The Investment Manager

FGEN is managed by Foresight Group LLP ("Foresight" or "Foresight Group") as its external Alternative Investment Fund Manager ("AIFM") with discretionary investment management authority for the Company.

About Foresight Group

Founded in 1984, Foresight is a FTSE 250 listed investment manager with a focus on real assets and capital for growth. It manages a range of private and public funds, including products tailored for retail investors. The firm develops investment strategies aimed at supporting the energy transition, industrial decarbonisation, nature recovery and the growth of high-potential businesses. Its approach combines financial and operational expertise to enhance asset value and deliver competitive returns.

1.  AUM as at 31 March 2026 - relates to continuing operations following the announced agreed sale of Foresight Group's public markets division. All other figures as at 30 September 2025.

2.  Totals of data presented in this document may vary slightly from the actual arithmetic totals of such data due to rounding adjustments, with all percentage movements calculated on underlying numbers.

3.  For the year 1 April 2025 ― 31 March 2026.

The Real Assets division manages 453 infrastructure assets with a focus on renewable energy generation (including wind and solar power, bioenergy, hydropower and geothermal energy), energy storage and grid infrastructure, as well as sustainable resource management, social and transport infrastructure projects and sustainable forestry assets.

The Real Assets team includes over 185 investment, commercial and technical professionals operating from offices in the UK, Italy, Spain and Australia, and collectively speaking over 10 languages.

The Foresight Real Assets broader strategy is focused on the following:

•   making good, consistent returns for investors;

•   satisfying the strong demand for ESG and alternative long‑term investment strategies from its institutional and retail investor base;

•   building on its ability to execute complex clean energy and other sustainability-led infrastructure investments in order to capitalise on the projected market growth arising from government and societal objectives to decarbonise economies; and

•   tapping into the in-house team's multi-national/disciplinary expertise which provides full lifecycle support from investment to exit in order to generate sustainable long‑term asset operation and economic benefits.

A team of over 185 dedicated professionals, bringing a diverse and comprehensive skillset.

The Real Assets investment team

•   The Real Assets investment team comprises 41 professionals with broad sector experience

•   The team leverages established UK and international networks to access emerging market opportunities

•   Equipped to deploy and manage capital across a wide range of infrastructure sectors and asset life stages

•   Bringing extensive investment origination and execution capabilities to FGEN

•   Over 1,000 investment opportunities have been reviewed in 2025/26 across all strategies

The Asset Management team

•   The Asset Management team comprises 69 professionals, including engineers, commercial managers and accountants

•   Equipped to manage assets across development, construction and operational stages

•   The team uses integrated management systems to ensure effective oversight and co‑ordination of assets

•   Focus on asset management and optimisation, particularly in identifying and delivering value enhancement opportunities

Other support functions

•   A team of eight dedicated infrastructure investor relations ("IR") professionals managing reporting requirements for institutional investors and overseeing all aspects of communication and engagement with all relevant stakeholders

•   A team of four experienced sustainability professionals integrating sustainable practices across investment, portfolio management and IR, utilising proprietary sustainability systems to support decision-making, portfolio oversight and reporting

•   Other support functions include finance, marketing, administration and compliance

Foresight's experience and reputation gives a competitive edge in origination of deal flow.

Strong origination capabilities

•   Size and breadth of team allows for significant deal origination volume

•   A strong track record of execution enables us to unlock relative value

•   Co-ordinated origination strategy ensures optimal pipeline selection

FGEN's dedicated investment management team with over 50 years of collective experience.

Edward Mountney

Investment Manager

Edward has been a part of FGEN since 2016 and joined the senior management team in 2022. Before this, he served as Head of Valuations at Foresight Group and John Laing Capital Management. With over 15 years of experience in infrastructure and renewables, Edward is a Member of the Institute of Chartered Accountants in England and Wales. He holds a BA (Hons) in Business and Management from Oxford Brookes University.

Charlie Wright

Investment Manager

Charlie has been at Foresight Group since 2017, recently joining the senior management team for FGEN. He has over 18 years of experience in infrastructure and renewables as an adviser, equity investor and project director, and has overseen a wide range of investments across Europe. He was previously at John Laing Group and KPMG. Charlie holds a BA in History from Exeter University and an ICAEW & CISI Diploma in Corporate Finance.

Chris Tanner

Investment Manager

Chris has been an Investment Manager¹ to FGEN since IPO in 2014. He joined Foresight in 2019 as a Partner and has over 25 years of industry experience. Chris is a Member of the Institute of Chartered Accountants in England and Wales and has an MA in Politics, Philosophy and Economics from Oxford University. Chris also serves as Chair of the Finance Forum for The Association of Renewable Energy and Clean Technology ("REA").

1.    Prior to January 2022, FGEN engaged Foresight in an investment advisory capacity rather than as the Investment Manager.

   The Investment Manager's report

The year in review

Introduction

During the year, FGEN has continued to benefit from the breadth and capability of Foresight Group's infrastructure platform. The Investment Manager's experience across origination, deal structuring, asset management, construction oversight, valuation, sustainability and investor relations remains central to delivering FGEN's broad environmental infrastructure mandate. This breadth is particularly important because FGEN is not simply a collection of renewable power assets; it is a diversified environmental infrastructure company with exposure across energy generation, enabling infrastructure, waste, water and sustainable industries.

The year has been characterised by continued progress against the refocused strategy set out in June 2025. The operational portfolio has continued to deliver resilient cash flows and dividend support, while the growth assets have moved further from construction and early-stage operational risk towards ramp-up, optimisation and value realisation. This combination - income from the operational portfolio and capital growth potential from the growth assets - is central to the Company's investment proposition.

Market conditions for listed infrastructure and renewables companies have remained challenging, with discounts to NAV, elevated interest rates and regulatory uncertainty continuing to influence investor sentiment. In that environment, the Investment Manager has remained focused on what the Company can control: operational performance, value enhancement, engaging with prospective investors, disciplined capital allocation and the creation of a credible pathway to organic NAV growth without reliance on new equity issuance.

Progress against strategy

The June 2025 strategic update was an important moment because it gave a clear articulation of where the Board and Investment Manager believe the Company can create value in the current market, and it has made positive progress against its refocused strategy, with the Board remaining focused on serving shareholders through three things: proactive management of the existing portfolio; an investment strategy that prioritises a core portfolio of environmental infrastructure; and continuation of the progressive dividend alongside delivery of capital growth.

Issuing new equity remains unlikely in the current market environment, so growth has to be delivered from capital already available to the Company, i.e. cash generation from the operational portfolio, selective follow-on reinvestment and potential realisations from asset sales. The growth assets form a meaningful component of this strategy, providing the Company with a clear pathway to organic growth and enabling a differentiated market proposition. FGEN can continue to rely on its cash-generating core portfolio while allowing these growth assets to mature into potential realisation opportunities. This gives the Company strategic flexibility without requiring the sale of core yielding assets that support dividend cover.

FGEN's Capital Markets Day, held on 12 May 2026, provided the opportunity for the Board and Investment Manager to present this strategy in greater detail, as detailed further in the 2026 Annual Report.

A portfolio that evolves with the market opportunity

FGEN has always prioritised diversification from its outset, given the benefits of a lower concentration of risk and a wider set of opportunities. The portfolio has evolved deliberately since IPO and has used Foresight's unique investment track record in environmental infrastructure to strategically respond to where we see the best risk-adjusted opportunities in a gradually shifting landscape.

At launch, the clearest opportunity was core renewables, particularly UK wind and solar, supported by attractive subsidy frameworks. Those assets remain important and continue to provide a meaningful part of the Company's cash generation. As competition in wind and solar increased and returns compressed, the Company expanded into bioenergy, particularly anaerobic digestion. That has been a notably successful part of the portfolio, providing baseload generation, exposure to biomethane and diversification away from purely weather-driven generation.

The portfolio has since evolved into other energy infrastructure and sustainable resource management, including CNG Fuels, Rjukan and the Glasshouse. These assets respond to long-term social, economic and political tailwinds, including decarbonisation, energy security, cleaner transport, sustainable food production and resource efficiency.

This evolution is not a departure from infrastructure discipline. The Company continues to prioritise assets and businesses with infrastructure-like characteristics, including physical asset backing, essential service qualities, revenue visibility, operational control and the potential for attractive risk-adjusted returns. The ability to follow value across environmental infrastructure, while remaining disciplined on risk, is an important differentiator versus narrower renewable generation strategies and will continue to be over the coming years.

Performance summary

NAV per ordinary share at 31 March 2026 was 105.2 pence, compared with 106.5 pence at 31 March 2025. The Company's portfolio valuation was £759.1 million, compared with £765.7 million the prior year end. The portfolio remained highly cash generative, with cash receipts from investments of £78.6 million, supporting dividend cover of 1.25x for the year.

The Company declared dividends of 7.96 pence per share in respect of the year, in line with the target and continuing FGEN's progressive dividend track record. Gearing at year end was 28.8%, remaining at a prudent level, consistent with the Board's disciplined approach to balance sheet management.

Operational performance across the portfolio was pleasing, with renewable and low-carbon energy generation of 1,338 GWh. The Company's diversified revenue mix - across power, gas, subsidies, certificates, long-term contracts and non-energy sources - continued to support resilience in a period of lower power prices, regulatory change and ongoing macroeconomic uncertainty.

