Solid operational performance across the portfolio in the period demonstrating the resilient nature of the underlying assets. The Company is on track to deliver its target dividend of 8.25p per share for the financial year to 31 March 2024, with cash generation in line with expectations.

Sale of entire stake of Northwest Parkway ("NWP") for a net consideration of US$232m at a c. 30%¹ premium to the most recent valuation. Up to £50m of the sale proceeds reserved for a share buyback programme.

Acquired additional 3.1% interest in A63 Motorway in France for £20m at highly accretive terms.

£200m of disposal proceeds received and used to reduce fund-level gearing. The RCF is expected to be fully repaid with the proceeds of the Northwest Parkway disposal.

Focus remains on responsible capital allocation, with future disposal proceeds to support the evaluation of selective investment opportunities where they enhance the portfolio's key financial metrics.

Overall, the portfolio performed in line with expectations in the period, underpinned by its high-quality, inflation linked cashflows and limited variable interest rate exposure.

In December 2023 HICL acquired a further 3.1% interest in the A63 Motorway concession in France for c. £20m. The acquisition was carefully evaluated against alternative uses of capital, including the repurchase of the Company's shares, with the expected return and yield from the asset significantly higher than the relevant hurdle rates.

The levy on revenues earned by companies operating long-distance transport infrastructure in France has now been enacted as part of the 2024 Finance Law. Once the payment terms are published, it is expected that the law will be challenged in the constitutional court, and it remains HICL's expectation that compensation would be due through higher tolls. However, even if the levy were to be imposed in full, the impact on HICL's valuation of the A63 Motorway is not expected to be material.

The Company's new modern economy assets (Fortysouth, Texas Nevada Transmission ("TNT") and Altitude Infra), are now well integrated into the portfolio and continue to perform in line with expectations.

The Company is on track to deliver its target dividend of 8.25p per share for the financial year to 31 March 2024, with cash generation in the period in line with expectations.

Proceeds from the announced disposals of Bradford Schools PPPs, the four PPP assets sold to John Laing and the University of Sheffield Accommodation Project have been received. The proceeds from the Hornsea II OFTO and the Northwest Parkway disposals expected by Q3 2024.

The Company announced in February 2024 the intention to allocate up to £50m of the NWP disposal proceeds towards a share buyback programme in due course which will run for a period of up to twelve months.

The Company's NAV and valuation approach continues to be well-informed by transaction data points, including the Company's own disposal activity which now spans over £500m of assets, across sectors and geographies, all realised at or above their carrying values.

From September 2022 to September 2023, HICL increased its weighted average portfolio discount rate by 140bps. Current long-term UK government bond yields imply that HICL benefits from a c. 3.7% equity risk premium which has widened by 30bps since the Company's results at 30 September 2023. The Investment Manager believes the risk premium is appropriate for HICL's core infrastructure portfolio.

While noting increased market confidence that interest rates have peaked across HICL's key jurisdictions, the Investment Manager does not anticipate a change in the portfolio weighted average discount rate in the 30 March 2024 Valuation as it currently aligns with transactional evidence in the sector. The Company believes the strong valuation achieved for its sale of NWP reflects the unique opportunity for the bidder to acquire 100% of the equity as well as the asset's strong inflation correlation, particularly over the past two years.

Alongside the expected NAV uplift of c. 2p, the NWP sale is expected to be materially accretive to portfolio yield, while modestly reducing the portfolio's weighted average asset life to 29.5 years and inflation correlation from 0.8x to 0.7x².

Inflation for the year to 31 March 2024 is currently slightly below the assumptions used in the 30 September 2023 valuation (at 4% relative to an assumption of 6.5% for UK RPI). If it remains at these levels, the negative effect on the portfolio's 31 March 2024 valuation is expected to be c. 1.5p.

The market for high quality core infrastructure assets remains in good health with increasing transaction volumes noted in the period³. This data, supported by the Company's own disposals, continues to reaffirm market liquidity and the observed disconnect between public market and private investor valuations for inflation correlated core infrastructure.

The Board and Investment Manager remain focused on responsible capital allocation, with disposal activity used to support the selective review of investment opportunities to enhance the portfolio's key financial metrics, in line with HICL's long-term track record of accretive asset rotation.