple Point Energy Transition PLC, and I'm delighted to welcome you to our Capital Markets Day. The global energy transition is one of the most significant investment opportunities of our lifetimes, requiring large-scale mobilization of capital towards a shared societal goal. So far, that mobilization of capital has been insufficient in many areas. There are vital high-growth technologies and sectors which are currently being overlooked by investors. These are the areas on which TENT is focused in the belief that these niche technology sectors have the potential to provide investors with significant growth and income. Our aim today is to help you all towards a better understanding of the platform that TENT has built and the opportunities for returns which it offers. We set out in June of this year, the progress that TENT has made in fulfilling its objectives when we announced a strong set of results for the full year to March 2023. Those results showed the full commitment of IPO proceeds, a covered dividend, and NAV growth ahead of target. Today, we want to build on that and delve into the details of our key investments and how that translates with regard to returns and earnings for shareholders. In particular, given the current challenging market conditions, we want to talk about our pipeline, to explain how we intend to create value through new investments, capital recycling, and asset optimization. We'll run through a series of presentations this afternoon with a couple of comfort breaks, and finish with a Q&A session. We aim to wrap up the formal proceedings no later than 4:15 P.M., after which I invite you all for drinks and nibbles with our investment management team and the opportunity for further conversation. Your insights and perspectives are invaluable to us, and we hope that you'll join us. With that, I will now hand over to Triple Point's Head of Energy and Fund Manager of TENT, Jonathan Hick. Well, good afternoon, everyone, and thank you, John. On behalf of everyone at Triple Point Investment Management, thank you for joining us this afternoon for our Capital Market Day. We are really looking forward to getting into the details of many aspects of TENT to a greater degree of depth than we are typically afforded in results presentations and investor roadshows. Over the course of this afternoon, you will hear an overview of TENT and some of the key points that make us different from our energy infra peers. You will also hear how we are optimizing our asset base and the levers we have to grow shareholder return, which we think is particularly important given the tough listed market for infra stocks at present. Finally, you will hear about the opportunity set in front of us and a couple of case studies about some of the deals in our pipeline. Throughout the course of this afternoon, you will hear from myself and four of my Triple Point colleagues, all of whom have a broad range of experiences and different expertise that create value for our shareholders. Our new team, since June of last year, has driven performance improvements and higher returns to shareholders, and we believe we have established a great platform for future growth. But before we discuss that, I want to briefly discuss what TENT does. TENT is a London-listed infrastructure trust that seeks to direct capital into assets which accelerate the transition to net zero. We do this through an approach which is built on the three pillars of our investment thesis. Firstly, we scan the energy transition landscape, looking for the areas of superior risk-adjusted return. This typically leads us to niche areas of the energy transition, such as hydroelectric power and combined heat and power companies, which typically offer more attractive risk-adjusted returns than, for example, large-scale solar and wind. Across the energy transition sector, there are a broad array of technologies and business models, all with different risk and return profiles. And so because we are technology agnostic, we are also flexible in how we deploy our capital, investing through project finance structures, receivables financings, more traditional lending structures, and equity investments. The second hallmark of our approach is the defensive nature of the portfolio and, in particular, the cash flows from the investments. We reported in our most recent set of annual results that 100% of the income from TENT was underpinned by contracted cash flows, which includes interest income on debt payments, subsidy payments, and power purchase agreement income. Finally, our approach is to have high levels of diversification, and we consider that through a number of different lenses: through technology, through underlying assets, off-takers, product sold, and stage of project life. Because these three pillars underpin our approach to such a substantial extent, I will talk shortly into further detail about what that means in practice for our portfolio. But I think we can illustrate from our most recent set of results that that approach is delivering. At IPO, we told the market and companies who subscribed in shares to TENT that we would seek to deliver a stable and predictable return, and we think we've delivered that. We've delivered a covered dividend of 1.2 times on a cash covered basis in FY 2023, and in the long run, 93% of our cash flows are underpinned by contract over a 13-year period. We told investors that we would target a 7%-8% NAV return, and we exceeded that target, delivering over 9% over the most recent set of full year results. We said that we'd build our diversified portfolio, and having announced this morning a closure of a further deal, our 20th, we believe that we've delivered on that as well. Going forwards, investors will benefit in the short term from organic earnings growth as we deploy capital into building a portfolio of battery energy storage assets. Over the long run, the average pipeline return of around 10% means that as capital is recycled, the weighted average return in the portfolio would increase. Our approach, focusing on the niche opportunities, exploiting them through the correct financing structure, and delivering a diverse and contracted set of cash flows, is, we believe, the right one for investing in something as broad and fast-changing as the energy transition. But what do we mean by the energy transition? Getting to net zero by 2050 is one of the greatest challenges facing our world today. To get there, we need to decarbonize all aspects of how we power our economy. Triple Point Energy Transition takes a holistic, whole system approach to the energy transition, encompassing the full spectrum of the energy sector, from generation through to consumption. Our strategy is underpinned by three principal investment areas. Firstly, distributed energy generation. The backbone of a net zero economy is a net zero power system, and we need to get there in the U.K. by 2035. TENT is investing in the renewable infrastructure we need to achieve this ambitious goal, with a focus on the niche and overlooked technologies that still have a crucial role to play, such as hydroelectric power. Renewable energy flows from the point of generation through transmission and storage. This energy is increasingly intermittent. Whilst the demand for the electrification of homes and transport is growing rapidly, we have invested in energy storage to better balance supply and demand, as well as provide frequency and other essential grid services. Finally, that energy reaches the point of consumption. We invest in energy-saving measures and technologies to reduce wastage and in infrastructure that generates energy at the point of demand, on site, at homes and businesses. Our holistic approach is more than just a comprehensive net zero strategy. It's also an investment thesis that drives diversification across all areas of the energy sector, harnessing multiple technologies and business models, while enhancing returns by focusing on where demand is highest. In short, a strong platform for superior risk-adjusted returns. Hopefully that brings it to life, but in short, it's about investing across that whole energy spectrum, from supply through to the point of demand, because that not only accelerates the transition to net zero, but provides investors with a more diversified portfolio and an interesting blend of risk and return characteristics. I think you'll see why, on this next slide, we need that holistic approach and why it's different from what others are doing. Approximately 90% of the investments made by energy transition investment companies focuses on power generation alone and in particular, renewables. Yet, not only does that miss 80% of all of the emissions footprint, but because that is where the vast majority of capital is concentrated, it's where the least interesting risk-adjusted returns are typically found. The interesting areas that move the dial on returns in a higher base rate environment, whilst meaningfully reducing emissions, are found in transport, buildings, and industry, and that remains for TENT, the most exciting part of our investment mandate. That's our investment universe. What have we done to date? Well, we have deployed our capital into five investment areas across the breadth of our three target segments. Starting with generation, we have invested in nine run-of-river hydroelectric power assets in the Scottish Highlands. These assets benefit from long asset lives and high levels of subsidy, and we will discuss these in further detail throughout the course of this afternoon. The second investment in this area has been to allocate capital into the development of principally solar assets with a developer called Innova Renewables. We have invested GBP 5 million into developing a portfolio of over 40 assets, as we believe investing in the development rather than the operational stage in solar, offers the most interesting returns to shareholders. In the second segment of our focus, storage and distribution, we have put in place a lending facility to build out and operate four battery energy storage assets spanning the length and breadth of the U.K. And again, we'll dig into these assets more later today. Finally, in the on-site and low-carbon consumption segment, effectively behind the meter, we invested in three combined heat and power energy centers, providing heat and electricity to a leading player in the agricultural growing sector. We also enabled the decarbonization of commercial property through the installation of LED lighting. So with the capital available to us, we believe we have brought to life the vision that we have for TENT and what that holistic approach looks like in practice. Over the next few slides, we will go into each of the three key pillars of our investment approach: niche, contracted, and diversified, and give a little bit more color as to what we mean. Starting with niche. So the energy transition is a pretty big place. It's a pretty broad sector, with trillions of GBP of capital flowing into it every year. We've got to decarbonize every aspect of our economy and every aspect of our power sector, and we're going to need dozens, if not hundreds, of different technologies working across every part of the economy. So it's quite remarkable when you consider that, that in investment company sector, 80% of all the capital has just gone to two technologies that effectively produce one product some of the time, wind and solar. And a few things arise from that. Firstly, all of that concentration of capital compresses returns in those two areas, and at a time of higher base rates, one questions whether those are still interesting as investment opportunities in their own right. But whilst returns are compressing in those two areas, what about all the other technologies? What about the other sectors beyond power generation? The returns there are much more interesting, particularly in the higher base rate environment, and of course, you get more diversification away from those two single asset classes. And then, so the third point then that arises, when we IPO'd TENT, we wanted to offer investors, investment companies, something a bit different. To be candid, we knew investors could buy exposure to solar and wind in other investment companies that have a good track record. We wanted to provide access to the rest of the energy transition, to provide that diversification in investor portfolios. And we're more than happy to do that because the more exciting returns are actually in all those other areas. So you can not only provide better diversification, but also better returns and drive the energy transition in a more meaningful way than just two technologies can. The second hallmark of our approach is contracted