The growth assets made further progress during the period. CNG Fuels continued to grow volumes and develop its market-leading biomethane refuelling platform; Rjukan moved further into operational ramp-up following first harvest; and the Glasshouse continued to expand sales and customer relationships. These assets remain important to the Company's medium-term NAV growth potential.

Investment activity

Investment activity during the period remained disciplined and focused on opportunities connected to the existing portfolio. The Company made follow-on investments into carbon capture across three of FGEN's anaerobic digestion assets, further investment into the pressure reduction system or "PRS 2" at Vulcan AD, and a debt investment into CNG Fuels. These investments were assessed against alternative uses of capital and are considered by the Investment Manager to be value-accretive opportunities within the existing portfolio, delivering a weighted average return in the mid-teens.

The follow-on investments into carbon capture across three AD assets reflect the growing recognition that biomethane assets can play a broader role in decarbonisation. In addition to being value-accretive investments in their own right via the sale of biogenic CO₂ as a food-grade product for the UK market, they also act as a key enabler for the life extension of the assets where GHG intensity linked biomethane green premiums are expected to dominate.

Further investment into PRS 2 builds on the success of previous pressure reduction system value enhancement work, which increased gas injection capacity and supported additional revenue generation. This is an example of the Investment Manager's active asset management approach: identifying opportunities within the existing portfolio where targeted capital can unlock additional value.

The debt investment into CNG Fuels supports the continued growth of a platform that is already demonstrating strong operational momentum, and provides FGEN with both equity and debt stakes in the business to bolster its protected position.

Looking forward, future investment activity will continue to be selective and will be measured against other capital allocation options, including debt repayment, buybacks, dividends and liquidity preservation.

Outlook

The Investment Manager remains confident in the long-term opportunity for FGEN. Environmental infrastructure continues to be supported by powerful structural drivers, including decarbonisation, electrification, energy security, grid modernisation, sustainable resource management and climate resilience. These drivers are reinforced by policy frameworks such as the UK Clean Power 2030 agenda, the EU 2040 climate target, AMP8 in the UK water sector and circular economy regulation across the UK and EU.

Whilst there has been some notable political turbulence over the period, including heightened geopolitical tensions due to the ongoing events in Ukraine and the Middle East, we retain an optimistic outlook for the wider environmental infrastructure opportunity, with decarbonisation and the path to net zero underpinned by robust social and economic winds. Foresight's continued investment activity across its private funds provides the wider infrastructure team with ongoing exposure to a broad range of infrastructure sectors and investment stages, spanning development platforms, construction and operational assets. The core FGEN investment management team therefore remains closely aligned with new investment activity and market developments. This ensures the Company is ready to deploy this expertise as soon as capital is available and the investment is value accretive for shareholders.

The near-term focus remains on maintaining the high-performing operational portfolio, delivering value enhancement initiatives, progressing the growth assets through ramp-up and allocating capital with discipline. Over the medium term, the growth assets should provide capital for reinvestment, debt reduction or other value-accretive uses whether that be via disposals or surplus cash generation in excess of the dividend cover. As detailed in the 2026 Annual Report, the Capital Markets Day outlined how cash generation, selective disposals, reinvestment and balance sheet management can support a self‑sustaining model for FGEN. It also demonstrated how the portfolio is now positioned to deliver a progressive dividend, organic NAV growth, low gearing and disciplined capital recycling, without the need for new equity fundraising. The Investment Manager believes this combination positions the Company well to continue delivering attractive risk-adjusted returns while supporting the transition to a more sustainable economy.

Capital Markets Day and strategic outlook

Overview

FGEN hosted a Capital Markets Day in May 2026 to update investors on progress against its refocused strategy and to demonstrate how the portfolio is positioned for resilient income and organic growth. The day included presentations from FGEN's investment management team and from the management teams of the key growth assets, giving investors direct insight into operational progress, market positioning and future value creation potential. Below we summarise the key strategic highlights from the event, focusing on how FGEN's established operational portfolio, maturing growth assets and disciplined capital allocation framework combine to support the Company's long-term objectives.

FGEN strategy into the medium and long term

FGEN's central objective is to maintain a progressive dividend while delivering long-term organic NAV growth. In the current market environment, the strategy is focused on value creation from within the existing portfolio: cash generation from operational assets, selective follow-on reinvestment, potential asset realisations and disciplined capital recycling. In the short term, the priority is to maintain a high-performing operational portfolio, supported by active asset management, cost control, contract management and prudent balance sheet discipline. Over the medium term, FGEN expects to use opportunistic divestments and reinvestment to refresh the portfolio, with timing determined by asset maturity, market appetite and shareholder value. Longer term, the ambition is to sustain a differentiated environmental infrastructure platform capable of delivering income and NAV growth on a self-funded basis.

Operational portfolio with capital growth potential

FGEN's established operational portfolio, covering wind and solar, AD, biomass, energy storage concessions, waste from energy and hydro, remains the resilient income base of the Company. It provides the cash generation that supports dividend cover and underpins the progressive dividend, without depending on the growth assets to contribute near-term income. This operational base is diversified across technologies, revenue frameworks and end markets, reducing reliance on any single power price assumption, subsidy regime or operating exposure. Alongside this, the growth assets provide a distinct and complementary source of potential capital growth. These assets are now operational and progressing through ramp-up, moving from construction risk towards optimisation, cash generation and potential value realisation. The result is a balanced portfolio structure: operational assets support income today, while growth assets create embedded optionality for future NAV growth and strategic flexibility.

A route to organic NAV growth

The Capital Markets Day outlined a credible route to organic NAV growth through operational performance, asset-level maturation, selective realisations and reinvestment. The key conclusion was that FGEN can continue to create value from capital already within the Company, with CNG, the Glasshouse and Rjukan representing a distinct growth component that complements the established operating portfolio. These assets are not held primarily for current cash yield, as, once they reach operational maturity, they can generate NAV growth through cash generation or potential realisations. This makes the growth story additive rather than a substitute for income. Disposal proceeds or excess cash can be reinvested into new environmental infrastructure opportunities that balance income, growth and risk, extending the life of the fund through disciplined value recognition, capital recycling and sector rotation over time.

Strategic flexibility

FGEN's portfolio construction provides flexibility in how value is realised and redeployed. The Company does not need to sell all growth assets, nor does it need to hold them indefinitely. Decisions can be made according to asset maturity, valuation, buyer appetite and broader portfolio priorities, which may include reinvestment, debt reduction or returns to shareholders. This flexibility is enhanced because potential realisations are expected to come from assets held primarily for capital appreciation, rather than from the core income-generating portfolio. As a result, FGEN can refresh and reposition the portfolio over time without undermining dividend support.

Key conclusions

The strategic conclusion from the Capital Markets Day was clear: FGEN's operational portfolio provides resilient cash generation and dividend support; the growth assets provide capital growth potential and future realisation options; and disciplined capital allocation creates a pathway to organic NAV growth. This combination of income resilience, embedded growth potential and capital recycling capability differentiates FGEN as an environmental infrastructure company and supports its long-term ambition to deliver both progressive income and sustainable capital growth.

Our portfolio at a glance

Renewable energy generation

The bedrock of FGEN's portfolio is established income-generating assets focused on diversification across technologies to support the delivery of attractive risk-adjusted returns.

Renewable energy generation 71%

Technologies¹:

Baseload generators:

•   Anaerobic digestion

•   Biomass

•   Energy-from-waste

Intermittent generators:

•   Wind

•   Solar

•   Hydro

Investment attractions:

•   Government-backed incentives across a range of mechanisms, including ROCs, RHI and FiTs

•   Mature technologies with low operating risk and stable production profiles

•   Explicit and implicit inflation linkage

•   Diversification of resource risk across different weather patterns, forms of feedstock and power and gas pricing

•   Delivering a complementary mix of intermittent and baseload power generation

Potential risks:

•   Regulatory changes (REMA, Fixed Price Certificate ("FPC") consultation)

•   Merchant electricity and gas prices

•   Wind and solar resource

•   Cost and supply of feedstock

•   Operational issues

1.  Excludes FEIP. See the Annual Report for a full list of FEIP assets.

1.  MWth (thermal) and an additional 0.4MWe CHP engine for on-site power provision.

2.  MWth (thermal) and an additional 0.5MWe CHP engine for on-site power provision.

3.  MWth (thermal) and an additional 0.25MWe CHP engine for on-site power provision.

4.  Electrical exporting plant measured as MWe.

5.  10MWth and an additional 1.7MWe capacity through two CHP engines.

6.  26MWe (electrical) and 6MWth (thermal).

7.  Not including FEIP's 45% ownership. the 2026 Annual Report for a full list of FEIP investments.

8.  Includes a 1.2MW battery storage.

9.  See the 2026 Annual Report for a full list of FEIP investments.

Other energy infrastructure

Non-energy-generating assets that support the transition towards net zero, driven by increased demand for electrification and government-backed legislation. This segment includes our battery storage units and low-carbon transport investment.

