Half Year 2026 Pantheon Infrastructure PLC Earnings Call

October 8, 2026

Operator: Thank you, Richard. Good afternoon, and welcome to the Pantheon Infrastructure PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll. I would now like to hand you over to the management team. Richard, good afternoon, sir.

Operator: Thank you, Richard. Good afternoon, and welcome to the Pantheon Infrastructure PLC investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll. I would now like to hand you over to the management team. Richard, good afternoon, sir.

Speaker #1: Questions are encouraged and may be submitted at any time via the Q&A tab situated in the right-hand corner of your screen. Simply type your questions and press send.

Speaker #1: The company may not be in a position to answer every question it receives during the meeting itself; however, the company can review all questions submitted today and publish responses where it's appropriate to do so.

Speaker #1: Before we begin, I'd like to submit the following poll. I would now like to hand over to the management team, Richard. Good afternoon, sir.

Speaker #2: Good afternoon. Thanks for joining us. So we're here today to talk about Pantheon Infrastructure PLC or PAINTS first half 2026 results. So if we just move forwards, we've got both Ben and I will be presenting to you today sort of usual format that we've done before.

Richard Sem: Good afternoon. Thanks for joining us. We are here today to talk about Pantheon Infrastructure PLC, or PINT's, H1 2026 results. If we just move forwards. We have both Ben and I will be presenting to you today, sort of usual format that we have done before. I will not take you through our bios, but maybe we just go quickly to the strategy. The key strategy there on the left-hand side. The strategy is to remain. We are looking to construct a predominantly diversified core plus infrastructure portfolio to generate attractive long-term returns, but looking to recycle the proceeds of investments after about five to seven years of holding them. So, looking to really demonstrate that capital growth during that period. I am targeting an 8% to 10% NAV total return.

Speaker #2: I won't take you through our bios, but maybe we could just go quickly to the strategy. So key strategy there on the left-hand side, so strategy is remain.

Speaker #2: We're looking to construct a predominantly diversified core-plus infrastructure portfolio to generate attractive long-term returns, but are also looking to recycle the proceeds of investments after about five to seven years of holding them.

Speaker #2: So, looking to really demonstrate that capital growth during that period, I'm targeting an 8–10% NAV total return. We've had a progressive dividend since launch.

Richard Sem: We have got a progressive dividend since launch and looking to find value in these assets through either inorganic or organic growth of the underlying platforms that we invest in. So very different, say to just investing in single infrastructure SPVs. The platform benefits from the wider infrastructure and wider Pantheon platform.

Speaker #2: And looking to find value in these assets through either inorganic or organic growth of the underlying platforms that we invest in. So, very different, say, to just investing in single infrastructure SPVs.

Speaker #2: The platform benefits from the wider infrastructure and the wider Pantheon platform. We've got, as a business, about £90 billion of assets under management, almost £30 billion across infrastructure.

Richard Sem: We have got, as a business, about GBP 90 billion of assets under management, almost GBP 30 billion across infrastructure. We are invested across over 2,000 assets, and so have big company data across all those assets. We have on average deployed about GBP 2.6 billion into infrastructure over the last five years. And we do that across a number of different sourcing partners. So, we have worked with about over 65, almost 70 GPs or sponsors to be able to source assets from them, co-investments alongside them. In terms of where we are differentiated, well, it is leveraging that platform information. We are highly selective.

Speaker #2: We're invested across over 2,000 assets and so have a sort of big company data across all those assets. We've, on average, deployed about $2.6 billion into infrastructure over the last five years.

Speaker #2: And we do that across a number of different sourcing partners. So we've worked with over 65, almost 70, GPs or sponsors to be able to source assets from them.

Speaker #2: Current investments alongside them. In terms of where we're differentiated, well, it's leveraging that platform information. We're highly selective—we execute on about 3% of the deal flow that comes across our desks.

Richard Sem: We are executing on about 3% of the deal flow that comes across our desks. You have that lovely double filter of the GP or sponsor looking at the deals, performing due diligence ourselves, mirroring that due diligence, but then only executing on 5% of the opportunities we see that come across the desk. That is maybe it. Maybe just on the track record quickly, I think where I would start with is maybe just caution on some of the global macro and geopolitical uncertainty that we are in right now.

Speaker #2: So you've got that lovely double filter of the GP or sponsor looking at the deals, performing due diligence ourselves, mirroring that due diligence, but then only executing on 5% of the opportunities we see that come across the desk.

Speaker #2: So that's maybe it. Maybe just on the track record, quickly, I think where I'd start is with some caution regarding the global macro and geopolitical uncertainty that we're experiencing right now.

Speaker #2: We are benefiting from some of the structural drivers across energy transition and AI-driven digital infrastructure demand. That is one of sort of the tailwinds.

Richard Sem: We are benefiting from some of the structural drivers across energy transition and AI-driven digital infrastructure demand. That is one of the tailwinds, but clearly on Calpine exits where we were provided with CEG shares and cash, and that has had a positive impact for the last two years or last 18 months since that exited. Now that the shares have had some negative movement across them, we have seen some impact across the NAV, and we have seen that probably contribute to about 5.5p of negative movement or about just over 4%. You have an indication there, if we are to strip that out, we see about a 1% NAV total return. Beyond the CEG shares, we are also seeing some somewhat muted growth in some of the assets across the valuations, reflecting some of that geopolitical and macro uncertainty right now. Generally speaking, I think that the investment thesis is strong across all of our assets and Ben will take you through those in some detail. In keeping with our continued commitment to a progressive dividend policy, the board declared an interim dividend of just over 2.24p. That is about a 3.5% increase on last year. Why did the board do that?

Speaker #2: But clearly, on Calpine, exit where we were provided with SEC shares and cash, and that's had a positive impact for the last two years.

Speaker #2: Over the last 18 months since that exited, but now that the shares have had some negative movement across them, we've seen some impact across the NAV.

Speaker #2: And we've seen that probably contribute to about five and a half P of negative movement or about just over 4%. So you sort of have an indication there if we're to strip that out, we see about a 1% NAV total return.

Speaker #2: Beyond the SEC shares, we're also seeing somewhat muted growth in some of the assets across the valuations, reflecting some of that geopolitical and macro uncertainty right now.

Richard Sem: Beyond the CEG shares, we are also seeing some somewhat muted growth in some of the assets across the valuations, reflecting some of that geopolitical and macro uncertainty right now. Generally speaking, I think that the investment thesis is strong across all of our assets and Ben will take you through those in some detail. In keeping with our continued commitment to a progressive dividend policy, the board declared an interim dividend of just over 2.24p. That is about a 3.5% increase on last year. Why did the board do that?

Speaker #2: But generally speaking, I think that the investment thesis is strong across all of our assets, and Ben will take you through those in some detail.

Speaker #2: In keeping with our continued commitment to a progressive dividend policy, the board declared an interim dividend of just over two and 2.24 P. That's about a three and a half percent increase on last year.

Speaker #2: Why did the board do that? Well, because of the strong cash generation. The dividend is expected to be fully covered with the realizations we've had within the portfolio.

Richard Sem: Well, because of the strong cash generation, the dividend is expected to be fully covered with the realizations we have had within the portfolio. If we turn now to the weighted aggregate EBITDA figures there in the middle of the bottom middle chart there. This is actually again being materially impacted by the rotation out from Calpine to CEG. We are seeing wider selling larger EBITDA positive businesses and getting more development style businesses with less EBITDA generation. Ben will take you through an EBITDA bridge a little bit later on to give you the detail behind that. Portfolio MOIC is down at 1.47 times. That is slightly down from the 1.54 at the end of last year. Again, it is that CEG performance weighing heavily on the business. Maybe a focus on the two realizations and the one new investment.

Speaker #2: If we turn now to the weighted aggregate EBITDA figures there in the middle of the table, this is actually, again, being materially impacted by the rotation out from Calpine to SEC.

Speaker #2: So we're seeing wider sort of selling sort of larger EBITDA positive businesses and getting more development style businesses with less EBITDA generation. And Ben will take you through an EBITDA bridge a little bit later on to give you the detail behind that.

Speaker #2: Portfolio MOIC is down at 1.47 times. That's slightly down from the 1.54 times at the end of last year. Again, it's that SEC performance weighing heavily on the business.

Richard Sem: Portfolio MOIC is down at 1.47 times. That is slightly down from the 1.54 at the end of last year. Again, it is that CEG performance weighing heavily on the business. Maybe a focus on the two realizations and the one new investment. The sale of Calpine to Constellation there that we just talked about, we received $28.5 million in cash, and also 328,000 Constellation shares. 50% was unrestricted at the beginning of July, and we have post the period end realized those shares.

Speaker #2: Maybe a focus on the two realizations and the one new investment. So, the sale of Calpine to Constellation, there, that we just talked about, we received $28.5 million in cash.

Richard Sem: The sale of Calpine to Constellation there that we just talked about, we received $28.5 million in cash, and also 328,000 Constellation shares. 50% was unrestricted at the beginning of July, and we have post the period end realized those shares. Again, Ben will take you through some of the detail behind that. As of now, we have fully realized that 50%, and we have got the remaining 163,000 shares sitting with us until July next year. We realized that at an average price of $273, giving us total proceeds of $44.5 million. Second realization, which we have talked about previously, is the sale of Intersect's pipeline of data center connected assets. We closed that in March 2026. Really pleased with the performance. We have only been invested in that asset for about a year.

Speaker #2: And also 328,000 Constellation shares. Fifty percent was unrestricted at the beginning of July, and we have, post the period end, realized those shares again. Ben will take you through some of the detail behind that.

Richard Sem: Again, Ben will take you through some of the detail behind that. As of now, we have fully realized that 50%, and we have got the remaining 163,000 shares sitting with us until July next year. We realized that at an average price of $273, giving us total proceeds of $44.5 million. Second realization, which we have talked about previously, is the sale of Intersect's pipeline of data center connected assets. We closed that in March 2026. Really pleased with the performance. We have only been invested in that asset for about a year.

Speaker #2: As of now, we've fully realized that 50%, and we've got the remaining 163,000 shares sitting with us until July next year. We realized that at an average price of $273, giving us total proceeds of $44.5 million.

Speaker #2: Second realization for which we've talked about previously is the sale of Intersex Pipeline of data center connected assets. We closed that in March 2026, really pleased with the performance that we were only been invested in that asset for about a year.

Speaker #2: The business thesis was very simple: to provide not just renewable energy assets, but also to provide batteries, co-located with those, and also gas gen sets to provide behind-the-meter power to a bunch of data centers.

Richard Sem: The business thesis was very simple, to provide not just renewable energy assets, but also provide batteries co-located with those and also gas gen sets, to provide behind the meter power to a bunch of data centers. Google was a co-shareholder in this business. When the management team started providing power to some of their hyperscale competitors, Google decided that this would be an interesting business to maybe vertically integrate, and so purchased the business, purchased the data center connected assets and the development team and left behind a portfolio of grid scale connected battery and solar assets. We made 1.2x money or DPI or Distributions to Paid-in, so distributions off our initial investment and the assets sitting at a little bit over 1.6x, so valuing that residual stub at about 0.4x our cost basis.

Speaker #2: Google was a co-shareholder in this business. When the management team started providing and providing power to some of their hyperscale competitors, Google decided that this would be an interesting business to maybe vertically integrate and so purchased the business.

Speaker #2: Purchased the data center-connected assets and the development team, and left behind a portfolio of grid-scale connected battery and solar assets. We made 1.2x money, or DPI, or distributed to paid-in.

Speaker #2: So, distributions off our initial investment and the assets are sitting at a little bit over 1.6 times. So, we're valuing that residual stub at about 0.4 times our cost basis.

Speaker #2: And then finally, what we've done is noting from a portfolio construction perspective, the realization of a renewable power business. We reinvested 41 million sterling or about 55 dollars into TerraGen alongside Igneo Infrastructure Partners.