income, and before I get into contracted income, a step back and a bit of sector context. In March 2020, we saw record negative power prices of GBP 38 per MWh, and yet you fast forward 24 months, and you see GBP 580, a record high. That's some quite significant volatility, and volatility is here to stay. The evidence from overseas markets and around the world, in Australia, and America, and the ERCOT and CAISO markets, is that the more renewables you have, the more volatility you have in the power price and the swings between negative and high power prices. And so volatility is here to stay. So if you're looking for that stable income, and predictable returns, investment managers and investors have to work a lot harder to provide that to their shareholders. So the way we've thought about it is through investing through different structures, and we've really thought about the risk profiles of the assets such that we are able to deliver a long-term 93% of our income being underpinned by contract. And as I said, last year and this year will be 100%. And half of that income is linked to inflation as well. So we think that gives TENT one of the very lowest in the peer group levels of exposure to merchant pricing. But of course, revenue risk isn't just about price, it's also about volume. And we've set out on the bottom of this page how our volume sensitivities compare to others in the market based using a P90, for example. And again, you'll see TENT has some of the lowest risk by quite some considerable way in the market compared to the majority of the other peers. So overall, what you're getting with TENT is lower revenue risk through high levels of contracted income and lower levels of volume risk than the comparative peer group. And finally, diversification. So we've said that we want to create a diverse technology portfolio, and we've invested in a range of technologies, as you can see. One of the things I think is important to note, the synergies in that portfolio. So for example, when our hydro assets are not generating, more often than not, our battery assets will be called on to generate, and so you have that synergy. But we think in a highly regulated market, in a diverse sector, it's important to spread across all parts of that market and different technologies. We also invest at different stages of development, from development to construction to operation, to get an interesting blend of returns. And I think what really marks TENT out is we do deliberately both debt and equity structures, and we'll come on, because it's one of the things we get asked about the most, to talk about that in a bit more detail in a couple of slides' time. And like any sensible investment manager, we spread the allocations across all of our assets so that we're not exposed to any one single investment, and we have 20 underlying assets, which from a GBP 100 million NAV fund that we think is quite, quite diverse. Where I think it's most interesting personally is on the product side. So selling electricity is most of what we do, and of course, electricity is a really important part of the transition to net zero. We need to decarbonize transport, we need to decarbonize heat, so heat pumps and EVs are really, really important. But the energy transition is so much more than just electricity, and so we provide a range of energies in different forms. We provide heat, we provide frequency response, we provide capacity, we provide reserve power, and we provide, and finance equipment. So what TENT is doing is providing the services and the products that we need across the whole of the energy transition to get to net zero, and in so doing, diversify risk for investors and give a more interesting blend of returns from energy in its different forms as we transition to net zero. And of course, as you'd expect, we have a range of off-takers from which we monetize income at TENT, as depicted on the right-hand side. So we wanted to try to explain how we think about debt versus equity. When you have a broad mandate across all technologies, it's really important to recognize the different risks inherent in those investment opportunities and in those different business models, and to match the risk and return characteristics to TENT's returns targets. This is clearly something that does evolve over time, for example, as base rates increase. But as a minimum, we consider four main factors as set out here, and the more risk on the right-hand side, the more likely we are to consider that debt might be more suitable to a stable and predictable income. To bring this to life, I'll talk you through a couple of opportunities... So taking our hydro investments, we're very fortunate to have invested in these assets at an operational stage and not taking construction risk. But hydros also have longer asset lives than, for example, solar and wind, and you haven't got that repowering at year 25. So overall, there is less construction risk, even for operational assets with hydros. The ongoing technology performance risk is pretty low on hydros. The assets we acquired have a long track record of operation, and the technology itself has been around for over 100 years. Revenue risk is actually pretty low on these assets, given the Feed-in Tariff subsidy, and I'll talk about that more later, but again, we're quite well protected from merchant power price movements, and the operating costs are largely fixed. So we feel that's a really attractive equity investment. We looked at battery storage, and we will talk about this more later, but we felt that debt was the more appropriate way to allocate capital to that sector. Construction risk is actually not too significant in battery storage. It's principally two contracts, the BESS supply agreement and the balance of plant with established contractors. So, you know, there's limited interface risk. You do have some delays with connecting to the grid at the final stage, and obviously, as debt, you are protected from those final delays in the way equity isn't. The technology is actually quite well understood. Lithium-ion chemistries have been around for many years, and actually, the evidence thus far is that degradation in batteries is actually lower than people had expected it. So again, ongoing isn't too significant. But where we really felt there was a lot of risk was on the revenue side, with quite volatile income streams, and we'll talk about this in a lot more detail at the end of this presentation. Finally, the operating costs are pretty well understood, but because of that revenue risk, we thought actually, for a stable and predictable return, we felt we wanted to invest via debt. So to take those things together and in conclusion, TENT is seeking to provide investors with strong diversification, both within the TENT portfolio itself, but also when put alongside other investment trusts that other investors might hold in their portfolios who primarily allocated to solar and wind. But beyond reducing investor risk profile through that enhanced diversification, we enable investors to tap into more exciting returns. In the space, our average pipeline return being around 10%, and those areas outside the concentration of wind and solar are where those returns can be found. And we want to give you access to that better return and better diversification through a sensible revenue risk profile that recognizes the new world of energy markets we're in with record levels of volatility. So we invest via debt and equity to give investors a position where 93% of long-term earnings are underpinned by contract, one of the highest in the peer group, and there is one of the lowest overall revenue exposures in the peer group. In the next section, I will bring to life what that approach means in practice through two deep dives into two of our investments. Our hydro portfolio is a set of nine assets that we are really proud to own, with a total installed capacity of 6.6 MW, built seven to eight years ago in the Scottish Highlands. Our partners on these assets are Green Highland Renewables, the original developers of these assets, and you'll be hearing later on today from their Chief Executive Officer, Alex Reading, who is Chairman of the British Hydropower Association. We estimate that there are already around 450 of these similar run-of-river assets that the ones that we have in the U.K, and so we feel that this provides TENT with a real point of difference. Before we go into some further details, we wanted to give a brief explainer as to what run-of-river Hydro is and how it works. At TENT, our run-of-the-river hydroelectric portfolio showcases the possibilities of renewable energy. Each asset a model of efficiency with opportunities and potential to enhance future performance. Run-of-the-river hydro assets have distinct advantages: cost-efficient maintenance, a robust lifespan of 50 years, and unparalleled operational efficiency. Being strategically positioned close to both energy source and grid connection, they minimize transmission losses. Compared to other renewable technologies, run-of-the-river hydropower has one of the lowest levels of GHG emissions intensity on a life cycle basis. Evidence from our Scottish portfolio shows a compelling trend, peak generation aligning with winter, precisely when demand surges. Consider our scheme at Loch Blair in the Highlands, with its capacity of 1.25 MW. Here, water journeys from catchment areas through the loch, feeding the water stream. The weir diverts a portion of the water flow into the intake chamber. The water then gains more energy as it drops at a steep angle through another steel pipe known as the penstock, which leads the water directly into the powerhouse, housing the main inlet valves, the turbine, the generator, and the control system. The hydraulic energy turns the turbines, converting it into mechanical energy. The turbines are directly coupled with generators, which then convert the mechanical energy into electrical energy. The generators are, in turn, connected to a substation, where the energy produced is transmitted to the main grid via a nearby grid connection, minimizing transmission losses. The water that has passed through the system isn't wasted. It leaves the powerhouse via a channel called a tailrace before rejoining the river. The annual generation at Loch Blair is circa 5,000 MWh, which is enough to power 1,700 households every year. In the U.K, circa 450 small schemes have been built since 2009. So TENT's hydro portfolio provides investors with a differentiated proposition to accelerate the transition to net zero. Hopefully, that gave you a bit of background as to how these assets work. We really like how they blend into the surroundings that say, in a way that, say, solar and wind simply can't. But in terms of what we like as investors, there are six things that I wanted to highlight that we think really stand out about these assets. So the FIT subsidy is arguably the most attractive in the U.K renewable subsidy regime. When you compare that to contracts for difference, you're locked into a price that is indexed but doesn't give you much upside. And conversely, with a renewable obligation or ROC asset, you have a subsidy payment, but you have full exposure to merchant power prices. The Feed-in Tariff provides better returns through an export tariff, an effective price floor, but you can, and we have earned more than that, something we've taken advantage of at recent periods of elevated pricing. But if that's the price element of our revenue, what about the volume? All renewable assets have a performance yield as per a P50 assessment of the generation a given asset will create in a given location from that renewable resource. Technical consultants also produce what's called a P90, which represents the downside view of what the energy likely to be produced is. So when you're looking at these investments, a key assessment of risk is the spread between that P50 and the P90 in terms of the expected standard deviation and variability from the base case. In the case of our assets, it's 93%, which is in line with onshore wind assets. But to try and bring that theory and statistics to life, we've shown the historic generation of the assets since commissioning on the graph. The green line represents the P50 average that we use for our base case projections. The brown line above it shows the average yield since commissioning. Over the six years up to the end of 2022, the assets have outperformed the P50 forecast, which we think supports the accuracy of that forecast and underpins the valuation of these assets and hints at a slight upside. The third element of why we acquired these assets is the diversification in the underlying hydrology. Firstly, they