TRIG The Renewables Infrastructure Group Limited

28 February 2024

The Renewables Infrastructure Group Limited

"TRIG" or "the Company", a London-listed investment company advised by InfraRed Capital Partners ("InfraRed") as Investment Manager and Renewable Energy Systems ("RES") as Operations Manager.

Announcement of 2023 Annual Results

TRIG announces its Annual Results for the Company for the year ended 31 December 2023. The Annual Report and Accounts are available on the Company's website: www.trig-ltd.com

Highlights

For the year ended 31 December 2023

Strong underlying performance with modest decline in valuation

-     Robust pro-forma portfolio EBITDA of £610m¹ (2022: £677m) reflecting strong achieved power prices.

-     Healthy cash flow generation with dividend cover of 1.6x (2022:1.5x); or 2.8x (2022: 2.6x) before the repayment of £219m of project-level debt.

-     6.9p reduction in NAV per share² to 127.7p (31 December 2022: 134.6p) driven by lower power price forwards and higher valuation discount rates.

-     Power prices trended down during 2023 following reductions in gas prices. Since the balance sheet date, forwards for 2024-2026 have further reduced by c. 20%. Over a five-year horizon, a 10% reduction in power prices would reduce the Company's NAV by 2.2p/share⁴.

-     The weighted average Portfolio Valuation³ discount rate as at 31 December 2023 has increased to 8.1% (31 December 2022: 7.2%), reflecting the higher return environment.

Disciplined capital allocation

-     Reduction in project-level gearing to 37% (31 December 2022: 38%), following debt repayment of £219m. Project-level debt is fixed rate and amortises over the subsidy periods.

-     Retained cashflows and disposals helped reduce Revolving Credit Facility ("RCF") drawings by £34m. In 2024, the Company expects to be able to reduce RCF drawings to about £150m.

-     Construction projects completed, with 301MW of capacity delivered during the year across five projects. All construction spend in 2023 was funded from retained cash flows.

-     2024 dividend target⁵ set at 7.47p/share, a 4% increase on 2023's achieved dividend of 7.18p/share, balancing the strength of the Company's inflation-correlated cash flows with moderating power prices and inflation.

Opportunity for capital growth

-     TRIG has an exclusive development pipeline of 1GW by 2030 from repowering, co-location & extensions and new site developments.

-     Investing in development activities offers strong prospective risk-adjusted returns, significantly ahead of the portfolio weighted average discount rate, and provides optionality to take projects forward through build and into operations.

-     Investment decisions consider an elevated return hurdle rate, which includes the return offered by the buying back the Company's own shares, portfolio construction and the Company's funding position.

-     TRIG has the potential to fund the delivery of the development pipeline without the need for equity issuance, through retained cash, divestment proceeds and structural debt capacity. Company's durable balance sheet and amortising debt is projected to see portfolio gearing reduce to 23% by 2030 on the current portfolio, whilst 38% of the portfolio remains ungeared.

-     Operational and technical enhancements deliver capital growth through improving the generation output of TRIG's existing portfolio. Examples include AeroUp, which has delivered a 5% energy yield increase at the initial trial site.

1    The unaudited EBITDA figures presented are based upon the aggregation of SPV-level revenues and operating costs measured on a consistent basis across regions.

2    The NAV per share as at 31 December 2023 is calculated on the basis of the 2,484,343,784 Ordinary Shares in issue as at 31 December 2023 (see Note 11 of TRIG's 2023 Annual Report) plus a further 800,776 Ordinary shares to be issued to the Managers in relation to part payment of the Managers fee for H2 2023 (see Note 18 of TRIG's 2023 Annual Report).

3   On an Expanded basis. Please refer to the Financial Review section of TRIG's 2023 Annual Report for an explanation of the Expanded basis.

4   Sensitivity as set out in the Valuation of the Portfolio section of the 2023 Annual Report

5   This is a target only and not a profit forecast. There can be no assurance that this target will be met.

Richard Morse, Chairman of TRIG, said:

"It has been an important year in the Company's history. The underlying performance of the Company is strong and cash generation has never been healthier, whilst the Managers have been working hard to create additional value from within portfolio. This is against a challenging backdrop for the share price, with tighter monetary conditions contributing to a decline in the Company's valuation and a sustained discount to net asset value as market return requirements have increased. If the interest rate cycle continues as expected, the coming year is showing signs of a more benign macroeconomic environment for the Company.

It is also an important year from a personnel perspective. After a decade at the helm of TRIG's investment management team, Richard Crawford is retiring from full time duties in the summer and will be handing over the reins to Minesh Shah at InfraRed with effect from 1st July 2024. My Board colleagues and I are extremely grateful for Richard's contribution to TRIG's success over all these years and we're very pleased to continue with Minesh, with whom the Board has worked closely over the last few years. We are pleased that TRIG will continue to benefit from Richard's long history with the Company as he remains a key part of TRIG's investment and advisory committees."

Enquiries

InfraRed Capital Partners Limited                              +44 (0) 20 7484 1800
Richard Crawford
Phil George

Minesh Shah

Mohammed Zaheer

Brunswick                                                         +44 (0) 20 7404 5959 / TRIG@brunswickgroup.com

Mara James

Investec Bank Plc                                                 +44 (0) 20 7597 4000
Lucy Lewis

Tom Skinner

BNP Paribas                                                         +44 (0) 20 7595 9444
Virginia Khoo

Carwyn Evans

Notes

The Company

The Renewables Infrastructure Group ("TRIG" or the "Company") is a leading London-listed renewable energy infrastructure investment company. The Company seeks to provide shareholders with an attractive long-term, income-based return with a positive correlation to inflation by focusing on strong cash generation across a diversified portfolio of predominantly operating projects.

TRIG is invested in a portfolio of wind, solar and battery storage projects across six countries in Europe with aggregate net generating capacity of over 2.8GW; enough renewable power for the equivalent of 1.9 million homes and to avoid 2.3 million tonnes of carbon emissions per annum. TRIG is seeking further suitable investment opportunities which fit its stated Investment Policy.

Further details can be found on TRIG's website at www.trig-ltd.com.

Investment Manager

InfraRed Capital Partners is an international infrastructure investment manager, with more than 170 professionals operating worldwide from offices in London, New York, Sydney and Seoul. Over the past 25 years, InfraRed has established itself as a highly successful developer and custodian of infrastructure assets that play a vital role in supporting communities. InfraRed manages US$14bn+ of equity capital¹ for investors across the globe, across listed and private funds in both income and capital gain strategies.

