By James Armstrong

Managing Partner, Bluefield Partners LLP

The Diverging Experience of the UK & US YieldCos and why it is Important

Name West Raynham

Location Norfolk (ex-military airfield)

Energy Capacity 50 MW

No. of Panels 200,000 panels

CO2 Emissions Saved 21,500 tonnes per year

Homes Powered 15,150 per year

Of the £201m long term debt in the company (£187va and 14m BLB) £1m is fixed price. As such the direct linkage of our revenues to RPI benefits from a multiplier

effect on the debt giving rise to the potential of an above RPI increase in distributable earnings. The Company does have £65m of RPI linked debt which only partially offsets this benefit but meanwhile provides a hedge in a lower inflation or

deflationary nvironment.Bluefield Partners LLP - Key Facts

No. of Plants 70

Locations England, Wales

Energy Capacity 400 MW

No. of Panels 1,600,000 panels

CO2 Emissions Saved 172,00 tonnes per year

Homes Powered 121,200 per year

July 2013, Public listing of the Bluefield Solar Income Fund

Bluefield Funds- Key Facts

Gross Assets c.£600 million

Yield 7% (target yield on Bluefield Solar Income Fund)

No. of Plants 70

Locations UK (England, Wales)

Energy Capacity 400 MW

No. of Panels 1,600,000 panels

CO2 Emissions Saved 172,00 tonnes per year

Homes Powered 121,200 per year

High Stakes

Carbon budget: Potsdam Institute Carbon reserves: BP SRWE

20%

886

565

2,795

2 C budget

The Paris Agreement: Less than 20% of known fossil fuels can now be used

1975 2015 2005 1995 1985

$101

2 MW

$0.61

>64 GW

Price of a solar panel per W

Global solar installed

F o r t y y e a r s

Renewable Energy is getting cheaper!

Bloomberg NEF projections

GW per year electricity generation additions

The fall of fossil fuels and the rise of renewables

8

Solar Energy and Stable Yields Solar Plant Construction

2013: Solar in the USA

2013: Solar in the UK

YieldCos Trends

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(1)Company Press releases and RNS Announcements (3)Company 10-Q SEC filings, Annual reports and RNS Announcements (2)Financial Times (Market Cap as at 20 June 2016) (4)Yahoo Finance †NRG Yield, Inc.; The Renewable Infrastructure Group Limited (TRIG); Bluefield Solar Income Fund Limited; Foresight Solar Income Fund Limited; TerraForm Power, Inc.;

NextEra Energy Partners, LP; NextEnergy Solar Fund Limited; John Lain Environmental Asset Limited (JLEN); 8Point3 Energy Partners LP; TerraForm Global, Inc.

YieldCos Market Performance(4)

NRG Yield

TRIG

Foresight

TerraForm Power

TerraForm Global

NextEra

NextEnergy

JLEN

8Point3

NRG Yield

TRIG

Foresight

Bluefield

TerraForm Power

NextEra

NextEnergy

JLEN

8Point3

TerraForm Global

Total $9bn

U.S. YieldCo U.K. YieldCo

0

20

40

60

80

100

120

aug.-15 szept.-15 nov.-15 dec.-15 febr.-16 ápr.-16 máj.-16

Sto

ck P

erfo

rma

nce

NextEnergy

Bluefield

Foresight

TRIG

JLEN

TerraForm Power

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Solar Energy and Stable Yields Solar Plant Construction

1. Design a financial product that suits the asset you are investing in?

12

Solar Energy and Stable Yields Solar Plant Construction

Jam Tomorrow, Yield Tomorrow?

13

Solar Energy and Stable Yields

Solar Plant Construction

2. Get the Right type of Investor

Long-term Short-term

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Solar Energy and Stable Yields Solar Plant Construction 3. Transparency & Reporting

15

Portfolio Generation Bridge Chart

Irradiation for the year was 3.7% below expectations, driven materially by unusually low levels in July 2015 and June 2016.

Availability was 0.6% below assumed 99% level.

However, operational performance was 1.8%

ahead of forecast.

Overall portfolio generation was 309GWh, 2.5% below P50 base case.

Power Generation Profile

0

100

200

300

400

0

20

40

60

júl.-15 aug.-15 szept.-15 okt.-15 nov.-15 dec.-15 jan.-16 febr.-16 márc.-16 ápr.-16 máj.-16 jún.-16

Cum

ula

tive

Genera

tion (

GW

h)

Month

ly P

roduction

(GW

h)

Actual Forecast Cumulative Actual Cumulative Forecast

317,1 309,2

([VALUE]) ([VALUE])

8,5

50

100

150

200

250

300

350

2015/16 Forecast generation

Irradiation Plant Outages Portfolio Outperformance

2015/16 actual generation

Pro

duction (

GW

h)

1. BSIF Annual Report and Consolidated Financial Statements for the Financial Year Ended 30 June 2016.

Operational Performance

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Consolidated Portfolio Earnings

FY 15/16 (£m) Commentary

Revenue 35.6 £110k per MW revenue, as per slide 101

Other Revenue 0.9 Insurance proceeds and liquidated damages

Portfolio Income 36.5

Portfolio Costs (7.1) c. 20% of Revenue

Portfolio EBITDA 29.4 c. 80% margin

Project Level Debt Service (1.4) Repayment and Interest in Project Durrants

Total Investment Income Earned 28.0 c. 77% margin

Group Admin & Finance Costs 7.0 Ongoing Charge Ratio of c. 1.1% of NAV2

Total Underlying Earnings 21.0 7.10 pence per Ordinary Share

• Dividend Backed by Underlying Earnings

1. BSIF Annual Report and Consolidated Financial Statements for the Financial Year Ended 30 June 2016; Weighted average portfolio capacity of 323.3 MWp across FY 2015/16 . 2. Net asset value.

Financial Highlights

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Solar Energy and Stable Yields Solar Plant Construction 4. The Use of Leverage

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Solar Energy and Stable Yields Solar Plant Construction

The YieldCo model should enable investors to sleep at night

Can we do it?