are spread across a number of regions of Scotland. As a function of this, the catchment areas from which the water is drawn are diversified, and the nature of those catchments is also diversified. Some have upstream lochs, such as Loch Blair that you saw, and others have ridges and valleys. And finally, the underlying turbines, the critical component that generates the electricity, are from three leading suppliers. So the underlying risk profile with regard to generation and volume risk is diversified across the nine assets in the portfolio, which we think is something that offers considerable value to investors, given the unique characteristics of water versus wind and sunshine as a renewables resource that can be managed. The fourth element is that they generate in line with U.K. energy peak demand in terms of seasonality profile, peaking during winter months. In addition, the hydro assets are currently paid more during peak load hours, a benefit that they are well-placed to take advantage of. Hydroelectric assets also benefit from a number of different ways that they can enhance the energy produced from the assets, including flow regulation, peat restoration, and catchment area enhancement, something that my colleague Christophe will outline in his presentation. But the common thread, for those of us non-technical people, that runs through all of those measures is to manage and moderate and optimize the flow of water into the hydro asset. Managing the renewable resource itself is something that is a real benefit in hydro assets. Finally, the reduced number of electrical components translates into both a longer asset life, typically around 50 years, and lower maintenance costs over the asset life compared to other renewable technologies. In short, our run-of-river Hydro portfolio benefits from high levels of contracted income from nine diverse assets, low maintenance costs, long asset lives, capability for return enhancement, and generation that matches U.K. peak demand, making them incredibly important to both the energy transition and the TENT portfolio. Whilst those assets generate at peak periods of the year, it isn't always raining, even in Scotland. What happens then? Well, you need flexible assets that can be called upon to deliver energy when it's needed, and that's why we have funded the rollout of battery energy storage assets with our investee, Field. I'm Chris Wickins. I'm Technical Director at Field. My remit covers development, construction, and operation of our assets. Today, we're at Field's Gerrards Cross on a beautiful sunny day on a busy construction site. Battery energy storage systems are an exciting new addition to the global energy supply chain. They're increasingly needed to balance supply and demand in a world which is dominated by renewables. When there's lots of renewables on the system, prices will be low, we'll be importing. When demand picks up, prices will pick up, renewables may drop, and that's when we'll be exporting. So we're shifting power from times of lots of renewables to low renewables or high demand. We've got 20 MW here, which at peak times, that's about the energy consumption of 20,000 houses. Field Gerrards Cross is an unusual site in that it's located on a sewage treatment works, but in many respects, ideal, because this is a brownfield patch of land that didn't have anything on it for the last 20 years. Let me tell you a bit about the asset. We have a single grid connection here to a substation. That connection goes to six transformers, six PCS units, power conversion system units, and then each one of those is connected to 11 battery racks. That's a relatively standard setup for a battery. This one is on the outskirts of London, and so it has an unusual grid connection. It's connected at 22 kilovolts to the distribution network, rather than 33 or 132, which would be more normal. The fact it's on the outskirts of London, though, gives us some opportunities to provide services to National Grid that we might not be able to otherwise. London has specific operability issues, as National Grid would call it, relating to all the cables that are underground. And so hopefully, in future, this site can help National Grid manage the operability issues that they face in this location. TENT is lending us money to build this asset, which we'll pay back over the term of our loan. Doing so enables us to use the equity we've raised to build more assets than we would otherwise. Triple Point are a very active lender with very detailed experience of renewables. We benefit from that expertise, essentially holding us to account to make sure construction's going well, and then operation goes well afterwards. As Chris said, batteries are so important because they provide power when renewable generation, such as hydro, is low. Field, our investee, is a fast-growing U.K battery storage developer, owner, and operator with plans to grow into Europe shortly. We committed our loan facility to them in March 2022, and this year we saw DIF Capital Partners commit GBP 200 million to Field to help expand their operations. We are pleased to be partnering with another leading institutional investor to scale this crucial infrastructure asset class. The facility we committed was to fund four assets spread across the U.K with a mixture of 2 1-hour duration systems and 2 2-hour duration systems. I think it's worth at this point giving you a little more clarity as to how the facility is structured and the timescales for the build-out of the assets. The facility was signed in March 2022, and since that time, TENT has received commitment fees on the loan from Field. As each project reaches ready-to-build status, which I'll explain more about on the next slide, the project SPV is accepted into the facility agreement as being a bankable project and a security net that TENT benefits from, as shown on the bottom right-hand side. This is what is legally referred to as accession, and from that point, Field is permitted to draw down the facility and use the loan proceeds to fund construction of that particular asset. As capital is drawn down, TENT receives construction interest. Once all projects reach operation, TENT will then receive an operating period interest rate. But again, it's important to note, we don't need the battery to be operating to get our full rate of return. So when there are delays, we're mitigated from that as a lender to the space. TENT also receives a revenue share, providing a measure of upside, and further revenue sharing arrangements are triggered in the event of high CPI inflation. In terms of the progress of the four projects, the Oldham site is operational since last year, and as you saw in that video, the Gerrards Cross site is well on the way to being built out, operational later this calendar year. The remaining two assets will be operational as we outlined in our annual report next calendar year. On the next slide, we outline the process that we will go through, or we do go through, to confirm each project is bankable or ready to build, and the benefits that our shareholders derive from that check. So we assess the construction agreements to ensure an acceptable allocation of risk and to ensure that we, as a lender, are protected. One of the things we focused on was the balance of plant contractors and making sure we have good diversification there, so that reduces exposure to any one single party. From a revenue forecast perspective, we consider the revenues that are likely to be generated at the point of accession. Following the investment by DIF and the conclusion of this assessment, TENT resized its commitment to Field to be GBP 37 million. This frees up capital for TENT to reinvest in other asset classes and improves diversification. Finally, we review the offtake arrangements, and as we'll see shortly, that is an increasingly important part of the BESS investment story. So in summary, the accession process enables us to ensure that capital is only deployed to the highest quality assets and gives TENT a very strong position to determine what it will lend against. We've been asked about this a few times before, and so we wanted to show the protections that we are afforded as a lender versus an equity investor in this asset class. I won't talk to each of them, but the key ones are the equity cushion. This is particularly relevant when considering construction-related risks, such as delays or cost overruns, and we're protected from those. The debt service reserve account is set at six months' worth of payments. It's effectively cash in a bank account to cover if they ever can't pay due to short-term issues. We also benefit from an upside and a downside cash sweep to ensure that we align to Field's economic interests as equity sponsor. From a legal perspective, all the typical protections, debentures, step-in rights, fixed charges over bank accounts. But ultimately, in the extreme worst-case scenario, we could step in to sell these tangible, real assets to other battery operators to recover our investment. Hopefully that gives you a little bit more information about how the facility works and the returns we derive and the downside protections we have. The final part of this deep dive is to explain why we have a strong conviction that debt is the correct approach for investing into battery energy storage, and I hope you'll find this quite interesting. On the left-hand side here, we have from one particular power market forecaster, therefore, the outlook for battery energy storage assets. This was back in April 2021, so obviously looking a year ahead from what do we think from 2021 onwards. You can see an upward curve at fairly low levels. By October of that year, they'd significantly uplifted the front-end of that forecast, and from a valuation perspective on the DCF, that would clearly lead to a lot more attractive valuations. But where it really got interesting was the next year when they announced in April 2022, a significant uprating in what they thought the value of battery energy storage to the system was. Huge uplift from just one forecaster. Then it went nuts, and they released their October 2022 one, which is considerably higher than their previous forecasts and clearly supporting some very attractive valuations if you were to use that in your, in your DCF. A bit of context, though. In 2021, when they were forecasting the 2022 revenues, they were predicting, what's that? GBP 60K per MW. The actual was around GBP 160K, so not that close. Then in 2023, you can see the forecast therefore, it's GBP 160K at the top. It's currently about GBP 60K. So it's not the area which has been that easy in the short term to forecast. What's interesting is then the most recent curve has moderated at the front end, but the long term, as you can see, is now considerably lower than before. So you're really seeing experts in the space, market forecasters, struggle to really have a clear view on how these projections... what the projections, what the out term will look like for battery energy storage. But that sort of almost misses the point, because that's for the average battery, but that doesn't really mean anything, because as you can see on the right-hand side, between the worst and the best, there's a 400% difference in performance. So who you choose as your optimizer makes a significant difference. We're very lucky that Field have, say, lucky, we're very pleased that Field have picked the second-best one in the market at the moment. But again, the point here is, even if it was easy to predict the average, there would be a lot of variation from that average, and that's why that check of the optimizer is so important in our assessment process. So we set out on our battery journey a couple of years ago and thought everyone was sort of allocating to this space, some great returns being received, and so the view was this is the place to be in the energy transition. But we, I guess, took a slightly different view because we looked at what was driving all of that revenue, and what we saw was that there was basically most of it being driven by one revenue stream, Dynamic Containment, the blue shade here of two-thirds of the revenue stack. Now, Dynamic Containment is procured in terms of fixed volumes that the ESO, the Electricity System Operator, requires. And we thought, well, as batteries build out, that will start to saturate. So we didn't see that as being a long-term driver of returns, and around the back end of last year, it did saturate, and that's a key reason why revenues, among others, are lower this year. So we sort of looked at it and thought, well, Dynamic Containment is probably the exception, not the new future. And actually, if you look at where 