Private & confidential

ircp.com

Creating Real Value.

Listed Infrastructure Funds:

Comparing and contrasting subsectors Presentation to Sheffield Life & Pensions Society

23 September 2015

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InfraRed Capital Partners

Contents

Introduction to InfraRed

Listed Infrastructure Funds compared

HICL: social & transport infrastructure

TRIG: renewables infrastructure

Speakers

Harry Seekings,

Director – Infrastructure

Richard Crawford,

Director – Infrastructure

This document is issued by InfraRed Capital Partners Limited (“InfraRed”). This

document is for information and convenient reference, and does not constitute an

offer or solicitation for, or advice that you should enter into, the purchase or sale

of any security or other investment product or investment agreement, or any other

contract agreement or structure whatsoever. Please refer to slide 15 for more

important information.

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InfraRed Capital Partners – Business Overview

Managing over US$8 billion of investors’ equity, we are a leading global investment

manager focused on infrastructure and real estate.

We create real value for our investors, project partners, communities and end users.

International Presence

Primary

Secondary

Europe

Asia

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InfraRed Advises Two Listed Investment Companies

101 36

Source: InfraRed, as at 21 September 2015

www.hicl.com www.trig-ltd.com

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Defence Sixth

Form College

(UK)

High-Speed Line

(Netherlands)

Kicking Horse

Canyon Highway

(Canada)

HICL: Investment focus and examples

Social Infrastructure - Hospitals

- Schools

- Government Buildings

Transport Infrastructure - Rail

- Roads

Other infrastructure, e.g.

- Electricity transmission lines

Source: InfraRed

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TRIG: Investment focus

TRIG invests in:

Onshore windfarms

Solar PV

Geographical focus:

UK

Northern Europe

Source: InfraRed

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TRIG: Examples of Investments

Wind portfolio acquired June 2015 Solar portfolio acquired Aug 2014

Parley Court Farm

24.2 MW

Egmere Airfield

21.2 MW

Penare Farm

11.1 MW

62.5 MW 41.4 MW

138.0 MW

50.6 MW

64.4 MW

75.9 MW

Source: InfraRed

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HICL TRIG

Why do the

assets exist?

Government-sponsored infrastructure

development

Decarbonisation

Energy Security

Technology development

What is

owned?

Contract to design, build, finance,

[operate] & maintain

The power station

An interest in the land

Asset life

Contract typically ~25-30 years

No residual interest / value

Subsidy: 15-25 years

Land lease: 25-40 years

Leverage Typically 80-90% at project-level

Sources

Bank loans

Bond market

Multi-lateral (European

Investment Bank)

Typically 0 - 75% geared

Sources same

Underlying Investment Characteristics

Source: InfraRed

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0

0.2

0.4

0.6

0.8

1

1.2

-6

-4

-2

0

2

4

6

8

10

12

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Cash flows

Value

Construction

Phase

Years

(Illustration Only)

Typical timing for operational, yield-focused investment

Operation & Maintenance Phase Bidding

Phase

-3 -2 -1 1 2 3

Financial

Close

(Development)

Cash flow from interest on and

repayment of shareholder loans,

and equity dividends

Increased equity

dividend payments

once senior debt is

repaid

Typical Investment Cash Flows

Source: InfraRed

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Typical Investment Risks

HICL TRIG

Revenue

Usually availability-based

May be usage-based

Power sales and

Government-driven subsidy

Performance

risks

Construction and O&M normally

passed down to subcontractors

Counterparty risk (e.g. insolvency)

Production (weather)

Power prices

O&M/lifecycle subcontracted

Operations Manager: RES

Inflation Usually a hedge between revenues

and costs

Some inflation-linking of returns

Same

Interest

rates

Interest on debt facilities either fixed

or hedged

Deposit rates typically floating

Same

Tax Subject to change Same

Political

risks

Assets used in delivery of essential

services

Risk of repatriation seen as low

Regulatory change

Source: InfraRed

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HICL TRIG

Directors

valuation

DCF using 7.9% discount rate1 DCF using 9.0% discount rate1

Valuation

considerations

Risk profile of project

Assessment of quality of cash flows

Macro-economic assumptions (e.g.

inflation, interest rates)

Supply / demand

Plus

Energy yield

Power prices

Residual Value

None Potential for extension /

repowering

Market Cap £2.0bn2 £0.7bn2

Premium to

NAV

12%3 3%3

Yield ~4.9%4 ~6.0%4

Portfolio Value vs. NAV vs. Market Cap

1. Weighted average discount rate used to value portfolio as at 31 March 2015 for HICL and 30 June 2015 for TRIG, the dates of the most recently published accounts / NAV

2. Source: Morningstar (as at 21 September 2015)

3. Premium of market capitalisation at 21 September 2015 over NAV at 31 March 2015 for HICL and 30 June 2015 for TRIG

4. Target dividends for year ending 31 March 2016 (HICL) and 31 December 2015 (TRIG) as a percentage of respective share prices at 21 September 2015

Source: InfraRed

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Market Dynamics

HICL TRIG

Origination

Off-market relationships

Asset auctions

Same

Competition

Other listed funds

Unlisted funds

Direct investors (e.g. pension funds)

Developers (development stage

projects)

