Slide 1: Half Year Results 2025
2025 Half Year Results 31 July 2025
Slide 2: Presenters
Presenters Will Gardiner Chief Executive Officer Andy Skelton Chief Financial Officer 2
Slide 3: Our Purpose, Our People
Our Purpose To enable a zero carbon, lower cost energy future Our People Valued members on a winning team with a worthwhile mission 3
Slide 4: Strong Performance in H1-25, Increasing Visibility on Longer-term Outlook
Strong Performance in H1-25, Increasing Visibility on Longer-term Outlook Strong operational and financial performance across the Group • High levels of renewable generation and system support – 5% of UK power, 11% of UK renewables • Record levels of pellet production – 5% increase vs. H1-24 Low-car
Slide 5: Low-carbon Dispatchable CfD Update
Low-carbon Dispatchable CfD Update A CfD that supports energy security, value for money and sustainability Heads of terms for low-carbon dispatchable CfD agreed February 2025 • Heads of terms agreed with UK Government for low-carbon dispatchable CfD at Drax Power Station • Strike price of c.£113/MWh
Slide 6: Dispatchable, Renewable Portfolio With Options For Growth
Dispatchable, Renewable Portfolio With Options For Growth High quality asset portfolio aligned to energy security and transition to net zero 1 FlexGen & 2 Pellet Production 3 Pellet BioGen 4 Options for Growth Energy Solutions Production UK portfolio North American portfolio Drax Power Station Disci
Slide 7: Sustainability Update
Sustainability Update Three major publications in H1-25 • Sustainability framework – climate positive, nature positive, people positive roadmap by 2030 • Biomass sourcing policy – articulates our commitment to sustainable sourcing • Climate transition plan – lays out our climate ambitions, targets
Slide 8: Financial & Operational Review
Financial & Operational Review Strong operational and financial performance, supporting investment for growth and returns to shareholders
Slide 9: Financial Summary
Financial Summary Strong operational and financial performance Adj. EBITDA(1/2) Adj. Basic Earnings Per Share Cash Generated from Net Debt(3) £460m 65.6 pence Operations £1,062m / 1.1x (H1-24: £515m) (H1-24: 65.6 pence) £378m (2024: £992m / 0.9x) (H1-24: £400m) Total Cash and Interim Dividend Expect
Slide 10: Performance by Business
Performance by Business Strong performance driven by high levels of renewable generation, system support and pellet production FlexGen & Pellet BioGen Options for H1-25 Adj. EBITDA £m 1 Energy Solutions 2 Production 3 4 Growth Total Pumped Storage & Hydro 64 - - - 64 Energy Solutions – I&C 25 - - -
Slide 11: Balance Sheet
Balance Sheet Strong balance sheet and liquidity c.1.1x Net debt to Adj. EBITDA Balance of maturities weighted to 2029-2030 Refinancing activities to July 2025 As at July 2025 (£m) • £450m RCF extended to 2028 (option to extend to 2029) 800 • £171m extension of term-loan facilities • Continued exten
Slide 12: Strong Visibility of Free Cash Flow
Strong Visibility of Free Cash Flow High quality assets and EBITDA targets underpins increased visibility on free cash flow (2025-2031)(1) Components of increasing earnings visibility through 2031 • Strong operational and financial performance in H1-25 • Strong forward power sales to 2027 • Targetin
Slide 13: Positioning the Group to deliver value from existing asset base
Positioning the Group to deliver value from existing asset base with opportunities for growth
Slide 14: Capital Allocation Policy
Capital Allocation Policy Disciplined capital allocation supports investment for growth and returns to shareholders 1. Maintain strong balance sheet and 2. Invest in core business credit rating 4. Return surplus capital beyond 3. Sustainable and growing dividend investment requirements 14
Slide 15: Options For Growth
Options For Growth Disciplined capital allocation supports investment for growth and returns to shareholders Short-term Medium-term Long-term Investment in existing business to deliver good operations and efficiency improvements • Pumped storage and hydro • 600MW expansion of Cruachan FlexGen • Shor
Slide 16: FlexGen & Energy Solutions – Portfolio Development
FlexGen & Energy Solutions – Portfolio Development A diversified portfolio of flexible assets which support power system and energy transition through a wide range of durations, services and capabilities, with opportunities for growth 1 Long-duration 2 Peak demand 3 Pellet Demand-side 4 Short durati
Slide 17: Data Centre at Drax Power Station
Data Centre at Drax Power Station Potential long-term development of >1.2GW data centre Behind-the-meter large-scale 24/7 flexible renewable power • c.250 acres of Drax-owned land for >1.2GW of development(1) • Targeting initial c.100MW pa data centre by 2030 • Potential for >1.2GW in 2030s • Underp
Slide 18: Cash Generation and Capital Allocation
Cash Generation and Capital Allocation Investment for growth, increased earnings and returns to shareholders since inception of capital allocation policy in 2017 1. c.£5bn of EBITDA and c.£4.9bn cash generated from operations 9 consecutive years of growth in dividend per • c.300% increase in Adj. EB
Slide 19: Summary & Outlook
Summary & Outlook Strong operational and financial performance across the Group Low-carbon dispatchable CfD Heads of Terms for Drax Power Station • Negotiation of final contract progressing Targeting post 2027 Adj. EBITDA of £600-700m pa from FlexGen, Pellet Production and BioGen(1) • High quality a
Slide 20: Half Year Results
2025 Half Year Results 31 July 2025
Slide 21: Appendices
Appendices 31 July 2025
Slide 22: Generation – Forward Power Sales
Generation – Forward Power Sales Additional 1.4TWh added since May trading update at £102/MWh Contracted power sales (28 July 2025) 2025 2026 2027 Net RO, hydro and gas (TWh)(1) 10.5 10.2 1.8 Average achieved £ per MWh(2) 113.7 76.8 79.2 CfD (TWh)(3) 4.3 0.8 - Forward power sales underpin earnings t
Slide 23: Group Income Statement
Group Income Statement H1-25 H1-24 In £m Adj. Results Adjustments(1) Total Results Adj. Results Adjustments(1) Total Results Revenue 2,601 46 2,647 3,063 95 3,158 Cost of sales (1,828) (65) (1,893) (2,086) 20 (2,066) Electricity Generator Levy - - - (114) - (114) Gross profit 773 (19) 754 864 115 97
Slide 24: Group Adj. EBITDA by Segment
Group Adj. EBITDA by Segment In £m H1-25 H1-24 Pumped Storage and Hydro 64 76 Energy Solution – I&C 25 36 Energy Solution – SME (7) (14) Flexible Generation and Energy Solutions (FlexGen) 81 98 Pellet Production 74 65 Biomass Generation 332 393 Elimini (16) (20) Innovation, Capital Projects and Othe
Slide 25: Generation – FlexGen and BioGen
Generation – FlexGen and BioGen In £m H1-25 H1-24 H1-25 H1-24 Revenue Generation Adj. EBITDA (£m) Power sales 1,718 1,973 Biomass 332 393 System support and optimisation 68 101 Renewable certificate sales 95 102 Pumped storage and hydro 64 76 CfD income 55 22 396 469 Capacity Market income 6 6 Gener
Slide 26: Energy Solutions
Energy Solutions Renewable power and energy solutions I&C In £m H1-25 H1-24 • Maintaining I&C margin in line with H1-24, some reduction in volume • Development of system support services via demand response, and electric Revenue 1,423 2,066 vehicle services following acquisition of BMM (August 2023)
Slide 27: Pellet Production
Pellet Production Improved production and margin Good progress in H1-25 In £m H1-25 H1-24 • Higher production output – record H1 production • Increase in EBITDA per tonne produced Revenue 449 442 Cost of sales (267) (270) Gross profit 182 172 Operating costs (108) (107) Adj. EBITDA 74 65 Production
Slide 28: Capital Investment
Capital Investment Investment in core assets and strategy H1-25 FY-25 Key areas Actual £m Estimate £m Growth OCGTs, pellet plants and enhancement projects 26 ~60 Maintenance Includes major planned outages 25 ~70 Other Health, safety, environment and IT 8 ~40 Total 59 150-190 2025 outlook • Growth –
Slide 29: Group Cash Flow Statement
Group Cash Flow Statement In £m H1-25 H1-24 Adj. EBITDA 460 515 Working capital (excluding collateral) (59) (154) Collateral (43) 61 Other 20 (22) Cash generated from operations 378 400 Debt service and other interest (42) (33) Corporation tax (49) (70) Net cash from operating activities 287 297 Cap
Slide 30: Group Net debt
Group Net debt £m 0 0 1,000 141 56 800 49 460 42 142 600 100 992 1,062 400 200 0 31 December 2024 EBITDA Working capital Capital Debt service & Tax Dividends Share 30 June 2025 Net debt & Other expenditure other interest buyback Net debt 30
Slide 31: Working Capital Inflow in 2027
1 Working Capital Inflow in 2027 c.£0.5bn benefit from end of Renewables Obligation scheme at Drax Power Station in 2027 Illustrative Generation cash flow from ROCs Renewables Obligation (RO) 2025 2026 2027 • RO – requirement for energy suppliers to source a proportion of their energy from a renewab
Slide 32: Drax UK Portfolio
Drax UK Portfolio Flexible, renewable generation, system support and energy solutions with opportunity for carbon removals 4GW of operational assets and development projects • UK’s largest portfolio of flexible, dispatchable renewable generation • 5% of total UK power generation(1) • 11% of UK renew
Slide 33: Capacity Market Agreements
Capacity 1 Market Agreements Capacity Market agreements provide strong underpin for FlexGen earnings c.£650m(1) of agreements in place Asset Payment period Value £m Capacity Market agreements profile and illustration (£m) 100 Pumped storage 1-year agreements (2025-2028) 83 90 Pumped storage 15-year
Slide 34: FlexGen – Generation
FlexGen – Generation Strong performance since 2019 underpinned by renewables driving growing need for system support services, with opportunity for further future value (1) Offshore Wind (TWh) (2) Hours of negative pricing (3) System cost (£bn) 50 250 5 Changing power system: 40 200 4 Increased leve
Slide 35: FlexGen and BioGen – Long-term Indicators
1 FlexGen and BioGen– Long-term Indicators UK Gov. net zero targets require major increase in renewables, system support and carbon removals Long-term value opportunity for FlexGen and BioGen At least 2x increase in demand for power (TWh) Significant increase in offshore wind (TWh) • Targets to deca
Slide 36: Merchant Forward Commodity Prices
Merchant Forward Commodity Prices Baseload Power Price (£/MWh) Peak Power Price (£/MWh) 200 250 160 200 120 150 80 100 40 50 0 0 Jan-23 Apr-23 Jul-23 Oct-23 Feb-24 May-24 Aug-24 Dec-24 Mar-25 Jun-25 Jan-23 Apr-23 Jul-23 Oct-23 Feb-24 May-24 Aug-24 Dec-24 Mar-25 Jun-25 WIN-25 SUM-26 WIN-26 SUM-27 WIN
Slide 37: Merchant Carbon Prices
Merchant Carbon Prices UKA Carbon (£/t) EU ETS Carbon (€/t) 120 140 100 120 100 80 80 60 60 40 40 20 20 0 0 Jan-23 Apr-23 Jul-23 Oct-23 Feb-24 May-24 Aug-24 Dec-24 Mar-25 Jun-25 Jan-23 Apr-23 Jul-23 Oct-23 Feb-24 May-24 Aug-24 Dec-24 Mar-25 Jun-25 Dec-25 Dec-26 Dec-27 Dec-25 Dec-26 Dec-27 Source: IC
Slide 38: Forward Looking Statements
Forward Looking Statements This announcement may contain certain statements, expectations, statistics, projections and other information that are, or may be, forward-looking. The accuracy and completeness of all such statements, including, without limitation, statements regarding the future financia
Slide 39: Half Year Results 2025
2025 Half Year Results 31 July 2025