Other energy infrastructure 11%

Technologies¹:

•   Battery Energy Storage Systems ("BESS")

•   Low-carbon transport

Investment attractions:

•   Strong cash yield expected from sites once established

•   Merchant revenues from the storage assets with a degree of inverse correlation with renewable capture prices, alongside "sticky" revenues across CNG

•   Diversification of revenue sources away from power generation

•   Capital growth potential

Potential risks:

•   Construction risk

•   Merchant nature of trading revenue streams

•   Evolving market and increased competition

•   Shorter track record of operations than for other technologies

1.  Excludes FEIP. See the 2026 Annual Report for a full list of FEIP assets.

2.  FGEN holds 25% of CNG Foresight Holdings Ltd, which owns 60% of the shares in CNG Fuels Ltd and which holds £150.15 million in 10% preferred return investments issued by CNG Fuels.

Sustainable resource management

Sustainable resource management means using resources with the future in mind. It involves applying sustainable practices to ensure that resources benefit both current and future generations. This includes areas such as waste and wastewater concessions, as well as controlled environments for agriculture and aquaculture.

Sustainable resource management 18%

Technologies¹:

•   Controlled environment - agriculture and aquaculture

•   Waste and water management

Investment attractions:

•   Concession-based projects benefit from inflation-linked, long-term contracts with public sector counterparties

•   Controlled environment investments in sustainable technologies with large revenue markets

•   Potential for capital growth across Rjukan and the Glasshouse

•   Diversification of revenue sources away from power generation

Potential risks:

•   Merchant revenues and operational ramp-up at Rjukan and the Glasshouse

•   Handback risk at end of ELWA and Tay concessions

1.  Excludes FEIP. See the 2026 Annual Report for a full list of FEIP assets.

2.  80% of ordinary share capital plus 100% of outstanding loan notes.

Investment portfolio and valuation

Investment portfolio

Diversification is a key factor for the Company, reducing dependency on a single market, technology type or set of climatic conditions, whilst giving exposure to a wide opportunity set, as illustrated in the analysis below as at 31 March 2026, according to share of portfolio value:

Sector split

Wind 23%

Anaerobic digestion - crop 16%

Solar 11%

Controlled environment 12%

Biomass 9%

Waste and wastewater concessions 6%

Low‑carbon transport 7%

Anaerobic digestion - food waste 5%

Energy storage 4%

Energy‑from‑waste 3%

FEIP 3%

Hydro 1%

Geography

UK 90%

Rest of Europe 10%

Remaining asset life

Up to 10 years 15%

11 to 20 years 38%

More than 20 years 47%

Weighted average remaining asset life of the portfolio is 18.5 years.

Operational status

Operational 99%

Construction <1%

Operator exposure

SGRE 15%

Future Biogas 12%

BWSC 9%

Brighter Green Engineering 7%

Hima Seafood AS 7%

Other 50%

Asset concentration

Cramlington (biomass) 9%

Rjukan (CE aq) 7%

CNG Fuels (low-carbon transport) 7%

Vulcan (AD) 6%

Glasshouse (CE ag) 5%

Top 6-10 22%

Other 44%

Valuation method

Discounted cash flow ("DCF") 99%

Cost 1%

Portfolio valuation

The Investment Manager is responsible for carrying out the fair market valuation of the Company's investments, which is then presented to the Directors for their approval and adoption. The valuation is carried out on a quarterly basis as at 30 June, 30 September, 31 December and 31 March each year.

The valuation is predominantly based on a discounted cash flow analysis of the future expected equity and loan note cash flows accruing to the Group from each operational portfolio investment. Where assets are under construction or not yet operational, they are valued at cost until such time as the risks associated with construction have substantially passed. For some technologies with more complex construction activities, this will be when the asset reaches the start of commercial operations, while for others this may be during late-stage construction.

The portfolio valuation uses key assumptions which are recommended by Foresight using its experience and judgement, having considered available comparable market transactions and financial market data in order to arrive at a fair market value. An independent verification exercise of the methodology and assumptions applied by Foresight is performed by a leading accountancy firm and an opinion is provided to the Directors. The Directors have satisfied themselves as to the methodology used and the assumptions adopted and have approved the valuation.

The Directors' valuation of the portfolio at 31 March 2026 was £759.1 million, compared to £765.7 million at 31 March 2025, as shown in the table below. The decrease of £6.6 million is the net impact of divestments; new acquisitions (including follow-on investments); cash received from investments; changes in macroeconomic, power price and discount rate assumptions; and underlying growth in the portfolio. A reconciliation of the factors contributing to the change in the portfolio and the movement in value of investments during the year is shown in the table below:

Allowing for investments of £19.8 million (including follow-on investments and payment of deferred consideration), divestments of £1.4 million and cash receipts from investments of £78.6 million, the rebased valuation is £705.5 million. The portfolio valuation at 31 March 2026 is £759.1 million (31 March 2025: £765.7 million), representing a 7.6% increase over the rebased valuation of £705.5 million during the year.

Valuation assumptions

Each movement between the rebased valuation and the 31 March 2026 valuation is considered below:

Forecast power prices

The project cash flows used in the portfolio valuation at 31 March 2026 reflect contractual fixed price arrangements under PPAs, where they exist, and short‑term forward market prices for the next two years where they do not.

After the initial two-year period, the project cash flows assume future electricity and gas prices in line with a blended curve informed by the central forecasts from three established market consultants, adjusted by the Investment Manager for project-specific arrangements and price cannibalisation.

For the Italian investment, project cash flows assume future electricity prices informed by long-term projections of two leading independent market consultants.

In addition to the usual update of electricity and gas price projections, this year's valuation movement also reflects two regulatory changes. Firstly, in line with the Company's announcement on 14 November 2025, updated assumptions reflecting the outcome of the UK Government's Renewable Obligation and Feed-in Tariffs consultation have been incorporated into the valuation. From 1 April 2026, both schemes will be indexed at the Consumer Price Index ("CPI"). The impact of these changes reduced NAV by £3.1 million, equivalent to 0.5 pence per share.

Secondly, on 16 April 2026, the UK Government announced that Carbon Price Support ("CPS") will be removed from April 2028 onwards. As CPS has historically increased the cost of fossil fuel‑based electricity generation, its removal is expected to reduce the marginal cost of gas‑fired generation - which typically sets UK wholesale power prices - resulting in lower long‑term power price forecasts and a corresponding £2.3 million reduction in NAV, equivalent to 0.4 pence per share. The Investment Manager has assessed this impact in consultation with independent market forecasters; however, the effect is partially mitigated by FGEN's diversified portfolio, which reduces exposure to any single revenue driver.

The overall change in forecasts for future electricity and gas prices compared to forecasts at 31 March 2025 has resulted in a reduction in the valuation of the portfolio of £12.2 million.

The graph below represents the blended weighted power curve used by the Company, reflecting the forecast of three leading market consultants, adjusted by the Investment Manager to reflect its judgement of capture discounts and a normalised view across the portfolio of expectations of future price cannibalisation resulting from increased penetration of low marginal cost, intermittent generators on the GB network. The solid line represents the weighted average realised price forecast - including short-term price fixes under PPAs - whereas the dotted line shows the equivalent merchant price for unhedged generation.

Illustrative blended power price curve

Guarantees of origin certificates

As the portfolio includes a number of renewable energy generation projects, it is able to generate revenue from the sale of Renewable Energy Certificates in addition to income from the sale of gas and electricity. A certificate is issued by Ofgem or the Green Gas Certification Scheme for each unit of renewable electricity or gas generated respectively, and can be sold as part of, or separately from, the offtake contracts in place for the wholesale electricity and/or gas. The certificates received for UK projects are Renewable Energy Guarantee of Origin ("REGO") and Renewable Gas Guarantee of Origin ("RGGO") for electricity and gas, respectively. Being traded on the open market, the price is variable and subject to typical demand and supply dynamics.

In addition to guarantees of origin certificates, the portfolio's investment into CNG Fuels also receives revenue from the sale of Renewable Transport Fuel Certificates ("RTFC") to obligated fuel suppliers to meet their regulatory emissions targets under the UK's Renewable Transport Fuel Obligation ("RTFO"). Certificates are created for each unit of renewable biomethane supplied as a transport biofuel. Certificate issuance depends on the fuel type and level of greenhouse gas savings, with bio-CNG earning 3.8 certificates for every kilogram sold.

As with forecast power prices, valuations reflect contractual fixed price arrangements where they exist, or the following assumptions informed by forecasts provided from a range of independent market consultants where they do not:

Following a period of lower pricing in REGO markets over the first half of the year, modelled assumptions have been reduced by the Investment Manager, whereas demand for RGGO certificates continues to remain strong, with pricing supporting a slight increase in near-term valuation assumptions.

RTFC pricing has increased steadily since the Company's investment into CNG, and whilst pricing has softened since the start of the recent conflict in the Middle East, revenues have remained robust due to the Company's forward hedging strategy.

The net result of changes is a decrease in valuation of £2.0 million, equivalent to 0.3 pence per share. The movement is included within the balance of portfolio return item within the valuation bridge.

Revenue analysis

The graph below shows the way in which the revenue mix of the portfolio changes over time for future financial years, given the assumptions made regarding future power prices set out above. As expected, the proportion of merchant revenues increases in later years as the subsidies that projects currently benefit from expire.

