AQUILA EUROPEAN RENEWABLES PLC

LEI No: 213800UKH1TZIC9ZRP41

HALF-YEARLY REPORT

FOR THE SIX MONTHS ENDED 30 JUNE 2025

INVESTMENT OBJECTIVE

The Company's Investment Objective is to realise all existing assets in the Company's portfolio in an orderly manner.

HIGHLIGHTS

FINANCIAL INFORMATION
as at 30 June 2025

1.    This disclosure is considered to represent the Company's alternative performance measures ("APMs"). Definitions of these APMs and other performance measures used, together with how these measures have been calculated, can be found below.  All references to cents are in euros, unless stated otherwise.

2.    Calculation based on NAV per Ordinary Share in euros, includes dividends and assumes no reinvestment of dividends.

3.    Dividends paid/payable and declared relating to the period.

4.    Dividend yield is calculated by annualising the dividends paid year to date per share by the current market share price as at 30 June 2025.

5.    Calculation based on average NAV over the period and regular recurring annual operating costs of the Company, further details can be found below.

AT A GLANCE

Portfolio Breakdown¹

Diversified Technologies

Solar PV - 230.7 MWp

Wind energy - 174.8 MW

As a result of the diversification of generation technologies, the seasonal production patterns of these asset types complement each other, balancing cash flow, whereas the geographic diversification serves to reduce exposure to any one single energy market.

CHAIRMAN'S STATEMENT

INTRODUCTION
In the first half of 2025, the Company continued to implement its Managed Wind-Down strategy, progressing realisations where market conditions have allowed. As at the date of this Interim Report, the Company has completed the sale of Sagres (its hydropower investment in Portugal) at the 31 December 2024 valuation, adjusted for distributions received prior to the transaction's completion in June 2025. This was the second significant disposal after the realization of the Tesla investment in September 2024.

As detailed in the Company's announcement 'Update on Sales Process' published on 28 July 2025, the Company and its advisers underwent a significant amount of work to progress a potential transaction with the previous preferred bidder. While a transaction for the Company's wind and solar PV assets has not been concluded, active sale processes are ongoing in close coordination with the Company's financial adviser, Rothschild & Co, and further updates will be provided to shareholders as soon as possible in the fourth quarter of 2025. The Company is approaching the final stages of a potential sale of a portion of the portfolio and intends to update shareholders imminently. The Board is very mindful of the Shareholders' objectives and continues to work hard with its advisers to deliver on these.

The current market for renewable generation investments in Europe has been influenced by several factors:

(i)      lower-than-expected resource, with the Company's assets affected by subdued wind conditions and below-average solar irradiation;

(ii)     electricity prices in the first half of 2025 coming in below expectations, alongside a substantial reduction in forward price forecasts since the end of 2024; and

(iii)    increased cost pressures, particularly in relation to grid balancing activities.

These factors, combined with a decision to increase the discount rates applied to the valuation of the Company's investments to reflect the current high risk environment and in line with listed peers, resulted in a 12.8% decrease in the gross asset value and a 10.2% reduction in net asset value between 31 December 2024 and 30 June 2025.

The Company's share price moved from 66.0 cents at 31 December 2024 to 62.6 cents at 30 June 2025, and subsequently to 42 cents as at 26 September 2025, representing a 43% discount to the 30 June 2025 NAV.

KEY DEVELOPMENTS
As referred to in the Introduction, in June 2025, the Company sold its 17.99% stake in its hydropower investment in Portugal, referred to as Sagres, to the other joint shareholders. The internal rate of return (IRR) achieved on this project was 9.59%, a good result. Sagres is a 107.6 MW operational hydropower plant in Portugal, which the company acquired in 2019. The proceeds from the sale were retained and support the Company's working capital requirements, which no longer have access to the revolving credit facility ("RCF"), which was cancelled in April 2025 in order to reduce expenses. A consequence of cancelling the RCF was a requirement to use cash of EUR 2.8 million to collateralise guarantees relating to dismantling obligations associated with the Company's Spanish solar PV investments.

PERFORMANCE
The Company's NAV per Ordinary Share was 73.9 cents as at 30 June 2025, resulting in a NAV total return per Ordinary Share of -10.9%, including dividends during the period. Movement in the NAV was driven by various factors. On one hand there has been a reduction in expected European power price curves, which on average fell across the portfolio over the next five years contributing to a decline in NAV (around 4.6%). On the other hand, the portfolio discount rate increased to 8.8% in line with listed peers and due to a combination of rising beta values, higher risk-free rates across financial markets, and additional risk premia applied to certain assets to account for local market challenges. This change resulted in a further decline in NAV (approximately 5.2%).

In 2025, the Company has paid or declared dividends of 1.58 cents per Ordinary Share. Since the IPO in June 2019, the Company has returned EUR 122.5 million to shareholders in the form of dividends and share buybacks, equivalent to 29.7% of total raised capital.¹

Over the reporting period, total revenue was 31.2% below budget due to persistently lower short-term electricity spot market prices across most portfolio markets. This reflects the continued decline in commodity prices compared to the previous year, subdued power demand from a mild winter across Europe, and further downward pressure on Guarantee of Origin ("GoO") prices. Additionally, high gas storage levels throughout 2024 sustained lower power prices, which particularly impacted the merchant-exposed part of the portfolio - currently accounting for 52.2% of total revenues. Production was 24.4% below budget during the 12-month period, primarily due to lower irradiation for the solar portfolio, curtailment of the Iberian solar PV assets during periods of negative power prices and lower than forecast average wind resource in the Nordics. This in turn was partially offset by continued strong performance from the hydropower portfolio due to higher-than-forecast water availability, sustaining a strong positive trend for the hydropower portfolio since June 2023.

ESG
Despite the Company being in Managed Wind-Down, the portfolio continues to contribute towards the UN Sustainable Development Goals to ensure access to affordable, reliable, sustainable and modern energy for all. Full details of the Company's approach to combating climate change, enhancing biodiversity, boosting regional and local community engagement, ensuring sustainable supply chain management and best-practice labour standards, as well as other environmental and social topics, can be found in this dedicated report.

OUTLOOK
The Board remains confident in the long-term fundamentals of the European renewable energy sector, supported by the urgent need to decarbonise energy systems, favourable European regulatory frameworks promoting energy security, and expected growth in power demand from industrial recovery, electrification of heat and transport, and the expanding requirements of data centres and artificial intelligence ("AI"). AI in particular is anticipated to be a significant driver of future energy consumption, underscored by the European Commission's recent EUR 200 billion investment pledge in AI.

In the context of the Company's Managed Wind-Down, the Board's priority is to complete the asset sale programme efficiently, while safeguarding value and returning capital to shareholders in a timely and cost-effective manner.

IAN NOLAN
Chairman
30 September 2025

1.    Raised capital including shares issued to the Investment Adviser as payment of the management fee.

INVESTMENT ADVISER'S REPORT

Leader in Investment and Asset Management in European Renewables

Overall CO₂eq emissions avoided²
3.4 million tonnes

Green energy produced²
11.8 TWh

Households supplied²
3.3 million

INVESTMENT ADVISER BACKGROUND¹
Aquila Capital Investmentgesellschaft mbH ('Aquila Capital') is one of the leading investment and industrial development companies, managing over EUR 15.4 billion on behalf of institutional investors worldwide and running one of the largest clean energy portfolios in Europe. Over the past two decades, Aquila Capital and its subsidiaries have committed themselves to supporting the clean energy transition and creating a more sustainable world. Additionally, it has projects in sustainable real estate and green logistics, either completed or under development. Aquila Capital also invests in energy efficiency, carbon forestry and data centres.