Same

Stage of

evolution

Mature market

Interest in asset class shows no sign

of diminishing

Source of future deal flow evolving

Market still maturing, with

strong deal flow

Source: InfraRed

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HICL TRIG

Estimated investor base – by classification

Source: InfraRed. Investor classification compiled from shareholder registers as at June 2015 (HICL) and July 2015 (TRIG)

50%

10%

30%

6% 4%

30%

10%

30%

19%

11%

Retail Multi-managers Pension Funds Insurance companies Other

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Providing attractive long-term, inflation-linked, cash-covered income with

demand for uncorrelated yield

Operational portfolios – defensive across economic cycles

NAV upside from surplus cash re-investment

Importance of expertise and hands-on approach to management

Listed Infrastructure Investment: In Summary

www.hicl.com www.trig-ltd.com

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Important Information

This document is issued by InfraRed Capital Partners Limited (“InfraRed”). This document is for information and convenient reference, and does not constitute an offer or solicitation for, or advice that

you should enter into, the purchase or sale of any security or other investment product or investment agreement, or any other contract agreement or structure whatsoever.

This document is being distributed in the UK to, and is directed only at, persons who have professional experience in matters relating to investments who fall within the definition of "investment

professionals" in Article 19(5) of, or a person falling within Article 49(2) (High Net Worth Companies, etc.) of, the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 of the United

Kingdom (all such persons together being referred to as "relevant persons"). Any person who is not a relevant person should not act or rely on this presentation or this document or any of its

contents. The information in this presentation is given in confidence and the recipients of this presentation should not engage in any behavior in relation to qualifying investments or related investments

(as defined in the Financial Services and Markets Act 2000 ("FSMA") and the Code of Market Conduct made pursuant to FSMA) which would or might amount to market abuse for the purposes of

FSMA.

InfraRed has based this document on information obtained from sources it believes to be reliable but which have not been independently verified. All charts and graphs are sourced or derived from

publicly available sources or proprietary data. Except in the case of fraudulent misrepresentation, InfraRed makes no representation or warranty (express or implied) of any nature or accept any

responsibility or liability of any kind for the accuracy or sufficiency of any information, statement, assumption or projection in this document, or for any loss or damage (whether direct, indirect,

consequential or other) arising out of reliance upon this document. Statements made in this document relating to HICL Infrastructure Company Limited & The Renewables Infrastructure Group or any

other product or investment (the “Products”) are intended as a summary and not a complete description and may be subject to change. InfraRed is under no obligation to keep current the information

contained in this document.

Prospective investors are solely responsible for making their own independent appraisal of and investigations into the products, investments and transactions referred to in this document

and should not rely on any information in this document as constituting investment advice. This document is not intended to provide and should not be relied upon for tax, legal or accounting

advice, investment recommendations or other evaluation of the Products. Prospective investors should consult their tax, legal, accounting or other advisors. The levels and bases of taxation can

change. Prospective investors should not rely upon this document in making any investment decision. The final version of the Products' legal documents contains material information not in this

document. Investment in the Products, investments and other transactions referred to in this document involves particular risks - prospective investors should read and understand the explanations of

risk in the final version of Products legal documents before making any decision.

Investments can fluctuate in value, and value and income may fall against an investor’s interests. Changes in rates of exchange and rates of interest may have an adverse effect on the value or income

of the investment. Figures included in this document may relate to past performance. Past performance is not a reliable indicator of future performance and there can be no assurance that the

Products, investments and other transactions referred to in this document will achieve their objectives or target returns or that investors will receive a return from their capital, or that investors will receive

back the capital originally invested.

The Alternative Investment Fund Managers Directive (Directive 2011/61/EU, "AIFMD") applies when an alternative investment fund manager ("AIFM") markets an alternative investment fund ("AIF") to

investors domiciled or with a registered address in the EEA. This may either be through the direct or indirect offering or placement of shares or units in an AIF managed by it or when another person

makes such an offering or placement at the initiative of, or on behalf of, the AIFM. The Products, investments and other transactions referred to in this document to which this document relates do not

constitute capital raising in respect of the relevant AIFs. The marketing restrictions set out in the AIFMD therefore do not apply, although any promotion of the Products, investments and other

transactions referred to in this document will be undertaken in accordance with all applicable regulatory requirements in the UK.

The Products are Guernsey domiciled; internally managed non-EU alternative investment funds for the purposes of the AIFMD as the individual board of directors of each of the Products (the

"Directors") have overall responsibility for the individual activities including its risk and portfolio management activities. The Products themselves are therefore the AIFMs for the purposes of AIFMD.”

Information in this document is confidential. Distribution of this document or information in this document, to any person other than an original recipient (or to such recipient’s advisors) is

prohibited. Reproduction of this document, in whole or in part, or disclosure of any of its contents, without prior consent of InfraRed or an associate, is prohibited. This document should be distributed

and read in its entirety. This document remains the property of InfraRed and on request must be returned and any copies destroyed. This document is not intended for distribution to, or use by,

any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.

InfraRed Capital Partners Limited is authorised and regulated by the Financial Conduct Authority, with firm reference number 195766. Registered in England No. 3364976, Registered Office: 12 Charles

II Street, London, SW1Y 4QU, United Kingdom.