A long-term sustainability-led mindset is integral to how InfraRed operates as it aims to achieve lasting, positive impacts and deliver on its vision of Creating Better Futures. InfraRed has been a signatory of the Principles of Responsible Investment since 2011 and has achieved the highest possible PRI rating² for its infrastructure business for eight consecutive assessments, having secured a 5-star rating for the 2023 period³. It is also a member of the Net Zero Asset Manager's Initiative and is a TCFD supporter. 

InfraRed is part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. InfraRed represents the infrastructure equity arm of SLC Management, which also incorporates BentallGreenOak, a global real estate investment management adviser, and Crescent Capital, a global alternative credit investment asset manager. Further details can be found on the website at www.ircp.com. 

¹ Uses 5-year average FX as at 30th September 2023 of GBP/USD of 1.2944; EUR/USD 1.1291. EUM is USD 13.597m

² Principles for Responsible Investment ("PRI") ratings are based on following a set of Principles, including incorporating ESG issues into investment analysis, decision-making processes and ownership policies. More information is available at https://www.unpri.org/about-the-pri 

³ In the 2023 Principles for Responsible Investment ("PRI") assessment, InfraRed achieved a 5 star rating for the Policy Governance and Strategy and Infrastructure and a 4 star rating for the newly created Confidence Building Measures. Please find InfraRed's report available for download on our website here: https://www.ircp.com/sustainability/

Operations Manager

TRIG's Operations Manager is RES ("Renewable Energy Systems"), the world's largest independent renewable energy company.

RES has been at the forefront of wind energy development for over 40 years, with the expertise to develop, engineer, construct, finance and operate projects around the globe. RES has developed or constructed onshore and offshore wind, solar, energy storage and transmission projects totalling more than 23GW in capacity. RES supports over 12GW of operational assets worldwide for a large client base. Headquartered in Hertfordshire, UK, RES is active in 14 countries and has over 2,500 employees engaged in renewables globally.

RES is an expert at optimising energy yields, with a strong focus on safety and sustainability. Further details can be found on the website at www.res-group.com.

Chair's Statement

The past year marks a decade since TRIG's IPO in 2013. Our diversified portfolio now has generation capacity of 2.8GW, ten times that at IPO, and can produce enough clean energy to power 1.9m homes and displace 2.3m tonnes of CO₂ per annum.

The portfolio's strong, inflation-linked cash flows have supported healthy dividend coverage and enabled TRIG to fund organically the delivery of 300MW of new generation capacity since IPO. This year, robust cash flows were achieved despite the strained macroeconomic environment as interest rates rose to the highest levels during the Company's history. This macroeconomic backdrop has negatively impacted the share prices of renewables investment companies, including TRIG.

The portfolio's revenues have benefited from high power prices relative to historic norms and the direct inflation linkage of over half of the portfolio's revenues through government-backed offtake contracts, while our portfolio cash flows have benefited from having fixed interest rates across the vast majority of TRIG's debt. These solid foundations produced distributable cash flow¹ of £283m, after the repayment of £219m debt across the Group,² and delivering a net dividend cover of 1.6 times.

Investor return expectations have increased consistent with the higher yield available from government bonds in TRIG's key markets. In addition, near-term power prices have reduced from their recent peaks, particularly in the last quarter of 2023. Reflecting these changes, we have during the year increased the Portfolio Valuation discount rate by 0.8% to 8.1% and reduced our near-term power forecasts. As a result, the Company's Net Asset Value has decreased by 6.9p per share over the course of the year to 127.7p per share at 31 December 2023. This valuation reduction feeds directly through into the Company's reported earnings. The full impact of these factors was, in part, offset by increases in inflation and active management of the portfolio.

Market transactions continue to support the Portfolio Valuation, including the divestment of three projects by TRIG during the year at a 26% premium to valuation. The Managers are actively progressing with several further divestment opportunities, which represent an opportunity to make strategic adjustments to the portfolio and to achieve a priority objective of reducing the level of our outstanding Revolving Credit Facility. The Company expects to provide further updates on these in due course. Preliminary offers have been consistent with or above the Portfolio Valuation.

The payment of an attractive, resilient dividend to shareholders is also a core priority. Consistent with our policy of increasing the dividend when it is prudent to do so while retaining flexibility to take advantage of opportunities to invest for attractive capital growth,³ I am pleased to report a dividend target for 2024 of 7.47p per share (2023: 7.18p per share). In increasing the target dividend by 4% above the 2023 level, the Board and the Managers have considered not only inflation which in 2023 was c.4% across portfolio geographies and in 2024 is forecast to be c.2.75%, but also the strength of the Company's cash flows and prospects underpinned by its indexed government-backed income. The 2024 target dividend represents a 6.6% yield by reference to TRIG's closing share price on 31 December 2023.

Excess cash generation and disposal proceeds were reinvested in line with our disciplined capital allocation strategy, which in 2023 prioritised reducing borrowings under the revolving credit facility ("RCF") given the prevailing equity market conditions, while still permitting completion of existing in-construction projects, where the returns on the remaining investment were attractive. The Company expects to be able to reduce RCF drawings over the next 12 months to about £150m which is within 5% of Portfolio Value, using proceeds from disposals and organic cashflows.

The Investment Manager, with the support of the Board, continues to consider selective investment opportunities, where these are strategic and accretive. One example is the recent acquisition of Fig Power, a UK developer with a focus on battery storage systems.

Battery storage is an area of strategic focus for the Managers, recognising the role flexible capacity needs to fulfil within the energy transition and the diversification benefits for the portfolio. Fig Power brings the opportunity to contribute mid-teens returns from our own proprietary pipeline, enhancing portfolio diversification and continuing the evolution of TRIG's strategic direction established in recent years towards a greater proportion of value-add investment within the development and construction phases.

Investment activity would draw on the RCF as a bridge to funding from excess cash generation, divestment proceeds and/or structural debt. All investments are carefully considered against the alternative of returning cash to shareholders (e.g. via share buybacks) and will only be made to the extent that they are consistent with the Company's strategic priorities, continued careful balance sheet management and the pursuit of delivering attractive shareholder returns.