The Investment Adviser's expert investment teams comprise 700 employees worldwide. Moreover, the strategic partnership entered into in 2019 with Japan's Daiwa Energy & Infrastructure draws on its sector networks and experience to screen, develop, finance, manage and operate investments along the entire value chain. As this business model requires local management teams, Aquila Capital is represented across 19 investment offices.

Aquila Capital's in-house Markets Management Group ("MMG"), a team of experts dedicated to sourcing and structuring Power Purchase Agreements ("PPAs"), market analysis, trading, origination, FX, interest rates and other hedging products, has facilitated the Company's proactive approach to hedging and risk management. Since its inception, the team has structured, negotiated and put in place more than 32 PPAs and has created an extensive network of offtakers, being recognised as one of the most important players in the European landscape. The ultimate aim is to secure stable revenues whilst always ensuring the best possible risk-adjusted return. MMG also supports the rest of the teams within Aquila by providing market insights, analysis, research and regulatory knowledge. It also undertakes regular reporting on market evolution and events and ad hoc research to identify emerging market trends.

The Company's Alternative Investment Fund Manager ("AIFM"), FundRock Management Company (Guernsey) Limited, has appointed Aquila Capital as its Investment Adviser for the Company. Aquila Capital's key responsibilities are to originate, analyse and assess suitable renewable energy infrastructure investments and advise the AIFM accordingly, as well as to provide Asset Management services.

The Investment Adviser announced a strategic partnership with Commerzbank AG on 18 January 2024 aimed at significantly accelerating the Investment Adviser's growth into one of the leading asset managers for sustainable investment strategies in Europe. Commerzbank is a major listed European banking institution serving a diverse client base of around 26,000 corporate client groups and nearly 11 million private and corporate clients, with a global presence in more than 40 countries.

1.    Figures presented in this section refer to Aquila Group.

2.    Data as at 31 December 2024, based on current portfolio of the Aquila Group. For details on the methodology for avoided emissions, refer to: https://www.aquila-capital.de/fileadmin/user_upload/PDF_Files_Whitepaper-Insights/20231121_LAE_White_paper_EN.pdf

As part of this partnership, Commerzbank acquired a 74.9% stake in Aquila Capital, whilst ensuring its continued managerial independence, which will remain autonomous in terms of operations, investment decisions, product development and brand representation. The parent company of the Investment Adviser, Aquila Group, will remain engaged as a shareholder with its remaining 25.1% shareholding. The transaction was completed following the receipt of the required regulatory approvals on 3 June 2024. At the end of May 2025, portfolio manager Michael Anderson resigned from Aquila Capital to pursue other interests. Alex Betts has taken over his duties as portfolio manager in the team responsible for AER. Alex is a highly experienced professional with well over 30 years of experience in corporate finance and as a private equity principal investor. Alex joined Aquila five years ago and is based in London.

Current Renewables Portfolio of Aquila Group in Europe¹:
Portfolio Capacity²

Wind energy
4,702 MW
1,010 WTGs

Solar PV
15,733 MWp
370 PV parks

Hydropower
1,050 MW
295 plants

Energy storage systems
4,190 MW
15 projects

19 Offices

1.    Map is shown for illustrative purposes only. Exact locations of offices and assets might deviate. Points indicate one or more assets and are not indicative of size.

2.    Data as at 31 December 2024, including historical divestments.

INVESTMENT PORTFOLIO

1.    Installed capacity at 100% ownership.

2.    COD = Commissioning date.

3.    PPA = Power Purchase Agreement, FiT = Feed-in tariff. FiP = Feed-in premium, CfD = Contract for Difference.

4.    Leverage level calculated as a percent of debt plus fair value as at 30 June 2025.

5.    Represents voting interest. Economic interest is approximately 89.9%.

PORTFOLIO UPDATE AS AT 30 JUNE 2025

Sagres
In June 2025, the Company sold its 17.99% stake in its hydropower investment in Portugal, referred to as Sagres, to the other joint shareholders. The internal rate of return (IRR) achieved on this project was 9.6%. Sagres is a 107.6 MW operational hydropower plant in Portugal, which the company acquired in 2019.

The Board is working with its advisers to explore options to return surplus capital to shareholders following the receipt of Sagres sale proceeds.

Olhava
Olhava is in lock-up following debt covenant breaches driven by a combination of factors including lower than forecast realised power prices and production, elevated grid balancing costs and high debt repayment obligations, which are expected to ease from the end of 2025. It has been necessary to make equity cure payments from the resources of the company which owns Olhava and agree that payments under the shareholder loan and of dividends are suspended until the end of December 2025. In September 2025 an additional equity cure of EUR 508k was paid from the Company's resources. While asset liquidity remains stable although revenue and cost risks persist from the impending expiry of the feed-in tariff for most turbines and elevated grid balancing reserves, constructive discussions with the bank continue in order to modify the terms of the loan, which are likely to result in the lock up period being extended. The Board and Investment Adviser continue to monitor the asset's performance closely against a background of  difficult market trading conditions.

Debt
The Board decided to let the revolving credit facility expire on 18 April 2025, minimising fees and expenses going forward. As a result, Tesseract Holdings Limited used EUR 2.8 million of its cash to collateralise the remaining outstanding bank guarantees of approximately EUR 2.8 million, which support dismantling obligations associated with the Company's Spanish solar PV assets.

CONTRACTED REVENUE POSITION¹

Revenue Mix - Existing Contracts

Present Value of Revenues (Five Years)²

The Board and Investment Adviser are not actively entering into new hedging opportunities unless the commercial terms are compelling given the Board's focus on the Managed Wind-Down process. In the first half of 2025 the share of production sold at market prices was 52.2 compared with 49.0% as at the end of 2024.

Contracted revenue net present value¹
EUR 196.7m

Contracted revenue^1,2 (aggregate over asset life)
EUR 301.6m

Contracted revenue over the next five years²
47.8%

Weighted average contracted revenue life
9.9 years

1.    Contracted revenue as at 30 June 2025, discounted by the weighted average portfolio discount rate.

2.    Aggregate contracted revenue over entire asset life (not discounted).

FINANCIAL PERFORMANCE

PERFORMANCE¹

1.    Value adjusted for the assets sold so that a comparison is possible.

2.    Average technical availability based on weighted installed capacity (AER share).

3.    Includes merchant revenue, contracted revenue and other revenue (e.g. Guarantees of Origin, Electricity Certificates).

1H25 Monthly Production Performance vs. Budget

The portfolio's production was 24.4% below budget over the reporting period, primarily due to lower irradiation for the solar portfolio, curtailment of the Iberian solar PV assets due to periods of negative market prices (c. 33% below forecast) and a combination of low irradiation and a failure of a transformer in Portugal, which resulted in 2 months of reduced capacity (now resolved) at the Ourique plant (ca. 29% below forecast). The production of the portfolio was also affected from poor wind conditions in Denmark and Greece (c. 21% below forecast) technical availability issues such as icing in Norway & Finland (c. 14% below forecast). Due to these factors, the portfolio weighted average technical availability over the reporting period standing at 94.6% (1H24: 96.9%).

