gresham house energy storage fund plc

Cleator (c)2017 NEC Energy

Solutions, Inc.

Annual Results Presentation to

31 December 2020 & Q1 2021 update

Gresham House

Energy Storage

Fund plc

April 2021

Capitalising on growing supply-demand imbalances

caused by the transition to low carbon electricity

PRESENTATION TEAM

2

Ben GuestManaging Director, Gresham House New Energy,

Fund Manager, Gresham House Energy Storage Fund plc

Founded Hazel Capital (now Gresham House New

Energy) in 2007.

26 years' experience in asset management.

Previously, co-founder and fund manager at Cantillon

Capital Management and fund manager at Lazard Asset

Management.

Rupert RobinsonManaging Director, Gresham House Asset Management

Over 30 years’ experience in asset management and

wealth management.

Previously CEO and CIO of Schroders (UK) Private Bank

and head of private clients at Rothschild.

http://www.greshamhouse.com/

2020 financial performance

→ Net Asset Value (NAV) +74% to £358.9m (FY19: £205.9m)

→ NAV per share + 2.2% to 102.96p (FY19: 100.79p)

→ NAV Total Return +8.4%

→ Share Price Total Return +10.8% vs FTSE All Share Index Total Return -9.8%

→ Weighted Average Discount Rate 10.8% (FY19: 11.2%)

2020 operational performance

→ Underlying portfolio revenues +89% to £19.0m (FY19: £10.1m)

→ Underlying portfolio EBITDA +135% to £15.8m (FY19: £6.7m)

→ Total dividends of 7.0p per share paid for the year, as targeted, and reaffirmed for 2021

Post period end to 31 March 2021

→ NAV per share +3.5% to 106.66p

→ NAV Total Return since IPO +21.5%

→ Share Price Total Return since IPO +27.3% vs FTSE All Share Index Total Return +7.9%

HIGHLIGHTS - FINANCIAL &

OPERATIONAL PERFORMANCE

3

Past performance is not necessarily a guide to future performance. Capital at risk.

Source: Gresham House Energy Storage Fund plc Annual Results for financial year ending 31 December 2020


Fundraising

Deployment


Source: Gresham House Energy Storage Fund plc Annual Results for financial year ending 31 December 2020

HIGHLIGHTS - FUNDRAISING & DEPLOYMENT

4

▪ 315MW of operational capacity as at 31 December 2020

▪ £85.3m invested into 141MW operational capacity:

→ 41MW Bloxwich project in July

→ 50MW Thurcroft project in October

→ 50MW Wickham project in November

▪ Cash position of £111m as at 31 December 2020

▪ In 2021, £49.0m invested into 110MW operational

capacity, taking total to 425MW

→ 25MW Tynemouth

→ 35MW Port of Tyne

→ 10MW Nevendon

→ 10MW Glassenbury extension site

→ 30MW Byers Brae

▪ Updated Pipeline of 802MW, of which:

→ 275MW due to start construction shortly, fully

committing funds raised in November 2020

→ 527MW of additional exclusive pipeline which will be

built subject to further debt and equity fundraising

▪ £151.2m of gross funds raised in 2020:

→ £31.2m share issuance in March

→ £120m share issuance in November

(following publication of a new prospectus)

▪ £14.9m raised through a bond issuance in

October 2020


NET ASSET VALUE PER SHARE SINCE IPO

5

98.00

99.95

100.7

99.19

100.79

101.5

98.16

100.77

102.96

106.66

95.0

97.0

99.0

101.0

103.0

105.0

107.0

109.0

NA

V p

er

sh

are

(p

en

ce

)

NAV per share total return

of 21.5% since IPO1


1. Through to 31 March 2021

Chart source: Gresham House as at 31 March 2021


NET ASSET VALUE PER SHARE - 2020

6

100.79102.96

1.70

3.54

6.54

2.42

(6.25)

(0.04)

(0.61)

(5.13)

90.0

92.0

94.0

96.0

98.0

100.0

102.0

104.0

106.0

108.0

NAV 31 Dec2019

Impact of newIssuance

Net Fund andSPV Working

Capital

Dividends paidin the period

Debt servicing TransactionCosts

Change inNPV due to roll

foward, 3rdparty revenueforecasts and

otherassumptions

Change inNPV due tonew projectrevaluations

Change inNPV due to

Discount Rate

NAV 31 Dec2020

Pe

nce

pe

r sh

are

NAV per share bridge 31 December 2019 to 31 December 2020

NAV Increase Decrease


Source: Gresham House New Energy. SPV - Special Purpose Vehicle. NPV - Net Present Value