Active management

TRIG's operational portfolio continues to expand. Five projects were commissioned during the year across Sweden and Spain. Construction has also commenced for the Ryton battery storage project in the UK, and development activities continue to progress well for the Drakelow battery storage project in the UK and the repowering of five onshore wind projects across France and Northern Ireland. Construction and development activities continue to provide attractive risk-adjusted returns and the opportunity to leverage the deep experience of TRIG's Managers: InfraRed and RES in renewables generation and flexible capacity, as detailed further in the Investment Report and Operations Report, including RES's progression of aerodynamic improvements to turbine blades that are being installed at six of our GB projects following a successful trial.

Active management of the portfolio by InfraRed and RES is a key competitive advantage for TRIG, which both preserves and enhances the value of the portfolio - thereby delivering value to shareholders. Specific technological and commercial enhancements made during the year are also detailed in the Investment Report and Operations Report.

The Company's principal risks are monitored by the Board and the Managers and mitigated where practicable. TRIG continues to have three enduring principal risks with a high residual impact which are: political/regulatory risk; power prices and production performance. Additionally, since the 2022 Annual Report, counterparty credit has become an elevated principal risk with a
high residual impact due to the current macro environment. These and other risks are considered and expanded on in the Risk and Risk Management section.

Governance

In 2023, Klaus Hammer retired from TRIG's Board of Directors, having made a significant contribution from his appointment in March 2014 onwards. We are very grateful to Klaus for his dedication to TRIG and wish him well for the future. We have also welcomed to the Board Selina Sagayam, a leading City solicitor, who among other things chairs our new ESG sub-committee, an area in which she is an acknowledged expert. The new sub-committee will consider ESG performance, emerging regulations, good practices and risks within this area, reinforcing TRIG's strong commitment to market leadership in this area.

These changes conclude the Board's immediate succession plan. Effective succession is just one aspect of long-term stability. At a Board level, we seek to maintain strong governance and engage with our shareholders. This year the Board has met with investors directly through site visits and shareholder meetings, as well as corresponding with shareholders, providing an opportunity for engagement beyond the Company's AGM.

After a decade leading the day-to-day investment management of TRIG, Richard Crawford is retiring from full time employment at InfraRed and will be handing over his responsibilities to Minesh Shah with effect from 1 July 2024. The Board is extremely grateful to Richard for his huge contribution to the success of TRIG, the Company's track record and the energy transition. Minesh is well known to the Board and to many of our investors, having spent the last four years supporting Richard in the development of the Company's strategy, screening pipeline transactions and risk management. The Board looks forward to working with Minesh going forward, whilst continuing to benefit from Richard's long history with the Company as he remains part of the TRIG Investment and Advisory Committees.

Costs

Our results are presented net of management and administrative costs. The headline 'ongoing charges ratio' of 1.04% compares favourably with our peers. Under current regulations, we are aware that it is not consistently recognised that the share price, dividend yield and track record are presented net of all management and administrative costs of the Company, and the presentation of the 'ongoing charges ratio' can result in 'double counting'. We are grateful for the work of InfraRed alongside shareholders, our brokers, industry bodies, the London Stock Exchange, and other investment company boards and managers, in engaging with politicians and the FCA on this matter. We hope that this pressure continues and leads to a positive outcome for the investment company sector.

Outlook

As we look ahead, the secular themes of decarbonisation and energy security continue to give us confidence in our strategy and outlook. The deployment and operational performance of renewables assets remains a high priority for governments across Europe. TRIG is well positioned to be at the forefront of the energy transition and our Managers will continue to look for ways to advance our 1GW development pipeline of potential generation and storage capacity, through selective investment to progress TRIG's strategic priorities and improve shareholder returns.

Our balanced portfolio of wind, solar and battery storage projects continues to perform well, deliver inflation-correlated returns, and generate strong operational cash flows with low sensitivity to interest rate movements. By taking a disciplined approach to capital allocation, and with two leading Managers steeped in investment expertise and operational excellence, TRIG is well positioned to build on our strong decade-long track record.

Richard Morse

Chairman

27 February 2024

1.     This is referred to as distributable cash flow in the Financial Review section on page 51 of TRIG's 2023 Annual Report. Reported on an Expanded basis.

2.     The Company, TRIG UK, TRIG UK I and its portfolio of investments are known as the "Group".

3.     The Company's dividend policy is to increase the dividend when the Board considers it prudent to do so, considering forecast cash flows, expected dividend cover, inflation across TRIG's key markets, the outlook for electricity prices and the operational performance of the Company's portfolio.

Investment Report

Financial Highlights

Financial performance and valuation

The Group's operational cash flow¹ generation for the year has been strong at £558m or £502m less fund expenses, which represents 2.8 times cover of the £176m cash dividend paid to shareholders and was used to repay £219m portfolio-level debt. After operating, finance costs and working capital, the Group's distributable cash flow of £283m (2022: £249m) during the period covered the cash dividend 1.6 times. Pro-forma EBITDA² for the year was £610m. The table below shows TRIG's share (pro-rated for TRIG investment %) of revenues from its investments, EBITDA and cash received from investments.

The above balances are not on a statutory IFRS basis, but are proforma portfolio balances which show the Group's share of the revenue and EBITDA for each of the projects. These balances have been provided in order to provide shareholders with more transparency into the Group's capacity for investments and ability
to make distributions.

Revenues have declined slightly as average power prices have reduced in 2023 versus 2022 partially offset by additional projects moving into operations.

In general, it takes one to two months between earning revenue and receiving the cash up from investments. Consequently, there are always elements of working capital which produce variations between earnings measures and cash measures. In periods of rising prices these working capital balances are expected to grow, therefore increasing the differences, and in periods of falling prices the reverse is likely to be true.

EBITDA margin is strong at 77% with operating costs representing
a small proportion of revenues. After servicing project finance interest and debt repayments, tax and working capital cash is available to pay up to TRIG.

The Company's Net Asset Value as at 31 December 2023 was 127.7p per share (31 December 2022: 134.6p per share) and the Company's Portfolio Valuation was £3,509m. Earnings for the period were 0.2p per share (2022: 21.5p), principally due to the reduction in the portfolio valuation as a result of lower power price forecasts and higher valuation discount rates.

This performance has benefited from the following factors:

-    Continued active financial and operational management of TRIG's portfolio, including:

o  The successful delivery of c.300MW new generation capacity through construction into operations: four solar projects in Spain and the Grönhult onshore wind farm in Sweden.

o  Disposing of three onshore wind farms in the Republic of Ireland for a combined consideration of c.€25m, representing a 26% premium to the valuation of the wind farms as at 31 December 2022.³

o  Fixing power prices for multiple projects at attractive prices on pay-as-produced basis, including the signing of a ten-year corporate power purchase agreement for the Blary Hill onshore wind farm and the fixing of pricing of Renewable Energy Guarantees of Origin certificates ("REGOs").

o  The reversal of the retroactive feed-in-tariff reductions introduced by the French Government for older solar projects.