If the technical availability of a plant falls below the guaranteed level, the compensation is contractually defined in the respective EPC or O&M agreement in the form of liquidated damages. However, for certain assets, this compensation is calculated based on the annual technical availability. As long as the year-end value remains above the guaranteed threshold, no liquidated damages are payable.

In Spain, technical curtailments may be compensated (real-time at spot price), while day-ahead curtailments are not. Commercial curtailments due to negative prices are not covered by PPAs and excluded from revenues. For wind assets with baseload PPAs, curtailed volumes must be bought back on the spot market, usually without compensation. By contrast, Iberian PV assets are generally contracted under pay-as-produce PPAs, which avoid market buy-back obligations in case of curtailments or low production.

GEARING¹

In the first half of 2025, a total of EUR 4.1 million in bank financing was repaid excluding the external debt of Sagres included in the amount as at 31 December 2024.

As of 30 June 2025, Olhava's historic DSCR ratio (at 0.91x) was again below the default threshold of 1.05x under the bank financing with SEB. The breach is due principally to low power prices in the market. It has been necessary to make equity cure payments from the resources of the company which owns Olhava and agree that payments under the shareholder loan and of dividends are suspended until the end of December 2025. In September 2025 an additional equity cure of EUR 508k was paid from the Company's resources. Constructive discussions with the bank are ongoing to modify the terms of the loan, which are likely to result in the lock up period being extended.

DEBT SUMMARY AS AT 30 JUNE 2025

1.    Foreign currency values converted to EUR as at 30 June 2025. Data represents AER's share of debt. AER share of Desfina debt based on voting interest.

2.    Debt corresponds to senior debt secured at project level.

3.    This disclosure is considered to represent the Company's alternative performance measures ("APMs"). Definitions of these APMs and other performance measures used, together with how these measures have been calculated, can be found below. All references to cents are in euros, unless stated otherwise.

4.    Weighted average all in interest rate for EUR denominated debt. DKK denominated debt has an average weighted interest rate of 2.7% (31 December 2024: 2.8%).

VALUATION
The Company's NAV as at 30 June 2025 was EUR 279.3 million or 73.9 cents per Ordinary Share (31 December 2024: EUR 320.2 million or 84.7 cents per Ordinary Share). This represents a NAV total return of -10.9% per Ordinary Share (2024: -8.2%) including dividends.

Dividends of EUR 6.0 million (1.58 cents per Ordinary Share) were paid during the reporting period.

The main drivers of NAV movement in the value of investments in the reporting period include:

·      Reductions in forecast European power price curves, which on average across the portfolio decreased over the next 5 years compared to the last quarter, accounting for 4.6% of the decline in NAV; and

·      An increase to the portfolio discount rate to 8.8% in line with the company listed peers due to the following reasons:

o  Increase in risk free rate especially in the long run due to ongoing uncertainties in the markets (international conflicts, US tariff policy)

o  Higher return expectations reflecting the challenging environment for wind and solar investments

o  Change in power price mix applied to the Northern Europe Wind investments leading to higher cash flow forecasts and consequently higher discount rate

o  As a result, the increase in the portfolio discount rate accounted for a 5.2% decline in NAV.

VALUATION METHODOLOGY
The Company owns 100.0% of its subsidiary Tesseract Holdings Limited ("HoldCo" or "THL"). The Company meets the definition of an investment entity as described by IFRS 10. As such, the Company's investment in the HoldCo is valued at fair value.

The Company has acquired underlying investments in SPVs through its investment in the HoldCo. The Investment Adviser has carried out fair market valuations of the SPV investments as at 30 June 2025 and the Directors are satisfied with the methodology, the discount rates and key assumptions applied, and the valuations.

All SPV investments are at fair value through profit or loss and are valued using the IFRS 13 framework for fair value measurement. The economic assumptions shown below were used in the valuation of the SPVs.

VALUATION ASSUMPTIONS

VALUATION SENSITIVITIES
The fair value of the Company's investment in HoldCo is ultimately determined by the underlying fair values of the SPV investments. As such, sensitivity analysis is produced to show the impact of reasonable changes in key assumptions adopted to arrive at the SPV valuation.

For each of the sensitivities, it is assumed that potential changes occur independently of each other with no effect on any other base case assumption, and that the number of investments in the SPVs remains static throughout the modelled life.

The NAV per share impacts from each sensitivity are shown below:

(i) Discount Rates
The DCF valuation of the SPV investments represents the largest component of the NAV of the Company and the key sensitivities are considered to be the discount rate used in the DCF valuation assumptions.

The weighted average valuation discount rate applied to calculate the SPV valuation is 8.8% at 30 June 2025 (2024: 7.3%). An increase or decrease in this rate by 0.5% at project level has the following effect on valuation:

(ii) Power Price
Long-term power price forecasts are provided by leading market consultants and are updated quarterly. The sensitivity below assumes a 10% increase or decrease in merchant power prices relative to the base case for every year of the asset life.

The sensitivity considers a flat 10% movement in power prices for all years, i.e. the effect of adjusting the forecast electricity price assumptions in each of the jurisdictions applicable to the SPV down by 10% and up by 10% from the base case assumptions for each year throughout the operating life of the SPV.

A change in the forecast electricity price assumptions by plus or minus 10% has the following effect on valuation, as shown below.

(iii) ENERGY YIELD
The base case assumes a "P50" level of output. The P50 output is the estimated annual amount of electricity generation (in MW) that has a 50% probability of being exceeded both in any single year and over the long term and a 50% probability of being underachieved. Hence the P50 is the expected level of generation over the long term. The sensitivity illustrates the effect of assuming "P90 10 years" (a downside case) and "P10 10 years" (an upside case) energy production scenarios. A P90 10 years downside case assumes the average annual level of electricity generation that has a 90% probability of being exceeded over a ten-year period. A P10 10 years upside case assumes the average annual level of electricity generation that has a 10% probability of being exceeded over a ten-year period. This means that the SPV aggregate production outcome for any given ten-year period would be expected to fall somewhere between these P90 and P10 levels with an 80% confidence level, with a 10% probability of it falling below that range of outcomes and a 10% probability of it exceeding that range. The sensitivity does not include the portfolio effect which would reduce the variability because of the geographical diversification. The sensitivity is applied throughout the next ten years.

The table below shows the sensitivity of the SPV value to changes in the energy yield applied to cash flows from project companies in the SPV as per the terms P90, P50 and P10 explained above.

(iv) Inflation Rates
The projects' income streams are principally a mix of government regulated tariffs, fixed-price PPAs and merchant revenues. Government regulated tariffs and fixed-price PPAs tend not to be inflation linked, whilst merchant revenues are generally subject to inflation. The current contractual life of government regulated tariffs and fixed-price PPAs are shorter than their respective asset lives, meaning, from a valuation perspective, the assets are more exposed to merchant revenues in the late asset life. As described earlier, the Company intends to renew power price hedges (e.g. in the form of PPAs or other mechanisms) before the existing contracts (PPAs and government-regulated tariffs) expire. This rolling hedge strategy is not reflected in the sensitivities illustrated above. The projects' management and maintenance expenses typically move with inflation; however, debt payments are fixed. This results in the SPV returns and valuation being positively correlated to inflation. The SPVs valuation assumes long-term inflation of 2.0% p.a.

The sensitivity illustrates the effect of a 0.5% decrease and a 0.5% increase from the assumed annual inflation rates in the financial model for each year throughout the operating life of the SPV.