Key NAV drivers in 2020:

▪ Revaluation of projects : +6.5p

▪ Accretion from equity raise: +1.7p

▪ WADR: 0.3% reduction to 10.8%: +2.4p

▪ Lower revenue forecasts and other changes: -5.1p

▪ Less than 1.0x dividend cover: -2.7p


102.96

106.66

2.47

4.36

(1.75)(0.09) (0.08)

(0.66)

(0.56)

100.0

101.0

102.0

103.0

104.0

105.0

106.0

107.0

108.0

NAV 31 Dec2020

Net Fund andSPV Working

Capital

Dividends Transaction fees Debt Costs Change in NPVdue to roll

forward, thirdparty revenueforecasts and

otherassumptions

Change in NPVdue to new

projectrevaluations

Change in NPVdue to inflation

rate

NAV 31 Mar2021

Pe

nce

pe

r sh

are

NAV per share bridge from 31 December 2020 to 31 March 2021

NAV/Share Increase Decrease

NET ASSET VALUE PER SHARE - Q1 2021

7


Source: Gresham House New Energy. SPV - Special Purpose Vehicle. NPV - Net Present Value

Key NAV drivers in Q1 2021:

▪ Revaluation of projects: +4.4p

▪ Dividend coverage at >1.0x: +0.7p

▪ Revenue forecasts and other changes: -1.2p


Revenue

SourcesDescription of revenues and GRID’s participation In the context of GRID:

Trading

- Merchant

income

Routes to market:

▪ National Grid’s Balancing Mechanism - capacity is tendered

▪ Wholesale Market - intraday and day-ahead trading

Market size

▪ Ranges from 20-50GW depending on demand

▪ GRID uses four different “asset optimisers”

▪ Asset optimisers use algorithms to continually assess whether

more can be earned from trading or frequency response.

Increasingly, both can be carried out simultaneously

▪ Trading is inherently profitable due to fundamental market

volatility

Frequency

Response

- Short term

contracts

Frequency Response services procured by National Grid:

▪ Dynamic Containment (DC) - daily contracts

▪ Firm Frequency Response (FFR) - monthly contracts

▪ Enhanced Frequency Response (EFR) - 4-year contracts (exp. 2022)

Market size

▪ c.1500MW today, rising to c.3000MW (est.) in the next 2-3 years

▪ Most of GRID’s projects were in EFR (120MW) or DC in 2020

▪ National Grid uses frequency response to eliminate

instantaneous, minor imbalances in supply and demand

Capacity

Mechanism

- Long-term

contracts

Contract types:

T-4 contracts are awarded via auction c.4 years ahead

Durations are:

▪ 15 years and index-linked if awarded prior to commissioning

▪ 1 year for all other contracts

T-1 contracts are awarded via auction c.1 year ahead

▪ GRID has 15-year contracts starting in October 2019, 2020,

2021 and 2023

▪ Trading and Frequency Response are the two largest source of revenue today with potential for

new revenues in future

▪ Frequency Response dominated revenues in 2020

▪ Trading is expected to dominate revenues longer term, as volatility increases due to rising renewable

generation and less gas-fired generation

REVENUE MODEL

8

Source: Gresham House New Energy


▪ Underlying project revenues reached £19.0m in 2020 compared with £10.1m in 2019, an increase of 89%

▪ Frequency Response services represented 76% of project revenues

▪ Launch of Dynamic Containment (a new Frequency Response service) drove strong revenues in Q4

2020 REVENUE BREAKDOWN

9

2020 portfolio assets revenueConsolidated project

revenues (£m)

% of total

revenue

Frequency Response total 12.14 76%

- Firm Frequency Response FFR 3.18 20%

- Enhanced Frequency Response EFR 3.59 22%

- Dynamic Containment DC 5.35 33%

- Optional Downward Flexibility Management ODFM 0.02 <1%

Trading 1.59 10%

TRIADs 1.52 9%

Capacity Market 0.82 5%

Operating Revenues from Projects 16.07 100%

Liquidated Damages compensating for lost revenues on delayed project completions 2.97

Total Revenues from the portfolio 19.04




▪ EBITDA of the underlying portfolio investments was £15.8m in 2020 compared with £6.7m in 2019,

an increase of 135%

MONTHLY REVENUE & EBITDA ANALYSIS

10


1. Line represents the estimated EBITDA per MW needed to be earned from trading, (including TRIADS) and/or Frequency Response (i.e. excluding Capacity