-    Strong achieved pricing performance of REGOs in the UK and Guarantees of Origin certificates ("GoOs") in the EU, resulting in increased forecast revenues accounting for c.3% of total revenues.

These factors positively influenced the portfolio valuation by 7p per share and have been partly offset by below budget generation, predominantly driven by low wind resource in the UK during the period.

Macroeconomic movements which have impacted the portfolio valuation by in total around 11p per share, and therefore earnings, included:

-    Decreases in short- and medium-term power price forecasts over the next five years across the markets where TRIG invests which reduced portfolio value. The decreases in power prices over 2023 significantly reduce the impact of the windfall taxes introduced in 2022 on the Company's NAV. TRIG benefits from 68% of revenues being fixed through government-backed revenue contracts, which are predominantly inflation linked over the next five years.

-    Increases in the portfolio's weighted average discount rate by 0.8% to 8.1% (UK +1.0%, EU +0.5%). This increase has reduced the portfolio valuation. The higher adopted discount rates reflect the increased return expectations for yields over the period, particularly in the UK.

-    Increases in inflation assumptions which mitigated the impact of the higher discount rate on TRIG's portfolio valuation. This has positively contributed to the portfolio valuation as these inflation assumptions flow into revenue forecasts through index-linked government-backed revenue contracts and indirectly increase power price forecasts. Over 50% of the Company's forecasted revenues are directly linked to inflation indices over the next ten years.

Other factors which impacted the portfolio valuation include lower wind resource in the year, revisions to energy yield budgets and sum to a reduction of NAV by approximately 3p per share.

Looking ahead, near-term power price expectations have reduced, inflation expectations have also moderated and government bond yields look to have peaked in the near term. However, cash flows are expected to continue to be elevated compared to historical levels prior to the Ukraine crisis, supported by the portfolio's inflation linkage and strong power prices, which remain significantly ahead of forecasts two years ago as at 31 December 2021 and prior to the Ukraine crisis, on a like-for-like basis. When the NAV movement is considered over the past 24 months, higher cash flow forecasts have translated into a NAV uplift of 23p over the same period and have substantially offset the 15p NAV decline resulting from the 1.3% increase in the discount rate

Greater detail on the valuation movements for the year ended 31 December can be found in the Valuation of the Portfolio section on page 38.

Gearing and capital allocation

Responsible balance sheet management and disciplined capital allocation are key priorities for the Company's Board and Managers, in the current macroeconomic environment with particular reference to the prevailing elevated cost of capital compared to recent historic levels and reduced liquidity within the equity markets. Against this backdrop, managing the Company's floating rate revolving credit facility ("RCF") and meeting the Company's construction commitments remain the primary uses of excess cash flows from the portfolio and proceeds of asset sales.

TRIG's RCF is used to fund investment activities and is repaid from surplus cash flows, equity fund raises and/or disposal proceeds. The RCF, which was refinanced in February 2023, has total
funding capacity of £750m and matures in December 2025. As at 31 December 2023, the RCF was drawn £364m.

During the year, the RCF was reduced by £34m as a result of surplus cash flows generated by assets exceeding construction commitments and the application of £22m proceeds from asset sales in the year. In
addition the Group's long-term project-level debt, which is predominantly fixed rate (average of 3.5%), reduced by £219m in the year, to £2.1bn at 31 December 2023.

Over the next 12 months, the Company expects to be able to reduce RCF drawings to about £150m, which is within 5% of Portfolio Value, using proceeds from disposals and organic cash flows.

Portfolio-level debt is structured to amortise over the remaining period of government subsidy and revenue support mechanisms. On current projections, portfolio gearing is expected to reduce to 23% by 2030, providing capacity to regear to fund future investment activities.

The Company has limited cash flow exposure to rising interest rates due to fixed interest rate borrowings and no refinancing risk across the project companies. All portfolio-level debt amortises over the subsidy period.

The reduction in RCF drawings is expected to be achieved through a combination of excess portfolio cash flows and further divestments. When establishing which assets to divest, consideration is given to the impact of the divestment on portfolio composition, including technology, revenue and geographical diversification.

Surplus portfolio cash flows have also been used to fund the Company's construction activities during the year. Over 2023, construction spend of £92m was met by surplus operational cash flows. Remaining commitments of £131m in 2024 and 2025 are also expected to be funded from operational cash flows.

The Company may also make accretive investments where there is a compelling rationale to further the Company's strategic priorities. In the absence of compelling investments, the Company may consider share buybacks. Any such new investments may, in the first instance, be funded from drawings under the RCF, which would act as a bridge to permanent funding for example from organic excess cash flows, divestment proceeds and/or structural debt.

Dividend

The dividend target for 2024 has been set at 7.47p per share, representing a 4% growth on the 2023 dividend. In increasing the dividend by 4% from 2023, the Board and the Managers have considered not only inflation which in 2023 was c.4% across portfolio geographies and in 2024 is forecast to be c.2.75%,¹ but also the strength of the Company's cash flows and prospects underpinned by its indexed subsidy income and construction and development activity.

1.     Operational cash flow generated is reconciled to the cash flow statements as follows: Cash flow from investments £339m less Company (including its immediate subsidiaries TRIG UK
and TRIG UK I) expenses £56m plus project-level debt repayments £219m.

2.     The unaudited revenue and EBITDA figures presented are based upon the aggregation of SPV-level revenues and operating costs measured on a consistent basis across regions.

3.     The most recent audited valuation, adjusted for cash distributions received since 31 December 2022.

Investment Highlights

TRIG consistently benefits from a large, diversified and balanced portfolio with investments spread across different geographies, technologies, revenue types and project stages to mitigate risk.

The Investment Manager takes a careful and considered approach to portfolio composition. The risk-reward profile of new investments is appraised alongside alternative uses of the Company's surplus cash flows, in particular reducing RCF borrowings and share buybacks.

The Managers' successful delivery of projects through development and construction stages into operations is a key route to creating value for shareholders. Several significant milestones were reached during the year, including the commissioning of four solar projects in Spain and the Grönhult onshore wind farm in Sweden. Adding 301MW of operational capacity to the portfolio, these projects strengthen and further diversify the Company's revenues. Approximately half of the construction risk premia across these investments has been released and reflected in an increase in the valuation of these investments by c.0.6p per share. The remaining construction risk premia will be released as operational performance
is further evidenced in steady state operations.

