Greencoat UK Wind : Half Yearly Report - 29 July 2021

G RE ENCOAT

UK WIND

Greencoat UK Wind PLC

Half Year Report

For the six months ended 30 June 2021

GREE NCOAT

UK WIND

Contents

Summary	1
Chairman's Statement	2
Investment Manager's Report	4
Statement of Directors' Responsibilities	14
Unaudited Condensed Consolidated Financial Statements	15
Notes to the Unaudited Condensed Consolidated Financial Statements	19
Company Information	29
Defined Terms	30
Alternative Performance Measures	32
Cautionary Statement	33

All capitalised terms are defined in the list of defined terms on pages 30 to 31 unless separately defined.

GREE NCOAT

UK WIND

Summary

Greencoat UK Wind PLC is the leading listed renewable infrastructure fund, invested in UK wind farms. The Company's aim is to provide investors with an annual dividend that increases in line with RPI inflation while preserving the capital value of its investment portfolio in the long term on a real basis through reinvestment of excess cashflow and the prudent use of gearing.

The Company provides investors with the opportunity to participate directly in the ownership of UK wind farms, so increasing the resources and capital dedicated to the deployment of renewable energy and the reduction of greenhouse gas emissions.

Highlights

• The Group's investments generated 1,476GWh of zero carbon electricity.
• Net cash generation (Group and wind farm SPVs) was £103.6 million.
• Acquisition of the remaining 50 per cent interest in Braes of Doune wind farm increased net generating capacity to 1,209MW as at 30 June 2021.
• Issuance of further shares raising £198 million.
• The Company declared total dividends of 3.59 pence per share with respect to the period.
• £940 million outstanding borrowings as at 30 June 2021, equivalent to 28 per cent of GAV.

Key Metrics

	As at 30 June 2021
Market capitalisation	£2,501.1 million
Share price	126.6 pence
Dividends with respect to the period	£70.9 million
Dividends with respect to the period per share	3.59 pence
GAV	£3,414.1 million
NAV	£2,474.1 million
NAV per share	125.2 pence

Alternative Performance Measures are defined on page 32.

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Greencoat UK Wind PLC Half Year Report for the six months ended 30 June 2021

Chairman's Statement

I am pleased to present the Half Year Report of Greencoat UK Wind PLC for the six months ended 30 June 2021.

Performance

Portfolio generation for the period was 20 per cent below budget at 1,476GWh. Low wind resource was partially offset by high power prices, which were above budget as a result of high gas and carbon prices. Net cash generated by the Group and wind farm SPVs was £103.6 million, providing cover of 1.5x dividends paid during the period. Full year dividend cover is forecast to be 1.7x.

Dividends and Returns

The Company's aim is to provide investors with an attractive and sustainable dividend that increases in line with RPI inflation while preserving capital on a real basis. In line with our stated target of 7.18 pence per share for 2021, the Company has paid a quarterly dividend of 1.795 pence per share with respect to Q1 2021 and has declared a dividend of the same amount per share with respect to Q2 2021, giving a total of 3.59 pence per share for the period (compared to 3.55 pence per share for the first half of 2020). NAV per share increased in the period from 120.4 pence per share (ex-dividend) on 31 December 2020 to

123.4 pence per share (ex-dividend) on 30 June 2021, primarily reflecting an increase in forward power prices over the period 2021-2024.

Acquisitions and Investment

During the period, the Group invested £48 million to acquire the remaining 50 per cent of Braes of Doune wind farm, increasing net generating capacity to 1,209MW. The Company also invested a further £16 million into Douglas West wind farm which is expected to commence commercial operation in September 2021. Further acquisitions are expected to complete in the second half of 2021 as Windy Rig, Twentyshilling and Glen Kyllachy each commences commercial operation.

Equity Issuance

In order to finance our continuing growth and pursue value creating opportunities, we issued 151 million new shares on 19 February 2021 at a price of 131 pence per share, raising gross proceeds of £198 million. The equity issuance was oversubscribed and issued at a price higher than NAV per share and was therefore NAV accretive per share.

Gearing

At the start of the period, Group borrowings amounted to £1.1 billion (33 per cent of GAV). Following the acquisition of the remainder of Braes of Doune and the equity issuance detailed above, as at 30 June 2021 Group borrowings amounted to £940 million (28 per cent of GAV), of which £700 million was fixed rate term debt. The Group will generally avoid using non-recourse debt at wind farm level and aims to keep overall Group level borrowings at a prudent level (the maximum is 40 per cent of GAV). Over the medium term we would expect gearing to be between 20 and 30 per cent of GAV.

Principal Risks and Uncertainties

The principal risks and uncertainties affecting the Group were identified in detail in the Company's Annual Report to 31 December 2020, summarised as follows:

• dependence on the Investment Manager;
• financing risk; and
• risk of investment returns becoming unattractive.

Also, the principal risks and uncertainties affecting the investee companies were identified in detail in the Company's Annual Report to 31 December 2020, summarised as follows:

• changes in government policyon renewableenergy;
• a decline in the market price of electricity;
• risk of low wind resource;
• lower than expected life span of the wind turbines; and
• health and safety and the environment.

To date, the COVID-19 pandemic has caused only minor portfolio operational issues and we remain vigilant to mitigate any further impacts.

The principal risks outlined above remain the most likely to affect the Group and its investee companies in the second half of the year.

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GREE NCOAT

UK WIND

Chairman's Statement continued

Outlook

The Company is investing in a mature and growing market, and the Board believes that there should continue to be further opportunities for investments that are beneficial to shareholders. The Board believes that there will be opportunities to invest in more projects operating under the ROC regime and in a balance of subsidy free wind farms and those operating under the CFD regime.

The Company will continue to maintain a strictly disciplined approach to acquisitions, only investing when it is considered to be in the interests of shareholders to do so.

The Board and Governance

Following the advice of the government on social distancing and measures to prohibit public gathering in order to minimise the spread of COVID-19, the Company held its AGM with the minimum necessary quorum of two shareholders present. A recording of the AGM was made and is available for shareholders on the Company's website (www.greencoat- ukwind.com). The Company realises that such an arrangement is not ideal and is keen to provide the opportunity for investors to meet with the Board and executive management as normal in 2022.

Shonaid Jemmett-Page

Chairman

28 July 2021

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