Market revenues, estimated at £420/MW/Month) to cover GRID’s ongoing costs (OCF) and to meet a 7.0p dividend, once fully invested (expected in Q1 2022

subject to any other fundraising). Chart source: Gresham House New Energy

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Jan 2019 Apr 2019 Jul 2019 Oct 2019 Jan 2020 Apr 2020 Jul 2020 Oct 2020 Jan 2021

£/M

W/M

onth

Monthly net revenue and EBITDA per MW

Net Revenue EBITDA

Dividend hurdle level1

1. Legacy high value FFR

contracts, expiring during 2019

and high value TRIAD payments2. Downtime while the seed

portfolio was upgraded to

enable access to trading

depressed income

3. Projects recommissioned

following upgrades. Portfolio

remains profitable despite a

challenging market as a result

of the Covid-19 pandemic

4. Portfolio enters BM Reserve

trial (September 2020 only)

and DC (since October 2020)

and also benefits from extreme

power price volatility


GRID is differentiating itself in the market:

Scale:

▪ Largest operator in the market by a factor of at least 2x1

Market leadership:

▪ First and only operator to enter all new services offered by

National Grid in 2020 at their start, including

‒ Dynamic Containment (launched October 2020)

‒ Optional Downward Flexibility Management (ODFM -

launched April 2020)

‒ BM Reserve trials (in May, July and September 2020)2

Operational uptime:

▪ Frequency Response availability of 98.8% for the year as

sites continue to deliver against requirements1

Quality and resilience:

▪ Larger batteries than most competitors (>1hr average

duration across the portfolio)1

▪ Lower degradation on batteries than modelled due to lighter

load from Frequency Response1

OPERATIONAL HIGHLIGHTS

11

98.8%

Uptime

GRID delivered strongly against

Frequency Response contracts with

98.8% availability in 2020.

In Dynamic Containment 99.7% revenue

capture achieved during Q4 2020.

63%

DC market share

Since launch in October 2020, GRID

has dominated this market. Having

been the only entrant at launch, it had

a 63% share of the market as at

31 December 2020.

97.7%

High average SOH

Lower than expected drop in state of

health reflects the benign usage from

frequency services, further helped by

large average battery sizes. DC, in

particular, has involved less that one

cycle per day.

1. Source: Gresham House New Energy

2. £0.68m potential value to National Grid for the three-week trial in September (Source: Reserve from storage in the BM Trial Review document)


GRID is the UK market leader operating

425MW and 17 projects.

A further 275MW across 5 new projects are

expected to enter construction shortly,

committing all uninvested funds.

PORTFOLIO OVERVIEW

12

13

14

20

9

2

12

6

5

11

8

23

25

27

24

4

1

10

18

26

19

15

7

16

3

28

29

30

21

22

17


Portfolio

Committed pipeline

Subsequent pipeline


▪ GRID aims to reach 700MW of operating capacity with current funds

▪ Subsequent pipeline would allow GRID to go through the 1GW milestone, subject to further debt and

equity fundraising

PORTFOLIO SUMMARY & PIPELINE

13

1. Operational assets acquired from the market, showing when the project was acquired by GRID and not the date of commissioning

2. Asymmetric projects with lower Import Capacity versus its Export, all other projects have a symmetrical Export/Import Capacity

3. Completion of the Byers Brae acquisition was announced on 22 April 2021

4. The Immediate Pipeline is owned by Gresham House Devco on behalf of the Fund. Construction of these projects is expected to commence in the short term

and fully commits all remaining funds raised in November 2020

Project Location

Export

capacity

(MW)

Battery

size

(MWh)

Commissioning

status

1. Staunch Staffordshire 202 3 Operational – 2018

2. Rufford Nottinghamshire 7 10 Operational – 2018

3. Littlebrook Kent 8 6 Operational – 2018

4. Lockleaze Bristol 15 22 Operational - 2018

5. Roundponds Wiltshire 202 26 Operational - 2018

6. Wolverhampton West Midlands 5 8 Operational - Q3 2019

7. Glassenbury Kent 40 28 Operational - Q4 -20191

8. Cleator Cumbria 10 7 Operational - Q4 -20191

9. Red Scar Lancashire 49 74 Operational - Q4 -2019

10. Bloxwich West Midlands 41 47 Operational - Q3 -20201

11. Wickham

MarketSuffolk 502 74 Operational - Q4 -2020

12. Thurcroft South Yorkshire 50 75 Operational - Q4 -2020

13. Tynemouth North Tyneside 25 17 Operational - Q1 -20211

14. Port of Tyne Tyneside 35 28 Operational - Q1 -20211

15. Nevendon Essex 10 7 Operational - Q1 -20211

16. Glassenbury

ExtensionKent 10 10 Operational - Q1 -2021

17. Byers Brae West Lothian 30 31 Operational – Q2 20213

Total existing projects 425 473

Project Location

Export

capacity

(MW)