(v) Asset Life
In general, an operating life of 25 to 30 years for onshore wind energy and 30 years for solar PV is assumed. In individual cases, a longer operating life is assumed where the contractual set-up (i.e. O&M agreement with availability guarantee) supports such an assumption.

The sensitivity below shows the valuation impact from a one-year adjustment to the asset life across the portfolio.

(vi) Operating Expenses
The sensitivity shows the effect of a 10.0% decrease and a 10.0% increase to the base case for annual operating costs for the SPV, in each case assuming that the change to the base case for operating costs occurs with effect from 1 January 2025 and that change is applied for the remaining life of the assets.

An increase or decrease in operating expenses by 10% at SPV level has the following effect on valuation, as shown below.

PORTFOLIO VALUATION - KEY ASSUMPTIONS

Assumptions were made as at 30 June 2025, namely an increase in the individual discount rates applied to the Company's investments in line with listed peers and in order to reflect a combination of factors, including higher perceived risks to the cash flows forecast to be generated from the investments and current higher return expectations from investors in Wind and Solar PV investments.

1.    Remaining asset life based on net full load years. Does not consider any potential asset life extensions.

2.    Asset life assumption from date of commissioning.

VALUATION SENSITIVITIES

MARKET COMMENTARY AND OUTLOOK

Electricity Price Forecasts - All Assets (Weighted Average)
Power price forecasts used in respect of the period ended 30 June 2025 showed marked reductions in forecast wholesale power price forecasts, particularly for the Company's wind investments over the next 5-10 years as well as increases in the discount between the capture and wholesale prices with the average discount widening by 16% in the next 5 years to 14% of the wholesale price.

There was a significant widening of the discount between capture and wholesale prices compared to Q4 2024. This reflects the stronger cannibalization effects that occur as renewable penetration increases.

Changes to wholesale and capture power price forecasts for the Company's solar PV investments were less significant although the capture price discount to wholesale prices widened by 6% to an average discount of c. 28% over the next 10 years with this change offsetting slight improvements in wholesale power price forecasts in these markets over the same period.

MARKET PRICES
In the first half of 2025, European power markets experienced strong volatility. Prices rose early in the year, driven by higher gas costs, seasonal demand, and lower wind generation, while the Iberian Peninsula benefited from abundant hydro resources and milder weather. As the months progressed, prices eased significantly across most regions, reflecting lower seasonal demand, improved hydro reserves in the Nordics and Iberia, and continued strong solar generation in southern Europe. Overall, the period was marked by a sharp contrast between an initial surge in prices and a pronounced correction later in the half-year, resulting in more balanced market conditions by the end of June.

NORDICS
In the first half of 2025, the Nordic power market showed pronounced volatility. During the first quarter, the system spot price averaged in the mid-40s EUR/MWh, up significantly from the previous quarter, driven by higher winter demand and elevated commodity prices. In contrast, the second quarter saw prices fall to the mid-20s EUR/MWh, as hydro reservoirs approached 90 percent capacity, wind generation increased sharply-particularly in Finland-and mild spring temperatures reduced heating demand. These conditions also intensified wind cannibalization, with capture prices in Finland falling by almost half compared to the winter months. While spot prices dropped, the front-year forward contract remained more resilient, hovering in the mid-30s EUR/MWh in both quarters, with a slight uptick in Q2 reflecting expectations of tighter supply in the coming winter.

Over the past year, Finland's electricity balancing costs have risen significantly, driven by a combination of structural market reforms and growing variability in supply. Finland has introduced an automatic Frequency Restoration Reserve (aFRR2) energy activation market, with 15 minute settlement periods, and joined PICASSO, which have changed how imbalance prices are determined (taking into account both aFRR and mFRR). These recent reforms have increased the cost of even small deviations and led to more local activations and more frequent activations, which in many cases come with higher marginal costs.

IBERIA
Iberian power prices experienced a strong downward trend. Early in the year, prices eased compared to the previous quarter, supported by higher hydro availability, stable commodity prices, and above-average wind generation, which reduced reliance on gas-fired generation. Spot prices averaged in the mid-80s EUR/MWh, while front-year forward contracts were slightly lower than in the previous quarter. During spring, prices fell sharply as record solar output contributed a growing share of the generation mix and hydro reservoirs recovered, leading to temporarily negative spot prices in May which prompted curtailment of production to reduce losses. Solar capture prices dropped significantly due to midday oversupply, while forward prices remained relatively stable, reflecting ongoing gas price volatility despite abundant renewable generation.

Spain is seeing a growing problem of technical curtailment, i.e. forced reductions in renewable generation (especially solar and hydro), because the grid cannot absorb or reliably manage the excess supply. Transmission and distribution networks in Spain have not been reinforced at the same pace as renewable build-out and some regions have substantial clusters of solar PV and wind projects but limited grid evacuation capacity. When production is high, the grid operator (REE) has to curtail generation to avoid overloads. For their mitigation, REE has planned billions in grid reinforcement and expansion, especially in Andalucía and Extremadura. Also, the development of pumped hydro and battery storage will allow to store renewable power to be used when more valued instead of being curtailed. Following the blackout last March, REE has operated the grid in a "safe" mode, increasing the thermal capacity in the mix and therefore penalizing especially PV operators.

GREECE
Power prices in Greece were more elevated than other European Greek power prices showed strong volatility. In early 2025, prices averaged above 130 EUR/MWh, up from the previous quarter, driven by higher demand and reduced solar and hydro output, which kept gas-fired plants as the main marginal technology. During spring, prices fell sharply to the mid-80s EUR/MWh, supported by a significant increase in solar generation and lower gas costs. Wind capture prices declined substantially due to oversupply, reflecting the growing impact of renewables on market dynamics.

OUTLOOK
The macroeconomic environment in the first half of 2025 has remained challenging, but the Company expects gradual improvements in market conditions over the remainder of the year. Key supportive factors include the potential stabilization of energy commodity markets following the sharp price corrections observed in spring and the continued easing of inflationary pressures across the European Union. Nonetheless, inflation is likely to remain elevated relative to the past decade, driven by structural trends such as high labour demand supporting wage growth, ongoing energy transition costs, constrained housing markets, de-globalisation, and elevated defence spending amid geopolitical tensions, including the ongoing conflict in Ukraine and rising uncertainties in the Middle East. Recent increases in European natural gas prices highlight the persistent exposure of power markets to supply disruptions and global competition for liquefied natural gas.

Despite these challenges, the Company remains confident in the long-term outlook for the renewable energy sector. The urgent need to decarbonise energy supply, coupled with supportive European regulatory frameworks, is expected to continue driving investment. Rising power demand from industrial recovery, electrification of transport and heat, and growing energy needs from data centres and advanced AI applications will provide sustained growth opportunities for the sector.

Aquila Capital Investmentgesellschaft mbH
30 September 2025

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

1. Environmental
Aquila Group, the Investment Adviser of the Company, focuses on the investment in, and development of, essential assets. This includes clean energy (wind energy, solar PV, hydropower and battery storage), sustainable infrastructure and specialty asset classes, such as carbon forestry and energy efficiency.

In 2022, Aquila Group formalised a mission to become one of the world's leading sustainable investment and development companies for essential assets by 2030. To show commitment to the mission, it set a Group-wide goal to avoid 1.5 billion tonnes of CO2e by 2035 in its portfolio's lifetime.