2023 is, many in the sector would tell you this is a sort of record low, you know, this is a complete one-off, it won't be repeated again. It's never happened before. But if you go back and you look at 2020, it kind of did. And if you went back to 2019, it did. And if you went back to 2018, it did. Now, the stack of revenues was different, FFR, EFR, but the value of storage to the system was consistent, except for this. So we would take the view that the exceptions were 21 and 22, but 23 isn't an exception, nor is 2020, and that is more realistic of the outlook for storage. And if you look at the low cases of market forecasters, they're not much higher than the current revenue. Obviously, the base case is somewhat higher. So what does that mean for your returns? Well, if you're an equity investor in this space and you banked off that October 2022 curve last year, and that was what you're expecting, and your 10, 10.5% IRR on a project level was based on that, you'd assumed 160, was it, for 2023, and you were getting this? You're probably not getting 10%, I would say. But also interestingly, if you think that 2023, or even this low case or even that base case, is now the new normal, you're not getting 10%, and in some cases, if 2023 continues, you might not be getting your capital back. So that is quite a significant impact for people who've put all of the money into a battery project. We feel this validates why we've done debt. We lent less than 50%, and at the current levels, the record lows that supposedly won't be repeated, we still can get our full return back, and we've told the market before we're getting around 9% on this. So we're capturing almost all of the equity returns by putting in less than half the money, and so we are protected in the event of this sort of market, which is what we thought would happen. I hope it improves. We've got a revenue share, so we're, we're hoping it does look like more like those positive returns that we've seen before. But we think that this validates our approach to trying to deliver a stable and predictable return to shareholders. So in summary, investing in TENT gives you exposure to the parts of the energy transition that are overlooked by 90% of the capital deployed by the investment companies operating in the energy transition sector. The concentration of capital into wind and solar has yet to yield, has led to yield compression in those areas, but the compression in returns there is not matched in other technologies, and those are the areas that TENT focuses on. Our diversified portfolio by technology, by product sold, by revenue source, and by underlying asset enables risk mitigation within TENT itself, but also enables diversification when investing in TENT alongside other investment trusts that other investors in this space might own. Risk mitigation has never mattered more given the increasingly volatile environment for energy transition assets, where we have seen both record low and record high prices within the space of a couple of years, and as there are more renewables on the system, this will only increase. We have seen in battery storage alone just now, how this increasingly volatile world means that even the energy market experts can struggle to forecast what revenues look like. So that's why we think it's important to think hard about whether different business models should be through debt or equity structures, and in so doing, we are able to deliver long-term contractual underpinning of revenues of 93%, with roughly 50% being underpinned by inflation contracts. The outlook for the company is exciting, and this is what you will hear about from my colleagues more later on today. We have GBP 13 million to still invest into new opportunities, with the average pipeline return being around 10%, as I mentioned, and with ongoing loan amortization, we can start to drive up the long-term returns to investors without the need to raise any further capital. In short term, the deployment of the Field debt will increase earnings from investments. And of course, the results achieved to date, a covered dividend and NAV growth in excess of target provide a solid platform to build upon. Good afternoon, and welcome back for the second part of our Capital Market Day. I'm Christophe Arnoult, the portfolio director responsible for the asset management at TENT. I'll be... The next session, we will share our views and our short-term and medium-term plan for value enhancement. I'll be joined by Alex Reading, the Chief Executive Officer of Green Highland Renewables, and Chairman of the British Hydropower Association. We will give you some insight into our approach to asset optimization and value creation using the example of our hydro portfolio. Then my colleague, Chloe Smith, will present the fund perspective for organic earnings growth. But to start, I would like to borrow the words from the Executive Director of the International Energy Agency. Hydropower is a forgotten giant of clean electricity, and it needs to be put squarely back in the energy and climate agenda if countries are serious about meeting the net zero goals. It's a forgotten giant, despite an early start. It's the oldest source of mechanical energy harvested, and the first design of a water mill was attributed to the Greeks in the third century before Christ. Fast forward, the first hydroelectric power scheme was developed in England by William Armstrong in 1878, well before wind and solar produced their first kWh. Small run-of-river, run-of-river hydroelectricity schemes have been embedded in the life of local communities in Scotland for decades. For some of the most remote communities, it was the first source of electricity before being connected to the grid. But today, the communities continue to benefit from the schemes through royalties. For TENT, we fully own and operate a portfolio of nine run-of-river plants spread in the islands and generating around 20 GWh of renewable electricity every year. This is currently our largest investment and represent 42% of the investment committed at fair value. run-of-river hydroelectricity has one of the lowest carbon intensity per MWh of all the renewable electricity source. Hydropower is a great contributor to the decarbonization of the power generation sector. The portfolio delivered a carbon saving of circa 8,800 tons of CO2 equivalent during the financial year 2023. As more and more companies commit to net zero and set some measurable targets, corporate PPA to secure a very low carbon factor electricity at a very low carbon factor will be more and more attractive. So what makes a good project? run-of-river hydropowers are very difficult to develop and require specific conditions. They need a large catchment area, harvesting water and directing it to a single stream. The feasibility stage will focus on the hydrology study to understand the potential for steady water flow from the catchment area and the generation yield, the potential number of MWh produced per year. The plants need a high water head, which means the level difference between the intake and the turbine to transfer the potential energy of the water starting at the top into kinetic energy, hitting the turbine and actioning the turbine at the bottom. To be commercially viable, which makes it even more difficult, the development needs to be located close to an existing point of connection to the grid and the road system to avoid high infrastructure costs. Part of the development and the constant process, the sponsor will submit a full environmental impact assessment to demonstrate that there will be no adverse effect to the local flora and fauna. There's been a huge effort to scout and map the U.K and develop run-of-river schemes, and the effort has been mainly concentrated between 2009 and 2018, when the Feed-in Tariff regime was available for this technology. But despite this enthusiasm, there's been only around 450 run-of-river hydropower schemes developed in the U.K since 2009. They are the small plants, which with an installed capacity of 100 kW-5 MW, comparable to our portfolio. But the Feed-in Tariff is no longer available for small hydropower plants. In the absence of subsidy, it's made it very difficult to develop new schemes, despite the British Hydropower Association estimating the potential to install a further 1 GW of run-of-river hydro. Somehow, this is a rare asset class in the U.K, going back to the notion of niche investment Jonathan developed earlier. Why do we like a hydro project? While they are challenging to develop, they are also rewarding. The sector provide more opportunity for value creation. We can work in consultation with the landlords to maintain the catchment area to its maximum output and explore the creation of small attenuation, some attenuation capacity to capture the surge of rainwater and smooth the water flow reaching the intake. The surge of water means that the excess of water will bypass the intake and won't be available to generate power. It will be lost. We have worked to optimize the commercialization of the power generated. We have established our hedging strategy, and we have fully hedged our exposure to power price volatility for the next 18 months by fixing the price of the export power of all the scheme up to the end of financial year 2025. But this first two-level optimization focused on the front end and the back end of the value creation chain. But at the heart of the generation performance, the active asset management is key to maintain a high availability of the plants, and the experience and approach, the proactive approach of our partner, GHR, is key to achieve this. We wanted to give an example of optimization that we are actively pursuing with TENT and GHR. The creation of an attenuation reservoir at Loch Blair, our prominent scheme. The works will include the construction of a small dam, retaining the water upstream, the existing intake, and attenuating the release of water. That's the green shape on the photo. It will be built with rocks reclaimed from the local area or from a local quarry, and the structure will be naturally blending into the landscape with a minimum visual impact. Just to give a scale, it will be around one meter tall. The water could be passively released through a compensation notch designed to the optimum flow rate, or the water flow can be actively controlled by a motorized valve, which open and the door to more optimization in the commercialization of electricity. This is where we could increase the generation at the peak hour, or peak tariff hours of the day, to take advantage of the reservoir. This is purely an optimization of the water management upstream, the existing asset. There'll be no increase in the turbine capacity. We are just going to use it more often at its maximum capacity. The reservoir could increase the total output of the Loch Blair scheme by 1.2 GWh, which is 25% of the current annual production at Loch Blair. This would be the equivalent to an uplift of 5% of the annual generation of the portfolio for the rest of the life of the asset. We are currently into the pre-planning application phase. So we like the assets, and we have plenty of optimization levies. But what are the challenges? It's a niche technology, so there is a limited number of projects, but there are also few experienced operators. We would like to dwell and explain how they support the revenue of the trust with all the downside protection. As it was raised during the roadshow after the annual result presentation, we thought it was a good use of the Capital Market Day to give you some insight into how we operate them and how we optimize them to take the full benefit of the potential of these assets. One of the big challenge simply resides in their location and how they are spread in Scotland. The distance to travel requires some careful planning of all maintenance activity to avoid wasting some time and be able to react quickly. This is something we can't do from London. This is why TENT is partnering with Green Highland Renewables for the operation of the portfolio. We benefit from their expertise, and more importantly, we know the team has the right skill set and the right mindset to operate and maintain the portfolio. But rather than trying to explain and present GHR in detail, I will hand over to Alex Reading to introduce the history of the company and his vision in operating hydropower plants in the U.K. Alex, over to you. Thank you, Christophe. As has been said, my name is Alex Reading from Green Highland. I've been with Green Highland since 2009. We started as a development company, identifying potential sites back in the day, and then taking them through the development process, through