Richard Sem: Finally, what we have done is noting from a portfolio construction perspective, the realization of a renewable power business. We reinvested GBP 41 million or about $55 into Terra-Gen, alongside Igneo Infrastructure Partners. This is a partner we worked with in the past, committing primary capital to them. It is a new relationship from PINT's perspective. It is one of the leading US renewable platforms with a great operating portfolio across solar, wind, and storage, battery storage assets in Southern US and also New York. Share price performance, total returns there have been pleasing, obviously from a low base. What is a little bit more in our control, is the NAV total return. You can see over a three-year basis, 36.6%. We see that as attractive as we look against the wider infrastructure AIC sub-sector or indeed against the renewable infrastructure sub-sector.

Speaker #2: This is a partner we worked with in the past committing primary capital to them. It's a new relationship from Pint's perspective. It's one of the leading US renewable platforms with a great operating portfolio across solar, wind, and storage battery storage assets.

Speaker #2: In the southern US and also New York, share price performance and total returns have been pleasing, obviously from a low base. What is a little bit more in our control is the NAV total return, and you can see over a three-year basis, 36.6%.

Richard Sem: Share price performance, total returns there have been pleasing, obviously from a low base. What is a little bit more in our control, is the NAV total return. You can see over a three-year basis, 36.6%. We see that as attractive as we look against the wider infrastructure AIC sub-sector or indeed against the renewable infrastructure sub-sector.

Speaker #2: We see that, as attractive as we look against the wider infrastructure AIC subsector, or indeed against the renewable infrastructure subsector, we continue to see a closing of that discount across us and a number of the infrastructure AIC subsector.

Richard Sem: We continue to see a closing of that discount across us and a number of the infrastructure AIC sub-sector, so pleasing to kind of see some of that come through. We have also recently appointed an improving the marketing reach of the business. I think the re-rating probably driven by both the capital recycling that we have seen from the two realizations into Terra-Gen. I think the increased distribution efforts with Cadarn and also that sort of closing the discount to NAV is really a priority of the board and continue to maintain a buyback facility if required. Over the page. Thank you. I am handing over to Ben now to take you through the portfolio.

Speaker #2: So pleasing to kind of see some of that come through. We've also recently appointed proving the marketing reach of the business. I think the re-rating probably driven by both the capital recycling that we've seen from the two realizations into TerraGen I think the increased distribution efforts with CADARN and then also that sort of closing the discount to NAV has really a priority of the board and continue to maintain a buyback facility if required.

Speaker #2: So, over the page—thank you. I'll now hand over to Ben, who will take you through the portfolio.

Speaker #1: Thank you very much, Richard. Good afternoon, everybody. Thank you for your time today to join us. Also, firstly, apologies for what appears to be a very dark room that I'm in.

Ben Perkins: Thank you very much, Richard. Good afternoon, everybody. Thank you for your time today to join us. Firstly, apologies for what appears to be a very dark room that I am in. It seems that Richard's room seems to have stolen all the limelight today, so apologies for that. Anyway, kicking off with a quick portfolio overview. Look, not a great deal has changed. I think as we have touched upon before, our reinvestment, we made one new deal during the quarter, which was a rotation back into a sector which we had come out of because of the cash flow proceeds from Calpine, the sale of Calpine, and also realizing those proceeds on Intersect Power. We are still around 40% North America, 40% Europe, and then the balance in the UK.

Speaker #1: It seems that Richard's room has stolen all the limelight today, so apologies for that. Anyway, kicking off with a quick portfolio overview—look, not a great deal has changed.

Speaker #1: I think, as we've touched upon before, our reinvestment—we made one new deal during the quarter, which was a rotation back into a sector that we'd come out of because of the cash flow proceeds from Calpine.

Speaker #1: The sale of Calpine and also realizing those proceeds on Intersect Power. So, we are still around 40% North America, 40% Europe, and then the balance in the UK.

Speaker #1: Sector split, slight tilt towards renewables and energy efficiency because of that move away from some of the power and utilities. Digital still makes up about 40%.

Ben Perkins: Sector split, slight tilt towards renewables and energy efficiency because of that move away from some of the power and utilities. Digital still makes up about 40%. Again, I think we've spoken before about the fact that we see this as three unique sub-sectors, and we'll touch upon how each of the sectors that we've invested in has performed. As Richard touched upon, our extensive pipeline that we have of assets gives us that ability once we feel short on a sector that we like we did once we'd realized the proceeds from Intersect. Our pipeline gives us that ability to top up that position. Again, a really pleasing benefit of the wider Pantheon funnel. From market segment perspective, no surprise that this has stayed relatively constant with around 80% of the look-through revenues contracted. This is a big focus.

Speaker #1: Again, I think we've spoken before about the fact that we see this as three unique subsectors, and we'll touch upon how each of the sectors that we've invested in has performed.

Speaker #1: I think, as Richard touched upon, our extensive pipeline of assets gives us the ability, once we feel short on a sector that we like—like we did once we’d realized the proceeds from Intersex.

Speaker #1: Our pipeline gives us the ability to top up that position. So again, a really pleasing benefit of the wider Pantheon funnel. From a market segment perspective, no surprise that this has stayed relatively constant, with around 80% of the look-through revenues contracted.

Speaker #1: This is a big focus. We see infrastructure as being something that is typically backed by contracted cash flows. We do have some exposures we're showing here to GDP link, which is through Primafrio and also our regulated asset, which is National Gas.

Ben Perkins: We see infrastructure as being something that is typically backed by contracted cash flows. We do have some exposures we're showing here to GDP-linked, which is through Primafrio, and also our regulated asset, which is National Gas, but we will always be looking at assets through the lens of what our contracted returns are. So no surprises there that the market segment continues to be dominated by contracted revenues. Then in terms of sponsors, with the addition of Terra-Gen, we've now got 12 unique sponsor relationships. That was Igneo. We'll touch upon that a bit later. I think there's been a bit of Q&A around that. Moving to the next page.

Speaker #1: But we will always be looking at assets through the lens of what our contracted returns are. So, no surprises there that the market segment continues to be dominated by contracted revenues.

Speaker #1: And then, in terms of sponsors, with the addition of TerraGen, we've now got 12 unique sponsor relationships. That was Igneo. We'll touch upon that a bit later.

Speaker #1: I think there's been a bit of Q&A around that. Moving to the next page—I'm not going to dwell too long here, because we've given an expanded attribution of how we're seeing the portfolio perform.

Ben Perkins: I'm not going to dwell too long here because we've given an expanded attribution of how we're seeing the portfolio perform, and a reminder that the performance fee plan condenses a variety of different factors into an assessment, ultimately of whether we expect to achieve the original underwritten returns, where we're standing now. So the score is anchored relative to deal level returns, which quite often by the fact that we're looking at core plus opportunities are ambitious. It doesn't mean that we're not going to hit the 8% to 10% NAV total return target. As you can see in the third column from the right, all but one deal are marked above cost. So it's only Cartier Energy that's marked below cost.

Speaker #1: And a reminder that the performance fee plan condenses a variety of different factors into an assessment, ultimately of whether we expect to achieve the original underwritten returns, given where we're standing now.

Speaker #1: So, the score is anchored relative to deal-level returns, which quite often, by the fact that we're looking at core plus opportunities, are ambitious.

Speaker #1: It doesn’t mean that we’re not going to hit the 8–10% NAV total return target. And as you can see in the third column from the right, all but one deal are marked above cost.

Speaker #1: So, it's only Cartier Energy that's marked below cost. That said, during the quarter we have—and the embedded value arrow that you see in the below plan on Prima Frio shows you that this is an asset that we scored as below plan.

Ben Perkins: That said, during the quarter we have, and the embedded value arrow that you see in the below plan on Primafrio shows you that this is an asset that we scored as below plan. There's been some very specific headwinds here. So there's been exposure to fuel costs at a time where diesel prices in Europe and North America have been increasing, which is putting some pressure on their margins. Also some slightly more competitive dynamics with some of their top three customers. So whilst this is still marked at 1.5x, I'd always keep that context because of those challenges we scored it as below plan. We did also see a valuation drop on GlobalConnect, which is shown a few pages later. It's been a slightly challenging area for the fiber market.

Speaker #1: There have been some very specific headwinds here. There's been exposure to fuel costs at a time when diesel prices in Europe and North America have been increasing, which is putting some pressure on their margins.

Speaker #1: And also, some slightly more competitive dynamics with some of their top three customers. So, whilst this is still marked at 1.5 times, I'd always keep that context.

Speaker #1: Because of those challenges, we've scored it as below plan. We did also see a valuation drop on Global Connect, which is shown a few pages later.

Speaker #1: It's been a slightly challenging area for the fiber markets, but again, I'd point to the fact that we are still holding that asset at 1.1 times.

Ben Perkins: But again, I'd point to the fact that we are holding that asset still at 1.1 times. Moving on to the next slide. Looking through the assets in a bit more detail, and we'll be trying to take a sector-driven view here. Our data center assets continue to perform extremely well. A reminder, if you need it, that we embarked on these investments on the basis of the growth that was going to be driven by cloud computing. AI has become the dominant theme, not just in data centers, but also in energy, which we'll touch upon later, which has led to some significant outperformance in terms of revenue and EBITDA progression. So really pleasing to see these businesses capture some of that upside. You'll see we've given the attribution by each asset relative to our views on EBITDA sector and also the wider outlook.

Speaker #1: So, moving on to the next slide. Looking through the assets in a bit more detail, we'll be trying to take a kind of sector-driven view here.

Speaker #1: Our data center assets continue to perform extremely well—a reminder, if you need it, that we embarked on these investments on the basis of the growth that was going to be driven by cloud computing. AI has become the dominant theme not just in data centers but also in energy, which we'll touch upon later.

Ben Perkins: AI has become the dominant theme, not just in data centers, but also in energy, which we'll touch upon later, which has led to some significant outperformance in terms of revenue and EBITDA progression. So really pleasing to see these businesses capture some of that upside. You'll see we've given the attribution by each asset relative to our views on EBITDA sector and also the wider outlook.

Speaker #1: This has led to some significant outperformance in terms of revenue and EBITDA progression. So it's really pleasing to see these businesses capture some of that upside.

Speaker #1: You'll see we've given the attribution by each asset relative to our views on EBITDA, sector, and also the wider outlook. You'll see, in the case of Vantage, we've got EBITDA tracking on plan.

Ben Perkins: You'll see in the case of Vantage, we've got EBITDA as tracking on plan. That's to say nothing of the potential de-risking that we expect to occur over this business over the next 2 to 3 years as they seek to deliver the Stargate initiative, which is north of 4 gigawatts of capacity to the OpenAI and Oracle JV. So really pleasing where things are going from a DC perspective. In terms of fiber, a bit more of a mixed story. NBI is a little set apart from the more common fiber themes. This is a PPP with the Irish government. We continue to build that out on plan and on budget. We're expecting them to have finished the rollout, if not late this year, early next year. And we're seeing really encouraging early penetration levels, so high adoption of that network. Delta Fiber's had a few more challenges.

Speaker #1: That's to say nothing of the potential de-risking that we expect to occur over this business over the next two to three years, as they seek to deliver the Stargate initiative, which is north of 4 gigawatts of capacity to the OpenAI and Oracle JV.

Speaker #1: So, really pleasing where things are going from a DC perspective. In terms of fiber, it's a bit more of a mixed story. NBI is a little set apart from the more common fiber themes.

Speaker #1: This is a PPP with the Irish government. We continue to build that out on plan and on budget. We're expecting them to have finished the rollout, if not late this year, then early next year.

Ben Perkins: We continue to build that out on plan and on budget. We're expecting them to have finished the rollout, if not late this year, early next year. And we're seeing really encouraging early penetration levels, so high adoption of that network. Delta Fiber's had a few more challenges. We're seeing more overbuild here than we'd envisaged when we is lowering average revenue per user.

Speaker #1: And we're seeing really encouraging early penetration levels—so, high adoption of that network. Delta Fibers has had a few more challenges. We're seeing more overbuild here than we'd envisaged when we started. It's lowering average revenue per user.