Using the appropriate tools, due-diligence procedures and experts, Aquila Group ensures it identifies, assesses and mitigates all material ESG factors, to protect investors from potential financial downside, while considering their impact on society and the environment. In this context, Aquila Group, a regulated entity, manages all relevant ESG elements using dedicated subject-matter experts. Together, we are committed to the UN Sustainable Development Goals, particularly climate action (SDG #13), clean energy (SDG #7), industry innovation, and infrastructure (SDG #9).

AER is invested in a diversified portfolio of renewable energy infrastructure investments, such as wind and solar parks, across continental Europe.

AER's Contribution to the UN Sustainable Development Goals

At least a 40.0% decline below 1990 levels in greenhouse gas emissions

A 32.0% share of renewables in the energy system

A 32.5% improvement in energy efficiency

AER's Contribution to the UN Sustainable Development Goals

1.    Actual AER contributions as at 31 December 2024. The CO2 equivalent avoidance, the average European households supplied and household emissions are approximations and do not necessarily reflect the exact impact of the renewable energy projects. The cited sources of information are believed to be reliable and accurate, however, the completeness, accuracy, validity and timeliness of the information provided cannot be guaranteed and Aquila Capital accepts no liability for any damages that may arise directly or indirectly from the use of this information.

Environmental Initiatives
The natural environment around some of the Company's solar PV parks is the Desierto de Tabernas National Park, situated to the southeast of Spain and representing the only desert in the entire European continent. This constitutes a rich biodiversity of environmental resources that is of particular geological interest. Specialist advisers have been commissioned to implement environmental measures to mitigate the impact of the solar PV plants on the environment and create habitats for flora and fauna.

Several visits per month are made to implement the measures, monitor their evolution and make necessary adjustments. Below is a selection of closely monitored measures implemented across some of the Company's solar PV parks for local flora and fauna.

Flora

·      Translocation of rain-fed olive trees

·      Planting of broom and palmetto trees to promote landscape integration and the creation of biotopes appropriate for local species

·      Clearing of vegetation through sheep grazing

·      Regular maintenance measures and monitoring

Fauna

·      Drinking troughs, feeding troughs and perches were installed in order to suit the local fauna

·      A hunting fence was installed to protect wildlife

·      Bird nest boxes were installed, specifically for the nesting of the lesser kestrel, common kestrel, barn owl and little owl species

·      A study commissioned to analyse the degree of adaptation of bird species to the presence of the solar PV parks, with special emphasis on the lesser kestrel and Montagu's harrier species

·      Stands for wild rabbits built to help the breeding and survival of this species

2. Social
Renewable energy projects can have an inherent major positive impact on the environment with their ability to decarbonise the energy sector, aiding the Company in the transition to a low-carbon economy. In light of the European Green Deal boosting renewable energy projects, investment into clean-energy assets has accelerated over recent years. As renewable energy deployment increases, pressure on land is growing. The need to protect biodiversity may result in conflicts over agricultural and renewable energy land usage. Conflicts can arise when new renewable projects compete against other types of land usage, such as residential housing, recreational areas, agriculture and nature conservation, or when they cause landscape disruptions. Engagement with local communities is an integral part of the Company's investment philosophy. The assets continue to support communities by contracting local service providers, paying local taxes, and lease payments for use of the land.

3. Governance
Independent Board of Directors
The independent Board of Directors is responsible for AERʼs governance and sustainability policy and its implementation, with the daily operations being delegated to its independent AIFM, FundRock Management Company (Guernsey) Limited ("FundRock"). FundRock monitors environmental, social and governance risks, which are fully integrated across every single stage of its investment process. The Aquila Group publishes its own Sustainability Report, describing the Investment Adviser's approach to sustainability within the investment process. Aquila Capital regards integrity and diversity as key pillars in its governance and it has been vital for the growth and success of the Company. The Investment Adviser is fully regulated and supervised by the Federal Financial Supervisory Authority in Germany.

Board and Employee Diversity
The Board of Directors is appointed based on expertise and merit, being mindful of the benefits generated by diversity. The Board comprises members with different skills and experiences, while endeavouring to comply with the Listing Rules on diversity. The current Board comprises three men and two women, all non-executive Directors who have a significant number of years of experience in their relevant fields. Additionally, the Investment Adviser is also mindful of the benefits provided by diversification, both in culture (some 30 nationalities are represented among its employees), and in gender (its gender ratio is 62% male and 38% female).

AER Board:

Men                        Women

3                              2

Investment Adviser:

Men                        Women

62%                        38%

60
Different nationalities

5
GENDER EQUITY

BOARD OF DIRECTORS
The AER Board comprises five directors with deep expertise across private equity, law, and the energy sector (including renewables).

IAN NOLAN
Non-Executive Chairman
Appointed on 8 April 2019

Ian Nolan led the team that was recruited by the UK Government in 2011 to establish the UK Green Investment Bank and was its Chief Investment Officer until 2014. Previously, Mr Nolan held the position of Chief Investment Officer at 3i Plc and was a Director of Telecity Group Plc. He is currently a Partner and Chairman of the Investment Committee of Circularity Capital LLP. Mr Nolan has three decades of experience in finance, private equity and investment management. He qualified as a chartered accountant with Arthur Andersen and graduated with a BA in Economics from Cambridge University.

Role
Chairman of the Board

MYRTLE DAWES
Non-executive Director
Appointed on 1 September 2023

Myrtle Dawes has over 30 years' experience of the energy sector, both in the UK and overseas. She is CEO of the Net Zero Technology Centre, a non-executive Board member of FirstGroup, and an advisory Board member for the Association of Black and Minority Engineers. Until recently, she served as a non-executive Board member of the Centre for Process Innovation.

Ms Dawes holds a Masters in Chemical Engineering and Chemical Technology from Imperial College. She is a Fellow of the Institute of Chemical Engineers, Fellow of the Forward Institute and Honorary Fellow of the Association of Project Managers.

In 2017, Myrtle received recognition for her contribution to business, having featured in Breaking the Glass Ceiling and being selected as one of 100 Women to Watch in the Cranfield FTSE Board Report 2017. In 2021 she was recognised by TE:100 as one of the Women of the Energy Transition.

Role
Member of the Audit and Risk Committee and Remuneration and Nomination Committee.

DAVID MACLELLAN
Non-executive Director
Appointed on 8 April 2019

David MacLellan has almost 40 years' experience in private equity first with Murray Johnstone which he joined in 1984 and then with RJD Partners which he founded in 2001. He was a director of Aberdeen Asset Managers plc following its acquisition in 2000 of Murray Johnstone where he was latterly chief executive. Mr MacLellan has served on the boards of a number of companies including as Chairman of John Laing Infrastructure Fund Limited. He is currently Chairman of Custodian Income REIT plc, and a director and Chairman of the audit committees of The Lindsell Train Investment Trust plc and J&J Denholm Limited. He is a past council member of the British Venture Capital Association and is a member of the Institute of Chartered Accountants of Scotland.

Role
Chair of the Audit and Risk Committee and member of the Remuneration and Nomination Committee.

KENNETH MACRITCHIE
Non-executive Director
Appointed on 8 April 2019

Kenneth MacRitchie has over 30 years' experience of advising on the financing, development and operation of independent power projects across Europe, the Middle East and Africa. He was a partner at the global law firm Clifford Chance and, thereafter, at Shearman & Sterling, where he served on their Management Board. Mr MacRitchie also has experience of advising the UK Government on renewable energy policy, and he led the establishment of Low Carbon Contracts Company Limited, the UK Government owned company that provides subsidies for the UK renewables industry. He is a graduate of the Universities of Glasgow, Aberdeen and Manchester.