consent, financing, construction, commissioning, and onto operation and maintenance. We have evolved at every stage of the lifecycle of hydro development and our company has evolved and adapted to suit what we need. Nowadays, we are an operation, maintenance, and management company, and we look after a portfolio of over 50 projects across Scotland. Voith is a global leader in hydropower technology, and they acquired Green Highland two years ago, seeing us as a foundation on which to develop a world-class asset division within their wider company. On that journey, we have worked on the projects in this portfolio, managed them through from initial identification all the way through to an operating asset. I would suggest that we know these assets better than anyone else, and we know exactly how to get the best out of them. Our business is underpinned by a highly experienced, capable workforce who provide a comprehensive in-house service. They are passionate, and I am passionate about the technology, and they treat the assets as if they were their own. Fundamentally, we work on the basis of two key factors. One is the ability to react quickly, proactively and efficiently to either prevent or reduce downtime. The second is we need to measure what we can to make sure everything is working optimally. Data collation and analysis is a core area. Achieving these two goals is a function of all the elements on the slide here. The digital power plant, we have a control room in Perth, where we monitor everything. Experts and know-how, we have in-house engineers and technicians fully equipped on the road to meet the needs of all the hydro schemes. We have hydraulic engineers, mechanical, electrical, civil and controls expert as well. Maintenance expert support, I have to give Voith a mention. They have legions of guys who know more about hydro than all of us put together. Assessment and optimization, we're always proactively looking to drive what we can improve. Christophe and Jonathan are constantly asking me, and I constantly have to answer them, so I have to have the data to be able to answer those questions. Operation, we have to constantly monitor the operation to make sure that what's going over the weir, every bit of water that goes over the weir is turning into the MWh that we need and that we said we would deliver. Our operational philosophy is to maximize generation by maintaining high availability and striving for high reliability through preventative maintenance. I put the diagram on the right here. We've got continuous monitoring, maintenance strategy, optimization, and data analysis. The next four slides goes into each one of those. Remote monitoring. We've developed our own SCADA system that we monitor from our control room, but we have three key elements of that that I wanted to raise today. Local peer performance comparison. When you're looking after 50 sites across Scotland, and you're monitoring them in the control room, you can see exactly which ones are misbehaving very quickly. We also put in live monitoring of health status indicators. Our health status indicators is key points that we look at to make sure that those elements in the system are working well, and I'll come on to those in the analysis piece. And the remote analysis and intervention, I think this is a key one that I wanted to highlight. and the bit that the guys, when I speak to them in terms of, you know, "What is value are you giving the client?" They're telling me that actually, with this remote analysis, with the experience we've got, if there is an issue, we can do a huge amount of triage on the issue to make sure that the right person is turning up to the project with some inkling of what the problem is, with the right kit and the right parts to be able to fix it and get it back online as quickly as possible. On the data analysis part, I judge the guys on actual versus expected power, and I put that one up first as that health status indicator that I wanted, that I mentioned earlier. Essentially, that's this bit on the right hand, we have a flow and power curve, and you'll see them in wind assets and solar assets as well. But essentially, as long as that line is green and all those dots, which represent every sort of 5, 10, 15-minute block, however you do your parameters, is on the right line, we're good. If it's not, it's not performing, and that's what we're judging it on all the time. Availability. Availability is a function of planned maintenance. There will be planned maintenance that will needs to be done. Unplanned maintenance, when things go wrong, and grid outage. I can make sure that with my team, that planned maintenance is done as quickly as possible. I can try my best to make sure that unplanned maintenance is done as quickly as possible by the right people getting it back online. Unfortunately, I can't do much about grid outage. That is the DNO as an embedded generator, but we do have constant discussions with them through my role as Green Highland and also with the BHA, to try and treat us a bit more like a client. Reliability is the next one. Reliability is a key. What reliability does is it takes the availability figure out. It takes the availability figure, and it takes out planned and grid outages and solely focuses on unplanned maintenance. What that does is tell you how the machine is as a machine. In terms of the bell curve of performances, there are problems in the early years. There's a nice, steady period. As it gets older, problems will occur, and we can monitor that through the reliability stats. The fourth one is the budget. I treat the budget as something, Jonathan's gone into a lot on the P50 and various other things. The budget is something as a function of what Jonathan wants and the weather. And as long as I keep the three above that, right, we should be okay. I've been asked many times to sort the weather. I can't do that. I'm very sorry. The maintenance approach. We have a dynamic planning and response. What does that mean? In terms of these are intermittent generators. You've seen the seasonality of hydro, and what we ensure is that generally, you, all the generation, the majority of generation comes in the wetter periods, from about now onwards through to March, April time, and then from April through the summer. We've had two incredibly dry summers recently, but before that, we had a very wet one. We try and do as much of the planned maintenance in that period as possible. By this time of year, our guys are looking a bit threadbare, but they're in hopefully making sure that the projects are as fit to run as possible. Comprehensive capability. I'm terribly proud of my guys in terms of they can turn their hand to anything. They're proactive guys. You can ring them up on a Sunday morning, and, they will go out and do something, and that's the type of characters we're doing. We've got an apprentice regime. We've tried to recruit people in the past, but actually, we bring them on ourselves. The apprentice regime that we're doing is one of the best things that we do in the company. And auditability, in terms of everything is underpinned by a CMMS system, so we know exactly what needs to be done, and we can prove when it's done, how it's done, and to the correct standards. The last one is optimization. Now, you've seen a video, you've seen a diagram. I wanna talk through optimization, starting with the catchment area. The catchment area is the resource. That's where the water lands. That's where it goes into the river. The size of the scheme is a function of the size of the catchment, but the catchment, every catchment is different in terms of size, altitude, geology, aspect, slope, everything. And what we do when we look at the catchment is what we can do in there, and you've heard reference to peatland restoration and various other things. And we've been undergoing an assessment of what we can do in the catchment areas, since these projects have been commissioned, and, you know, Loch Blair is the thing that Christophe has been talking about. If we look at the intake, where the water intake or weir as described earlier, that intake is the key to that HSI that I spoke to. 99 times out of 100, if that's not quite right, there's some ice in the winter, leaves in the autumn, and algae in the summer on that screen that is making that is there blocking the screens, and it's that intake inefficiency that we need to get on top of. As simple as cleaning the screens. The second thing, the chamber and the penstock. The penstock or pipeline, you've seen diagrams of that before. As time builds up, this water is peaty, it's got material in it, and that it does tend to clog up. Some rivers are peatier than others, and the layer of sort of gunk, for want of a better term, that builds up has an effect on the penstock, has effect on the pressure, and therefore has an effect on the power output. We have a series of health state indicators within the powerhouse that allow us to tell if that penstock is failing and if we need to do something about it. You saw from there, if we go into the powerhouse, we've got the generator and turbine. There's all manner of vibration, temperature sensors within the powerhouse that you will have seen on previous slides that tell us if anything's wrong. The tailrace, there's not much we can do in that, and the grid connection, we're trying to make SSE more efficient. We are constantly looking at every part of this and reporting on it to let the people know what we can do. So that gives you a slight insight into what we do and how we're doing it, and we... If you've got any questions at the end, please feel free to ask. Thank you. Thank you. you. Thank you very much, Alex. Thank you, Alex, for coming down from Scotland this morning, a very early flight, to join us. I hope we give you the insight you were looking for, in this asset class. And to conclude, I just would like to summarize some of the key takeaways, some of the key points, and how the hydro portfolio is contributing to the trust overall. So the first thing is we have an established partnership with Green Highland Renewables, a leading specialist operator, and hopefully through the presentation from Alex, you will see how important, how specialist you need to be, and you need to be, in Scotland, near to the asset to be efficient. The second thing is, you have seen it, and I've explained how difficult it is to develop new project and the lack of subsidies at the moment, which mean that there is a finite number of project, and it's somehow a rare asset class in the U.K renewable sector, which is differentiating us from some other trust in the U.K. We have some downside protection. The portfolio benefit from the downside protection provided by the Feed-in Tariff regime, and we have also, in addition, we have all the merchant risk, all the price merchant risk has been hedged up to the end of financial year 2025, so we are fully secured on the price we will receive for every MWh we generate, which put the focus back into the generation figure. We have a steady operational portfolio with a performance track record, and that give us a lot of confidence and assurance into the long-term generation figures and forecast we have in our budget. There are still some opportunities for value creation. Hopefully, we give you enough information to see that this is something we can harvest and we can do. I will now hand over to Chloe for the remaining of the presentation. Thank you, Christophe. Hello, everyone. My name's Chloe Smith, and I hold the position of Finance Director. Today, I'm here to talk to you about the possibilities of organic earnings growth and the strategies that we have identified to achieve organic earnings growth in the future. There are three opportunities that I would like to discuss with you today. First of all, powering up our earnings. As Jonathan said earlier, we have committed a debt facility to Field, who are building out four battery storage assets. Today, I would like to outline how we intend to deploy our committed facility and how this is gonna enhance our earnings. Second, is the potential for earnings growth. Our company has a unique composite of debt and equity investments, and one advantage that this creates is transparency of contractual cash flows. We can recycle these funds into new opportunities and attractive pipeline. Third is finally unlocking value. Our team have developed a strong pipeline of investments, yielding in excess of 9%, as Jonathan mentioned earlier. Today, I'm gonna outline the funds that we have available to invest into this pipeline, and later, you will hear from my investment team, who will give you further details on the pipeline available. These three pillars will help us to create earnings growth. We are committed to scouring the market for attractive risk-adjusted returns to further reinforce our portfolio's earning potential. Today, I will demonstrate how this transpires into our financial results. But first, before we dive into the three opportunities, I'd like to revisit our financial highlights. As Jonathan mentioned earlier, in our results to March 2023, we delivered a return to investors of 9.2%, and our dividend was covered 1.2 times pre-exceptional items. In our year-end results, we outlined that we had committed investments of GBP 44.4 million, and we were gonna use our RCF to fund a significant part of this deployment. Since March, we have progressed further by deploying GBP 8.9 million of this commitment, and I would like to outline how our strategies are working towards deploying this further for the remaining months of our financial year. First, let's discuss our committed deployment. We have mapped out a clear path to deploying our committed capital. During the past few months, we have negotiated a fixed drawdown profile with our partners, Field. To date, we have deployed GBP 10 million through our debt facility to build out the four battery storage assets. We have contractually committed to deploy a further GBP 6 million in December and GBP 21 million in March next year. We intend to use our RCF to fund this deployment. You may recall that the facility was originally GBP 45 million committed. However, as we discussed earlier, it made sense for us and our partners, Field, to resize this exposure to be GBP 37 million. We believe this fixed drawdown profile creates the opportunity for us to reach our full earnings potential. Our second pillar is unlocking value through pipeline to prospects. Now, we have established a clear path to deploy our committed facility. This presents an opportunity to deploy GBP 13 million into new investments. Our investment team are evaluating compelling opportunities within the investment pipeline, and later, you will hear from Jonathan and two of our investment directors, who will demonstrate further detail on the pipeline and how this is yielding around 10%. Our third strategy is to create earnings growth, and this revolves around principal repayments from our debt facility investments. These repayments offer a valuable source of capital to strategically reinvest into attractive areas of the energy transition sector. We have identified GBP 32 million coming back online over the next 5 years. That's a third of our net asset value. We are constantly assessing areas of opportunity so that the funds don't sit idle and are continuing to contribute towards our earnings. Finally, I'd like to discuss how this contributes towards our financial results. On this slide, you will see an illustrative view of what the future holds for our dividend cover. In March 2023, we announced a dividend cover of 1.2 times pre-exceptional items, and we believe we are well-positioned to enhance this further. Firstly, when we deploy our committed capital into our fixed drawdown profile with our battery storage asset partner, Field, we have GBP 27 million to deploy, and in turn, those earnings to come online. Our second opportunity is to unlock value through new deployment, with GBP 13 million to deploy into our potential pipeline. Finally, our principal repayments. As we have GBP 32 million coming back online into the company over the next five years, we can invest these funds into niche areas of the energy transition. One significant outcome of these initiatives is an enhanced view on our dividend cover into the future. As we deploy capital, reinvest principal repayments, and introduce leverage, our ability to sustain and grow our dividend is illustrated in the graph provided. A critical metric that we often discuss with our stakeholders is our weighted average discount rate. We understand the importance of this metric and creating transparency around the metric that we use within our portfolio. As mentioned earlier, we aim to introduce leverage into our strategy, which has a rate of 6%. Leverage will assist us with deploying capital effectively. By introducing leverage, we anticipate a boost in earnings potential, and also for our levered weighted average discount rate to increase to 8.6%. As I finish my presentation today, I would like to summarize the key takeaways that we intend to deliver into the future. We have GBP 27 million of committed funds to deploy into our battery portfolio. We are scouring the market for new investment opportunities with strong yields in excess of 9.9%, and we hope to be well-placed to deploy the GBP 13 million available. And finally, over the next five years, we have GBP 32 million coming back online to the company through our principal repayments, which will allow us to pivot into new, exciting opportunities, and we believe this means we are well-positioned for the future. Thank you for your time today. Chloe has just spoken there about the value drivers of GBP 13 million of available capital from the RCF and the ongoing amortization of our loan portfolio, and what we'll do in this final presentation is to set out where we see that money being deployed. Before we get into that, I wanted to set out the approach that we take to origination. So first of all, we seek to build partnerships, and we think that's a really important way for a technology-agnostic investment company to build its pipeline. We think it's really important to have diversification by different operating management teams. We back the best people in hydro, the best people in battery storage. We don't have an in-house team sat in Triple Point working on all of this, 'cause to be experts across all of that broad technology wouldn't be practical. So we've tried to find the very best people in their space and back them. And having then spent a lot of time building that relationship, we want to double down on those partnerships, and so, for example, on Field, we've got a legally binding exclusivity over the next GBP 100 million of transactions with them. We also want to make sure that when we're investing, we are improving diversification for our investors. So that means looking for new technologies that aren't in the portfolio or looking to new geographies. We recently enabled our mandate to go into Europe last year, and so we want to continually bring more diversification to our investors. The other thing that's really important is off-market pipeline. It's really easy in our sector just to enter auction processes from corporate finance and M&A advisors and just get competed down on cost of capital. We pride ourselves on not doing that, and half of our pipeline, half the deals in our pipeline have been off-market through proprietary relationships. Finally, we recognize in an environment of higher base rates, that energy infrastructure investments need to offer really attractive risk premiums compared to, you know, base rates or even fixed income investments. And so we really think it's important to offer those attractive rates of return. Which is why we are really pleased that our average pipeline return is 10% across our three target segments. I'll go through each of the three in a moment. So the first segment is distributed energy generation. We're seeing returns in this area of around 8%, which is the lowest of our three target segments, and it reflects the saturation in this market that I was speaking about before, with the volume of capital concentrated a lot in that area. It's also why it's the smallest part of our pipeline. One of the interesting opportunities there is to actually add a further hydro asset to our portfolio. The returns in storage and transmission are higher and reflect the requirement for storage to enable the deployment of renewables. As noted, though, storage is an area where revenues are materially lower than in previous years, and so we believe that debt, rather than equity structures, are more attractive on a risk-adjusted basis. Finally, as I mentioned at the start of the day, the on-site or behind the meter segment is the most attractive part of our mandate. Here, we typically see less competition for assets, higher levels of contracted income, and the broadest range of possible technologies, and the returns are highest as well, and so that's why we see things in areas such as electric vehicle charging or on-site biomass. However, today we're going to highlight two opportunities, both from that segment. I'm going to go into a little bit more detail to explain to you the sorts of deal that we're seeing. I will first hand over to my colleague, Ariane, to talk you through the first of these investment opportunities. Ariane? Thank you, Jonathan. I'm Ariane Brunel, an investment director within the energy team of Triple Point. I joined Triple Point a year ago. Prior to that, I used to work for the European Bank for Reconstruction and Development within their energy team for more than a decade. Today, I'm going to present you a case study on a concrete green hydrogen opportunity we are currently exploring. I'm going to walk you through the few elements and the few specific features of this opportunity, which makes it attractive for TENT. In terms of TENT ticket size, we are looking at a ticket of roughly GBP 15 million. This is due to the fact that the sponsor is actually looking for a club deal financing, which means that we will most likely be financing alongside two or three additional lenders. The expected return is expected to be in line with TENT's target returns, and the majority of the income will be contracted. But let me go through each key elements we are looking for this project. On the revenue side, there will be an offtake agreement with an offtaker, which is a well-established and creditworthy industrial company. The offtake agreement will be a long-term take-or-pay agreement, meaning that there will be a contractual obligation from the offtaker to acquire the majority of the hydrogen produced by the electrolyzer. This provides some predictability in terms of revenue income at the project level. One aspect is actually the fact that this will be an integrated project, so there will be a 10-MW green hydrogen electrolyzer combined with some renewable energy assets. For green hydrogen projects, energy cost is actually a big... represents the majority of the operating expenses. Thanks to this integration of renewable energy assets, you're actually providing some stability and predictability on the cost side as well. In terms of construction risk, the project will be constructed over 18 months. It will be first funded by equity. The contract, it will be a multi-contract approach, but we are not talking about 10-plus contract. We are talking about a similar structure as we've seen, for instance, for batteries. This limits the interface risk for this type of project. On top of it, we will, of course, make sure that all the construction counterparty and the scope of the contract will be the best standards possible. We will not be taking any repairing risk, given that the loan tenor will be within the life of the asset. The ESG element is a very important one. As you know, it's core for TENT, but it's also very important for both the borrower and the offtaker in that particular example. For instance, the offtaker has made public net zero commitment, and therefore is looking for the best ESG standards for this project. The project's economic viability is strong, given that this will be one of the rare projects which will not rely on any subsidy scheme. Therefore, to conclude, this project fits nicely with the TENT's mandate. The long-term take or pay offtake agreement ensures that the majority of the revenues at the project level will be contracted. TENT would also benefit from a first mover advantage in a nascent sector, which is key for the low carbon pathway of the U.K. Last but not least, the expected returns are in line with the fund's expectations. On this note, I will now hand over to my colleague, Jan, who will go through another interesting case study. Thank you. Thank you, Ariane. Good afternoon. My name is Jan Libicek, and I, like Ariane, I joined Triple Point last year as Investment Director on the energy team. I spent the last 14 years of my career or so investing into developing and selling projects across various geographies in mature and emerging markets in Southeast Asia, Japan, Africa, the Middle East, and Europe. I'm very pleased to present to you today a case study which revolves around C&I solar. We would very much like to ensure that you don't leave here today thinking that our focus is TENT on niche areas of the energy transition landscape means that we don't like solar. That's not the case. The case is, in fact, that we do like solar, and especially the niche areas of the solar subsector of energy transition. One such niche area is what we refer to as C&I solar. C&I stands for commercial and industrial, and it captures all solar installations, which are typically directly connected to the offtaker. The offtaker would, in most cases, be a factory, a cement plant, a refinery, or a logistics warehouse, or potentially a data center. This case study revolves around a pipeline of projects in the United Kingdom, which we would fund through equity. These projects would be built in the vicinity of these offtakers, so factories and warehouses, et c. and would have a physical, direct connection to these offtakers. We are working with a very reputable developer, so once again, this reinforces the idea that we, as TENT, tend to back experienced management teams with excellent track records, and this is a good example of that. Some of the highlights of this transaction are, that the opportunity for TENT is to invest between GBP 10 million and GBP 15 million. We expect that the return will be somewhere in the range of 10% for TENT investors. And perhaps most importantly, because this is backed by PPA contracts, power purchase agreements, with offtakers, we expect that over 90% of the revenues will be contracted. So once again, that reinforces what you've heard earlier from Chloe and Jonathan. Now, some of the key elements that we will look at in analyzing this opportunity and making sure that it is the right investment for us are as follows. So firstly, because we are funding the development and construction of these projects, we need to ensure that the development process and the grid connection process is well managed. Once again, we do that, first of all, because we have the right kind of experience within the team, but crucially, because we back an experienced development team whose specialty it is to develop projects. We can look at their track record and make sure that they manage that process effectively, and that the risks are well mitigated. There is a grid connection, but as I mentioned earlier, primarily, the projects will be directly connected to the offtakers. So the grid connection comes later and serves, if you want, as a backup. We don't need it initially, and the project can start generating and feeding electricity to the offtakers, and therefore start generating incomes for TENT before the grid connection is built. And that allows us to get around the grid connection congestion issue that a lot of developers across Europe are struggling with. Second, we'll look at the structure of the PPA. We'll need to make sure that it's bankable, that it can't be easily broken, and that also the offtaker, who is a, an investment-grade counterparty, has the obligation to buy electricity from us at a pre-agreed rate, whether or not they have any use for it. So it is a pay or take, take or pay kind of structure, which ensures that as our plant produces electricity, it is remunerated for that. So we are not taking any sort of offtake consumption risk in that regard. We'll work with reputable EPC contractors, and equally importantly, we'll also ensure through third-party advisors, technical advisors, that we manage the construction process proactively to make sure that it's built to a very bankable standard in line with our prior assets. We will also need to ensure that the lease agreements for the land or the rooftops where we build these solar installations are secure, that they can't be easily broken, and that in case, in the unlikely event of this investment-grade counterparty's bankruptcy, we are not required to vacate the site and dismantle the installation. We need to ensure that the lease agreement survives any such event, so as to be able to continue generating even in such scenarios. There is huge integration potential for these installations. The most natural coupling would be with EV chargers, on-site storage, potentially even small-scale wind turbines, which again plays into the strengths of TENT as an integrated and holistic investor across the energy transition space. And lastly. A key pillar of this investment strategy is that we diversify across different sites, different kinds of off-takers, and different kinds of connections to these off-takers. That will ensure that as a whole, an investment like this would represent a niche, but very well-managed investment opportunity that delivers, as was mentioned earlier, very attractive risk-adjusted returns. To sum up, we think that C&I Solar is another example of an area that represents a bit of a niche in the energy transition landscape, something where TENT could do really well. Most of the revenues will be contracted, and we think that it's a substantial potential for diversification, which is why we believe that this is once again a great example of an attractive investment opportunity for TENT. Thank you very much. Thank you, Jan. Thank you, Ariane. So I hope you found that insight into two of the sorts of opportunities we are looking at interesting. We really like the contracted income profiles on both of those investments. I'm just going to close with a recap of some of the key points and key information that we've covered today, and to try to bring a number of points together. So on this first slide, I want to discuss the dividend income investors, the dividend income that investors receive, which is a yield of currently around 8.7%. Because whilst that sounds quite attractive, investors and analysts will want to understand what the quality of that earnings is and the risk associated with those cash flow returns. So starting off, a reminder that our dividend was covered by 1.2x on a cash basis, and as discussed, we've got the battery energy storage income still to come online as we build out that portfolio. That dividend cover is supported by 93% of our long-term income being underpinned by contracts, and hence, as you can see in the dividend cover sensitivity we've provided here, there is limited impact on the dividend cover in the event of a price decline or a volume variance. We think that makes our dividend income consistent and one of the most consistent in a comparable peer group, in what is an increasingly volatile energy operating environment, as we mentioned earlier. More broadly, earnings are diversified across different technologies and benefit from synergies in the asset base, for example, the battery storage assets that generate when the hydro assets aren't generating. The other factor that we think strengthens the quality of our earnings is the reduced exposure to construction risk. By investing through debt, TENT is one step removed from the primary impact of cost overruns on the Field build-out, and given TENT is paid on deployment, which was based on that fixed drawdown profile that Chloe mentioned, and not when the assets are commissioned, any delays in the construction timeline accrue to equity. Finally, our investments have robust downside protections. The hydro assets with the price floor on the Feed-in Tariff, the battery storage assets with six months of cash sat in reserve to pay our debt, and the loan amounts conservatively sized to withstand material underperformance versus the base case, as we showed on our battery storage assets, all taken together show that investors are very well downside protected against those negative risks and well protected from the volatile pricing that is increasingly the norm and will continue to be the norm in the energy transition sector. In terms of that dividend income, based on our FY 2023 dividend cover position alone, TENT would have the potential, in theory, to increase the dividend by 2% each year over the next 10 years if it wished to do so, and over a 16-year period, if the value drivers Chloe referred to were to materialize, giving the company strategic options as to how to deliver value and returns for shareholders in a changing environment. Looking beyond just a dividend income, one-third of the NAV of the fund will be recycled in the next 5 years. And given the average pipeline return of 10%, this creates an opportunity to drive higher returns to shareholders over the long term without the need to raise further capital. More immediately, the GBP 13 million of available capital to the fund will enable TENT to take advantage of some of the opportunities available to us, as Jan and Ariane outlined earlier. In the context of the energy transition peer group, TENT is well-placed to offer a compelling risk-adjusted return. In FY 2023, 100% of TENT's earnings were underpinned by contract, making it the lowest in the peer group in terms of exposure to merchant power price risk, which will be similar this year and next year, given forward price hedging. And with only 7% of cash flows exposed to power prices over the next 13 years as a function of that 93% contracted earnings, TENT has one of the lowest risk exposures to power prices in the comparable peer group. TENT also has the second lowest volume risk in the peer group, with the average being at least three times TENT's exposure by the peer group to energy variability in terms of the P90 yield. So whilst investors are getting one of the very lowest risk profiles in the peer group, one of the most downside protected set of cash flows, the returns associated with that low risk are at the upper half. So starting on the dividend yield, where we are one of the highest dividend yields available to investors in this segment of the market. On returns overall, once the Field assets are deployed in March as a function of the higher returns on that capital deployed and the drawdown of the RCF to fund it, our weighted average discount rate, as mentioned by Chloe, will be around 8.6%, which is in the upper half of the peer group. At the current share price, the implied return on TENT is 14%, offering investors an attractive return even in the current higher base rate environment. We truly believe that these factors indicate TENT is one of the most exciting risk-adjusted returns in the peer group.... To wrap up our capital markets day, it has been a pleasure to introduce you to the new team that has managed TENT over the past 15 months. We have been pleased with the performance over that period, with the IPO objectives of NAV return exceeded and the dividend covered. The returns available to new investors, 14% implied returns and a circa 9% dividend yield, are highly attractive given the downside protections from the portfolio. The dividend payments to shareholders are underpinned by the long-term cash flows of 93% contracted income, one of the highest in the comparable peer group, and the diversified portfolio reduces risk to investors and offers further diversification against the typical investment company energy sector holdings in wind and solar. And with organic earnings growth from the battery deployment, as well as the investment of the available GBP 13 million that Chloe outlined. With amortizing capital to come, despite where capital markets are today and the fact that they're largely closed, we are confident that TENT is well-positioned to play a meaningful role in driving forward the energy transition, while offering one of the most, risk-adjusted, attractive returns in the energy infra peer group. Thank you so much for your attendance today, and my colleagues and I would be happy to take any questions from anyone here or watching online. Thank you. Chris Brown from J.P. Morgan. Just, on the cost leverage, so it's 6%, I believe, at the moment. That's locked in until March 2024, I think. Can you talk about the sort of longer term prospects for refinancing that and, and how you might work with that? And also, perhaps a question for the board, what kind of return they would seek relative to that cost of financing in terms of the spread? Do you want to go? Yeah. Yeah, of course. Thank you. Thank you for your question, Chris. So in terms of our leverage, it's locked in until 2025 at 6%, as you mentioned. Obviously, in the future, when we come to renew that facility, we will perform a competitive process, as we did originally when we originated our RCF facility. We actually have a dedicated team at Triple Point that manage a debt team that manage that for us. And they will go out to tender for that facility, and we hope that we will be able to either refinance that with someone new or extend that with our current lender. There is obviously an anticipation that may increase, but we still think that at the rate of potential increase, we're still able to deploy that into attractive returns for our investments. And I would just add to that. So clearly, we, with the deployment of the battery investment, we're looking at both RCF solutions, but also structured debt solutions down at the asset co level, for example, in the hydros, where, as you'll know, risk premiums are significantly less than the RCF level. We would expect the margin on the debt to reduce as a function of not having anything in construction, so both of those point, I think, to contractions in the risk premium. So there's a broad process being run, as Chloe mentioned, to look at RCF or structured debt. It would be fair to acknowledge that there's probably like to be a short-term increase, but we think we can mitigate that through structured debt. What I would say on the second part of your question is, look, even if debt was to increase to, I don't know, 7% or something along those lines, when you're able to deploy money at 10, it still makes a lot of sense for us to deploy money from the RCF because you are generating accretive return to shareholders. Clearly, that wouldn't make sense if we were a pipeline yielding 7 or 8, because it would all eaten up by debt payments, even when you factor in that tax shield. So that would be, that would be my, that'd be my view. Hi, Jonathan. How are you doing? First of all, thanks for this presentation. I thought it was really well done, and it gave a good understanding of, like, what you're trying to achieve here. At the risk of pointing out the elephant in the room, I mean, the return profile you talk about is not what shareholders have received. I mean, you're talking about 35% discount as of today. I was just hoping you could maybe comment on that in terms of disconnect and what the plans would be to do something about it, especially given the fact that you could use the money that you've got to buy your own shares back, and 35 beats 9. Sure. Thank you for your question. So, I'll start in reverse, if I can. Share buybacks, I think, was the last point you raised. So, you know, the yield on our shares is around 8.7, the stuff in our pipeline's at 10. So from a financial perspective, it does make more sense to invest in the pipeline, and that will provide a better return of buying at 10 than 8.7. I guess the second point is the board is constantly monitoring whether this is the right thing to do in terms of share buybacks, but I think we consider currently, that given the size of the trust, a big part of where we are from the share price perspective, we think is the illiquidity. It's a function of the size of the company. So further shrinking the company is unlikely to yield to a share price uplift for investors. It will just reduce liquidity and sort of exacerbate the problem. So I guess for those two reasons, A, we can inject—we can invest at a better rate, and B, actually it would reduce liquidity and probably be disadvantageous to shareholders. For a company of our size, we don't think it makes sense. In terms of what to do about the share price, I, I'm sure myself and other fund managers in the energy infra peer group are all asking that same question. I think that what I would say is, I do genuinely feel, James, that the discount we're at is consistent with our peer group. When I look across other names, I won't list them here, but you know, many of the names in our sector are within a 5% range of the discount to NAV that we are. It's not a TENT-specific thing. It is a sector thing. That doesn't give investors in the sector any comfort. We obviously all wish it was at a premium, but in terms of our ability to therefore impact the macro environment, it is somewhat challenging. What we can do is keep delivering, drive up returns, pay covered dividends, look to see what we can do there in the future. And we will obviously re-look at share buybacks if it makes financial sense to do so. Hi, it's Andrew Keen from Edison. Thanks for the presentation. Just two questions. One on the pipeline return. Your current portfolio is quite mature in terms of technology and construction. As you have quite a lot of capital coming back to recycle that, do you think that you'll need to change your risk profile in terms of either technology or construction risk to get that kind of pipeline return, or is there not really any change in that? And the second question was, and perhaps one for Chloe, is your 1.2 times dividend cover; I get you've given an illustrative movement to 1.4 times. Did you have any sort of timeline on that, that you wanted to, to highlight as well? Thanks. Okay. Taking your first question there: so where do we see ourselves deploying for higher returns? So we on that third bucket, we spoke about green hydrogen, behind the meter solar, EV charging. So those are areas with higher returns. Are we moving up the risk spectrum? I mean, given that the base rate has increased substantially from when we were launched at, whatever it was, 50 basis points to now 500 basis points. So probably the risk premium hasn't changed. It's just a risk-free rate, and so I wouldn't say that we're taking materially additional risk to what we were before. As we've seen on battery storage, when we do go into those more risky technologies, to the extent that we are, we think that debt's a great way of mitigating that risk, actually, and to let someone else take a lot of the construction risk or market volatility risk. So I think we've proven, as a management team, we can invest in those areas which deliver higher returns, but without taking materially more risk, both as a function of the way we invest and, of course, the higher base rates. So that would be my... hope that answers your question on the pipeline. Yeah, thank you for your question. So, in terms of dividend cover, obviously, we're not able to forecast where that will be in the future, but I hope that we have today been able to outline what the strategies are for us to be able to enhance those earnings into the future. And as we deploy those funds into our battery storage assets, that's definitely going to enhance into the future. Thanks. We'll go with a few questions from the webcast, which maybe we'll take just now. First question was: Were you able to source competitive debt outside of Triple Point? What were we? Or so- Were you unable, sorry, to source competitive debt outside of Triple Point? So this is getting to our RCF. So look, what we've done, as Chloe mentioned, is we ran a competitive process. Triple Point has a very large in-house lending arm private credit business, and we went out to many well-known high street banks that everyone here will know and recognize, and got a number of quotes, and the one that provided best value to shareholders was the one that we obtained from our current lender. So we had a number of options, to be very clear on the answer. We had a number of options. We were able to source capital from elsewhere. We chose to do the one that did best for our shareholders. Okay. Do you want to go back to the room, and then we'll come back to you? Hi, yeah. There was this question: How much, when you're doing forecasting power prices for the hydro assets, are those power prices much above the FIT level? Yeah. So great question. So when we talk about our contracted earnings of 93%, the 7% is effectively that spread across the whole fund between the FIT export tariff and what we're kind of assuming in our forecast. So that's the only element of risk that our investors are exposed to. So there is a small element, but it is obviously not all the way down to zero because you've got that floor. So there is a small bit of risk there, and that's what that 7% over the long term- Yeah. - the only bit that isn't fixed. Yeah. Thanks. Okay, we've got another question from the webcast, from Marcus Jaffe, from Peel Hunt: How do you value your loans if the fundamental backdrop deteriorates for the equity investors, e.g., if power prices fall for renewable generation assets or power price volatility/ancillary services revenue decline for battery assets? It's a really good question. How do we value them? There's a macro and there's a sort of more micro point, so taking the macro point. So the way we value our loans is we consider with our advisors, our valuation advisors, Mazars, and our auditors, you know, what would you sell a loan for today? We're not doing a sort of daily CAPM type approach, so we are looking at the value we could sell loans for. On the specific point of how we value them in terms of, I guess, higher volatility, the way we do that is in our loans. So take the batteries, we have debt service coverage ratios, which look forward in terms of the amount by which the earnings from the assets cover our debt payments. We have various trigger thresholds and covenants at which proceeds will lock up to equity sponsors or go into default, and we monitor those carefully, and as those compress, we would identify risk. Clearly, if we tripped any of those covenants or started to get close to them, those would be indicators that we might wish to impair a loan. We're clearly not anywhere near that. As we mentioned, even at the current record low rates, we're still getting our full return back. So I guess just, just in summary, we look at... We've got a range of different covenant test levels within the loan as early warning indicators for whether that sort of action is required. Superb. Further question from the webcast: You mentioned your, for your pipeline, what sort of opportunities could this entail? In the pipeline? Well, you obviously heard, too, from Jan and Ariane around behind the meter solar, which could be U.K and Europe and, and green hydrogen. We spoke about EV charging as well. We're looking at biomass opportunities. I think, of course, the other area of pipeline, which we didn't really go into too much detail today, is the whole of what's in Europe. So obviously, all of these opportunities have a, have opportunity, sort of from a geographic lens, more opportunity as well. So, I mean, we are really excited about EV charging, electrification of fleet. There's some really strong contracted cash flows you can get in that sector as well. So, so those would be some of the ones that I would highlight as being particularly interesting to investors currently. ... And, one more question from the webcast so far. Are you happy with the performance of the CHP assets? Absolutely, yes. So we, in both of our most recent set of results, we've spoken about the underlying trading performance. A reminder that on the CHPs, we're lending to those, so we're again, well protected from equity cushion in terms of a number of risks. But in terms of the trading performance, I guess probably three things are probably relevant to say. The trading performance, I think, for both of the most recent full years has exceeded budget. The second thing that I would reference is that, from an aged debtor perspective, things have been broadly in line from when we invested. And I think the third point is obviously our interest has been paid on time and that sort of thing. So are we happy with the performance? From a lender's perspective, we're getting paid on time, and the aged debtors are similar, and the covenants are fine. And obviously, from the perspective of, you know, how are they trading fundamentally, it's been great times to be trading in energy markets, been getting great returns ahead of budget, and so that will start to cool off, but that has exceeded expectation in the periods to date. Superb. We've got no further questions from the webcast, so maybe, Jonathan, hand back to you for closing remarks. Excellent. If there's nothing else, I mean, no, I think I wasn't gonna do too many closing remarks. We really appreciate you all making the time to come in here about 10. We do really feel, as I tried to highlight in the slide before last, that, you know, we do have a really interesting risk-adjusted return profile, and we do, with those returns at 10%, give us the opportunity to drive higher returns. We're not just investing into a single technology where the discount rate is 7% or 8%. We've got the ability to go and drive those higher returns. And so I think all else being equal, if you're an investor wanting to put GBP 100 million into energy transition, do you want to do it in a way with diversification, with the potential to get double-digit returns from those investments or, or a more compressed, more mature area? I would tend to think that as platforms for what we look like in this new world of infra investing, where we've got to work a lot harder to deliver risk premiums above fixed income and base rates, I think not all investment trusts out there are well set up for that, but we feel that we have something to offer in that regard. So thank you, everyone, for coming, and we'll happily take any questions separately and drinks afterwards. Thank you.