TRIG's ongoing construction projects continue to progress well. At the Ranasjö and Salsjö (Twin Peaks) onshore wind farms in Sweden, all turbines have been erected with the commissioning phase well progressed. The sites are expected to be operational by the end of Q1 2024.

The Board and the Managers continues to see battery storage as a critical sector for the European energy transition as batteries can respond to price signals, provide flexibility and support grid stability. Storage assets are particularly complementary within a portfolio of renewables generation assets which can absorb the higher volatility commensurate with the higher returns battery storage investment offers. The development of the four battery storage projects each of two-hour duration which were acquired in late 2022 has progressed well. Final Investment Decision ("FID") on the 74MW Ryton project was reached in Q3, with construction scheduled to commence in Q1 2024. Operational takeover is expected during 2025. On the 90MW Drakelow battery storage project design work is underway with FID expected in H1 2024. Additionally, a follow-on mezzanine loan was made to the Phoenix investment in France to enable our partner, Akuo, to enhance existing solar sites with 25MW of new co-located battery storage capacity on Corsica and La Reunion.

Significant value in battery storage investment is secured through strategic land rights and grid connections secured at the development stage. The acquisition of Fig Power post period end comprising an advanced pipeline of 400MW across eight projects with grid offers ranging from 2025 to 2033, and a further 3.6GW of identified sites, provides TRIG with the opportunity to capitalise on the attractive UK battery storage market. In addition to a pipeline of projects for TRIG to build, the Investment Manager expects that, taking into account factors including portfolio balance and weightings, there will be opportunities to sell developed projects to third parties and crystallise a development profit for TRIG.

Development activities have also progressed for the repowering of the Cuxac and Claves onshore wind projects (23MW) in France, and the Altahullion onshore wind farm (38MW) in Northern Ireland. Additionally, the opportunity to leverage the grid connection and land space at the Cadiz solar projects through the addition of onshore wind is being evaluated.

In total, the Managers have identified a development pipeline of c.1GW to reach FID by 2030, including development stage projects acquired and portfolio repowering, expansion and co-location opportunities. Return hurdle rates in current market conditions for new development stage investments on a develop, build and hold basis is typically 12%+ depending on the remaining development milestones, the complexity of construction and operations, which can be technology dependent, risk allocation and the expected revenue profile. The Company's robust capital structure, the excess cash flows generated by TRIG's existing portfolio and the Investment Manager's active approach to asset rotation means the pursuit of this pipeline is not dependent on equity capital markets.

Current outstanding commitments

As at 31 December 2023, the Company has outstanding investment commitments (for construction activities) of £131m relating to the Swedish onshore wind construction projects (Ranasjö and Salsjö), two of the UK battery storage projects (Ryton and Drakelow), and in relation to the acquisition cost of Fig Power and expected funding of the company's overheads and development expenditure for the initial two years of the business plan set out in the table below by expected due date. The Company's £750m committed RCF was drawn £364m as at 31 December 2023. The vast majority of the investment commitments relate to investment in higher returning and diversifying UK battery storage projects.

Revenue profile

TRIG benefits from diversification across several power markets, with projects in Great Britain, the Single Electricity Market (Northern Ireland and the Republic of Ireland), the main continental European power market (France and Germany), the Nordic market (Sweden) and the Iberian market (Spain).

TRIG's portfolio cash revenues have substantial medium-term protection from movements in power prices as the portfolio receives a high proportion of its revenue from government subsidies such as Feed-in-Tariffs ("FiTs"), Contracts for Difference ("CfDs"), Renewable Obligation Certificates ("ROCs") or from selling electricity generated via Power Purchase Agreements ("PPAs") with fixed prices or from other hedges, together referred to as fixed revenues.

The Group¹ receives a portion of its revenues in Euros; 42% of the portfolio by value is invested in Euro-denominated assets,² the Group employs foreign exchange hedging to significantly mitigate the cash flow and valuation exposure to this risk, as expanded upon in the Valuation of the Portfolio section on page 41.

The Investment Manager implements the Company's foreign exchange hedging policy through Sterling-Euro swaps for up to four years forward. As a result of the interest rate differential between UK and the Eurozone, forward foreign exchange contracts over the next four years have been struck at levels better, in Sterling terms, compared to the foreign exchange rate as at 31 December 2023 and used in the portfolio valuation.

The chart on page 23 of TRIG's 2023 Annual Report reflects the portfolio's forecast revenues.

Principal risks and uncertainties

TRIG's principal risks, approach to risk management and counterparty exposures are set out in the Risk and Risk Management section of this report. Below is a commentary on the key movements in these risks in the period.

In addition, in a macroeconomic environment where inflation and interest rates have been elevated, the correlation of portfolio returns to inflation and the Company's approach to long-term, fixed-rate and amortising structural debt are key risk mitigants. The macroeconomic backdrop has also increased pressure on supply chain balance sheets where fixed price contracts are being delivered whilst costs are increasing and original equipment manufacturers ("OEMs") are reducing their spares capacity as they focus on improving their profitability.

Regulation and taxation

The risk of government or regulatory support for renewables changing adversely.

2023 saw the implementation of windfall taxes on the electricity generation sector by UK and mainland European countries. In the UK, the Electricity Generator Levy is in place until 2028. In the EU, some of these levies expired on 30 June 2023 with several countries, including Germany, not extending the period of application. There remains a risk that further intervention may result if electricity prices were to increase significantly again; however, current power price forwards and the forecasts used in the valuation of the portfolio are below the recent intervention price levels.

The UK and EU governments continue to assess options to reform electricity markets, including how the wholesale electricity price is set and whether new long-term revenue support contracts should be made available to existing generators. TRIG's approach to diversify political and regulatory risk across jurisdictions helps to reduce the impact on the portfolio from individual risks at the national level. A range of technologies and locations across the UK reduces, but does not remove, the risks associated with the potential implementation of locational pricing in the GB power market.

Power prices

The risk of electricity prices falling or not increasing as expected.

Power prices have been particularly volatile since 2020, with periods of very low pricing experienced during the Covid-19 pandemic and very high prices since the outbreak of the conflict in Ukraine.