On a net present value ("NPV") basis (using the discount rate applicable to each project), the relative significance of each revenue category illustrated above is as follows:

Revenue NPV

5% Subsidy: Feed-in tariffs

16% Subsidy: ROC

15% Subsidy: Renewable heat incentive

25% Merchant power

7% Long-term contracts

2% Flexible generation

13% Green certificates

17% Other merchant revenues

Subsidy revenues, long-term contracts and revenues generated from gas dispensed under contract at CNG Fuels that sit within other merchant revenues in the pie chart, all retain contractual inflation linkage, leading to 51% of total revenues featuring contractual inflation linkage.

Renewable generation portfolio

FGEN's renewable energy generation portfolio includes a combination of intermittent generating wind and solar investments, alongside baseload generating anaerobic digestion, biomass, energy-from-waste ("EfW") and hydropower investments. Revenues in these projects typically consist of a combination of government-backed, inflation-linked subsidies, short-term price fixes contracted under a PPA/GPA, merchant revenue or other revenues such as those earned from private wire contracts.

The Company seeks to minimise the impact of power price volatility through its carefully constructed portfolio of diversified asset types, as well as by maintaining a programme of rolling price fixes for energy it generates, typically having the majority of projects on fixed price arrangements over the near term.

Refer to the power price hedging section in the operational review in the 2026 Annual Report for more detail about the price fixes in place across the portfolio at the year end.

Taking the proportion of merchant revenues hedged under fixed price short‑term PPAs, along with subsidy revenues and revenues from long-term contracts outside of the energy-generating assets, prices have been fixed for 61% of total revenues for the 2027 calendar year. Accordingly, merchant revenues remain a low proportion of revenues and reflect the broader diversification of FGEN's portfolio.

Other energy infrastructure

Mitigating the effects of climate change stimulates not only opportunities connected to energy generation, but also in supporting and enabling energy infrastructure where significant investment is needed to further decarbonise the economy. This is reflected in FGEN's diversified portfolio, which includes grid-scale batteries and low‑carbon refuelling alternatives for heavy goods vehicles.

Batteries

Following successful energisation of Sandridge battery storage this year, FGEN's portfolio now includes two operational and one ready-to-build ("RTB") c.50MW Battery Energy Storage Systems ("BESS").

Revenues from BESS assets can be generated through multiple channels, although third-party consultants continue to highlight the importance of prioritising the capture of trading margins over the more limited opportunities from grid service revenues. As a result, merchant revenues are expected to form the largest component of the revenue model for these assets.

While the sector does not currently benefit from long-term contractual inflation linkage, revenues are typically driven by a margin over costs, which is expected to be sustained regardless of inflationary pressures.

Low-carbon transport

In the case of FGEN's investment into CNG Fuels, an integrated business owning and operating CNG refuelling stations that also sources biomethane for those stations and generates Renewable Transport Fuel Certificates ("RTFCs") in the process, revenues are generated from CNG dispensed and trading activity in biomethane and RTFCs.

Per the terms of its fuel supply contracts, CNG Fuels reserves the right to revise pricing to reflect changes in the wholesale price of natural gas and fuel duty, and will annually adjust prices (upwards only) in line with CPI inflation. Trading revenues flow from the buying and selling of biomethane across European markets and the sale of RTFCs created by the use of biomethane as a transport fuel.

Sustainable resource management

Sustainable resource management means using resources with the future in mind. It involves applying sustainable practices to ensure that resources benefit both current and future generations. This includes areas such as waste and wastewater treatment, as well as controlled environment for agriculture and aquaculture.

Waste and wastewater treatment

This category currently consists of concessions structured under the Private Finance Initiative ("PFI")/Public Private Partnership ("PPP") procurement models where concession payments from the public sector client are highly predictable. Both concession projects, ELWA and Tay, will be going through a process of "handback" over the next few years.

Controlled environment

Controlled environment ("CE") projects typically face a greater level of market risk than environmental infrastructure projects with subsidy support or with long-term contracts. Therefore, the Company has only invested in projects that enjoy a privileged market position over competitors, for example due to physical location, technology or product differentiation.

In the case of FGEN's Glasshouse, the investment is a combination of senior secured shareholder loans that was used to construct the Glasshouse itself, with potential for further uplift from the Company's minority equity investment over time as the business's operations reach maturity. The Glasshouse is co-located with an existing FGEN anaerobic digestion facility, which itself receives an additional source of revenue via a private wire supplying low-carbon heat and power to the Glasshouse.

In the case of CE Rjukan, revenues will primarily be generated from the production and sale of trout. This will be sold to European and international salmonid markets through an agreement with an established Norwegian seafood distribution company with global reach.

Whilst these investments do not currently have long-term contractual inflation linkage, the projects retain pricing power and are expected to increase prices to maintain margins as the underlying cost base inflates.

For more information on both the Glasshouse and Rjukan, see the Capital Markets Day 2026 section on the FGEN website.

The degree of contractual inflation linkage of each category illustrated above is as follows:

The Company's diversification strategy ensures the portfolio benefits from a significant proportion of contracted revenues and revenues earned by non-energy-generating assets. Under current forecasts, dividend cover is expected to be healthily covered for the years ahead.

Useful economic lives

Useful economic lives of assets are based on the Investment Manager's estimates of the period over which the assets will generate revenue and are periodically reviewed for continued appropriateness. Historically, the assumption used for the useful life of investments is the lower of lease duration and 35 years for solar assets, 30 years for wind farms and 20 years for anaerobic digestion facilities - being the life of the RHI subsidy.

In light of growing evidence that AD facilities may be able to successfully operate for longer durations, the Investment Manager has worked with an independent external adviser to assess the potential future value of biomethane beyond the end of the RHI subsidy, informed by current and expected evolution of biomethane policy in the UK and Europe. The consultant has applied this assessment across the FGEN AD portfolio, including revenue stack analysis and cost requirements, taking into account the technical specifications of each facility.

As a result, the Company has recognised a 1.4 pence per share NAV uplift from extending the lives of the seven ADs with the most compelling extension potential, with work ongoing to further assess the remaining ADs in the portfolio.

Economic assumptions

The valuation reflects an update in inflation assumptions based on a combination of actual historic inflation and recent independent economic forecasts.

Valuation assumptions for operational assets are set out below:

Economic assumptions used in the portfolio valuation

The euro/sterling exchange rate used to value euro-denominated investments was €1.15/£1, and the rate for Norwegian krone-denominated investments was NOK12.89/£1 at 31 March 2026 (€1.19/£1 and NOK13.55/£1 at 31 March 2025).

The total net increase in value resulting from changes to inflation rates, deposit rates and foreign exchange rates in the year is £7.7 million.

Discount rates

The discount rates used in the valuation exercise represent the Investment Manager's and the Board's assessment of the rate of return in the market for assets with similar characteristics and risk profile. The discount rates are reviewed on a regular basis and updated to reflect changes in the market and in the project risk characteristics.

Despite continued elevated UK gilt yields, market benchmarks continues to indicate support for the Company's valuation assumptions; therefore, no macro-driven changes have been made to discount rates during the period.

However, the Investment Manager also considers project-specific changes, and therefore, there have been some adjustments to the discount rates across the growth assets due to the operational ramp-up progress being made and parts of the AD portfolio due to the life extensions.

Taking the above into account and including an increase in the value of the growth assets in the portfolio since the start of the year, the overall weighted average discount rate ("WADR") of the portfolio has increased to 9.9% at 31 March 2026 (31 March 2025: 9.7%).

The WADR applied to each of the principal operational sectors within the portfolio is displayed in the following table, noting this represents a blend of levered and unlevered investments and therefore the relevant gearing of each sector is also shown.

The table above does not separately disclose discount rates for certain sectors, including controlled environment and low-carbon transport, where the Investment Manager considers the underlying assumptions to be commercially sensitive. The WADR applied to these assets is 14.5% and the relevant assumptions are incorporated within the portfolio WADR of 9.9%.

Balance of portfolio return

This represents the balance of valuation movements in the year, excluding the factors noted above. The balance of the portfolio return mostly reflects the impact on the rebased portfolio value, all other measures remaining constant, of the effect of the discount rate unwinding and also some additional valuation adjustments from updates to individual project assumptions. The total represents an uplift of £58.1 million.

Of this, the key positive items are the uplift of £59.2 million from discount rate unwind, the uplift of £8.7 million from work undertaken to extend the lives of FGEN's AD portfolio as described above and a £7.3 million uplift from the signing of new gas injection contracts at the Company's Vulcan Renewables anaerobic digestion facility, following the successful implementation of operational enhancement initiatives underway to maximise the untapped potential of the gas injection capabilities of the site.

Offsetting these positive movements were a reduction in the value of green certificates discussed earlier and that led to a reduction in value of £4.5 million, as well as extended periods of downtime and additional capex requirements at the Company's biomass and food waste AD facility, resulting in £7.4 million and £5.0 million valuation reductions respectively.

Valuation sensitivities

The Net Asset Value ("NAV") of the Company is the sum of the discounted value of the future cash flows of the underlying asset financial models, construction and development spend, the cash balances of the Company and UK HoldCo, and the other assets and liabilities of the Group less Group debt.