Ben Perkins: We're seeing more overbuild here than we'd envisaged when we is lowering average revenue per user. There was also the potential of selling down some of their connections around 200,000 homes to what was ultimately deemed to be a competitor, the Glaspoort JV, that was rejected by the regulator. So a bit of a watching brief to understand what the longer-term impacts are of the business and whether that could potentially creep up overbuild. That said, I think we point to the fundamentals that we still observe when investing, which was to making sure that we invested in established fiber businesses, not speculative ones. And even though things haven't quite tracked to plan on both Delta Fiber and GlobalConnect as we'd have liked them to, we've been protected somewhat by the fact that these were established businesses and had a pretty large existing customer footprint when we invested.

Speaker #1: There was also the potential of selling down some of their connections—around 200,000 homes—to what was ultimately deemed to be a competitor, the Glassport JV, which was rejected by the regulator.

Ben Perkins: There was also the potential of selling down some of their connections around 200,000 homes to what was ultimately deemed to be a competitor, the Glaspoort JV, that was rejected by the regulator. So a bit of a watching brief to understand what the longer-term impacts are of the business and whether that could potentially creep up overbuild. That said, I think we point to the fundamentals that we still observe when investing, which was to making sure that we invested in established fiber businesses, not speculative ones. And even though things haven't quite tracked to plan on both Delta Fiber and GlobalConnect as we'd have liked them to, we've been protected somewhat by the fact that these were established businesses and had a pretty large existing customer footprint when we invested.

Speaker #1: So, it's a bit of a watching brief to understand what the longer-term impacts are on the business and whether that could potentially creep up overbuild. But that said, I think we point to the fundamentals that we still observe when investing, which is making sure that we invest in established fiber businesses, not speculative ones.

Speaker #1: And even though things haven't quite tracked to plan on both Delta Fiber and Global Connect as we'd have liked them to, we've been protected somewhat by the fact that these were established businesses.

Speaker #1: And had a pretty large existing customer footprint when we invested. Moving now to towers, on the next page. So, we have two assets in this sector.

Ben Perkins: Moving now to towers on the next page. We have two assets in this sector. One in the US, which is Vertical Bridge, and one in Europe, which is Deutsche Funkturm, which is part of GD Towers, as you might have previously seen it. Vertical Bridge has seen a bit of a softening over the last H2 in terms of the spending of carriers. MNOs, mobile network operators, buying up some of that residual capacity. That's at odds with the story and the recovery that we'd seen in late 2023 and 2024. That said, they do have a de-risk pipeline through the Verizon arrangement, where they've got an agreement to build out 1,000 towers, built-to-suit towers over the next 3 years. They also completed, during the period, the equity syndication. So they made a large acquisition at the end of 2024 for a 6,000-tower portfolio from Verizon.

Speaker #1: One in the U.S., which is Vertical Bridge, and one in Europe, which is Deutsche Funkturm, which is part of GD Towers, as you might have previously seen it.

Speaker #1: Vertical Bridge has seen a bit of a softening over the last half-year in terms of the spending of carriers. So M&Os, Mobile Network Operators, buying up some of that residual capacity.

Speaker #1: That's at odds with the story and the recovery that we had seen in late '23 and '24. That said, they do have a de-risked pipeline through the Verizon arrangement, where they've got an agreement to build out 1,000 build-to-suit towers.

Speaker #1: Over the next three years, they also completed, during the period, the equity syndication. So they made a large acquisition at the end of 2024 for a 6,000-tower portfolio from Verizon.

Ben Perkins: They also completed, during the period, the equity syndication. So they made a large acquisition at the end of 2024 for a 6,000-tower portfolio from Verizon. The thesis being that was vastly under-tenanted and had a lot of low-hanging fruit to pick up. Starting to see some benefit from that, but it took them a little longer than they expected to raise the equity to do that. There has been some minor dilution to equity returns because of the fact that bridging finance has eaten into them.

Speaker #1: The thesis being that it was vastly under-tenanted and had a lot of low-hanging fruit to pick up. They are starting to see some benefit from that, but it took them a little longer than they expected to raise the equity to do that.

Ben Perkins: The thesis being that was vastly under-tenanted and had a lot of low-hanging fruit to pick up. Starting to see some benefit from that, but it took them a little longer than they expected to raise the equity to do that. There has been some minor dilution to equity returns because of the fact that bridging finance has eaten into them. Deutsche Funkturm, a bit more of a stable story. Revenues and EBITDA are tracking slightly above where we are expecting them to be. This is a very unique asset in the sense that it has got this long anchor tenancy agreement with Deutsche Telekom and a very captive growth model. A lot of the built-to-suit program has been de-risked already. Some slight softening in the listed space for towers, which has translated to a flatter mark, but operationally, we have been really pleased with the performance here.

Speaker #1: So, there has been some minor dilution to equity returns because of the fact that bridging finance has ebbed into them. Deutsche Funkturm—a bit more of a stable story.

Ben Perkins: Deutsche Funkturm, a bit more of a stable story. Revenues and EBITDA are tracking slightly above where we are expecting them to be. This is a very unique asset in the sense that it has got this long anchor tenancy agreement with Deutsche Telekom and a very captive growth model. A lot of the built-to-suit program has been de-risked already. Some slight softening in the listed space for towers, which has translated to a flatter mark, but operationally, we have been really pleased with the performance here.

Speaker #1: Revenues and EBITDA are tracking slightly above where we were expecting them to be. This is a very unique asset, in the sense that it's got this long anchor tenancy agreement with Deutsche Telekom.

Speaker #1: And a very captive growth model. So a lot of the build-to-suit program has been de-risked already. There is some slight softening in the listed space for towers.

Speaker #1: Which is translated to a flatter mark, but operationally we've been really pleased with the performance here. From a power and utility perspective, those who follow Pike closely will be familiar with Constellation now.

Ben Perkins: From a power and utility perspective, those who follow PINT closely will be familiar with Constellation now. This is an exposure that we have inherited as part of the sale of the Calpine deal. We have got a separate slide on this a bit later, so I will maybe save the backstory for then. National Gas is doing really well. They had a very favorable outcome from Ofgem for the gas transmission round 3 funding period to 2031, and this is complemented nicely by the work that they are doing on creating a hydrogen backbone network. Project Union is the name they have given it. They were recently awarded some fairly material feed CapEx on a regulated basis, so a very encouraging sign. The Humber Hydrogen project is one that is getting quite a lot of air time right now.

Speaker #1: This is an exposure that we have inherited as part of the sale of the Calpine deal. We've got a separate slide on this a bit later, so I'll maybe save the backstory for then.

Speaker #1: National Gas is doing really well. They had a very favorable outcome from Ofgem for the gas transmission round three. Funding period to 2031. And this is complemented nicely, by the work that they're doing on creating a hydrogen backbone network.

Speaker #1: So Project Union is the name they've given it. They were recently awarded some fairly material feed capex on a regulated basis. So a very encouraging sign.

Speaker #1: The Hydrogen Humble project is one that's getting quite a lot of airtime right now. There's a fair bit of lobbying going on, and we see this as being a nicely complementary growth story to the more core-like returns we get from the gas transmission network.

Ben Perkins: There is a fair bit of lobbying going on, and we see this as being a nicely complementary growth story to the more core-like returns we get from the gas transmission network. Finally, Cartier Energy to round off on utilities. This is a district heating platform in North America. It has had some challenges exposed to natural gas prices. There was a certain customer that did not renew. We think they are through the worst of those challenges operationally. Output has really stabilized. They are starting to embark on a growth journey that is more focused on very small infill CapEx rather than some of these large discrete CapEx initiatives. Some early signs of success there, some early beneficiaries from the fact they also have some exposure to the PJM market capacity auctions, which they have done well on.

Speaker #1: And then, finally, Cartier Energy to round off on utilities. This is a district heating platform in North America. It's had some challenges, exposed to natural gas prices.

Speaker #1: There was a certain customer that didn't renew. We think they're through the worst of those challenges operationally; output has really stabilized. They're starting to embark on a growth journey that's more focused on very small infill capex, rather than some of these large, discrete capex initiatives.

Speaker #1: Some early signs of success there. Some early beneficiaries from the fact they also have some exposure to the PJM market capacity auctions, which they've done well on.

Speaker #1: So, although it's been a challenging start, we think that this business is through the worst, and we would expect to start receiving some distributions, if not this year, then potentially at the back end of next year.

Ben Perkins: Although it has been a challenging start, we think that this business is through the worst, and we would expect to start receiving some distributions, if not this year, then potentially the back end of next year. In terms of renewables, we have a pretty diverse range of assets here. Again, we are tapping into the theme of decarbonization and the pursuit of net zero through Fudura, that is transitioning away from the pure medium voltage, and transformer leasing model to providing adjacent products. Becoming a one-stop solution for up to 30,000 SMEs across the Netherlands. They have seen some slight softening on the core part of the business, which is the leasing of those transformers that has been driven by external factors, principally the grid congestion that is happening in the Netherlands as it is in a lot of other European markets.

Speaker #1: In terms of renewables, we have a pretty diverse range of assets here. And again, we're tapping into the theme of decarbonization and the pursuit of net zero through Fujora.

Speaker #1: That's transitioning away from the pure medium-voltage and transformer leasing model to providing adjacent products, so becoming a one-stop solution for up to 30,000 SMEs across the Netherlands.

Ben Perkins: Becoming a one-stop solution for up to 30,000 SMEs across the Netherlands. They have seen some slight softening on the core part of the business, which is the leasing of those transformers that has been driven by external factors, principally the grid congestion that is happening in the Netherlands as it is in a lot of other European markets.

Speaker #1: They've seen some slight softening in the core part of the business, which is the leasing of those transformers. That's been driven by external factors, principally the grid congestion that is happening in the Netherlands, as it is in a lot of other European markets.

Speaker #1: But starting to see some encouraging signs from their new energy solutions. So behind the meter batteries. Zenobi is a business some of you might be familiar with.

Ben Perkins: But starting to see some encouraging signs from their new energy solution. So behind the meter batteries. Zenobē is a business some of you might be familiar with. It operates a large fleet of electrified buses and their depots in the UK. Starting to see some really encouraging EBITDA progression here. A bit slower than we would have liked at entry, but now really seeing some backlog recovery on some of those large-scale bus contracts, as well as a fairly material contract award in the US, more than $100 million worth of future contracted revenue. So some thought about how they build out that model. They have also acquired a German developer of batteries, where they see a potentially exciting part of the network infrastructure story.

Speaker #1: It operates a large fleet of electrified buses and their depots in the UK. We're starting to see some really encouraging EBITDA progression here. It's a bit slower than we would have liked at entry, but now we're really seeing some backlog recovery on some of those large-scale bus contracts, as well as a fairly material contract award in the US—more than $100 million worth of future contracted revenue.

Speaker #1: So, some thought about how they build out that model. They've also acquired a German developer of batteries, which they see as a potentially exciting part of the network infrastructure story.

Speaker #1: So, really encouraged by that. And it's front and center of what we're looking to do from a decarbonization story—both taking CO2 emissions off transport through electrification, and also enabling renewables, typically through targeting those battery initiatives in Scotland, where there's that imbalance of supply from offshore and onshore wind and the demand for it.

Ben Perkins: So really encouraged by that, and it is front and center of what we are looking to do from a decarbonization story, both taking CO2 emissions off transport through the electrification and then also enabling renewables, typically through targeting those battery initiatives in Scotland, where there is that imbalance of supply from offshore and onshore wind and the demand for it. Finally, I will wrap IPX Power and Terra-Gen into one. IPX Power is now effectively just a development platform for the remaining solar development assets of the old Intersect, with that sat around a 0.4 times residual. So already 60% up, having only made that deal, only made that investment in September of last year. We would expect that to be fully exited within 18 to 24 months as they deliver on that existing pipeline. And then Terra-Gen, our new deal, it is a similar story.

Speaker #1: Finally, I'll wrap IPX Power and TerraGen into one. IPX Power is now effectively just a development platform for the remaining solar development assets of the old intersection.

