Slide 1: Half Year Results 2026
2026 Half Year Results 30 July 2026
Slide 2: Presenters
Presenters Will Gardiner Chief Executive Officer Frank Lemmink Chief Financial Officer 2
Slide 3: Good First Half Performance, Significant Progress on Strategy
Good First Half Performance, Significant Progress on Strategy Continuing to support UK energy security Good performance • c.6% of UK power, 10% of UK renewables • First OCGT commissioned, operational and performing well – c.0.3GW capacity added to portfolio • Cruachan – turbine upgrade progressing,
Slide 4: Growing MW Under Management, Broadening The Portfolio
Growing MW Under Management, Broadening The Portfolio Scaling flexible, renewable portfolio with options for growth in energy security, energy transition and AI Biomass 2025: 4.0GW 2026: 6.1GW 2029: 7.4GW Pumped storage Hydro OCGT (4 generation sites) (>200 generation sites) (>200 generation sites)
Slide 5: Proposed Acquisition of BSIF
Proposed Acquisition of BSIF Proposed acquisition of BSIF for 94.824p/share(1) £561m Equity Value(1) £521m Net Debt(2) £1,082m Enterprise Value • £130m EBITDA FY-25 o 29 June 2026: Publication of Scheme Document • £118m Operating FCF(3) FY-25 o 24 July 2026: Shareholder meetings – 99% vote in favour
Slide 6: Hirwaun Power – New 0.3GW Open Cycle Gas Turbine Power Station
Hirwaun Power – New 0.3GW Open Cycle Gas Turbine Power Station Fully commissioned, operational and performing well 6
Slide 7: Sustainability
Sustainability Improved scoring in third-party accreditations, progress on climate, nature and people MSCI AA (was A)(1) Developments Reflects strengthened practices and • SBTi targets to 2040 validated corporate governance, plus renewable • Launch of Biomass Tracker tool opportunities • Drax Founda
Slide 8: Financial & operational review
Financial & operational review Good performance
Slide 9: Financial Summary
Financial Summary Good financial performance Adj. EBITDA(1) Adj. basic earnings per share Net debt(2) £279m 29.8 pence £1,025m / 1.3x (H1-25: £460m) (H1-25: 65.6 pence) (2025: £784m / 0.8x) Total cash and committed facilities Expected full year dividend(3) Share buybacks £630m 32.2p/share c.£48m(4)
Slide 10: Performance by Business
Performance by Business Good performance supporting energy security Pellet Biomass Flexible Options for Adj. EBITDA £m 1 Production 2 Generation 3 Generation 4 Growth Total Pellet Production 64 - - - 64 Biomass Generation - 159 - - 159 Pumped Storage & Hydro - - 47 - 47 OCGT - - 4 - 4 Flexitricity -
Slide 11: Hirwaun Power – Fully Commissioned, Operational and Performing Well
Hirwaun Power – Fully Commissioned, Operational and Performing Well Supporting security of supply and the energy transition Day-ahead and within-day: price volatility in the GB power market (£/MWh) Strong first month of operations (June 2026) 600 High volatility in power markets and challenging weat
Slide 12: Balance Sheet – Facilities and Liquidity
Balance Sheet – Facilities and Liquidity Strong balance sheet and liquidity Balance of maturities to 2030 c.1.3x Net debt to Adj. EBITDA As at June 2026 (£m) 1,200 Refinancing activities • £450m Revolving Credit Facility (RCF) and €135m term-loan extended to 2029 • New £190m term-loan drawn, €70m te
Slide 13: Balance Sheet – Credit Ratings
Balance Sheet – Credit Ratings Balance sheet strength recognised in rating agency updates post proposed acquisition of BSIF S&P (BB+ stable outlook) We regard as positive the diversification of Drax’s portfolio as part of the group’s continued shift away from subsidised biomass generation, as well a
Slide 14: Capital Investment
Capital Investment Investment in core assets and strategy H1-26 FY-26 Key areas Actual £m Estimate £m Growth BESS, Pumped Storage and Hydro, and OCGTs 46 ~100 Maintenance Major planned outage on one biomass unit 29 ~100 Other Health, safety, environment and IT 10 ~30 Total 85 210-250 2026 outlook •
Slide 15: Cost Management