The portfolio valuation is the largest component of the NAV and the key sensitivities are considered to be the discount rate applied in the valuation of future cash flows and the principal assumptions used in respect of future revenues and costs.

A broad range of assumptions is used in our valuation models. These assumptions are based on long‑term forecasts and are not affected by short‑term fluctuations in inputs, whether economic or technical. The Investment Manager exercises its judgement in assessing both the expected future cash flows from each investment based on the project's life and the financial models produced for each project company and the appropriate discount rate to apply.

The key assumptions are as follows:

Discount rate

The WADR of the portfolio at 31 March 2026 was 9.9% (31 March 2025: 9.7%). A variance of plus or minus 0.5% is considered to be a reasonable range of alternative assumptions for discount rates.

An increase in the discount rate of 0.5% would result in a downward movement in the portfolio valuation of £21.2 million (3.4 pence per share) compared to an uplift in value of £23.1 million (3.7 pence per share) if discount rates were reduced by the same amount.

Volumes

Base case forecasts for intermittent renewable energy projects assume a "P50" level of electricity output based on reports by technical consultants. The P50 output is the estimated annual amount of electricity generation (in MWh) 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 P90 (90% probability of exceedance over a 10‑year period) and P10 (10% probability of exceedance over a 10‑year period) sensitivities reflect the future variability of wind, hydropower and solar irradiation and the uncertainty associated with the long‑term data source being representative of the long‑term mean.

Separate P10 and P90 sensitivities are determined for each asset, and historically, the results are presented on the basis that they are applied in full to all wind, hydro and solar assets. This implies individual project uncertainties are completely dependent on one another; however, a portfolio uncertainty benefit analysis performed by a third-party technical adviser identified a positive portfolio effect from investing in a diversified asset base.

That is to say that the lack of correlation between wind, hydro and solar variability means P10 and P90 sensitivity results should be considered independent. Therefore, whilst the overall P90 sensitivity decreases NAV by 4.7 pence, the impact from wind, solar and hydro separately is 3.4 pence per share, 1.2 pence per share and 0.1 pence per share respectively, as shown in the chart in the 2026 Annual Report.

Anaerobic digestion facilities do not suffer from similar deviations as their feedstock input volumes (and consequently biogas production) are controlled by the site operator.

Biomass and EfW forecasts are based on projections of future input volumes and are informed by both forecasts and independent studies where appropriate. Revenues in the PPP projects are not sensitive generally to changes in volumes due to the nature of their payment mechanisms.

Electricity and gas prices

Electricity and gas price assumptions are based on the following: for the first two years, cash flows for each project use forward electricity and gas prices based on market rates unless a contractual fixed price exists, in which case the model reflects the fixed price followed by the forward price for the remainder of the two‑year period. For the remainder of the project life, a long‑term blend of central case forecasts from three established market consultants and other relevant information is used and adjusted by the Investment Manager for project‑specific arrangements and price cannibalisation.

The sensitivity assumes a 10% increase or decrease in power prices relative to the base case for each year of the asset life after the first two‑year period. While power markets can experience movements in excess of +/-10% on a short‑term basis, as has been the case recently, the sensitivity is intended to provide insight into the effect on the NAV of persistently higher or lower power prices over the whole life of the portfolio, which incorporates regulatory impacts such as the cessation of Carbon Price Support. The Directors feel that +/-10% remains a realistic range of outcomes over this very long time horizon, notwithstanding that significant movements will occur from time to time.

An increase in electricity and gas prices of 10% would result in an uplift in the portfolio valuation of £36.2 million (5.8 pence per share) compared to a downward movement in value of £36.3 million (5.8 pence per share) if prices were reduced by the same amount.

Assuming all other factors remain constant, if electricity prices were to fall to £50/MWh, with a corresponding decline in gas prices, the Company would continue to maintain a resilient level of dividend cover over the next three financial years. Even in a more conservative scenario, where prices fall to £40/MWh, the portfolio is still expected to generate sufficient cash flows to cover the dividend, though with a reduced margin of headroom.

Uncontracted revenues on non-energy-generating portfolio

Non-energy-generating assets, such as batteries, low-carbon transport and controlled environment agriculture and aquaculture, are not materially affected by either scarcity of natural resource or power price markets. Therefore, the Investment Manager has presented an alternative sensitivity illustrating an assumed 10% increase or decrease on all uncontracted revenues for each year of the asset's life.

An increase in uncontracted revenues of 10% would result in an upward movement in the portfolio valuation of £26.4 million (4.2 pence per share) compared to a decrease in value of £25.0 million (4.0 pence per share) if those revenues were reduced by the same amount.

Feedstock prices

Feedstock accounts for over half of the operating costs of running an AD plant. As feedstocks used for AD are predominantly crops grown within existing farming rotation, they are exposed to the same growing risks as any agricultural product. The sensitivity assumes a 10% increase or decrease in feedstock prices relative to the base case for each year of the asset's life.

An increase in the feedstock prices of 10% would result in a downward movement in the portfolio valuation of £12.5 million (2.0 pence per share) compared to an uplift in value of £11.9 million (1.9 pence per share) if prices were reduced by the same amount.

No such sensitivity is applicable to FGEN's biomass investment, where fuel costs are tied under long-term contracts.

Inflation

Most projects in the portfolio receive a revenue stream which is either fully or partially inflation‑linked. The inflation assumptions are described in the macroeconomic section in the 2026 Annual Report. The sensitivity assumes a 0.5% increase or decrease in inflation relative to the base case for each year of the asset's life.

An increase in the inflation rates of 0.5% would result in an uplift in the portfolio valuation of £13.9 million (2.2 pence per share) compared to a decrease in value of £13.5 million (2.2 pence per share) if rates were reduced by the same amount.

Euro/sterling and NOK/sterling exchange rates

The proportion of the portfolio assets with cash flows denominated in foreign currency represents 10% of the portfolio value at 31 March 2026. If foreign currency strengthens by 5%, the value uplift will be £3.5 million (0.6 pence per share) compared to a £4.1 million (0.7 pence per share) decrease in value if FX weakens by the same amount.

Corporation tax

The UK corporation tax assumptions applied in the portfolio valuation are outlined in the notes to the accounts in the 2026 Annual Report. The sensitivity below assumes a 2% increase or decrease in the rate of UK corporation tax relative to the base case for each year of the asset's life.

An increase in the UK corporation tax rate of 2% would result in a downward movement in the portfolio valuation of £12.3 million (2.0 pence per share) compared to an uplift in value of £12.6 million (2.0 pence per share) if rates were reduced by the same amount.

Sensitivities - impact on NAV at 31 March 2026

The following chart shows the impact of the key sensitivities on NAV per share, with the £ labels indicating the impact of the sensitivities on portfolio value.

FEIP investment portfolio

Below is a list of investments in several European opportunities through the Company's limited partnership in Foresight Energy Infrastructure Partners ("FEIP").

Operational review

Investment performance

The NAV per share at 31 March 2026 was 105.2 pence, down from 106.5 pence at 31 March 2025.

FGEN has announced an interim dividend of 1.99 pence per share for the quarter ended 31 March 2026, payable on 26 June 2026, in line with the full‑year target of 7.96 pence per share for the year ended 31 March 2026.

The Board has also set a dividend target of 8.04 pence per share for the year to 31 March 2027, the 12th consecutive dividend increase since IPO.

Financial performance

The portfolio delivered cash receipts from investments of £78.6 million for the year, compared with a budget of £80.9 million, representing a shortfall of 2.9% before the impact of expected recoveries. The Company expects to recover approximately £4.2 million through contractual compensation mechanisms, principally in relation to availability and performance protections. Including these expected recoveries, cash generation would have been 2.3% ahead of budget, demonstrating the continued resilience of the portfolio and the value of contractual downside protections across the asset base.

This cash generation supported dividend cover of 1.25x for the year, after amortisation of project-level debt facilities, comfortably within the Company's target range of 1.20x - 1.30x.

The chart below shows the budgeted proportion of cash distributions forecast to be received from underlying investments at the start of the financial year, versus the relative sector-level over or under-performance against this target during the period under review. See overleaf for the equivalent chart showing generation performance of the energy-generating assets versus budget.

Renewable energy generation delivered £66.7 million of cash receipts, 4.7% below budget, with weaker wind and solar performance partially offset by strong performance from anaerobic digestion and biomass assets. Other energy infrastructure generated £3.2 million, 25.1% ahead of budget, driven by the battery storage portfolio. Sustainable resource management assets generated £8.7 million, 4.1% ahead of budget, with wastewater treatment and controlled environment assets performing ahead of expectations. The overall result demonstrates the resilience of FGEN's diversified portfolio and the value of contractual protections, which continue to support predictable income generation and dividend coverage through varying resource and market conditions.

Across the portfolio companies, total revenue generated was £255.8 million and total EBITDA was £82.2 million. The Company operates a diversified portfolio of assets across multiple sectors which supports diversification of the operating risk profile - with both revenues and corresponding margins varying based on the underlying operations of each. For example, wind and solar assets generate electricity through the use of a free natural resource and therefore typically have a lower cost base than an anaerobic digestion facility, which requires a feedstock as part of its energy generation process. To compensate, these anaerobic digestion facilities will also typically have a higher revenue base - as can be seen by the average all-in energy price table below.