Power prices trended lower during 2023 with forwards continuing
this trend for the next three years, but they remain elevated compared to pre-Covid-19 levels. This decline is driven by increased levels of European gas storage, projected increases in LNG supply from 2025, reduced demand due to milder weather patterns and reduced fears of French nuclear supply problems. Windfall taxes including a combination of infra-marginal power price caps implemented in Europe and the Electricity Generator Levy in the UK reduced sensitivity to this change. Near-term forwards are now at levels below government intervention thresholds.

There has been little change in the long-term fundamentals of power prices in the period, leading to limited movements in long-term power price forecasts compared to those as at 31 December 2022 in most geographies.

The valuation of the Company's portfolio overlays market derived forward prices to a blend of cannibalised power price forecast curves produced by three independent forecasters. There is a risk that actual power prices achieved are below these forecasts.

As the penetration of renewables increases and therefore intermittency of energy systems increases, TRIG will be more actively seeking to provide balancing services to the grid through battery storage. By discharging electricity during periods of low generation and absorbing excess electricity in periods of high renewable availability, batteries are able to smooth the intra-day price volatility associated with variable renewable resource.   

Production performance

The risk that portfolio electricity production falls short of expectations.

Weather resource was below budget in the period, particularly wind in the UK and Ireland. The overall shortfall against budget was moderated by portfolio diversification, particularly the solar portion of the portfolio which was ahead of budget for the period. Portfolio diversification has been enhanced in the period with the commissioning of the Cadiz solar projects in Spain and the Grönhult onshore wind farm in Sweden. The Operations Manager continues to develop and oversee the deployment of energy yield value enhancements to improve generation output.

Counterparty credit

The risk of failure of a major supplier

TRIG's portfolio is weighted towards wind-power assets, a sector that is dominated by a small number of equipment manufacturers. Counterparty failure could result in equipment not being supplied to construction projects or operational and maintenance services not being provided to commissioned projects or being disrupted. Given the current challenges faced by some equipment manufacturers due to cost escalation in the current macro environment, counterparty credit risk has been elevated in the period (for further detail, see the Risk and Risk Management section).

Construction activities are limited by TRIG's Investment Policy cap of 25% of portfolio value and were 7% of portfolio value at 31 December 2023. Equipment for the Twin Peaks (Ranasjö and Salsjö) construction projects has been delivered to site reducing counterparty credit risk. Remaining construction projects are in the battery storage sector where there is a wider range of equipment suppliers compared to the wind sector.

The increase in independent operations and maintenance service suppliers reduces dependence on the original equipment manufacturers, particularly with respect to onshore technologies.

Outlook

The volatile macroeconomic environment continues to be the primary driver of public market valuations across the real assets sector. However, towards the end of 2023 market signals indicated that the interest rate cycle has peaked across developed markets, with inflation now significantly below recent highs. Despite the increase in valuation discount rates, particularly significant in the UK, resilient valuations were evidenced in the period through TRIG's divestments together with the strong underlying cash flow generation of the portfolio. These results demonstrate the continued disconnect between private and public market valuations for renewable infrastructure.

As long-term investors through multiple economic cycles, it is the Investment Manager's experience that having a robust balance sheet, a disciplined capital allocation framework and strong governance allows the most nimble parties to access emerging opportunities as markets recover. TRIG has significant growth potential with c.1GW capacity across existing investments that could be developed, built and commissioned by 2030. The Fig Power investment represents a platform from which TRIG can create further development pipeline and investment opportunities, both for TRIG and to sell on to third parties. The Company's structural de-gearing creates debt capacity, which taken together with asset rotation can fund investment opportunities as they arise without dependence on equity capital markets.

These activities mean that the Company is well placed to continue its track record of delivering income and capital growth - with the potential for capital growth to become a more meaningful element
of the total return to shareholders.

1.     The Company, TRIG UK, TRIG UK I and its portfolio of investments are known as the "Group".

2.     Including Sweden which receives electricity revenues from Nord Pool in Euros.

Operations Report

Operational performance

The financial performance of the portfolio remains strong, driven by elevated electricity and renewables certificate pricing, despite underlying generation having been 6% below budget for the year.

The geographic diversification of the portfolio has meant the lower than long-term average weather resource in three regions (UK & Ireland Onshore, GB Offshore and Scandinavia) was partly offset by above budget weather resource in three other regions (France, Germany Offshore and Solar).

Underlying generation performance was affected by grid downtime in excess of budget allowances, and site-specific factors including repair or enhancement works to improve the operational resilience of generation equipment and electrical infrastructure.

The newly constructed Spanish solar projects near Cadiz performed well in their first year of full operations, further bolstering the portfolio's technological and geographical diversification. 

The Ranasjö and Salsjö Swedish onshore wind farms have also commenced early generation, as detailed in the Construction section on page 31.

Onshore wind

UK & Ireland

Performance in the region was negatively impacted by low wind resource despite good availability across most GB sites. Availability in Northern Ireland was adversely affected by major component replacement works and exacerbated by long lead times on spare parts.

New operations & maintenance contracts were signed for three projects, further leveraging TRIG's portfolio purchasing power while capturing site-specific technical requirements.

At Blary Hill, TRIG's first subsidy-free GB windfarm, a ten-year corporate PPA was signed, securing fixed revenue per unit generation at an attractive price.

A multi-year blade repair programme commenced in the year across five sites. The opportunity was taken to undertake aerodynamic studies and commence a related blade enhancement project beginning with installation at two of these sites - as referenced in the Enhancements section. This is in addition to other blade enhancement activities elsewhere within the region.

Grid constraints and curtailments continue to be an issue in both Northern Ireland and the Republic of Ireland.

France

Across France, wind resource was very strong in 2023. Good availability across the 11 sites in the north of France was offset by poor availability at the four older sites in the south.

The repowering activities at the four southern sites continue to progress well, with ongoing operations adjusted to reduce exposure to high loading during more turbulent wind periods, to preserve the operational life of the major components in their remaining years - see the Enhancements section on page 32 for more information.

In July 2023, Rosières wind farm suffered a total blade loss on one of its eight turbines following a large lightning storm. Replacement activities and an insurance claim are underway. The turbine is expected to return to service in Q1 2024. 

The Vannier wind farm completed its first full year of operations, achieving high, above-budget availability, maximising the wind farm's ability to take advantage of the good wind resource in the year.

Scandinavia

Jädraås continues to perform well operationally with strong availability; however, poor wind resource and significant icing-related losses have led to below budget performance.

2023 was Grönhult's first year of operations. Downtime associated with troubleshooting activities in the ramp up phase is compensated under the turbine manufacturer's availability warranty.