Cost Management Cost reductions delivering structural savings aligned with strategy for growth Targeting annual structural savings of >£150m pa from 2027 vs 2024 base Structural reductions(1) (£m pa) vs. 2024 base 2025 2026 2027 - (100) (200) Opex Devex Fixed Costs Continue to invest in growth while
Slide 16: Disciplined Capital Allocation Supports Growth and Returns to Shareholders
Disciplined Capital Allocation Supports Growth and Returns to Shareholders Capital allocation policy remains unchanged Maintain strong 1 2 Invest in core business balance sheet Return surplus capital Sustainable and growing 3 4 beyond investment dividend requirements 16
Slide 17: Create value by investing in the UK energy transition
Create value by investing in the UK energy transition Growth opportunities in flexible generation and renewables Development of options for Drax Power Station
Slide 18: Growth in Demand for Power Supports Need for Renewables and Flexible Generation
Growth in Demand for Power Supports Need for Renewables and Flexible Generation NESO expects demand for power to double, requiring investment in new capacity and system support Power demand growth (TWh) Renewable capacity growth (MW) BESS capacity growth (MW) >2x growth to 2050 Requirement for 7x in
Slide 19: BESS: Progress in H1-26 With Further Opportunities for Growth
BESS: Progress in H1-26 With Further Opportunities for Growth Significant progress made – 710MW of BESS developments added since October 2025 c.£500m of commitments to capital projects and tolling agreements Targeting returns significantly in excess of WACC Two complementary pillars for growth 1 Phy
Slide 20: Further Growing a Balanced UK Portfolio, Adding Solar and Wind
Further Growing a Balanced UK Portfolio, Adding Solar and Wind Flexible, renewable portfolio with options for growth in energy security, energy transition and AI growth Drax generation portfolio inclusive of BSIF 2025 2026 2029 Portfolio Drax Power Station Site 2.6GW 2.6GW 2.6GW PS Gas Pumped Storag
Slide 21: Development of options for Drax Power Station site
Development of options for Drax Power Station site A unique 1,000 acre site with 4GW of grid connection capacity and 2.6GW of active generation
Slide 22: Opportunities for Development of Drax Power Station
Opportunities for Development of Drax Power Station Evaluating a range of opportunities to utilise 4GW of grid access Range of potential opportunities 2025-2031 2030s onwards Power generation ✓ ✓ Data centre power supply ✓ ✓ Other system support services ✓ ✓ Other generation ✓ Carbon removals ✓ 22
Slide 23: Development of Options for a Data Centre at Drax Power Station
Development of Options for a Data Centre at Drax Power Station Characteristics to support AI data centre and energy security Large-scale reliable power supply • 4GW (1) of grid connection capacity with 2.6GW (1) of active generation capacity to support 24/7 power • >1,000 acre site Physical attribut
Slide 24: Summary and outlook
Summary and outlook W/ te LT /} rn Manas UT oa
Slide 25: Summary
Summary Continuing to support UK energy security Good performance • c.6% of UK power, 10% of UK renewables • First OCGT commissioned, operational and performing well – c.0.3GW capacity added to portfolio • Cruachan – turbine upgrade progressing, work continuing to resolve grid access restriction Add
Slide 26: Growing MW Under Management, Broadening The Portfolio
Growing MW Under Management, Broadening The Portfolio Scaling flexible, renewable portfolio with options for growth in energy security, energy transition and AI Biomass 2025: 4.0GW 2026: 6.1GW 2029: 7.4GW Pumped storage Hydro OCGT (4 generation sites) (>200 generation sites) (>200 generation sites)
Slide 27: Half Year Results 2026
2026 Half Year Results 30 July 2026
Slide 28: Appendices
Appendices 30 July 2026 drax
Slide 29: Generation – Forward Power Sales