Financial performance: budget vs actual project distributions

The average all-in price received by the differing technology classes in the UK for their energy volumes generated in the 12 months ended 31 March 2026 is shown in the table below:

Operational performance

Overall, the underlying operating performance of the environmental infrastructure portfolio was pleasing. The renewables segment of the portfolio produced 1,338 GWh (2025: 1,272 GWh) of green energy, which was 1.2% below the generation target. When expected compensation (insurance and warranty claims) is taken into consideration, the equivalent portfolio generation was 1,364 GWh, 1.8% above the target for the period.

Renewable energy generation

Power price hedging

FGEN's exposure to wholesale power prices is mitigated by the practice of having a substantial proportion of generation for both electricity and gas on fixed price arrangements for durations ranging from six months to two years. The extent of generation subject to fixes at 31 March 2026 is as follows:

While a large proportion of the summer and winter 2026 capacity was hedged during the period of high gas and power prices in March 2026, the Investment Manager continues to monitor 2027 pricing and beyond.

Since the year end, the Investment Manager has entered into value-accretive power price hedging at its Cramlington biomass facility, for 47% of capacity at £94/MWh for the period between 1 June 2026 and 31 March 2027. A proportion of the remaining capacity is expected to be hedged in the coming months, subject to favourable power price conditions.

Renewable energy: 1,338.4GWh generated, 1.8% above budget¹

Baseload generators

Anaerobic digestion - crop

The AD portfolio is the largest producer of energy on a GWh basis generating 43% of the energy produced by the FGEN portfolio. Gas production (measured in GWh thermal) generated 581 GWh2, 11% ahead of its sector target (2025 variance was 0.1% favourable). Of this, the Vulcan PRS 1 value enhancement contributed 74 GWh of biomethane injection to the gas grid as it ramped up operations through the second half of the financial year.

Six of the nine plants outperformed their generation targets, notably strong performances coming from Icknield Gas and Vulcan Renewables, which performed 27.5% and 34.8% above their generation targets respectively, driven by high biogas yields, good availability and ramp-up of the PRS 1 value enhancement at Vulcan. Meden's negative variance (-8.7%) against its generation target was due to issues with the upgrader limiting gas-to-grid flow, while the prolonged ramp-up period following a digester degrit at Peacehill Gas resulted in it finishing the year 5.6% below its target. Rainworth's negative variance (-1.1%) against its generation target was due to a power failure and subsequent membrane replacement works that constrained gas production.

Despite a poor harvest in 2025, all AD plants had access to sufficient feedstock throughout the year due to the purchasing of spot maize earlier on in the year. Due to higher-than-usual rainfall in early 2026, digestate spreading was constrained, resulting in increased storage requirements and costs for some sites. More clamp extension and digestate storage projects are currently in progress to enhance the portfolio's resilience against climate change.

Wholesale gas and power prices gradually declined from April 2025, with a peak in June following the initial Middle East conflict. From late February 2026, gas and power prices spiked with increased volatility following the Middle East conflict and closure of the Strait of Hormuz.

The Investment Manager has taken the opportunity to hedge 85% of the gas generation capacity for summer and winter 2026, and 45% of gas capacity in summer and winter 2027, as seen in the table in the 2026 Annual Report.

1.  1.8% above budget including anticipated compensation. 1.2% below budget excluding compensation.

2.  When FGEN's ownership percentage is taken into account, the generation by the AD portfolio was 296GWh, 10.7% above the sector target.

Anaerobic digestion - food waste

Following a series of life cycle maintenance works in the first half of the financial year, Riverside Bio and Codford Biogas successfully returned to steady state performance in the second half.

The portfolio generated 95 GWh over the reporting period, 8.8% below target but a 17% increase compared to 2025 (80 GWh), providing evidence of improved performance.

While Codford is currently operating at maximum capacity, the Investment Manager plans to implement a series of upgrades at Riverside Bio in the next financial year to further increase generation. With the recently implemented Simpler Recycling Legislation requiring commercial businesses and local authorities in England to segregate their food waste, these upgrades will allow more of this available feedstock to be processed.

Biomass

Cramlington generated 143 GWh during the reporting period, representing 11% of total portfolio generation. Performance was impacted by a six-week outage overrun in July 2025 and a series of recurring superheater bundle leaks, resulting in output finishing 25.2% below the annual target. Including compensation payments, the variance narrows to a 15.7% shortfall. Following remediation of the boiler issues, plant reliability and availability improved materially, with performance exceeding budget from March onwards.

The Investment Manager is in early-stage discussions with neighbouring facilities and the county council to supply additional private heat and power.

Energy-from-waste

As previously reported, Energie Tecnologie Ambiente ("ETA") was offline for the first half of the financial year following the turbine alternator short circuit incident in early April 2025. The insurance claim for the incident is ongoing.

The plant returned to service ahead of schedule in October 2025 and has exceeded generation targets since.

Intermittent generators

Wind

The wind portfolio generated 394 GWh during the reporting period, a 13% increase compared to the prior year (2025: 350 GWh). While generation was 5.8% below budget, this reflects a year of improving operational performance. Including estimated compensation payments, equivalent generation increased to 400 GWh, reducing the shortfall to 4.2% against budget. Gross availability across the portfolio reached 93.3%, a significant improvement on 2025 (90.4%), demonstrating continued progress in asset reliability and uptime.

The turbine blade upgrades were completed at MM2 during the year. These upgrades improve aerodynamic performance and are expected to increase annual energy production ("AEP"). A third-party validation report estimates an AEP uplift of 5.6% could be realised as a result of these improvements.

Solar

The solar portfolio generated 70 GWh, representing 5% of the total energy produced by the portfolio - and was 1.6% above budget, supported by positive levels of irradiation across the financial year.

A major inverter refurbishment and a module repowering at the Amber sites was carried out during the year, which is expected to improve performance significantly in the next financial year.

During the financial year, an active PPA hedging strategy continued to be pursued. As a result, 100% of the solar portfolio's capacity has fixed PPA prices for the period from April 2026 to March 2027.

Hydro

The hydro portfolio generated 2.4 GWh, which was 55% below target (2025: 4 GWh). This deficit was primarily due to an exceptionally dry summer and persistently low river levels from late spring through to early autumn 2025.

The hydro assets represent a very small part of FGEN's portfolio, accounting for less than 1% of total energy generation for the year.

Operational performance

Overall, the underlying operating performance of the environmental infrastructure portfolio was pleasing. The renewables segment of the portfolio produced 1,338 GWh (2025: 1,272 GWh) of green energy which was 1% below the generation target. When expected compensation (insurance and warranty claims) is taken into consideration, the equivalent portfolio generation was 1,364 GWh, 1% above the target for the period.

Renewable energy generation

Other energy infrastructure

CNG Fuels (in ramp-up phase)

The CNG refuelling business continues to demonstrate strong growth momentum, with a 19% (10.4 million kg) increase in fuel dispensed year-on-year, driven by ongoing fleet adoption as customers bring new vehicles into service and recently commissioned stations to ramp up utilisation. This reflects the strengthening structural demand for Bio‑CNG as a cost‑competitive and immediately deployable decarbonisation solution for heavy goods vehicles.

The network continues to expand in line with this demand. A new station at Livingston became operational during the year, while construction commenced at Magor, South Wales in October, and planning approval secured for a further site near Swindon (adjacent to the M4) in March 2026, where construction began in May 2026. As at 31 March 2026, CNG had 17 refuelling stations, including the site under construction, maintaining its position as the UK's leading Bio‑CNG refuelling network.

Customer demand remains robust, supported by long-term agreements with major fleet operators. During Q3, CNG Fuels signed an agreement with M&S to supply mobile refuelling solutions across up to four depot locations, further underpinning committed fuel volumes and providing a pathway for continued network utilisation growth. The management team is actively progressing similar arrangements with other key customers.

Increased utilisation across the network, combined with continued station rollout, positions the business well to deliver sustained volume growth and benefit from operating leverage as throughput increases.

Battery storage assets

The FGEN battery portfolio delivered a resilient operational performance during the period, despite increasingly challenging market conditions.

The 50MW Sandridge battery completed commissioning and has begun trading, with full takeover expected in mid-2026. Early performance has been in line with expectations as the asset transitions into steady-state operations.

West Gourdie continued to perform reliably, maintaining strong availability (97.11%) and capturing value across its optimisation strategy, with performance across ancillary services, wholesale markets and the Balancing Mechanism remaining solid relative to prevailing conditions.

Market conditions were more supportive in the early part of the period, with higher wholesale spreads and greater dispatch opportunities. However, performance softened through the summer and early autumn as spreads compressed and Balancing Mechanism activity reduced, limiting optimisation opportunities. While conditions improved over winter, with periods of higher volatility and stronger pricing, these were shorter-lived than in prior years. As a result, wholesale trading remained more opportunistic, and Balancing Mechanism revenues were lower due to fewer and less favourable dispatch events.

Ancillary service revenues remained relatively stable, although increased participation in dynamic services continued to place downward pressure on pricing.