Ben Perkins: Finally, I will wrap IPX Power and Terra-Gen into one. IPX Power is now effectively just a development platform for the remaining solar development assets of the old Intersect, with that sat around a 0.4 times residual. So already 60% up, having only made that deal, only made that investment in September of last year. We would expect that to be fully exited within 18 to 24 months as they deliver on that existing pipeline. And then Terra-Gen, our new deal, it is a similar story.

Speaker #1: We're sat around a 0.4 times residual. So already 60% up, having only made that deal. Only made that investment in September of last year.

Speaker #1: We would expect that to be fully exited within 18 to 24 months as they deliver on that existing pipeline. And then TerraGen, our new deal, it's a similar story.

Speaker #1: It doesn't have the data center-adjacent assets that Intersect had, but the discipline of approach here is to roll out that very specific pipeline of opportunities that have largely grandfathered tax credits, which again is something we look at quite rigorously when we're considering any renewables platform.

Ben Perkins: It does not have the data center adjacent assets that Intersect had, but the disciplined approach here is to rolling out that very specific pipeline of opportunities that have largely grandfathered tax credits, which again, is something we look at quite rigorously when we are looking at any renewables platform. So we are really pleased to have been able to conclude that deal shortly before the period end. And then finally, Primafrio I mentioned, this is the one that we have now scored as having a negative or below-plan outlook because of the fact that there has been those challenges on the fuel costs. Clearly, we hope that that is not a sustained theme. It is something that, generally speaking, they can pass on to customers. It is not always uniform the way that they can do that, but it has created pressure on their margins.

Speaker #1: So we're really pleased to have been able to conclude that deal shortly before the period end. And then finally, PrimaFreo—I mentioned this is the one that we've now scored as having a negative or below-plan outlook because of the fact that there have been those challenges on the fuel costs.

Speaker #1: Clearly, we hope that that's not a sustained theme. It's something that, generally speaking, they can pass on to customers. It's not always uniform the way that they can do that, but it has created pressure on their margins.

Ben Perkins: Clearly, we hope that that is not a sustained theme. It is something that, generally speaking, they can pass on to customers. It is not always uniform the way that they can do that, but it has created pressure on their margins. What we see more positively in this business is starting to see some traction from their new facilities. So rolling out some of their new logistics centers, which are enabling them to open up more routes and become more flexible for their customers.

Speaker #1: What we see more positively in this business is starting to see some traction from their new facilities. So, rolling out some of their new logistics centers, which are enabling them to open up more routes and become more flexible for their customers.

Ben Perkins: What we see more positively in this business is starting to see some traction from their new facilities. So rolling out some of their new logistics centers, which are enabling them to open up more routes and become more flexible for their customers. Because this is not done on a fully contracted off-take basis, it does mean that the benefit of that CapEx outlay does take a bit longer to flow through than perhaps you would see in a turnkey renewable asset that you hand over. So looking now at Constellation, I mentioned that we would. So the next slide, I mentioned that we would be taking a deeper look at this. So it has been a bit of a roller coaster since this deal was announced on 25 January.

Speaker #1: Because this is not done on a fully contracted offtake basis, it does mean that the benefit of that capex outlay does take a bit longer to flow through than perhaps you'd see in a turnkey renewable asset that you hand over.

Ben Perkins: Because this is not done on a fully contracted off-take basis, it does mean that the benefit of that CapEx outlay does take a bit longer to flow through than perhaps you would see in a turnkey renewable asset that you hand over. So looking now at Constellation, I mentioned that we would. So the next slide, I mentioned that we would be taking a deeper look at this. So it has been a bit of a roller coaster since this deal was announced on 25 January.

Speaker #1: So looking now at Constellation, I mentioned that we'd so the next slide, I mentioned that we would be taking a deeper look at this.

Speaker #1: So, it's been a bit of a rollercoaster since this deal was announced in January 2025. It's essentially become an adjacent play to the AI story because of the dynamics in the market, which is seeing a lot of hyperscalers and, in some cases, AI labs directly procuring from power producers as opposed to utilities.

Ben Perkins: It's essentially become an adjacent play to the AI story because of the dynamics in the market, which has seen a lot of hyperscalers and in some cases, AI labs directly procuring from power producers as opposed to utilities. That's provided tremendous upside. It provided the value to Calpine that enticed Constellation to buy the business, which was concluded earlier this year. But clearly, the volatility that we're seeing in that sector and the fact that from one quarter to the next, earnings from the hyperscalers or some of the big tech stocks can unduly drive sentiment for the wider AI thematics of power generation. We see that in US-listed power producers like Constellation. It has been the largest driver of the NAV performance, as Richard touched upon, about 5.5p of NAV loss from the fact that we started the period at $353.

Speaker #1: And that's provided tremendous upside. It provided the value to Calpine that enticed Constellation to buy the business, which was concluded earlier this year. But clearly, the volatility that we're seeing in that sector, and the fact that from one quarter to the next, earnings from the hyperscalers or some of the big tech stocks can unduly drive sentiment for the wider AI thematics of power generation.

Speaker #1: And we see that in US listed power producers like Constellation. It has been the largest driver of the NAV performances, Richard touched upon about five and a half P of NAV loss from the fact that we started the period at 353 dollars.

Ben Perkins: We see that in US-listed power producers like Constellation. It has been the largest driver of the NAV performance, as Richard touched upon, about 5.5p of NAV loss from the fact that we started the period at $353. By the end of June, it was at around 250. We took the decision after the period end to crystallize value in half of our position that became unrestricted. The 326,000 shares that PINT was awarded as part of the sale of Calpine, were subject to two lockups.

Speaker #1: By the end of June, it was at around 250. We took the decision after the period ended to crystallize value in half of our position that became unrestricted.

Ben Perkins: By the end of June, it was at around 250. We took the decision after the period end to crystallize value in half of our position that became unrestricted. The 326,000 shares that PINT was awarded as part of the sale of Calpine, were subject to two lockups. The first one expired in July this year, the second one in July next year. We, through a series of different limit orders throughout the course of July, August, and early September, we were able to fully exit that first unrestricted position at a value of around $273. So contextually, relative to the 238 that the deal was announced at, we think a pretty good outcome. The CEG share price, the Constellation share price, has subsequently rallied a bit more recently because of news flow around the PPA with Google, which is great for the residual that we hold.

Speaker #1: So the 326,000 shares that Pike was awarded as part of the sale of Calpine were subject to two lockups. The first one expired in July this year.

Ben Perkins: The first one expired in July this year, the second one in July next year. We, through a series of different limit orders throughout the course of July, August, and early September, we were able to fully exit that first unrestricted position at a value of around $273. So contextually, relative to the 238 that the deal was announced at, we think a pretty good outcome. The CEG share price, the Constellation share price, has subsequently rallied a bit more recently because of news flow around the PPA with Google, which is great for the residual that we hold.

Speaker #1: The second one in July next year. We threw a series of different limit orders throughout the course of July, August, and early September. We were able to fully exit that first unrestricted position at a value of around 273 dollars.

Speaker #1: So, contextually, relative to the 238 that the deal was announced at, we think it's a pretty good outcome. The SEG share price and Constellation share price have subsequently rallied a bit more recently, because of news flow around the PPA with Google, which is great for the residual that we hold.

Speaker #1: As we're currently standing, we think we're at around a 2.7x multiple, so a really pleasing outcome. One that has been, and remains, volatile because of this mark-to-market risk.

Ben Perkins: As we're currently standing, we think we're at around a 2.7x multiple. So a really pleasing outcome. One that has been and remains volatile because of this mark-to-market risk, but one that we think is testament to that story that we've really benefited from those AI-related tailwinds for power demand. Quick word on estimated cash flows. So we show what the current profile is forecast to be. That's the green figures, broken down by realizations and distributions relative to where we were at the year-end, because we think that's important context to show where things have shifted. Unsurprisingly, most of the color that you see is the realization base, the lighter color. Most of the cash flows that PINT expects to derive will be through realizations. They are inherently uncertain by definition.

Speaker #1: But one that we think is testament to that story, that we've really benefited from those AI-related tailwinds for power demand. Quick word on estimated cash flows.

Speaker #1: So, we show what the current profile is forecast to be—that's the green figures—broken down by realizations and distributions, relative to where we were at the year end, because we think that's important context to show where things have shifted.

Speaker #1: Unsurprisingly, most of the color that you see is the realization base, the lighter color. Most of the cash flows that Pike expects to derive will be through realizations.

Ben Perkins: Unsurprisingly, most of the color that you see is the realization base, the lighter color. Most of the cash flows that PINT expects to derive will be through realizations. They are inherently uncertain by definition. That said, what you're seeing in front of you is our current best estimate based on guidance from sponsors. You can see in 2028 to 2029, from year-end to the half year now, we have shifted back one assumed exit. That's in line with the guidance that we've received from the sponsor. The reason that this can happen can typically be because they see continued value in holding an asset.

Speaker #1: They are inherently uncertain by definition. That said, what you're seeing in front of you is our current best estimate, based on guidance from sponsors.

Ben Perkins: That said, what you're seeing in front of you is our current best estimate based on guidance from sponsors. You can see in 2028 to 2029, from year-end to the half year now, we have shifted back one assumed exit. That's in line with the guidance that we've received from the sponsor. The reason that this can happen can typically be because they see continued value in holding an asset. It might be that there's certain discrete events that might make an exit at a certain point in time be unsuitable, such as a very large contract that they're expecting to come online beyond the current assumption. But this is always something that we keep an eye on and can clearly go to our future liquidity progression. Just to go through the financials now. We've prepared this data at least every semi-annual period. A few things to touch upon.

Speaker #1: You can see in 2028 to 2029, from year end to the half year now, we have shifted back one assumed exit. That's in line with the guidance that we've received from the sponsor.

Speaker #1: The reason that this can happen is typically because they see continued value in holding an asset. It might be that there are certain discrete events that could make an exit at a certain point in time more suitable, such as a very large contract that they're expecting to come online beyond the current assumption.

Ben Perkins: It might be that there's certain discrete events that might make an exit at a certain point in time be unsuitable, such as a very large contract that they're expecting to come online beyond the current assumption. But this is always something that we keep an eye on and can clearly go to our future liquidity progression. Just to go through the financials now. We've prepared this data at least every semi-annual period. A few things to touch upon.

Speaker #1: But this is always something that we keep an eye on, and can clearly guide our future liquidity progression. Just to go through the financials now.

Speaker #1: So, we've prepared this data at least every semi-annual period. A few things to touch upon: the weighted average discount rate has increased from 12.7% to 13.1%.

Ben Perkins: Weighted average discount rate has increased from 12.7% to 13.1%. This is the portfolio excluding the listed component, which is the Constellation holding. This has been principally driven by a couple of underlying discount rate increases across the portfolio, which have been a function of where increased risk-free rates have been. Even from December to June, things moved up. Clearly, there has been a lot of pressure on bond yields across all developed markets more recently. It could be instructive to potentially where things move in the future. That said, there is no one-size-fits-all policy. Because we take the valuations that sponsors give us, each house may have a slightly different view to how they incorporate risk-free rates. It might be that they take the spot.

Speaker #1: So, this is the portfolio excluding the listed component, which is the Constellation holding. This has been principally driven by a couple of underlying discount rate increases across the portfolio.

Speaker #1: Which have been a function of where increased risk-free rates have been. So even from December to June, things moved up. Clearly, there's been a lot of pressure on bond yields across all developed markets more recently.

Speaker #1: It could be instructive, potentially, for where things move in the future. That said, there is no one-size-fits-all policy, because we take the valuations that sponsors give us.

Speaker #1: Each house may have a slightly different view to how they incorporate risk-free rates. It might be that they take the spot, what we quite often see is that they take a trailing average which reduces some of the volatility.

Ben Perkins: What we quite often see is that they take a trailing average, which reduces some of the volatility, but that naturally does flow through. Stayed relatively flat, and also that you look at our high CapEx businesses like the data center companies are utilizing flexible debt to fund their pipelines. Again, there is a real focus on making sure those companies do that on a sensible, prudent basis by making sure where they can, their debt is either hedged or fixed. A word on those bottom 3 figures as well. What we do is we look through to revenue EBITDA and CapEx based on our share of that.