Generation – Forward Power Sales Strong forward power sales through end of current renewable schemes Forward power sales underpin earnings through Q1-27 Contracted power sales (28 July 2026) 2026 2027 2028 • c.£1.1bn of forward power sales Net RO, hydro and gas (TWh) (1) 11.5 2.1 0.2 • 13.8TWh at an
Slide 30: Group Income Statement
Group Income Statement H1-2026 H1-2025 In £m Adj. Results Adjustments(1) Total Results Adj. Results Adjustments(1) Total Results Revenue 2,428 53 2,481 2,601 46 2,647 Cost of sales (1,876) 45 (1,831) (1,828) (65) (1,893) Gross profit 552 98 650 773 (19) 754 Operating expenses (273) (13) (286) (313)
Slide 31: Group Adj. EBITDA by Business Unit
Group Adj. EBITDA by Business Unit In £m H1-2026 H1-2025 Pellet Production 64 74 Biomass Generation 159 332 Pumped Storage and Hydro 47 64 OCGTs 4 - Energy Solutions 27 18 Flexitricity (1) - Flexible Generation and Energy Solutions (Flexgen) 77 81 Other Costs (21) (27) Group 279 460 31
Slide 32: Generation – Flexgen and Biomass Generation
Generation – Flexgen(1) and Biomass Generation In £m H1-2026 H1-2025 H1-2026 H1-2025 Revenue Generation Adj. EBITDA (£m) Power sales 1,345 1,718 Biomass 159 332 System support and optimisation 58 68 Pumped storage and hydro 47 64 Renewable certificate sales 189 95 OCGT 4 - CfD income 34 55 210 396 C
Slide 33: Energy Solutions
Energy Solutions Renewable power, route to market and energy solutions In £m H1-2026 H1-2025 Revenue 1,238 1,423 Cost of sales Cost of power and gas purchases (572) (745) Grid charges (321) (320) Other costs (298) (306) (1,191) (1,370) Gross profit 47 53 Operating costs (20) (35) Adj. EBITDA 27 18 3
Slide 34: Pellet Production
Pellet Production Continued progress on cost reduction H1 2026 In £m H1-2026 H1-2025 • Lower volume of pellets produced • Closure of Williams Lake Revenue 394 449 • Reduction in production costs Cost of sales (236) (267) • Cost management • Operational efficiencies Gross profit 159 182 Operating cos
Slide 35: Group Cash Flow Statement
Group Cash Flow Statement In £m H1-2026 H1-2025 Adj. EBITDA 279 460 Working capital (175) (102) Other (25) 20 Cash generated from operations 79 378 Debt service and other interest (40) (42) Corporation tax (34) (49) Net cash from operating activities 6 287 Capital investment (96) (142) Acquisition o
Slide 36: Group Net Debt
Group Net Debt £m 0 0 1,200 0 1,000 48 36 58 40 34 800 96 600 279 191 1,025 400 784 200 0 31 December EBITDA Working capital Capital Debt service & Tax Dividends Share Acquisition of 30 June 2026 2025 Net debt & Other expenditure other interest buybacks subsidiary Net debt 36
Slide 37: Working Capital Inflow in 2027
1 Working Capital Inflow in 2027 c.£0.5bn benefit from end of Renewables Obligation (RO) scheme at Drax Power Station in 2027 RO Illustrative Generation cash flow from ROCs • Requirement for energy suppliers to source a proportion of their energy from a renewable source 2026 2027 • Renewables Obliga
Slide 38: Capacity Market Agreements
Capacity 1 Market Agreements Capacity Market agreements provide strong underpin for Flexgen assets earnings c.£650m(1) of agreements in place Asset Payment period Value £m Pumped storage 1-year agreements (2026-2029) 80 Pumped storage 15-year agreements (2027-2042) 242 Hydro 1-year agreements (2026-
Slide 39: Merchant Forward Commodity Prices
Merchant Forward Commodity Prices Baseload Power Price (£/MWh) Peak Power Price (£/MWh) 200 200 150 150 100 100 50 50 0 0 Jan-23 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 Jun-26 Jan-23 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 Jun-26 SUM-26 WIN-26 SUM-27 WIN-27 SUM-28 SUM-26 WIN-26 SUM-27 WIN-27 SUM
Slide 40: Merchant Carbon Prices
Merchant Carbon Prices UKA Carbon (£/t) EU ETS Carbon (€/t) 80 120 60 80 40 40 20 0 0 Jan-24 Jun-24 Dec-24 Jun-25 Dec-25 Jun-26 Jan-23 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 Jun-26 Dec-26 Dec-27 Dec-28 Dec-26 Dec-27 Dec-28 Source: ICE 40
Slide 41: Half Year Results 2026
2026 Half Year Results 30 July 2026