Offshore wind

GB

Production for the GB offshore wind portfolio was marginally below budget for the year. Wind resource in South East England was above long-term averages, and in North East England and off the East coast of Scotland was below long-term averages.

A scheduled transmission outage at one of TRIG's offshore wind projects, to enable connection to the grid of a neighbouring site, was delayed by the grid company from the low-wind summer months to mid-winter. Upon re-energisation, a third-party switchgear failure notably extended the outage for half of the site, with higher associated uncompensated losses incurred.

Another offshore site suffered a partial outage of the offshore transmission cable owned by the OFTO post period end.

Construction of a neighbouring site to one of TRIG's offshore projects resulted in wake compensation payments being received to offset some of the valuation impact of a reduction in the forecast energy yield.

Materially improved terms were secured on a major operation and maintenance contract for one asset in the region, with the value upside materialising over the 10-year term of the contract.

End of warranty inspections have been a core theme for the region given the young age of the assets, with a campaign of proactive investigative works underway to identify and resolve any potential defects under warranty or secure protection against their subsequent cost of resolution. There are also a range of ongoing contractual performance protections post warranty.

Germany

Performance in the region was below budget in the year largely due to uncompensated grid outages on one site for which reinforcement works are scheduled in 2027, whilst the other site suffered from several hydraulic and cooling system challenges that will be resolved in Q1 2024.

Blade leading edge protection works at Merkur have progressed significantly through the year to improve the long-term integrity of the blades. The significant works are well progressed, having been performed under warranty by the turbine manufacturer, including lost revenue protection.

At Gode 1, the grid operator has constructed and commissioned a new offshore substation for future neighbouring windfarms. In the years until these neighbouring projects are completed, this substation provides an alternative electricity import and export route for Gode 1 in the event of an outage on its main substation, thereby reducing the risk and extent of future grid-related losses.

A change in German tax administration means that Merkur and Gode will be changing from paying tax in arears to paying tax in advance, which will bring tax payments forward and reduce 2024 distributions from these projects.

Solar

The solar portfolio outperformed budget for the year, as irradiance levels were favourable across all geographies.

In Spain, the four Cadiz sites achieved full operations ahead of the budgeted takeover date.

Within GB solar one site suffered a 12-week grid outage imposed by the local grid network operator, which was uncompensated, but losses were successfully mitigated by a focussed engagement with the grid operator to enable day-ahead agreement of export hours.

Warranty claims are underway for underperforming PV modules across three of the smaller sites. Proactive module replacement works were performed at one site following a successful warranty claim; whilst this weighed on the site's production in the year, it is expected to benefit from improved production in periods to come.

In 2020, the French state sought to significantly reduce the tariffs awarded to select solar projects from the 2006 & 2010 vintages. Through extensive engagement in the tariff revision process and associated legal challenges, the French state ultimately dropped the action, allowing the projects' value to be fully preserved and a proactive operating strategy to maintain and enhance performance to be reinstated.

Weather analysis

The graph on page 30 of TRIG's 2023 Annual Report shows hindcast analysis of annual variances of wind and solar resource as a percentage variation to the long-term average for TRIG's operating portfolio, by region/technology.

The analysis shows the variability of weather, with as much as 15%-20% variation in any one region over the course of a year. When considered across the portfolio this variation is reduced to within 10% of the long-term average, illustrating one of the benefits of the geographic and technological diversification of the TRIG portfolio.

Manufacturer exposure

Working with a range of suppliers is important to manage counterparty and technology risk. TRIG's portfolio is diversified across a range of different models and vintages of wind and solar technology. TRIG has exposure to many different equipment manufacturers, with Siemens Gamesa Renewable Energy ("SGRE") being the largest of these on a Portfolio Valuation basis.

Issues with equipment inevitably occur from time-to-time across different manufacturers. The Company has not been materially impacted by these due to contractual protections in place and repairs or correction works being carried out. This includes a range of different contract types, some of which are long-term and all-inclusive, providing protection against expenditure and downtime. End-of-Warranty inspections are also pro-actively conducted, providing time for any issues to be rectified ahead of expiry, and we take a pro-active approach to strategic spares - more information on this is contained within the Enhancements section.

The combination of visibility across the TRIG portfolio, InfraRed's credit monitoring and RES's market awareness, allows the identification of potential issues in advance and focus on monitoring the areas with the greatest potential risks.

Construction

The four Spanish Cadiz solar projects successfully reached operations in Q1 2023, significantly increasing the size of TRIG's operational solar portfolio by 234MW and thus strengthening TRIG's technological and geographical diversification. Our independent Owner's Engineer will continue to be closely involved in the projects until the end of the construction warranty period, to help ensure any defects are captured under the warranty and thereby protect long-term quality and cost exposure.

Following first export in October 2022, the 67MW Swedish onshore windfarm Grönhult achieved operational takeover in Q2 2023, with snagging works completed in the year.

Swedish wind farms Ranasjö and Salsjö, in which TRIG has a 50% equity stake, remain on target to achieve contractual takeover in H1 2024 with all turbines erected during the year, the grid connection energised and early generation achieved from the first turbines commissioned. Once fully operational, TRIG's 50% share of the two projects will represent 121MW generation capacity.

The Battery Supply Agreement for the 78MW / 156MWh (two-hour battery) Ryton site was signed in Q3 2023. Pre-construction works commenced in January 2024.

Design works for the 90MW / 180MWh (two-hour) Drakelow battery storage project are progressing well with a revised planning submission underway. The project remains on track to start construction in Q4 2024.

Health & safety

Delivering high-quality health and safety continues to be the top priority for the portfolio's companies. The portfolio company asset managers promote a strong safety culture through a proactive approach, utilising safety drills, training days and internal and external audits, among other activities, which complement the core safety frameworks. The Operations Manager continues to engage with the asset managers to ensure sharing of best practice and lessons learned across the portfolio, with oversight being provided by each project company board as well as the TRIG Advisory Committee and TRIG Limited Board of Directors.

In respect of the year under review, health & safety performance compares favourably against industry benchmarks.

The standard of health & safety reporting remains high across the portfolio with good transparency and follow-up of incidents. There has been a continued focus on leading indicators such as the number of independent and internal safety audits or reviews, hazard identifications and safety walks.

TRIG continues to regularly host a biannual portfolio health & safety coordination group to foster relationships between the various asset managers across the portfolio, share information and discuss matters that have occurred within the industry.