Speaker #1: But that naturally does flow through. Stayed relatively flat and also that you look at our high capex businesses like the data center companies, a utilizing flexible debt to fund their pipelines and again, there's a real focus on making sure those companies do that on a sensible, prudent basis by making sure where they can their debt is either hedged or fixed.

Speaker #1: A word on those bottom three figures as well. So what we do is we look through to revenue EBITDA and capex based on our share of that.

Speaker #1: We've got a chart that covers EBITDA in a moment. But principally, the key driver of the revenue drop and EBITDA drop has been the rotation out of Calpine into Constellation.

Ben Perkins: We have got a chart that covers EBITDA in a moment, but principally, the key driver of revenue drop and EBITDA drop has been the rotation out of Calpine into Constellation, and our relative share of the underlying EBITDA of that business is a lot lower than it was in Calpine, which has significantly reduced EBITDA. Perhaps the figure to leave you with on this page is the CapEx, though. The way that we see CapEx is effectively proof or reinforcing the growth of EBITDA over time. The companies that we have invested in are rolling out new CapEx initiatives on the basis of contracted revenue flowing from them.

Speaker #1: And our relative share of the underlying EBITDA of that business is a lot lower than it was in Calpine, which has significantly reduced EBITDA.

Speaker #1: Perhaps the figure to leave you with on this page is the capex though. So the way that we see capex is effectively proof or reinforcing the growth of EBITDA over time.

Speaker #1: So, the companies that we've invested in are rolling out new capex initiatives on the basis of contracted revenue flowing from them. So when we see this figure growing as it is, and it's driven by all the sectors that we invest in—because they're all very active in terms of investment—we are encouraged by this, because we know that it means that along the line, it's going to deliver EBITDA growth.

Ben Perkins: When we see this figure growing as it is, and it is driven by all the sectors that we invest in, because they are all very active in terms of investment, we are encouraged by this because we know that it means that along the line, it is going to deliver EBITDA growth. Again, something that along with EBITDA and revenue, which do not quite tell the full story, is something that we are really focused on. This is the EBITDA bridge that I mentioned. This is a new addition to the pack. Naturally, given a fairly material drop, we felt that it was helpful for investors to be able to attribute where that has come from.

Speaker #1: So again, something that, along with EBITDA and revenue—which don't quite tell the full story—is something that we're really focused on. And this is the EBITDA bridge that I mentioned.

Speaker #1: So, this is a new addition to the pack. Naturally, given a fairly material drop, we felt that it was helpful for investors to be able to attribute where that's come from.

Ben Perkins: Naturally, given a fairly material drop, we felt that it was helpful for investors to be able to attribute where that has come from. This is, as you can see, the second column here, the GBP 16.1 million, which is the net impact of taking out our Calpine EBITDA and adding in the Constellation EBITDA figure, is the key driver here. It is a portfolio construction point. It is the fact that we are very deliberately selling assets at the point where they have, by definition, achieved a significant EBITDA growth.

Speaker #1: And this is, as you can see, the second column here, the $16.1 million, which is the net impact of taking out our Calpine EBITDA and adding in the Constellation EBITDA figure, is the key driver here.

Ben Perkins: This is, as you can see, the second column here, the GBP 16.1 million, which is the net impact of taking out our Calpine EBITDA and adding in the Constellation EBITDA figure, is the key driver here. It is a portfolio construction point. It is the fact that we are very deliberately selling assets at the point where they have, by definition, achieved a significant EBITDA growth. Typically, we would rotate into ones that are at the start of that story of growing. You can also see the addition of Terra-Gen. We have around a GBP 1 million sterling equivalent share of their EBITDA. One other thing to flag here is the drop from digital, from fiber assets specifically. This has emerged because of something that was actually expected. NBI is a beneficiary of significant subsidies, which boosts EBITDA during its deployment period.

Speaker #1: So, it's a portfolio construction point. It's the fact that we are very deliberately selling assets at the point where they have, by definition, achieved significant EBITDA growth.

Speaker #1: And, typically, we would rotate into ones that are kind of at the start of that story of growing. And you can also see the addition of TerraGen. We've got around a £1 million sterling equivalent share of their EBITDA.

Ben Perkins: Typically, we would rotate into ones that are at the start of that story of growing. You can also see the addition of Terra-Gen. We have around a GBP 1 million sterling equivalent share of their EBITDA. One other thing to flag here is the drop from digital, from fiber assets specifically. This has emerged because of something that was actually expected. NBI is a beneficiary of significant subsidies, which boosts EBITDA during its deployment period.

Speaker #1: One other thing to flag here is the drop from digital from fiber assets specifically. This has emerged because of something that was actually expected.

Speaker #1: So NBI is a beneficiary of significant subsidies, which boost EBITDA during its deployment period. After the deployment period, those subsidies drop, and effectively they're only booking commercial income.

Ben Perkins: After the deployment period, those subsidies drop and effectively they are only booking commercial income. Our expectation on this asset was that EBITDA would drop. It does not mean that the business has been underperforming. In fact, it is far from it. We have seen really encouraging rollout and adoption. It does mean that when we look at things from an EBITDA perspective, it looks like there has been a tapering off, whereas in fact it is actually proof that the business is nearing the end of its deployment period. Finally, the other downward movement to touch upon is in transport and logistics. I mentioned the challenges that Primafrio has encountered, and that is ultimately flowing through to EBITDA through that drop there. NAV portfolio movement, I think this is fairly self-explanatory.

Speaker #1: So our expectation for this asset was that EBITDA would drop. It doesn't mean that the business has been underperforming; in fact, it's far from it.

Speaker #1: We've seen really encouraging rollout and adoption. But it does mean that when we look at things from an EBITDA perspective, it looks like there's been a tapering off.

Speaker #1: Whereas, in fact, it's actually proof that the business is nearing the end of its deployment period. And then finally, the other downward movement to touch upon is in transport and logistics.

Speaker #1: I mentioned the challenges that Prima Frio has encountered, and that's ultimately flowing through to EBITDA, causing that drop there. Now, portfolio movement—I think this is fairly self-explanatory.

Speaker #1: We've set out where the SEG fair value losses were, which was 5.5p from the mark to market. As Richard mentioned, would be in slightly marginal positive territory for the half period, excluding that without one and a half percent NAV return.

Ben Perkins: We set out where the fair value losses were, which is 5.5p from the mark-to-market, as Richard mentioned, would be in slightly marginal positive territory for the H1 period, excluding that about 1.5% NAV return. Other than that, no real surprises in terms of where we have seen the FX hedging, where we have seen finance income and our expenses for the period, all tracking in line with plan. Clearly, really pleasing to have seen that significant deployment in Terra-Gen by the end of the period, which accounts for the GBP 29 million that we saw go out in capital calls and investments. Quick word on capital allocation. We continue to be undrawn on the RCF. We have in aggregate around GBP 165 million of liquidity available, which is a really good position to be in.

Speaker #1: Other than that, no real surprises in terms of where we've seen the FX hedging, where we've seen finance income and our expenses for the period or tracking in line with plan.

Speaker #1: And clearly, the really pleasing to have seen that significant deployment in TerraGen by the end of the period, which accounts for the 29 million that we saw go out in capital calls and investments.

Speaker #1: Quick word on capital allocation. We continue to be undrawn on the RCF. We've got, in aggregate, around £165 million of liquidity available, which is a really good position to be in.

Speaker #1: Net of the commitment of $20 million—so that's amounts that we've committed but haven't yet called—and the residual $9.2 million of buyback allocation, and then our buffers, which I think I've spoken to before. Essentially, we're keeping a year's worth of dividends and operating costs, and then also maintaining some buffer, rainy-day capital in case it needs to be emergency equity. We're also catering for potential volatility in FX markets due to our FX notionals.

Ben Perkins: Net of the commitments of GBP 20 million, so that is amounts that we have committed but have not yet called, and the residual GBP 9.2 million of buyback allocation. Our buffers, which I think I have spoken to before, but essentially keeping a year's worth of dividends and operating costs and then keeping some buffers, rainy day capital in case there needs to be emergency equity, and then also catering for potential volatility in FX markets due to our FX notionals, where when you net all that off, it gives us around GBP 70 million of available funds to potentially do new investments. Richard is going to talk a bit about that in a moment. Final slide for me is just this summary of where the movements were. I think we have touched upon the fairly sizable fair value movement that we saw on Constellation.

Speaker #1: When you net all that off, it gives us around $70 million of available funds to potentially do new investments, and Richard's going to talk a bit about that in a moment.

Speaker #1: The final slide for me is just this summary of where the movements were. So I think we've touched upon the fairly sizable fair value movement that we saw on Constellation.

Ben Perkins: Final slide for me is just this summary of where the movements were. I think we have touched upon the fairly sizable fair value movement that we saw on Constellation. So that in aggregate GBP 25 million of portfolio return, net negative GBP 25 million for the period. It has been flat broadly across the rest of the portfolio.

Speaker #1: So, that, in aggregate, is $25 million. Portfolio return was net negative $25 million for the period. It has been broadly flat across the rest of the portfolio.

Ben Perkins: So that in aggregate GBP 25 million of portfolio return, net negative GBP 25 million for the period. It has been flat broadly across the rest of the portfolio. I think we touched upon some of those increases in discount rates, but we have also seen in some cases, because of the wider challenging macro environment, has been some slightly more conservative views on terminal value assumptions. So, the assumed value of a business in 3 or 4 years' time when the exit is assumed to happen, has in some cases been slightly reduced to reflect again, the fact that we are in a higher interest rate environment and potentially more challenging from an exit perspective. With that, I think we can hand back to Richard to talk about the outlook.

Speaker #1: I think we touched upon some of those increases in discount rates, but we've also seen, in some cases, because of the wider challenging macro environment, some slightly more conservative views on terminal value assumptions.

Ben Perkins: I think we touched upon some of those increases in discount rates, but we have also seen in some cases, because of the wider challenging macro environment, has been some slightly more conservative views on terminal value assumptions. So, the assumed value of a business in 3 or 4 years' time when the exit is assumed to happen, has in some cases been slightly reduced to reflect again, the fact that we are in a higher interest rate environment and potentially more challenging from an exit perspective. With that, I think we can hand back to Richard to talk about the outlook.

Speaker #1: So the assumed value of a business in three or four years time when the exits assumed to happen, has in some cases been slightly reduced to reflect again the fact that we're in a higher interest rate environment and potentially more challenging from an exit perspective.

Speaker #1: So with that, I think we can hand back to Richard to talk about the outlook. Thanks, Ben. So, maybe just to that deal funnel I talked about earlier—I mentioned earlier, you can see there the 3% conversion rate.

Richard Sem: Thanks, Ben. So maybe just to that deal funnel I talked about earlier. You can see there the 3% conversion rate. So we are seeing a ton of deal flow coming through the team. We have got a team of almost 45 people, once fully said and done. That team is organized by GP coverage models so that they can work with each of the 65 GPs that we work with to try and source the deals and find the most attractive opportunities. Firstly, just a quick word on deals that we have closed on the wider platform that is vetoed or declined. The first one was North American data center deal with the portfolio sitting at about almost 40% digital. We do not think from a portfolio construction perspective, it made sense. We loved the deal, but did not feel it was right from a portfolio construction perspective.

Speaker #1: So we're seeing a ton of deal flow coming through the team. We've got a team of almost 45 people. I want to fully say, when all is said and done.

Speaker #1: And that team is organized by GP coverage models so that they can work with each of the 65 GPs that we work with to try and source the deals and find the most attractive opportunities.

Speaker #1: Firstly, just a quick word on deals that we've closed on the wider platform. Vetoed or declined. The first one was North American data center deal with a portfolio sitting at about almost 40% digital.