These trends reflect a combination of lower commodity prices, comfortable system margins, evolving generation patterns and continued growth in GB battery capacity, increasing competition across core revenue streams. Increased renewable generation has also reshaped intraday price profiles, leading to more frequent low-price periods and fewer sustained price spikes, with volatility increasingly concentrated into shorter events.

Other battery storage assets (in construction phase)

The sale of the Lunanhead battery development was completed in August 2025, while further options are being explored for Clayfords.

Sustainable resource management

Waste and wastewater concessions

The ELWA waste project continues to deliver strong operational and financial performance in line with expectations. Operational targets were once again exceeded, with landfill diversion reaching 99.85%, significantly outperforming the 67% contractual target. Recycling rates also surpassed expectations at 27.7%, compared to the 22% target. Waste tonnages remained stable throughout the year and were consistent with forecast assumptions.

In March 2026, the Company successfully repaid the remaining senior debt in accordance with the scheduled timeline.

The Tay wastewater project delivered another year of stable operational performance, with no availability or performance deductions recorded during the period. The insurance claim relating to the previously reported dryer fire on 16 September 2025, remains ongoing, with all associated costs having been submitted to the insurer.

Controlled environment - Glasshouse (in ramp-up phase)

During the period, Glass Pharms, the operator of the Glasshouse, continued to ramp up operations, with revenue, gross profit and EBITDA all exceeding budget expectations. Production volumes have grown significantly, increasing by 250% year-on-year, while kilograms of flower sold were broadly in line with forecasts. The company continues to receive funding support from FGEN as it progresses towards consistent cash flow breakeven. In September 2025, it secured £2 million of additional working capital through a convertible loan note ("CLN"), of which £1.25 million has been drawn to date.

The company continues to ramp up sales and is now selling to eight of the 10 largest clinics in the UK - including a contract with one of the largest clinics to provide guaranteed minimum monthly volumes of flower in FY27. In parallel, it continues to strengthen relationships with existing clients while exploring new opportunities, including expansion into overseas markets.

Controlled environment - Rjukan aquaculture (in early ramp-up phase)

Rjukan, FGEN's land-based recirculating aquaculture system ("RAS") trout facility in Norway, made important operational progress during the year. Construction of the facility was substantially completed and commercial harvesting commenced in July 2025, marking the transition of the asset from construction into its operational ramp-up phase. The facility is designed to produce approximately 8,000 tonnes of trout per annum at full production, serving European and international salmonid markets.

Early operations have shown the facility's ability to deliver both good growth rates and harvest weights, and Hima Seafood has also reported positive progress in stabilising key RAS processes, including water quality management and the purging system, which is an important component of product quality. As can be the case with process infrastructure assets, particularly with live organisms working through a system with interlinking processes, the initial ramp-up has also shown that for production to reach full target volumes, certain aspects of the facility require upgrades, primarily oxygen delivery, fish transportation, feeding systems, and wastewater treatments.

Accordingly, the project company, working closely with its technology suppliers and operating team, is implementing the relevant remedial and optimisation actions, meaning a moderation in production volumes over the next couple of years and harvest volumes for the reporting period were also below budget. The company remains reliant on ongoing shareholder support for working capital during the ramp-up period, with funding being provided by shareholders on a pro rata basis.

While there is work to do to progress the facility to full capacity, the investment thesis remains unchanged. As Rjukan fully ramps up, FGEN is positive about the value prospects and retains strategic flexibility as to whether it exits or holds. In addition, the wider thesis remains as important as before - land-based aquaculture is a critical piece of infrastructure for producing sustainable seafood without many of the environmental impacts associated with conventional sea-based production. Similarly, Rjukan's unique characteristics means it benefits from access to high-quality Norwegian freshwater and renewable electricity.

Divestments

Disposal of Lunanhead

In August 2025, the Company announced the sale of its 50% equity stake in Lunanhead, a 50MW lithium-ion Battery Energy Storage System ("BESS") development project located in Perthshire, Scotland.

Lunanhead was jointly owned with Foresight Solar Fund and has been sold to a third-party buyer at a value consistent with the asset's carrying value as at 30 June 2025, which represents less than 0.2% of the Company's total portfolio value. As previously reported, the Investment Manager continues to explore options for Clayfords BESS, in which the Company also holds a 50% stake.

Follow-on investments

Overview

During the period, the Company committed to c.£20 million follow-on investment into the portfolio, with a weighted average return in the mid-teens, applying a disciplined approach where additional capital can enhance value, protect existing positions, support operational maturity or extend the long-term cash generation potential of existing assets. Follow-on investment activity has and will continue to be assessed against competing uses of capital, including debt repayment, buybacks and distributions, and is prioritised where it is expected to support NAV growth, improve cash generation or extend asset life, and is consistent with FGEN's stated strategy.

CNG

The Company approved £6.25 million follow-on funding to CNG Fuels through its participation in a senior debt facility to support the continued rollout of permanent Bio-CNG refuelling stations. FGEN's commitment represents its pro rata share of the facility, consistent with its existing ownership position, and is intended to fund new station construction, including the Magor site in South Wales, alongside future stations that meet agreed drawdown criteria and are approved through the CNG Fuels governance process. The investment rationale is underpinned by the continued growth of renewable biomethane as a commercially available decarbonisation solution for heavy goods vehicles, the strength of CNG Fuels' customer base and the benefits of supporting an integrated platform across biomethane sourcing, station ownership and RTFC generation.

Carbon capture

The Company approved c.£7 million investment into carbon capture projects at three of the anaerobic digestion plants jointly owned with Future Biogas. Such enhancements are an example of the strategic benefits that underpinned the sale of the majority shareholding in the portfolio to Future Biogas, providing greater alignment of incentives between the parties and leveraging Future Biogas' expertise in the sector. The projects involves the installation of Air Liquide CO₂ capture and liquefaction technology at three existing gas-to-grid anaerobic digestion plants - Grange, Egmere and Merlin - to convert otherwise vented biogenic CO₂ into a food-grade liquid product for the UK market. The investment rationale includes creating a new revenue stream from the sale of captured CO₂, and supporting the long-term life extension case for the AD assets as post-subsidy value increasingly depends on demonstrable sustainability credentials and low greenhouse gas intensity. The project is expected to generate attractive value enhancement returns while materially reducing the carbon intensity of the relevant AD assets and strengthening their future strategic relevance within the wider biomethane portfolio.

PRS 2

The Company approved further investment of c.£7 million into the Vulcan Pressure Reduction System Phase 2 project. PRS 2 is an expansion of the initial gas shipping and pressure reduction system at Vulcan Renewables, involving the installation of additional gas download stations to increase the site's ability to receive compressed upgraded biomethane from third-party AD plants and inject it into the gas grid. The project builds on the successful commissioning of PRS 1 and seeks to utilise Vulcan's advantaged RHI accreditation and available network entry capacity through gas supply arrangements with third-party biomethane producers. The investment is expected to deliver attractive value enhancement returns and more broadly, supports the Company's strategy of extracting additional value from core renewable energy assets, increasing biomethane volumes and enhancing long-term cash generation from the AD portfolio.

Other investments

FEIP

FGEN has committed to investing €25 million in Foresight Energy Infrastructure Partners ("FEIP"), a Luxembourg limited partnership investment vehicle. At 31 March 2026, FEIP has invested in 15 projects and is no longer seeking to make new investments.

The investment in FEIP allows FGEN to further diversify its geographic and technology exposure, while also gaining an allocation to construction‑stage assets which is expected to enhance returns.

Given construction-stage assets can only represent a small part of the Company's portfolio, the FEIP investment allows a greater level of diversification than would be possible with direct investments, providing for a more attractive risk-adjusted return profile. FGEN is excused from any FEIP investment that is not consistent with FGEN's investment policy. No management fees are payable on the amounts invested by FGEN. FEIP also owns a 45% stake in ETA, the Italian EfW plant, in which FGEN is also an investor. As at 31 March 2026, €23.2 million has been invested in FEIP.

Financing

On 22 April 2026, FGEN announced that it had signed a one-year extension to its existing £150 million revolving credit facility ("RCF") and has activated a £15 million accordion facility. The additional capacity provides greater headroom to ensure the Company can continue to fund existing commitments and the continued development of its diversified environmental infrastructure portfolio.

As at 31 March 2026, drawings under the RCF were £123.1 million (31 March 2025: £99.3 million).

The RCF provides an increased source of flexible funding outside equity raisings, with both sterling and euro drawdowns available on attractive terms. The facility will principally be used to make future acquisitions of environmental infrastructure investments to add to the current portfolio, as well as covering any working capital requirements.

The interest charged in respect of the renewed RCF continues to be linked to the Company's ESG performance, with FGEN incurring a 5 bps premium or discount to its margin based on performance against defined targets. Those targets include:

•   environmental: increase coverage of independent biodiversity assessments and implement initiatives to enhance biodiversity net gain across the portfolio;

•   social: increase volume of contributions to local communities; and

•   governance: maintain a low number of work-related accidents, as defined under the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations ("RIDDOR") by the Health and Safety Executive.