Role
Member of the Audit and Risk Committee and Remuneration and Nomination Committee.

PATRICIA RODRIGUES
Non-executive Director
Appointed on 17 April 2019

Dr Patricia Rodrigues has over two decades of leadership experience in infrastructure and real-asset investment and investment banking, having worked in $10Bn+ transactions. She is a non-executive Director for several companies and funds investing in real assets globally, including Legal & General Assurance Society Ltd. Dr Rodrigues is also an Investment Committee member of GLIL Infrastructure and AIIF4 (Africa Infrastructure). She began her finance career at Morgan Stanley and subsequently worked for Macquarie, including as a Managing Director, where she led new infrastructure and real-asset products globally. Dr Rodrigues was Head of Portfolio Management for UK Green Investment Bank, before leading the growth strategy of the non-real-estate Real Assets business for Townsend. She is recognised as a "Leading Woman in Infrastructure" and holds a PhD in Engineering from Cambridge University.

Role
Chair of the Remuneration and Nomination Committee and member of the Audit and Risk Committee.

INTERIM MANAGEMENT REPORT AND RESPONSIBILITY STATEMENT

The Directors are required to provide an Interim Management Report in accordance with the Financial Conduct Authority ("FCA") Disclosure Guidance and Transparency Rules ("DTR"). The Chairman's Statement and the Investment Adviser's Report in this Half-Yearly Report provide details of the important events which have occurred during the period and their impact on the financial statements. The following statements on Related Party Transactions, Going Concern, the Statement of Directors' Responsibilities, the Chairman's Statement and Investment Adviser's Report, together constitute the Interim Management Report of the Company for the six months ended 30 June 2025. The outlook for the Company for the remaining six months of the year ending 31 December 2025 is discussed in the Chairman's Statement and the Investment Adviser's Report.

Principal Risks and Uncertainties
The principal risks and uncertainties facing the Company were detailed in the Company's most recent Annual Report for the year ended 31 December 2024, which can be found on the Company's website at www.aquila-european-renewables.com. These remain largely unchanged during the period under review, with the exception of the addition of power price risks. The key risks are summarised below:

·      Economic and Political Risk - The revenue and value of the Company's investments may be affected by future changes in the economic and political situation;

·      Power Price Risks - The risk that revenues decrease from sales of power at prevailing market prices.  In the year to date there has been a reduction in expected European power price curves, which on average fell across the portfolio over the next five years contributing to a decline in NAV (around 4.6%);

·      Operational Risk - The risk that the portfolio underperforms and, as a result, the target returns are not met over the longer term. The risk that service providers to the Company underperform, and as a result, impact the Company's performance, reporting or reputation;

·      Financial Risk - The risk that the valuations and underlying assumptions used to value the investment portfolio are not a fair reflection of the market, resulting in the investment portfolio being over or under-valued;

·      Compliance, Tax and Legal Risk - The failure to comply with relevant regulatory changes, tax rules and obligations may result in reputational damage or create a financial loss to the Company; and

·      Emerging Risk - As the run-off progresses there will be a significantly reduced size to the portfolio, which will in turn reduce the IA fee and potentially place a strain on available IA resourcing. As several costs are fixed, this will potentially lead to a growing cost base relative to the size of the Company.

Principal risks, including emerging risks, are mitigated and managed by the Board through policy setting and regular reviews of the Company's risk matrix by the Audit Committee to ensure that procedures are in place with the intention of minimising the impact of the above-mentioned risks. The Board relies on periodic reports provided by the Alternative Investment Fund Manager, Investment Adviser and Administrator regarding risks that the Company faces. When required, experts will be employed to gather information, including legal advisers and environmental advisers.

The Company's Annual Report for the year ended 31 December 2024 contains more detail on the Company's principal risks and uncertainties, including the Board's ongoing process to identify, and where possible mitigate, the risks.

The Board is of the opinion that these principal risks are equally applicable to the remaining six months of the financial year as they were to the six months being reported on.

Related Party Transactions
The Company's Investment Adviser, Aquila Capital Investmentgesellschaft mbH, and Directors are considered related parties under the Listing Rules. Details of the amounts paid to the Company's Investment Adviser and the Directors during the period are detailed in note 11 below.

Going Concern
As at the date of this report the Directors are required to consider whether they have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and for a period of twelve months from the date of the signing of these financial statements (the "going concern period"). Following the General Meeting held on 30 September 2024 at which shareholders unanimously voted in favour of the discontinuation of the Company and a change in the Company's Objective and Investment Policy in order to facilitate the Managed Wind-Down of the Company, the process for an orderly realisation of the Company's assets and a return of capital to shareholders has begun and is expected to conclude over a number of years. The Company is preparing its financial statements on a going concern basis, although it is recognised that there is material uncertainty over whether the Company will be in existence in its current form twelve months from the date of signing of these financial statements, based on whether the Managed Wind-Down process were to conclude during the going concern period. These events therefore indicate the existence of a material uncertainty which may cast significant doubt about the Company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Company were unable to continue as a going concern.

The Board will seek to realise all of the Company's assets in a manner that achieves a balance between maximising the proceeds received by the Company from the sale of those and making timely returns to Shareholders.

The Directors are satisfied that the Company has adequate resources to continue in operation throughout the Managed Wind-Down period and to meet all liabilities as they fall due. No material adjustments to accounting policies or the valuation methodology have arisen as a result of entering Managed Wind-Down.

Statement of Directors' Responsibilities
The DTR of the FCA requires the Directors to confirm their responsibilities in relation to the preparation and publication of the Interim Management Report and Financial Statements. The Directors confirm to the best of their knowledge that:

·      the financial statements contained within the Half-Yearly Report has been prepared in accordance with the International Accounting Standard 34 - IAS 34 Interim Financial Reporting; and

·      the Interim Management Report, together with the Chairman's Statement and Investment Manager's Report, includes a fair review of the information required by 4.2.7R and 4.2.8R of the FCA Disclosure Guidance and Transparency Rules.

The Half-Yearly Report has not been reviewed by the Company's Auditors. The Half-Yearly Report was approved by the Board on 30 September 2025 and the above Responsibility Statement was signed on its behalf by the Chairman.

IAN NOLAN
Chairman
For and on behalf of the Board
30 September 2025

Financials

STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2025

The total column of the Statement of Comprehensive Income is the profit and loss account of the Company.

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

Profit/(Loss) on ordinary activities after taxation is also the 'total comprehensive income/(loss) for the period.

The notes are an integral part of these financial statements.

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2025

Approved by the Board of Directors and authorised for issue on 30 September 2025 and signed on its behalf by:

IAN NOLAN
Chairman
Company number: 11932433

The notes are an integral part of these financial statements.

STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2025

The notes are an integral part of these financial statements.

STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2025

The notes are an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2025

1. General Information
Aquila European Renewables Plc ("AER", 'the Company') is a public company limited by shares, incorporated in England and Wales on 8 April 2019 with registered number 11932433. The Company is domiciled in England and Wales. The Company is a closed ended investment company with an indefinite life, which is now in managed wind-down. The Company commenced its operations on 5 June 2019 when the Company's Ordinary Shares were admitted to trading on the London Stock Exchange. The Directors intend, at all times, to conduct the affairs of the Company so as to enable it to qualify as an investment trust for the purposes of section 1158 of the Corporation Tax Act 2010, as amended.