Battery

size

(MWh)

Commissioning

status

18. Project M Swindon 100 100 Q1 2022e

19. Project E Leicester 50 50 Q1 2022e

20. Project D Manchester 50 50 Q1 2022e

21. Coupar Angus Co. Perth 40 40 Q1 2022e

22. Arbroath Co. Angus 35 35 Q1 2022e

23. Project Emerald Republic of Ireland c.40 c.40 2022

24. Monet’s Garden North Yorkshire 50 50 2022

25. Lister Drive Merseyside 50 50 2022

26. Project G Northampton 50 50 2022

27. Project P Preston 50 50 2022

28. Project E2 West Yorkshire 100 + 50 100 + 50 2022

29. Project B West Yorkshire 87 87 2022

30. Project Y York, N. Yorks. 50 50 2022

Total pipeline c.802 c.802

Committed pipeline

Subsequent pipeline


The Investment Manager is focused on creating value by maximising the spread between cost of

capital and profitability of projects to make GRID the most competitive operator of Battery Energy

Storage Systems.

Lowering the cost of capital

▪ Equity cost of capital:

‒ Strong execution can drive the NAV and equity valuation which drives the marginal equity cost of capital down

▪ Debt to drive the Weighted Average Cost of Capital (WACC) down:

‒ A debt process underway whereby even modest gearing could meaningfully reduce the WACC

‒ Debt also reduces cash drag (i.e. the cost of capital which creates a drag on returns prior to deployment)

Improving project profitability

▪ New projects:

‒ The cost of acquiring new projects is declining as a result of the industry’s falling cost curve, our contracting

methodology and procurement advantage

▪ Existing projects:

‒ Driving best-in-class optimisation

‒ Reducing costs across the board

DRIVING PROFITABILITY & COMPETITIVENESS

14


MARKET BACKDROP - RISING VOLATILITY

15

Source: Elexon

GB half hourly power prices - 2019 to 7 April 2021


▪ GRID has a strong track record of using its internal resources and trading partners to optimise

revenues and outperform competitors.

▪ In Q1 2021 GRID achieved 19%1 more revenue than benchmark DC performance through effective

optimisation between revenue streams and data analysis across the team and trading partners.

OPTIMISATION DRIVING STRONGER REVENUES

16

Case study: GRID asset performance vs benchmark


1. Performance from one of the GRID portfolio assets available for DC for the three months to 23rd March 2021 versus average net performance of DC assets

without smart optimisation. DC = Dynamic Containment, a Frequency Response service provided to National Grid by batteries

10

20

40

80

24 D

ec20

26 D

ec20

28 D

ec20

30 D

ec20

1 J

an2

1

3 J

an2

1

5 J

an2

1

7 J

an2

1

9 J

an2

1

11 J

an

21

13 J

an

21

15 J

an

21

17 J

an

21

19 J

an

21

21 J

an

21

23 J

an

21

25 J

an

21

27 J

an

21

29 J

an

21

31 J

an

21

2 F

eb

21

4 F

eb

21

6 F

eb

21

8 F

eb

21

10 F

eb

21

12 F

eb

21

14 F

eb

21

16 F

eb

21

18 F

eb

21

20 F

eb

21

22 F

eb

21

24 F

eb

21

26 F

eb

21

28 F

eb

21

2 M

ar2

1

4 M

ar2

1

6 M

ar2

1

8 M

ar2

1

10 M

ar2

1

12 M

ar2

1

14 M

ar2

1

16 M

ar2

1

18 M

ar2

1

20 M

ar2

1

22 M

ar2

1

£/M

W/H

r a

ve

rag

e f

or

each

da

y

Three months daily net revenue performance on a £/MW/hr basis1

GRID Asset Performance

DC Benchmark

Optimising revenues by stepping out

of DC on days with high trading

opportunity. This was not done by

competitors in the DC market.

27/01: Start of stacking of BM

revenues onto DC. GRID assets

the first in the market to capitalise

on this opportunity. Consistent

daily out performance since then.