Performance against these targets will be measured annually, with the cost of the RCF being amended in the following financial year. Lenders to the facility include HSBC, ING, Nationwide Building Society (trading as Virgin Money) and Royal Bank of Scotland International. The margin can vary between 205 bps and 215 bps over SONIA (Sterling Overnight Index Average) for sterling drawings and Euribor (Euro Interbank Offered Rate) for euro drawings, depending on performance against the ESG targets.

In addition to the RCF, several of the projects have underlying project-level debt.

Project-level gearing at 31 March 2026 across the portfolio was 16.1% (31 March 2025: 18.1%). Taking into account the amount drawn down under the RCF of £123.1 million, the overall fund gearing at 31 March 2026 was 28.8% (31 March 2025: 28.7%).

As at 31 March 2026, the Group, which comprises the Company and the intermediate holding companies, had cash balances of £9.0 million (31 March 2025: £7.8 million).

Financing at 31 March 2026

1.  Gearing is an alternative performance measure ("APM"). The APMs within the accounts are defined in the 2026 Annual Report.

   Risks and risk management

Risks and risk management

FGEN has a comprehensive risk management framework overseen by the Risk Committee, comprising independent non-executive Directors.

Risk is the potential for events to occur that may result in damage, liability or loss. Such occurrences could adversely impact the Company's business model, reputation or financial standing. Alternatively, under a well-formed risk management framework, potential risks can be identified in advance and can either be mitigated or possibly even converted into opportunities.

The 2026 Annual Report detail the principal and emerging risks that the Directors consider are material and which potentially could impact the Company or occur in an environmental infrastructure project such as those invested in by the Company.

In assessing these risks for the purposes of this report, the Directors typically consider the next 12-18 months as being the critical window for risks to materialise. Environmental infrastructure assets are long-term assets and risks can crystallise throughout an asset's life. Nevertheless, this report is intended to give the reader an understanding of the current risk outlook for the Company and the risks that the Board and the Investment Manager feel have the most significance at the present time. This outlook is updated regularly in the publications that the Company puts into the market, so readers can get a sense of how the Board and the Investment Manager's view of risks changes over time.

Given that the Company delegates certain activities to the Investment Manager and Administrator, reliance is also placed on the controls of the Group's service providers.

In the normal course of business, each project will have developed a rigorous risk management framework, including a comprehensive risk register, that is reviewed and updated regularly and approved by its board. The purpose of FGEN's risk management policies and procedures is not to eliminate risk completely, as this is neither possible nor commercially viable. Rather, it is to reduce the consequence of occurrence and to ensure that FGEN is adequately prepared to deal with risks so as to minimise their effect should they materialise.

Risk identification and monitoring

Three Lines of Defence

First Line of Defence ("1LoD"): This consists of functions that manage the risk gateway into the portfolio. They are accountable for and responsible to perform or enable the identification, measurement, management and reporting of risks inherent to the investment activities. This includes the design, operation and ensuring performance and effectiveness of controls.

Second Line of Defence ("2LoD"): This consists of independent risk management and compliance functions which are responsible for establishing Foresight's risk management framework and associated control standards, as well as providing independent challenge over the activities, processes and controls carried out by the first line. Additionally, where agreed with the First Line of Defence and the relevant governance forum, 2LoD can perform and complement the responsibility of identification, measurement, management and reporting of risks, with 1LoD retaining the overall accountability for risk management related to their activities.

Third Line of Defence ("3LoD"): This provides independent risk assurance to the Board and senior management about the adequacy of the overall risk and control framework, and establishes a mechanism for assessing the effectiveness of the risk management and control activities of the first and second lines. FGEN has a separate Risk Committee, comprising five non-executive Directors, which is responsible for overseeing and advising the Board on the current and potential risk exposures of the Company, with particular focus on the Group's principal risks, being those with the greatest potential to influence shareholders' economic decisions, and the controls in place to mitigate those risks. The Board believes that the FGEN Risk Committee provides effective challenge to the risk and compliance frameworks set in place by the Investment Manager. The Board acknowledges that this is not equivalent to an independent internal audit function but that it provides a sufficient and proportionate approach. The Board feels they have a sufficient level of oversight of the internal controls in place.

In the case of new and emerging risks, assessment occurs outside of the quarterly cycle. These systems of internal control were in place for the year under review and continue to be in operation.

Provision 29

Provision 29 of the Corporate Governance Code introduces enhanced expectations for Boards to monitor and review the effectiveness of material controls across financial, operational, reporting and compliance areas, and to provide an explicit declaration of their effectiveness at the balance sheet date. This strengthened requirement is intended to enhance transparency, accountability and assurance for stakeholders. The declaration requirement will apply to the Company for the financial year ending 31 March 2027.

While formal mapping to Provision 29 is ongoing, the Board is taking a proactive approach to readiness. During the year, it has continued to oversee the Investment Manager's risk management and internal control framework, providing regular scrutiny of key controls and their effectiveness.

In anticipation of the new requirements, the Company has adopted a proportionate and structured approach to identifying the key control environment expected to fall within scope. This includes consideration of:

•   controls supporting valuations, financial reporting and share issuance/buyback processes;

•   controls governing investment decision-making, portfolio monitoring and due diligence;

•   operational and resilience controls operated by the Investment Manager, including technology and data governance; and

•   compliance controls relating to the Company's regulatory obligations.

Initial work has focused on understanding how key controls align to the Company's principal risks, leveraging the Investment Manager's existing risk management framework. This is helping to strengthen visibility of control ownership, support documentation of control design and enhance the basis for future monitoring of operational effectiveness.

Areas of particular focus during the year have included:

•   financial reporting processes and valuation methodologies;

•   technology, cybersecurity and data governance;

•   oversight of outsourced and third-party service providers, including business continuity and disaster recovery arrangements; and

•   fraud risk management and economic crime controls.

The Board will continue to develop its approach to Provision 29 over the coming year, including completing the formal mapping of material controls and enhancing its review processes in advance of the first required declaration.

Risk management framework

FGEN has a comprehensive risk management framework and risk register that assesses: a) the probability of each identified risk materialising; and b) the impact it may have on FGEN. Mitigations and, where applicable, controls have been developed with respect to each risk so as first to reduce the likelihood of such risk occurring and secondly to minimise the severity of its impact in the case that it does occur. The risk register is a "live" document that is reviewed and updated regularly by the Risk Committee as new risks emerge and existing risks change.

The principal risks faced by the Group are formally reviewed by the Risk Committee at each quarterly meeting, and the Committee reports to the Board in respect of changes to the general risk environment and material developments in already identified risks. Each of the underlying projects is overseen by an experienced portfolio manager who reports to their individual project board. The portfolio managers maintain strong relationships between counterparties, contractors, third‑party asset managers and other stakeholders. This ensures effective management of potential risks.

Emerging risks

Emerging risks are characterised by a degree of uncertainty, and the Investment Manager and the Board consider new and emerging risks at the Risk Committee which takes place quarterly; the risk register is then updated to include these considerations if required. Furthermore, the Company is advised by various advisers within the listed infrastructure space and the Investment Manager, Foresight, considers emerging risks over a wider market arena.

Examples of emerging risks that have been considered by the Board and Investment Manager during the period include the following:

(i)      Ongoing uncertainty over energy market reform in the UK. Whilst the government has confirmed  that zonal pricing will not be introduced under REMA, material areas of reform remain outstanding,  including the detailed delivery of a reformed national pricing model. In addition, the consultation on ROC Fixed Price Certificates could affect long-term revenue assumptions for ROC-accredited assets, depending on final design and implementation.

(ii)      Heightened geopolitical tension arising from the US/Iran conflict and the associated macroeconomic consequences. Escalation in the Middle East has the potential to disrupt energy markets, shipping routes and global supply chains, with implications for oil and gas prices, inflation, interest rate expectations and investor sentiment. These factors could impact asset operating costs, valuation assumptions, financing conditions and the wider attractiveness of listed infrastructure.

(iii)    The risk that policy ambition across the UK and European environmental infrastructure is not matched by deliverable regulatory frameworks, planning capacity, grid access and supply chain availability. Governments continue to signal strong support for clean energy, grid modernisation, storage, waste, water and broader environmental infrastructure; however, the pace of delivery remains vulnerable to planning delays, judicial review, grid connection bottlenecks, network charging uncertainty, skills shortages, equipment availability and competing political priorities around affordability and energy security. These factors could delay construction timetables, increase development and operating costs, constrain revenue opportunities and reduce investor confidence in certain technologies or geographies.

This risk map shows our assessment of each area of principal risk after mitigation.

Key:

1.  Fund performance and investor sentiment

2.  Interest rates

3.  Adverse movement in inflation

4.  Changes in regulation and government support

5.  Capital recycling and liquidity of investments

6.  Ramp-up risk

7.  Asset exposure to weather resource

8.  Exposure to market power prices

9.  Operational risk

10.  Counterparty risk

FGEN's risk register covers six main areas of risk:

•   Strategic, economic and political

•   Operational, business, processes and resourcing

•   Financial and taxation

•   Compliance and legal

•   Asset specific

•   ESG

This year we are only detailing the most pertinent principal risks affecting the Company. We have identified 10 risks within two of the above-mentioned categories. These risks are summarised below, followed by a detailed discussion of the mitigating factors.

See more on climate-related risks in our Sustainability and ESG report in the 2026 Annual Report.