The registered office and principal place of business of the Company is 4th Floor, 140 Aldersgate St, London, EC1A 4HY.

At a General Meeting held on 30 September 2024, shareholders approved a change in the Company's Investment Objective and Investment Policy. The new Investment Objective is to realise all existing assets in the Company's Portfolio in an orderly manner.

The Company's Investment Adviser is Aquila Capital Investmentgesellschaft mbH, authorised and regulated by the German Federal Financial Supervisory Authority.

FundRock Management Company (Guernsey) Limited acts as the Company's Alternative Investment Fund Manager for the purposes of Directive 2011/61/EU of the Alternative Investment Fund Managers Directive.

Apex Listed Companies Services (UK) Limited provides administrative and company secretarial services to the Company under the terms of an administration agreement between the Company and the Administrator.

2. Basis of Preparation
The financial statements included in this Half-Yearly Report have been prepared in accordance with IAS 34 Interim Financial Reporting. The accounting policies, critical accounting judgements, estimates and assumptions are consistent and should be read in conjunction with the Company's latest annual audited financial statements for the period ended 31 December 2024. The financial statements for the year ended 31 December 2024 have been prepared in accordance with the UK-adopted International Accounting Standards in conformity with the requirements of the Companies Act 2006, as applicable to companies reporting under those standards. The financial statements have been prepared on the historical cost basis, except for the measurement of certain financial instruments at fair value through profit or loss.

The interim financial statements have also been prepared as far as is relevant and applicable to the Company in accordance with the Statement of Recommended Practice ("SORP") issued by the Association of Investment Companies ("AIC") in July 2022. These financial statements do not include all information and disclosures required in the annual financial statements and should be read in conjunction with the Company's annual financial statements of 31 December 2024. The audited annual accounts for the year ended 31 December 2024 have been delivered to Companies House. The audit report thereon was unmodified.

The functional currency of the Company is euros (EUR), as this is the currency of the primary economic environment in which the Company operates. Accordingly, the financial statements are presented in euros, rounded to the nearest thousand euros, unless otherwise stated.

Accounting for Subsidiary
The Company owns 100.0% of its subsidiary Tesseract Holdings Limited ("THL" or "HoldCo"), whose registered office and principal place of business is Leaf B, 20th Floor, Tower 42, Old Broad Street, London, England, EC2N 1HQ. The Company has acquired Renewable Energy Infrastructure Investments (the SPVs) through its investment in the HoldCo. The Company finances HoldCo through a mix of loan investments and equity. The loan investment finance represents Shareholder loans (the "Shareholder loans" or "SHL") provided by the Company to HoldCo. The Company meets the definition of an investment entity as described by IFRS 10. Under IFRS 10, an investment entity is required to hold subsidiaries at fair value through profit or loss and therefore does not consolidate the subsidiary.

The HoldCo is an investment entity, and as described under IFRS 10, values its SPV investments at fair value through profit or loss. SPV investments are investments held at HoldCo. Further details of the HoldCo and SPV structure and investment can be found in note 14.

Going Concern
The Directors have adopted the going concern basis in preparing the financial statements, although it is recognised that there is material uncertainty over whether the Company will be in existence in its current form twelve months from the date of signing these financial statements. Details of the Directors' assessment of the going concern status of the Company, which considered the adequacy of the Company's resources, and the impact of risks and uncertainties are provided in the Interim Management Report which can be found above.

Critical Accounting Judgements, Estimates and Assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions in certain circumstances that affect reported amounts. These are judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities.

The Directors have concluded that the Company meets the definition of an investment entity as defined in IFRS 10. This conclusion involved a degree of judgement and assessment as to whether the Company met the criteria outlined in IFRS 10.

The key assumptions that have a significant impact on the carrying value of the Companyʼs underlying investments in the SPVs are the discount rates, useful life of the assets, the rate of inflation, the price at which the power and associated benefits can be sold, the amount of electricity the assets are expected to produce and operating costs of the SPVs.

3. Investments at Fair Value through Profit and Loss

The fair value of the Companyʼs equity and the shareholder loans investment in HoldCo are determined by the underlying fair values of the SPV investments, which are not traded and contain unobservable inputs. As explained in Note 2, the Company has made a judgement to fair value of both the equity and shareholder loan investments together. As such, the Companyʼs equity and the shareholder loans investments in HoldCo have been classified as Level 3 in the fair value hierarchy.

Fair Value Measurements
IFRS 13 requires disclosure of fair value measurement by level. The level of fair value hierarchy within the financial assets or financial liabilities is determined on the basis of the lowest level input significant to the fair value measurement. Financial assets and financial liabilities are classified in their entirety into only one of the following three levels:

Level 1
The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.

Level 2
Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly.

Level 3
Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability. The classification of the Company's investments held at fair value is detailed in the table below:

Due to the nature of the investments, they are always expected to be classified as Level 3. There have been no transfers between levels during the period ended 30 June 2025 (31 December 2024: none). The movement on the Level 3 unquoted investments during the period is shown below:

Valuation Methodology
The Investment Adviser has carried out fair market valuations of the SPV investments as at 30 June 2025 and the Directors have satisfied themselves as to the methodology used, the discount rates and key assumptions applied, and the valuation. All SPV investments are at fair value through profit or loss and are valued using the IFRS 13 framework for fair value measurement.

The key assumptions that have a significant impact on the carrying value of the Companyʼs underlying investments in SPVs are the discount rates, useful life of the assets, the rate of inflation, the price at which the power and associated benefits can be sold, the amount of electricity the assets are expected to produce and operating costs of the SPVs.

The discount factors applied to the cash flows are reviewed annually by the Investment Adviser to ensure they are at the appropriate level. The weighted average valuation discount rate applied to calculate the SPV valuation is 8.8% as at 30 June 2025 (31 December 2024: 7.3%).

Useful lives are based on the Investment Adviserʼs estimates of the period over which the assets will generate revenue, which are periodically reviewed for continued appropriateness. The assumption generally used for the useful life of the wind farms is 25 to 30 years and solar PV is 40 years. The actual useful life may be a shorter or longer period depending on the actual operating conditions experienced by the asset. The operating lives of hydropower assets are estimated in accordance with their expected concession terms.

The price at which the output from the generating assets is sold is a factor of both wholesale electricity prices and the revenue received from the government support regime. Future power prices are estimated using external third-party forecasts, which take the form of specialist consultancy reports. The future power price assumptions are reviewed as and when these forecasts are updated. There is an inherent uncertainty in future wholesale electricity price projection. Long-term power price forecasts are provided by leading marker consultants, updated quarterly.

Specifically commissioned external reports are used to estimate the expected electrical output from the wind and hydropower farm and solar PV assets, taking into account the expected average wind speed at each location and generation data from historical operation. The actual electrical output may differ considerably from that estimated in such a report mainly due to the variability of actual wind to that modelled in any one period. Assumptions around electrical output will be reviewed only if there is good reason to suggest there has been a material change in this expectation.

The P50 level of output is the estimated annual amount of electricity generation (in MW) that has a 50.0% probability of being exceeded both in any single year and over the long term and a 50.0% probability of being underachieved.