A large number of targeted drills and exercises were conducted across the portfolio by RES. TRIG's partners also undertook drills and exercises including the following: Drills were carried out by Fred Olsen in relation to chemicals and first aid; Numerous drills were undertaken at Beatrice including first aid, vessel fire, collision and man overboard; Merkur successfully completed a helicopter medical incident and rescue drill; Gode undertook drills in unexpected walk-to-work gangway disconnect and man overboard training; the Cadiz projects hosted the fire service for familiarisation and site-specific training. Learnings from all drills and exercises are shared across the portfolio by the Operations Manager.

Enhancements

As Operations Manager, RES is dedicated to enhancing portfolio performance, shareholder returns and stakeholder value through both commercial and technical initiatives. RES applies a structured framework to identify, appraise and implement enhancements at both individual and portfolio levels. Examples of the enhancements secured during 2023 include:

Increasing revenues:

Blade improvements to increase generation:

-    The roll-out of a package of aerodynamic improvements to multiple turbines' blades at five sites in the GB wind portfolio (100% owned projects with total site capacities of 107MW) is well progressed, with the remaining turbines to be completed in summer 2024. Parts are on order for two further sites for installation in summer 2024 (TRIG's share of capacity 56MW). A further three sites (TRIG's share of capacity 14MW) are being appraised for potential deployment. Some packages also include a suite of parameter changes to turbine controllers in order to maximise the additional energy yield gained from the hardware upgrades. Energy yield uplifts of 5% are being targeted on each site, consistent with the energy yield uplift achieved at the trial site.

Wind turbine software enhancements to improve operational efficiency using advanced technologies:

-    The wake steering and collective control trial at Altahullion in Northern Ireland has completed with independent energy yield uplift analysis to conclude in Q1 2024. This enhancement is an innovative retrofitted upgrade to increase production and reduce turbine loads. The application to further sites is being considered.

-    Contracts have been agreed for the implementation of a turbine manufacturer's wake steering system at two offshore wind farms, which reduces wake losses by optimising individual turbines based on wind conditions and operational states. Next steps are preparation works and a control optimisation period. Proposals obtained for other offshore projects are being considered.

-    Pitch and yaw optimisation upgrades have been successfully implemented at one offshore site. The upgrades correct any existing yaw and pitch misalignment while offering continuous monitoring for any future deviations. Results to date indicate an energy yield uplift of c. 0.2%.

-    Validation of a suite of yield enhancing software upgrades implemented by RES at Garreg Lwyd wind farm in Wales has been completed following implementation in 2021, confirming a >1% increase in the energy yield.

Minimising lost production:

-    The advanced shadow flicker control system developed by RES has been installed at Blary Hill in Scotland and is currently in its trial phase. The cloud detection anti-shutdown control will reduce unnecessary lost production.

-    A framework agreement with RES for inverter strategic spares has been signed across eight GB solar projects that will reduce downtime for long-lead time items and thereby maintain production, whilst also enabling TRIG to leverage the portfolio purchasing power.

Enhancing revenue quality:

-    The Blary Hill onshore wind farm entered into a Corporate Power Purchase Agreement ("CPPA") for a ten-year period on pay-as-produced terms. This provides the project with long-term price security and improves value on a risk-adjusted basis.

Reducing operating costs:

-    A significant reduction in the cost of a core operations & maintenance contract, with minimal changes to contract scope, for an offshore wind farm was achieved following extensive negotiations alongside investment partners, improving upon the investment case.

-    TRIG has an active approach to identifying and managing strategic spares, enabling parts to be obtained on improved prices and terms and then held for deployment across multiple sites, thereby reducing exposure to downtime due to long lead-time items. The level and type of strategic spares remains under appraisal as any tightening of supply is identified.

Project life extension and repowering:

-    Financing battery augmentation: The installation of additional battery storage at a hybrid solar and battery project within the Phoenix mezzanine-level bond portfolio, was completed. TRIG provided financing through a follow-on loan.

-    Life Extension: Work continues across TRIG's onshore wind and solar projects in the UK and Ireland. Key achievements in the period were extensions to Meikle Carewe and Earlseat planning consents.

-    Repowering activities continue to progress in France: Land agreements have been signed with the local municipality for Cuxac in the period and index-linked tariff secured. Decommissioning of the first site is expected to commence in Q4 2024.

-    First repowering joint venture is underway in UK and Ireland: Key development agreements for Altahullion repowering have been signed with RES. Negotiations on development agreements underway on more projects.

Portfolio operations crisis management

RES has a globally consistent approach to crisis and issues management covering all areas of its business, aligned with the relevant international standard.

RES adopts a process of assessing, planning, training and exercising for an effective response to crisis management. It has put in place a crisis management standard setting out its crisis definition and criteria, escalation processes, roles and responsibilities, and training and exercising requirements. This is supported by a Group Crisis Management Plan and specific Country Crisis Management Plans. RES has undertaken an extensive training programme.

During 2023, 80 people across RES were trained to undertake specific roles on crisis management teams and exposed to exercise situations to create a crisis resilience culture. RES has a rolling programme of crisis simulation exercises at all levels across its business to test processes, approaches and preparedness. Where RES enters a new market there is a clear process to align and train people in its crisis management approach.

Directors' Statement of Responsibilities

The Directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.

The Companies (Guernsey) Law, 2008 requires the Directors to prepare financial statements for each financial year. Under that law the Directors are required to prepare the group financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, International Accounting Standard 1 requires that Directors:

-    Properly select and apply accounting policies;

-    Present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

-    Provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

-    Make an assessment of the Company's ability to continue as a going concern.

The Directors are responsible for keeping proper accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies (Guernsey) Law, 2008. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in Guernsey and the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Directors' responsibility statement

We confirm that to the best of our knowledge:

-    The financial statements, prepared in accordance with International Financial Reporting Standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;

-    The Chair's Statement, the Strategic Report and Report of the Directors include a fair review of the development and performance of the business and the position of the Company and Group taken as a whole together with a description of the principal risks and uncertainties that it faces; and

-    The annual report and financial statements when taken as a whole are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's position, performance, business model and strategy.

This responsibility statement was approved by the Board of Directors on 27 February 2024 and is signed on its behalf by:

Richard Morse

Chairman

27 February 2024

Publication of documentation

The above information is an extract from TRIG's 2023 Annual Report. The Annual Report has been submitted to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism. It can also be obtained from the Company Secretary or from the Reports & Publications section of the Company's website, at https://www.trig-ltd.com/.