Richard Sem: Firstly, just a quick word on deals that we have closed on the wider platform that is vetoed or declined. The first one was North American data center deal with the portfolio sitting at about almost 40% digital. We do not think from a portfolio construction perspective, it made sense. We loved the deal, but did not feel it was right from a portfolio construction perspective.

Speaker #1: We don't think, from a portfolio construction perspective, it made sense. We love the deal, but didn't feel it was right from a portfolio construction perspective.

Speaker #1: And then an aircraft leasing business, again, that we invested in. You can see there the ticket size was quite small. We're typically targeting a £40 million sterling bite size.

Richard Sem: Then an aircraft leasing business, again, that we invested in. You can see there, the ticket size was quite small. We are typically targeting a GBP 40 million sterling bite size, so $55 million or above. This was the size of the deal available to us as a platform that had to be shared with other client pools of capital. Again, the deal would have been too small to really work from a portfolio construction perspective. Five exciting opportunities down below. I am not going to take you through them all, but across the different sub-sectors and geographies. What I would pull out is two deals, A and E, both in the transportation logistics sector. The first one being deal A, a trailer leasing business in Europe. Really interesting business. Team are digging in on that. Also a similar marine chassis leasing business in the US.

Speaker #1: So 55 or above. This was the size of the deal available to us as a platform that had to be shared with other client pools of capital.

Speaker #1: So again, the deal would have been too small to really work from a portfolio construction perspective. Five exciting opportunities down below. I'm not going to take you through them all, but across the different subsectors and geographies.

Richard Sem: Five exciting opportunities down below. I am not going to take you through them all, but across the different sub-sectors and geographies. What I would pull out is two deals, A and E, both in the transportation logistics sector. The first one being deal A, a trailer leasing business in Europe. Really interesting business. Team are digging in on that. Also a similar marine chassis leasing business in the US.

Speaker #1: What I would highlight are two deals, A and E, both in the transportation logistics sector. The first one is DLA, a trailer leasing business in Europe.

Speaker #1: Really interesting business. The team are digging in on that, and also a similar marine chassis leasing business in the US. Again, we're just trying to compare the attractiveness of the two deals and downside protection, the inflation protection, to kind of see where we're going to try and lean in.

Richard Sem: Again, we just tried to compare the attractiveness of the two deals, the downside protection, the inflation protection, to kind of see where we are going to try and lean in. So a reasonable chance that one of those might end up in PINT going forwards. Look, that takes us pretty much to the end. Just a quick summary. So really pleased with the portfolio construction 15. Assets within the portfolio all doing very well amidst what is a continued uncertain world, whether it is conflict or geopolitical risk, and indeed from a macro perspective. Total shareholder return was 10.3% over the period. So a really favorable share price repricing or rerating rather, that we saw earlier on. NAV return, a little disappointing, but again, Ben has taken you through the reasons for that mark-to-market risk and how to consider going forwards with share price sensitivity.

Speaker #1: And so, a reasonable chance that one of those might end up in PINT going forwards. So, look, that takes us pretty much to the end.

Speaker #1: Just a quick summary. I'm really pleased with the portfolio construction—15 assets within the portfolio, all doing very well—amidst what is a continued uncertain world, whether it's conflict or geopolitical risk, and indeed from a macro perspective.

Richard Sem: Assets within the portfolio all doing very well amidst what is a continued uncertain world, whether it is conflict or geopolitical risk, and indeed from a macro perspective. Total shareholder return was 10.3% over the period. So a really favorable share price repricing or rerating rather, that we saw earlier on. NAV return, a little disappointing, but again, Ben has taken you through the reasons for that mark-to-market risk and how to consider going forwards with share price sensitivity.

Speaker #1: Total shareholder return was 10.3% over the period, so really favorable share price repricing—or rerating, rather—that we saw earlier on. NAV return a little disappointing, but again, Ben's taken you through the reasons for that mark-to-market risk and how to consider it.

Speaker #1: Going forward with a share price sensitivity. Dividend continues to pay an accreting dividend, so £2.249 for the period. That's a 3.5% increase on last year.

Richard Sem: Dividends continue to pay an increasing dividend, so GBP 2.249 for the period. That is a 3.5% increase on last year. We have talked at length about the sale of Calpine, the sale of the shares, the partial realization of Intersect, and also then the redeployment of that capital into Terra-Gen and a really interesting pipeline of really interesting opportunities that we have going forwards to look at for near-term deployment. That is a quick summary of the business. I think now we are going to Q&A, so maybe we can open with that.

Speaker #1: We've talked at length about the sale of Calpine, the sale of the shares, the sale, the partial realization of Intersect, and also then the redeployment of that capital into TerraGen and the really interesting pipeline of really interesting opportunities that we've got going forward to look at for near-term deployment.

Speaker #1: So that's a quick summary of the business. I think now we are going to Q&A. So maybe we can open with that.

Speaker #2: She doesn't want to.

Speaker #3: That's great. Thank you very much for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab situated on the right-hand corner of your screen.

Operator: That is great. Thank you very much for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab situated on the right-hand corner of your screen. Just while the company takes a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation can be accessed via investor dashboard. As you can see, we have received a number of questions throughout today's presentation, so please ask you to read out the questions and give responses where appropriate to do so, and I will pick up from you at the end.

Speaker #3: Just while the company takes a few moments to review those questions submitted today, I'd like to remind you that a recording of this presentation can be accessed via our investor dashboard.

Speaker #3: As you can see, we have received a number of questions throughout today's presentation. So, I ask you to read out the questions and give responses where appropriate.

Speaker #3: And I'll pick up from you at the end.

Speaker #1: Thank you. Maybe Ben, do you want to kick us off?

Richard Sem: Thank you. Maybe Ben, do you want to kick us off?

Speaker #4: Yeah, sure. So we've got a question here. Digital bridge was recently acquired by SoftBank. Does that change our view on the GP?

Ben Perkins: Yeah, sure. We have got a question here. DigitalBridge was recently acquired by SoftBank. Does that change our view on the GP?

Speaker #1: No, I mean, the GP operates independently. From its shareholder. So that's something that it's operated by Mark Ganzi. It's a separate platform. The deal doesn't affect the portfolio companies they remain within the funds.

Richard Sem: No. The GP operates independently from its shareholder. It is operated by Marc Ganzi. It is a separate platform. The deal does not affect the portfolio companies. They remain within the funds. So the ownership, the governance around GD Towers, Vantage, and Vertical Bridge remains the same, and that represents about 20% of PINT's NAV. So again, nothing really will change. Clearly, with the shareholder change, we will stay on top of the manager and the GP more generally day to day and just keeping an eye on team retention, how incentives are structured, and just to make sure that that independent decision-making remains without any conflicts. Maybe another one that has come in in advance. Primafrio lost value in the quarter due to rising fuel costs. You spent a bit of time talking about that. Was that not anticipated in the original investment case?

Speaker #1: So the ownership, the government's around GD Towers, Vantage, and Vertical Bridge remains the same. And that represents about—not 20%—of PINT's NAV.

Speaker #1: So again, nothing really will change. Clearly, with the shareholder change, we will stay on top of the manager and the GP more generally.

Richard Sem: Clearly, with the shareholder change, we will stay on top of the manager and the GP more generally day to day and just keeping an eye on team retention, how incentives are structured, and just to make sure that that independent decision-making remains without any conflicts. Maybe another one that has come in in advance. Primafrio lost value in the quarter due to rising fuel costs. You spent a bit of time talking about that. Was that not anticipated in the original investment case? As a general rule, are you trying to avoid commodity price exposure? Would you mind clarifying?

Speaker #1: Day to day, and just keeping an eye on team retention how incentives are structured and just to make sure that that independent decision making remains without any conflicts.

Speaker #1: Maybe another one that's come in in advance. Prima Frio lost value in the quarter due to rising fuel costs. You spent a bit of time talking about that.

Speaker #1: Was that not anticipated in the original investment case? And as a general rule, are you trying to avoid commodity price exposure? Would you mind clarifying?

Richard Sem: As a general rule, are you trying to avoid commodity price exposure? Would you mind clarifying?

Speaker #4: Yeah, so not quite. Look, we've lived through two really significant fuel shocks just in the four years we've been invested—2022 and also more recently.

Ben Perkins: Yeah. So not quite. Look, we have lived through two really significant fuel shocks just in the four years we have been invested in 2022 and also more recently. You could say that they have been unlike anything in modern history, which is clearly unhelpful when the majority of your cost base is fuel, and the ability to pass that cost on to customers is somewhat varies between contracts. So there is some nuance to it. Some customers will be fully exposed to spot prices, so that is good for Primafrio, whereas others may have negotiated delayed passthroughs or even fixing up front for a set term, in which case Primafrio wears more risk. So that is from a fuel cost perspective. I think beyond fuel cost, there has been some other areas of focus of the business.

Speaker #4: You could say that they've been unlike anything in modern history, which is clearly unhelpful when the majority of your cost base is fuel. And the ability to pass that cost onto customers varies somewhat between contracts.

Speaker #4: So there's some nuance to it. Some customers will be fully exposed to spot prices. So that's good for Prima Frio. Whereas others may have negotiated delayed pass-throughs or even fixing up front for a set term, in which case Prima Frio wears more risk.

Speaker #4: So that's from a fuel cost perspective. I think, beyond fuel cost, there have been some other areas of focus for the business. They've seen a bit more competition across some of the budget ones, which has put some pressure on wallet share for some of the top three customers.

Ben Perkins: They have seen a bit more competition across some of the budget ones, which has had some pressure on wallet share for some of the top three customers. They are also seeing significantly greater potential for operating efficiency. So there is still work to do to sweat this asset. In terms of the second part of the question, as a general rule, we do seek to avoid commodity exposure. So on the revenue side, that would mean seeking deals that have highly contracted revenues. I have spoken about that before. So on a renewables asset, it would be a 15 or 20-year PPA for all the offtake. So you have limited, some exposure, but it is on the merchant tail. So we like that. That is what we think infrastructure is. On the cost side, with the exception of Primafrio, again, it is something we are pretty disciplined on.

Speaker #4: They're also seeing significantly greater potential for operating efficiency. So there's still work to do to sweat this asset. In terms of the second part of the question, as a general rule, we do seek to avoid commodity exposure.

Speaker #4: So on the revenue side, that would mean seeking deals that have highly contracted revenues. I've spoken about that before. So on a renewables asset, it would be a 15 or 20-year PPA for all the offtakes.

Ben Perkins: I have spoken about that before. So on a renewables asset, it would be a 15 or 20-year PPA for all the offtake. So you have limited, some exposure, but it is on the merchant tail. So we like that. That is what we think infrastructure is. On the cost side, with the exception of Primafrio, again, it is something we are pretty disciplined on.

Speaker #4: So, you have limited—you have some exposure, but it's on the merchant tail. So, we like that. That's what we think infrastructure is. On the cost side, with the exception of Prima Frio, again, it's something we're pretty disciplined on.

Speaker #4: You see our data center companies, all the tenants there, where the cost of energy costs—if that goes through the roof, it's for them to wear.

Ben Perkins: You see our data center companies, all the tenants there where the cost of energy costs, if that goes through the roof, it is for them to wear. It is not something that the DC developers take. Again, that is a function of the competitive environment and such is the hunger for power and quick access to that power. Richard, maybe another one for you here. Is a new investment in Terra-Gen exposed to supply chain or tariff risk? In this context, would you mind sharing a bit more information about Igneo and what makes them attractive as a GP?

Speaker #4: It's not something that the DC developers take, and again, that's a function of the competitive environment, such as the hunger for power and quick access to that power.

Speaker #4: Richard, maybe another one for you here. It's a new investment in TerraGen—exposed to supply chain or tariff risk. And in this context, would you mind sharing a bit more information about Igneo, and what makes them attractive as a GP?

Speaker #1: Let me—maybe let me start with Igneo. It's a group we've invested with for quite some time, across their funds—Fund One, Fund Two, and Fund Three.

Richard Sem: Maybe let me start with Igneo. It is a group we have invested with for quite some time across their funds 1, funds 2, and funds 3. They are part of a much larger asset management firm called First Sentier. They have about, I think, 150 billion of assets under management, so it is obviously a scale business. Igneo is their private infrastructure part of the business with about 22 billion of AUM. So the business has scale. It has institutional presence. They have invested across about 60 different investments and stable team, consistent track record, and very much sort of a core yielding strategy. So we like Igneo, and it is great to see further GP diversification coming in for PINT. The first part of the question, it was a big part of the due diligence. So there is already 4 gigawatts that is already built. So that is largely de-risked from a supply chain perspective.

Speaker #1: They're part of a much larger asset management firm called First Sentier. They've got about, I think, $150 billion of assets under management, so it's obviously a scale business.

Speaker #1: Igneo, is their private infrastructure part of the business with about 22 billion of AUM. So the business has scaled. It's has institutional presence. They've invested across about 60 different investments.

Richard Sem: They have invested across about 60 different investments and stable team, consistent track record, and very much sort of a core yielding strategy. So we like Igneo, and it is great to see further GP diversification coming in for PINT. The first part of the question, it was a big part of the due diligence. So there is already 4 gigawatts that is already built. So that is largely de-risked from a supply chain perspective.

Speaker #1: And stable team, consistent track record, and very much sort of a core yielding strategy. So, we like Igneo, and it's great to see further GP diversification coming in for PINT.

Speaker #1: The first part of the question, I mean, was a big part of the due diligence. So there's already 4 gigawatts that's already built, so that's largely de-risked from a supply chain perspective.

Speaker #1: With a go forward pipeline, there are a number of things that can that will limit the risk, which we spent time looking into as part of our DD.

Richard Sem: With a go-forward pipeline, there are a number of things that will limit the risk, which we spent time looking into as part of our DD, or due diligence. Firstly, more than 8 gigawatts of the pipeline is safe harbored for federal tax credits. This obviously protects us against future tax policy changes, but not tariffs. In this respect, I guess Terra-Gen has many avoid tariff risk. So many suppliers actually end up carrying the tariff risk there. So that was a little dive into Terra-Gen. Maybe for you, Ben, we have got another question. The lackluster performance of Vertical Bridge is surprising. You classified as below plan. Are you confident it will catch up again in the future?

Speaker #1: Or a due diligence. Firstly, more than 8 gigawatts of the pipeline is safe-harbored for federal tax credits. This obviously protects us against future tax policy changes.

Speaker #1: But not tariffs. In this respect, I guess TerraGen has many—tariff risk. So many suppliers actually end up carrying the tariff risk there. So that's a little dive into TerraGen.

Speaker #1: Maybe for you, Ben, we've got another question. The lackluster performance of Vertical Bridge is surprising. You classified it as below plan. Are you confident it will catch up again in the future?

Speaker #4: Well, maybe it's worth kind of a reminder of how we think about assessing and that calibration. So, if we call something on, above, or below plan, it's our assessment of where we think the returns are going to come out—where we currently stand relative to what we expected at the point of investment.

Ben Perkins: Well, maybe worth a reminder of how we think about assessing and that calibration. So if we call something above or below plan, it is our assessment of where we think the returns are going to come out, where we currently stand relative to what we expected at the point of investment. Clearly, there is an envelope around that. There is a range at which you could still be considered on plan. But this pulls together a number of assessments. It is where the actual EBITDA has progressed to. It is what their pipeline looks like. It is also factoring what the market thinks of towers assets. So in the case of Vertical Bridge, it is certainly not moved in the way we would like. There is still a marginal gain that we have seen. It is sitting at 1.1 times performance in the original business.

Speaker #4: And clearly, there's an envelope around that; there's a range at which you could still be considered on-plan. But this pulls together a number of assessments.

Ben Perkins: There is a range at which you could still be considered on plan. But this pulls together a number of assessments. It is where the actual EBITDA has progressed to. It is what their pipeline looks like. It is also factoring what the market thinks of towers assets. So in the case of Vertical Bridge, it is certainly not moved in the way we would like. There is still a marginal gain that we have seen. It is sitting at 1.1 times performance in the original business.

Speaker #4: It's where the actual EBITDA is progressed to. It's what their pipeline looks like. It's also factoring in what the market thinks the tariffs asset.

Speaker #4: So, in the case of Vertical Bridge, it's certainly not moved in the way we'd like. There's still a marginal gain that we've seen. It's sitting at 1.1x performance in the original business.

Speaker #4: So, excluding the add-on, the very large add-on of the Verizon portfolio, performance of the original business is behind plan. There has been a significant slowdown in carrier spend.

Ben Perkins: Excluding the add-on, the very large add-on of the Verizon portfolio performance of the original businesses behind plan was a significant slowdown in carrier spend. So fewer MNOs doing co-location revenues in 2022 and 2023. We saw a bit of an uptick in 2024 and a real clawback in 2025, but it has slowed down this year. That is unfortunate, but we still think that the longer-term thesis is really strong, particularly with the addition of the Verizon portfolio, which has a very low tenancy ratio. So it means relative to market, there is a lot of scope to add co-location revenues, which is a pretty much negligible cost for a towers operator. So it has had its challenges. Look, the addition of the Thor portfolio long-term, that is the Verizon portfolio. Long-term, we are really happy with. Short-term, I think you could say it has given them a bit of indigestion.

Speaker #4: So fewer M&Os doing colocation revenues. In 2022 and '23, we saw a bit of an uptick. In '24 and a real clawback in '25, but it has slowed down this year.

Speaker #4: That's unfortunate, but we still think that the longer-term thesis is really strong, particularly with the addition of the Verizon portfolio, which has a very low tenancy ratio.

Speaker #4: So it means, relative to market, there's a lot of scope to add colocation revenues, which are pretty much negligible cost for a tower operator.

Speaker #4: So it's had its challenges. Look, the addition of the Thor portfolio—long term, that's the Verizon portfolio—long term, we're really happy with it. Short term, I think you could say it's given them a bit of indigestion.

Ben Perkins: Look, the addition of the Thor portfolio long-term, that is the Verizon portfolio. Long-term, we are really happy with. Short-term, I think you could say it has given them a bit of indigestion. It is a large footprint relative to the size of the business. They had to put in place some bridging debt to get that in place before they got the equity in place with KKR. That took 12 months longer than they thought, which has been slightly detrimental to returns. But we think that the balance sheet is in a good place now.

Speaker #4: It's a large footprint relative to the size of the business. They had to put in place some bridging debt to get that in place before they got the equity in place with KKR.

Ben Perkins: It is a large footprint relative to the size of the business. They had to put in place some bridging debt to get that in place before they got the equity in place with KKR. That took 12 months longer than they thought, which has been slightly detrimental to returns. But we think that the balance sheet is in a good place now. When you look at the core outlook for the sector, whilst we would not necessarily say, and I think the clue is in how we have calibrated this as being below plan, whilst we would not necessarily say it will catch up in the future, we are still pretty bullish on the sector. Richard, one for you now. You stated GlobalConnect launched a sale process in 2025, with a sale of part of the company anticipated at the H2 of this year. Seems to be a lot of moving parts.

Speaker #4: That took twelve months longer than they thought, which has been slightly detrimental to returns. But we think that the balance sheet is in a good place now.

Speaker #4: And when you look at the core outlook for the sector, whilst we wouldn't necessarily say—and I think the clue is in how we've calibrated this as being below plan.

Ben Perkins: When you look at the core outlook for the sector, whilst we would not necessarily say, and I think the clue is in how we have calibrated this as being below plan, whilst we would not necessarily say it will catch up in the future, we are still pretty bullish on the sector. Richard, one for you now. You stated GlobalConnect launched a sale process in 2025, with a sale of part of the company anticipated at the H2 of this year. Seems to be a lot of moving parts. Could you explain what the strategy is now? Is EQT trying to damage control after some missteps, and is it winding up the company?

Speaker #4: Whilst we wouldn't necessarily say it will catch up in the future, we're still pretty bullish on the sector. Richard, one for you now. You stated Global Connect will launch a sale process in '25, with a sale of part of the company anticipated in the second half of this year.

Speaker #4: Seems to be a lot of moving parts. Could you explain what the strategy is now? Is EQT trying to do damage control after some missteps?

Ben Perkins: Could you explain what the strategy is now? Is EQT trying to damage control after some missteps, and is it winding up the company?

Speaker #4: And is it winding up the company?

Speaker #1: Look, it's not winding up the company. It's a well-established and very significant platform, given its wide Nordic presence. The company is refocusing on the wholesale part of their business.

Richard Sem: Look, it is not winding up the company. It is a well-established and very significant platform given its wide Nordic presence. The company is refocusing on the wholesale part of their business, hence the sale of the FTTH or the fiber to the home businesses. We have talked before about the sale of the German consumer business, which was challenged but was very early stages, so got out before some of the problems materialized. Norwegian sale has regulatory approval now, and then you have got the sale of the larger FTTH part of the business, should, or is expected rather to happen next year. So EQT is pursuing this route as a sale for the business as a whole, as it did not represent full value for the company. So selling the parts rather than the full, and that is probably reflective somewhat with the holding marks we have got on the asset.

Speaker #1: Hence the sale of the FTTH, or the Fiber to the Home businesses. We've talked before about the sale of the German consumer business, which was challenged.

Speaker #1: But it was very early stages, so we got out before some of the problems materialized. The Norwegian sale has regulatory approval now. And then you've got the sale of the large FTTH part of the business.

Richard Sem: Norwegian sale has regulatory approval now, and then you have got the sale of the larger FTTH part of the business, should, or is expected rather to happen next year. So EQT is pursuing this route as a sale for the business as a whole, as it did not represent full value for the company. So selling the parts rather than the full, and that is probably reflective somewhat with the holding marks we have got on the asset. There's a question on IPX, but as I'm reading it, I think Ben, you pretty much answered all of that in your presentation, so I don't think there's anything else to add to that question.

Speaker #1: Should, or is expected rather, to happen next year. So EQT is pursuing this route as a sale for the business as a whole, as it didn't sort of represent full value for the company.

Speaker #1: So, selling the parts rather than the full, and that's probably reflective somewhat with the holding marks we've got on the asset. There's a question on IPX.

Richard Sem: There's a question on IPX, but as I'm reading it, I think Ben, you pretty much answered all of that in your presentation, so I don't think there's anything else to add to that question.

Speaker #1: But as I'm reading it, I think you've pretty much answered all of that in your presentation, Ben. So I don't think there's anything else to add.

Speaker #1: To that question. That question.

Speaker #4: Yeah, I guess maybe to fully round it off. So, the bits that Alphabet liked and wanted were the data center assets, or the data center-adjacent ones, and the team—the architecture that did that.

Ben Perkins: Yeah, I guess maybe to fully round it off. The bits that Alphabet liked and wanted were the data center assets or the data center adjacent ones, and the team, the architecture that did that. That's what they took. They weren't as interested in just grid connected utility assets that weren't adjacent to data centers. That's what's been retained as IPX Power and is effectively a runoff of a development platform that we would expect to be sold to an operator and hopefully someone with a far lower cost of capital in time. Richard, given the constraint on issuing equity, is there a risk that PINT becomes a forced seller of assets just to fund new investments? How are we thinking about that trade-off?

Speaker #4: So that's what they took. They weren't as interested in just grid-connected utility assets that weren't adjacent to data centers. That's what's been retained as IPX Power.

Speaker #4: And it is effectively a runoff of a development platform that we would expect to be sold to an operator, and hopefully someone with a far lower cost of capital.

Speaker #4: In time. Richard, given the constraint on issuing equity, is there a risk that Pipe becomes a forced seller of assets just to fund new investments?

Speaker #4: How are we thinking about that trade-off?

Speaker #1: So, look, every business we invest in typically has a five- to seven-year— I say typically, a five- to seven-year hold period. We're typically reliant on the GP or the sponsor that we work with to sell the asset.

Richard Sem: Well, look, every business we invest in typically has a five to seven, I say typically a five to seven-year hold period. We're typically reliant on the GP or the sponsor that we work with to sell the asset. Where, yes, we cannot issue equity right now, but we should see a recycling of capital within the business. When we get to steady state 20 assets, which is where we're aiming to get to from the 15 we're at now, if we hold assets for five to seven years, we should see somewhere like three to four assets realizing every year, and we'll use those to recycle into new ones. We do not need to issue new equity to rotate into new ones. We will do that through the growth in the underlying assets and increase our check sizes.

Speaker #1: Yes, we cannot issue equity right now, but we should see a recycling of capital within the business. So, when we get to kind of steady state—20 assets, which is sort of where we're aiming to get to from the 15 we're at now—if we hold assets for five to seven years, we should see somewhere like three to four assets realizing every year.

Speaker #1: And we'll use those to recycle into new ones. So we do not need to assume new equity to rotate into new ones. We will do that through the growth in the underlying assets and increase our check sizes.

Speaker #1: Equally, all our business plans are fully funded, so we're not reliant on the equity capital markets being open. For us to fund our investments, we underwrite a level of equity that's commensurate with the existing acquisition and the growth required for that business, including any.

Richard Sem: Equally, all our business plans are fully funded, so we're not reliant on the equity capital markets being open for us to fund our investments. We underwrite a level of equity that's commensurate with the existing acquisition and the growth required for that business, including any. Capital markets open up again for the infrastructure companies. Could you talk a little bit about the macro factors, Ben, that impact valuations, particularly movements in bond yields and realized inflation, and how you think about the interaction between the two? For example, when mid- and long-term long-end yield rises reflect higher inflation expectations versus when they simply push up discount rates due to fiscal concerns. To a lesser extent, how do credit spreads feed into your discount rate assumptions? Finally, is there anything notable in your outlook for electricity prices across the portfolio? Sorry, that's a long question.

Speaker #1: Capital markets are opening up again for the infrastructure companies. Could you talk a little bit about the macro factors, Ben, that impact valuations? Particularly movements in bond yields and realized inflation, and how you think about the interaction between the two.

Richard Sem: Could you talk a little bit about the macro factors, Ben, that impact valuations, particularly movements in bond yields and realized inflation, and how you think about the interaction between the two? For example, when mid- and long-term long-end yield rises reflect higher inflation expectations versus when they simply push up discount rates due to fiscal concerns. To a lesser extent, how do credit spreads feed into your discount rate assumptions? Finally, is there anything notable in your outlook for electricity prices across the portfolio? Sorry, that's a long question. Happy for you to remind you the last part if you forget.

Speaker #1: For example, when mid- and long-term, long-end yields rise, it can reflect higher inflation expectations, versus when they simply push up discount rates due to fiscal concerns.

Speaker #1: To a lesser extent, how do you credit—how do credit spreads feed into your discount rate assumptions? And finally, is there anything notable in your outlook for electricity prices across the portfolio?

Speaker #1: So that's a long question. I'm happy to remind you of the last part if you forget.

Richard Sem: Happy for you to remind you the last part if you forget.

Speaker #4: Yeah, yeah. I could spend a long time on that, and I don't think that's in anyone's interest given where we are for time. Look, a few things to kind of state here:

Ben Perkins: I could spend a long time on that, and I don't think that's in anyone's interests, given where we are for time. Look, a few things to state here. By no means a complete answer, but a reminder that we take sponsor valuations. So each of those 12 sponsors we work with will have their own valuation committee. They do have different views on things like inflation. They might have a different policy to how they factor in where risk-free rates are going. They should generally still be where there is things like interest rate exposure or power price exposure. There's fair commonality in approaches across the market about that kind of stuff being adopted. But I say that because we are not as a house formulating views that go into the valuations that ultimately drive the NAV for PINT.

Speaker #4: This is by no means a complete answer, but a reminder that we take sponsor valuations. Each of those 12 sponsors we work with will have their own valuation committee.

Speaker #4: They do have different views on things like inflation. They might have a different policy for how they factor in where risk-free rates are going.

Speaker #4: They should generally still be where there is things like interest rate exposure or power price exposure. There's fair commonality in approaches across the market about that kind of stuff being adopted.

Speaker #4: But I say that because we are not, as a house, formulating views that go into the valuations that ultimately drive the NAV for PIPE.

Speaker #4: We interrogate those assumptions, and through the side letter obligations that the sponsors have for the deals we're invested in, we're afforded the ability to review that. As well as the PIPE board, we have a PIPE Valcom within Pantheon that has to sign off on those valuations.

Ben Perkins: We interrogate those assumptions and, through the side letter, obligations that the sponsors have for the deals we're invested in. We're afforded the ability to review that and, as well as the PINT board, we have a PINT ValCom within Pantheon that has to sign off on those valuations. So we're keeping an eye on that stuff. I guess taking a step back from that and thinking about how we're expecting it to flow through to valuations. Look, I don't think rising bond yields is a good thing for the infrastructure sector. That kind of goes without saying. I think it's clearly volatile right now. I think we wouldn't expect sponsors to be marking to market when we see that level of volatility, and indeed, some of them won't have a policy to do so.

Speaker #4: So we're keeping an eye on that stuff. I guess, taking a step back from that and thinking about how we're expecting it to flow through to valuations.

Speaker #4: Look, I don't think rising bond yields is a good thing for the infrastructure sector. That kind of goes without saying. I think it's clearly volatile right now.

Speaker #4: I think we wouldn't expect sponsors to be marking to market when we see that level of volatility. And indeed, some of them won't have a policy to do so.

Speaker #4: In terms of what it means for inflation, well, I think the expectation is that inflation is going to be very high this year. There's a lot, certainly in the UK and also in the US, that's good for our portfolio.

Ben Perkins: In terms of what it means for inflation, well, I think the expectation is inflation is going to be very high this year. There's a lot, certainly in the UK, also in the US. That's good for our portfolio. It's good because typically, we're able to pass that on to customers, and it drives a high degree of correlation with inflation. So in some respects, and it's never a perfect match-off, we would see some offsetting gains to any potential dilution we get from increasing bond yields. The other thing that we'd say is at a 13.1% discount rate, by far the largest in the sector, we're less compromised by where bond yields go because of that significant starting point relative to an asset that might be marked in a core fund at a mid to high single-digit discount rate. So there's a lot to think about.

Speaker #4: It's good because, typically, we're able to pass that on to customers, and it drives a high degree of correlation with inflation. So, in some respects—and it's never a perfect match—we would see some offsetting gains to any potential dilution we get from increasing bond yields.

Speaker #4: The other thing that we'd say is, at a 13.1% discount rate—by far the largest in the sector—we're less compromised by where bond yields go because of that significant starting point, relative to an asset that might be marked in a core fund at a kind of mid to high single-digit discount rate.

Ben Perkins: The other thing that we'd say is at a 13.1% discount rate, by far the largest in the sector, we're less compromised by where bond yields go because of that significant starting point relative to an asset that might be marked in a core fund at a mid to high single-digit discount rate. So there's a lot to think about. I think we'll obviously be keenly watching what happens with sponsors. I think the other questions are around credit spreads.

Speaker #4: So there's a lot to think about. I think we'll obviously be keenly watching what happens with sponsors. I think the other questions were around credit spreads.

Ben Perkins: I think we'll obviously be keenly watching what happens with sponsors. I think the other questions are around credit spreads. Again, I'd point to the fact that typically, debt is in place and fixed. Where it's not, and there is refinancing risk, the sponsors will, in their models and their DCFs, be putting in place future interest rate forecasts or what forward rates are. Similarly, with credit spreads, if it looks like a refinancing is going to be more expensive, we would expect that to flow through to valuations. As it happens, we think the companies that we've invested in continue to attract very competitively priced debt, and that's a function of their profile and where they are operating. The final part here was around electricity prices. We don't have a huge degree of exposure here.

Speaker #4: Again, I'd point to the fact that typically debt is in place and fixed. Where it's not, and there is refinancing risk, the sponsors will, in their models and their DCFs, be putting in place future interest rate forecasts or what forward rates are.

Ben Perkins: Again, I'd point to the fact that typically, debt is in place and fixed. Where it's not, and there is refinancing risk, the sponsors will, in their models and their DCFs, be putting in place future interest rate forecasts or what forward rates are. Similarly, with credit spreads, if it looks like a refinancing is going to be more expensive, we would expect that to flow through to valuations. As it happens, we think the companies that we've invested in continue to attract very competitively priced debt, and that's a function of their profile and where they are operating. The final part here was around electricity prices. We don't have a huge degree of exposure here.

Speaker #4: Similarly, with credit spreads, if it looks like refinancing is going to be more expensive, we would expect that to flow through to valuations.

Speaker #4: As it happens, we think the companies that we've invested in continue to attract very competitively priced debt. And that's a function of their profile and where they are when they're operating.

Speaker #4: The final part here was around electricity prices. We don't have a huge degree of exposure here. Most of the renewables exposure we have is contracted out, at least for 15, sometimes 20 years.

Ben Perkins: Most of the renewables exposure we have is contracted out at least for 15, sometimes 20 years. There's merchant exposure where the asset life assumption is longer than those contracts, and typically it's one of two or three market consultants that provide that pricing that is done independently. But because our near-term focus is very much on, and that flows through where there's an assumed value in five or six years' time, that is a function of future power prices. But generally speaking, the portfolio does not carry heaps of power price risk. As I mentioned earlier, we pass that cost on to the customers with data centers. There is some exposure across batteries, across Zenobē, but typically where we see their new developments, they're looking to operate under the basis of revenue floors or tolling agreements, which offset or pass off that utility price risk.

Speaker #4: So there's merchant exposure, where the asset life assumption is longer than those contracts. Typically, it's one of two or three market consultants that provide that pricing, and it is done independently.

Speaker #4: But because our near-term focus is very much on—and that flows through—where there's an assumed value in five or six years' time that is a function of future power prices.

Speaker #4: But generally speaking, the portfolio does not carry heaps of the power price risk. As I mentioned earlier, we pass that cost on to the customers with data centers.

Speaker #4: There is some exposure across batteries, across Zenobie, but typically where we see their new developments they're looking to operate under the basis of revenue flaws or tolling agreements, which offset or kind of pass off that utility price risk.

Ben Perkins: There is some exposure across batteries, across Zenobē, but typically where we see their new developments, they're looking to operate under the basis of revenue floors or tolling agreements, which offset or pass off that utility price risk. I think that's about it now. I don't think we've got any more questions in, Richard. One minute before time, so perfectly timed relative to our slot.

Speaker #4: I think that's about it now. I don't think we've got any more questions in, Richard. So and one minute before time. So it's a perfectly timed relative to our slot.

Ben Perkins: I think that's about it now. I don't think we've got any more questions in, Richard. One minute before time, so perfectly timed relative to our slot.

Speaker #2: That's great. Thank you for answering those questions you can from investors. And of course, the company can review all questions submitted today. Just before redirecting investors to provide you with their feedback, which there's particularly important to the company, Richard, could I please just ask you for some closing comments?

Operator: That's great. Thank you for answering those questions you have, investors. Of course, the company can review all questions submitted today. Just before redirecting investors to provide you with their feedback, which is particularly important to the company, Richard, could I please just ask you for some closing comments?

Speaker #1: Well, look, I think the closing comments I gave up above, I'm not going to remind everybody there. Really pleased with portfolio. Well, generally, yes, there's been some softness this quarter.

Richard Sem: Well, look, I think the closing comments I gave up above, I am not going to remind everybody there. Really pleased with portfolio more generally. Yes, there has been some softness this quarter, this H1 rather, but we think these infrastructure assets are well-positioned to help navigate what is a continued difficult macro and geopolitical backdrop.

Speaker #1: This half, rather. But we think these infrastructure assets are well positioned to help navigate what is a continued difficult macro and geopolitical backdrop.

Speaker #2: That's great. Thank you for updating investors today. Could I please ask investors not to close the session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations.

Operator: That is great. Thank you for updating investors today. Could I please ask investors not to close this session, as you will now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This may take a few moments to complete.

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Half Year 2026 Pantheon Infrastructure PLC Earnings Call

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