Climate risks can also affect the carrying value of the Company's underlying investments. The Company relies (via the HoldCo or relevant SPVs) on third-party technical advisers to consider the impact of climate risks when assessing P50 production forecasts.

The operating costs of the SPV companies are frequently partly or wholly subject to inflation and an assumption is made that inflation will increase at a long-term rate. The SPV's valuation assumes long-term inflation of 2.0% (31 December 2024: 2.0%). The impact of physical and transition risks associated with climate change is assessed on a project-by-project basis and factored into the underlying cash flows as appropriate.

The following assumptions were used in the valuations:

1     Remaining asset life based on net full load years.

4. Income

5. Investmet Advisory Fees

Under the Investment Advisory Agreement, the following fee is payable to the Investment Adviser:

a)      0.75% per annum of NAV (plus VAT) of the Company up to EUR 300.0 million;

b)      0.65% per annum of NAV (plus VAT) of the Company between EUR 300.0 million and EUR 500.0 million; and

c)      0.55% per annum of NAV (plus VAT) of the Company above EUR 500.0 million.

6. Return Per Ordinary Share
Return per ordinary share is based on the loss for the period of EUR 34,936,000 (30 June 2024: loss of EUR 25,651,000) attributable to the weighted average number of Ordinary Shares in issue of 378,122,130 (30 June 2024: 378,122,130) in the period to 30 June 2025. Revenue profit and capital loss are EUR 5,189,000 (30 June 2024: EUR 6,154,000) and EUR 40,125,000 (30 June 2024: EUR 31,805,000) respectively.

1.    Remaining asset life based on net full load years. Includes Tesla, as at 30 June 2024.

7. TAXATION

Investment companies that have been approved by HM Revenue & Customs under section 1158 of the Corporation Tax Act 2010 are exempt from tax on capital gains. Due to the Company's status as an investment trust, and the intention to continue meeting the conditions required to obtain approval in the foreseeable future, the Company has not provided for deferred tax on any capital gains or losses arising on the revaluation of investments.

8. SHARE CAPITAL

The Ordinary Shares shall carry the right to receive the profits of the Company available for distribution and determined to be distributed by way of interim or final dividends at such times as the Directors may determine in accordance with the Articles of the Company. The holders of Ordinary Shares have the right to receive notice of, and to attend and vote at General Meetings of the Company.

There were no shares issued or purchased for treasury during the six month periods to 30 June 2025 or 31 December 2024.

9. NET ASSETS PER ORDINARY SHARE
Net assets per ordinary share as at 30 June 2025 are based on EUR 279,328,000 (31 December 2024: EUR 320,231,508) of net assets of the Company attributable to the 378,122,130 (31 December 2024: 378,122,130) Ordinary Shares in issue as at 30 June 2025.

10. DIVIDEND PAID
The Company has paid the following interim dividends in respect of the year under review:

The dividend relating to the period ended 30 June 2025, which is the basis on which the requirements of Section 1159 of the Corporation Tax Act 2010 are considered is detailed below:

11. TRANSACTIONS WITH THE INVESTMENT ADVISER AND RELATED PARTY TRANSACTIONS
Fees payable to the Investment Adviser are shown in the Income Statement. As at 30 June 2025, the fee outstanding to the Investment Adviser was EUR 1,105,035 (30 June 2024: EUR 618,503). These balances have been settled by the Company on 3 July 2025.

AIFM fees for the period ended 30 June 2025 amount to EUR 68,456 (30 June 2024: EUR 60,330). As at 30 June 2025, the fee outstanding to the AIFM was EUR 11,103 (30 June 2024: EUR 18,949). The Company Secretary and Administrator fees for the period ended 30 June 2025 amount to EUR 91,318 (30 June 2024: EUR 88,911).

Fees are payable to the Directors in respect of the year to 31 December 2024 at an annual rate of EUR 75,000 to the Chairman, EUR 52,500 to the Chair of the Audit and Risk Committee and EUR 45,150 to the other Directors. Directors' fees paid during the six month period to 30 June 2025 was EUR 97,000.

During the period, the Company received repayments of its Shareholder loans to HoldCo of EUR 685,091 (30 June 2024: EUR 5,316,000). The accrued interest and the Shareholder loans outstanding at the period end were EUR 221,207,109 (30 June 2024: EUR 228,572,000).

The Directors had the following shareholdings in the Company, all of which were beneficially owned.

12. COMMITMENTS AND CONTINGENCIES
The Company did not have any new investments or capital commitments during the first six months of 2025 due to the Company being put into managed wind-down.

13. DISTRIBUTABLE RESERVES
The Company's distributable reserves consist of the special reserve and revenue reserve. Capital reserve represents unrealised investments and as such is not distributable.

The revenue reserve is distributable. The amount of the revenue reserve that is distributable is not necessarily the full amount of the reserve as disclosed within these financial statements of EUR 519,000 as at 30 June 2025 (31 December 2024: EUR 973,000).

14. POST BALANCE SHEET EVENTS
On 11 September 2025, the Company announced the effective cancellation of its share premium account, a decision approved by shareholders at the AGM on 19 June 2025. The High Court sanctioned this cancellation on 19 August 2025, and it was registered with Companies House on 10 September 2025. This action cancels €255,642,627.68 previously held in the share premium account, creating distributable reserves. The company intends to use these reserves to return cash to shareholders through capital returns or dividends as part of its managed wind-down process. The timing and amount of these returns are subject to Board discretion, investment realisations, liabilities, working capital needs, and the nature of distributable reserves.

15. STATUS OF THIS REPORT
These half-yearly financial statements are not the Companyʼs statutory accounts for the purposes of section 434 of the Companies Act 2006. They are unaudited. The unaudited Interim Financial Report will be made available to the public at the Companyʼs registered office. The report will also be available in electronic format on the Companyʼs website, www.aquila-european-renewables.com.

The information for the year ended 31 December 2024 has been extracted from the last published audited financial statements, unless otherwise stated. The audited financial statements have been delivered to the Registrar of Companies. PricewaterhouseCoopers LLP reported on those accounts and their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under sections 498(2) or 498(3) of the Companies Act 2006.

The Interim Financial Report was approved by the Board on 30 September 2025.

OTHER INFORMATION

ALTERNATIVE PERFORMANCE MEASURES

In reporting financial information, the Company presents alternative performance measures ("APMs"), which are not defined or specified under the requirements of IFRS. The Company believes that these APMs, which are not considered to be a substitute for or superior to IFRS measures, provide stakeholders with additional helpful information on the performance of the Company. The APMs presented in this report are shown below:

DISCOUNT
The amount, expressed as a percentage, by which the share price is less than the net asset value per Ordinary Share.

ONGOING CHARGES
A measure, expressed as a percentage of average net assets (quarterly net assets averaged over the year), of the regular, recurring annual costs of running an investment company.

TOTAL RETURN
A measure of performance that includes both income and capital returns. This takes into account capital gains and reinvestment of dividends paid out by the Company into the Ordinary Shares of the Company on the ex-dividend date.

GROSS ASSET VALUE
The Company's gross assets comprise the net asset values of the Company's Ordinary Shares and the debt at the underlying SPV level, with the breakdown as follows:

GEARING
The Company's gearing is calculated as total debt as a percentage of Gross Asset Value.

Enquiries:

Company Secretary

Apex Listed Companies Services (UK) Ltd

Tel: +44 (0) 20 4582 6470

The Half-yearly financial report will be submitted to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism