Strategic Assets & Road to Monetisation

ROAD TO MONETISATION SEVERAL NEW ROADS HAVE APPEARED IN RECENT MONTHS WHILST AWAITING JR OUTCOME W ✓ Harland & Wolff Established farm-out model Part with majority equity Retain a carried interest Preferred route initially Well established and modelled Substantial equity reduction Project as a whole attracts equity & debt to take FID; H&W remains as minority shareholder Long term government loan - National Infrastructure Bank • Discussions Progressing Traction now increasing since energy markets have tightened Structural shortage of gas storage and strategic nature of the asset Financing underpinned by a combination of long-term loans and grants along with private equity participation Limited traction, but fairly new concept in the UK Regulated Asset Base (RAB) Model • Government agrees to pay an agreed return on capital deployed to raise funds for construction Very popular across Europe This option is now being discussed to try and create CfD mechanism • a model that is suitable Government covers the shortfall delta between the Q1/Q3 spread and minimum spread required to provide a guaranteed return on capital deployed Most economically efficient way of providing support; the CfD mechanism might not be utilized if the Q1/Q3 spread is enough to provide the minimum required return on capital deployed

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