SUSTAINABILITY REPORTGRID is making a bigger and bigger difference. Its impact will increase as the portfolio grows compounded by a

rising need for batteries as renewable penetration rises

17

Measurement 2018 2019 2020

Cumulative capacity of BESS fleet (MW) - end of year 70MW 174MW 315MW

Cumulative capacity of BESS fleet (MW) - time-weighted average 58MW 74MW 207MW

Cumulative capacity of BESS fleet (MWh) - end of year 35MWh 179MWh 380MWh

Cumulative capacity of BESS fleet (MWh) - time-weighted average 29MWh 42MWh 225MWh

Estimate of long-term number of charge and discharge cycles per day 2.3 cycles 2.3 cycles 2.3 cycles

Change in capacity per cycle 90% 90% 90%

Total energy discharged (MWh) 21,832MWh 31,767MWh 170,000MWh

CO2 emissions avoided (tonnes of CO2) assuming gas-fired power emits

371 tonnes/GWh

8,100 tonnes

of CO2

11,785 tonnes

of CO2

63,000 tonnes

of CO2

Number of homes that could be served with the energy discharged 6,102 homes 8,878 homes 47,000 homes


The Investment Manager has identified five ESG factors across the SIF that are most

material to GRID operations and investments. These are carbon emissions and pollution,

natural resource management, waste management, employment, health, safety and well-

being, and governance and ethics.

SUSTAINABLE INVESTMENT FRAMEWORK (SIF)

18

Community care

and engagement

Supply chain

sustainability

Employment, health,

safety and well-being

Marketplace

responsibility

Waste

management

Natural resource

management

Governance

and ethics

Risk and

compliance

Commitment

to sustainability

Carbon,

emissions

and pollution


→ GRID is set to begin construction on 275MW of projects fully committing all

uninvested funds - operational in Q1 20221 resulting in operating capacity of

700MW

→ 527MW of additional exclusive pipeline which will be built subject to further

financing

→ Potential new debt facility would reduce the cost of capital and therefore the

hurdle for paying dividends from operating earnings

→ Strong performance expected from the portfolio in 2021, capitalising on

favourable Frequency Response prices and capturing increasing upside

volatility during periods of high demand1

→ Full coverage of the 7.0p dividend expected in 2021 despite cash drag during

the construction of the current pipeline

→ Recent acquisitions and future pipeline expected to be accretive to NAV

CONCLUSION

19


1. This is an expectation only and is not guaranteed


APPENDIX SLIDES

20

GRID TIMELINEGRID has been on a continuous and stable growth trajectory since its inception

21

Nov 2018

Admission to LSE

Main Market, £100m

IPO Proceeds

May 2019

£50m placing

Jul 2019

£15m placing

Oct 2019

£42m placing

Mar 2020

£31m placing

Jun 2020

Shareholder approval for

Investment Policy change -

permits investment of up to 10%

of NAV in the Republic of Ireland

Nov 2020

Investment Policy amended to allow

construction risk (up to 10% of GAV to

finance construction of BESS Projects)

Dec 2019

Glassenbury (40MW),

Cleator (10MW),

Red Scar (49MW)

Oct 2018

Gresham House Energy Storage

Fund plc (GRID) launched

Oct 2020

£15m GRID Power Bond issuance

Nov 2020

New Share Issuance Programme

(250m shares), raised £120m

Aug 2019

Wolverhampton (5MW)

Jul 2020

Bloxwich (41MW)

Nov 2020

Wickham (50MW)

Jan 2021

Tynemouth (25MW),

Glassenbury Ext. (10MW)

Port of Tyne (35MW),

Nevendon (10MW)

Oct 2020

Thurcroft (50MW)

Apr 2021

Byers Brae (30MW)

Source: Gresham House


The UK electricity market has changed dramatically in the

last decade (see chart 1). Coal has left the mix and

renewable penetration is growing rapidly.

This has driven a huge change in how power is generated

intraday as shown in charts 2 and 3.

A few key changes will take place that will drive the need

for batteries significantly.

i) More demand for electricity supplied increasingly by

renewables

ii) Less baseload generation, and in particular gas-fired

generation which to date has been National Grid’s

key source of flexibility

iii) In addition, Ofgem has driven regulatory changes

that level the playing field for batteries

iv) National Grid has implemented changes in the

Control Room that make batteries more useful to

them which unlocks the potential to stop using

flexible gas CCGTs

So far there are around 1.2GW of batteries installed in the

UK with GRID owning 425MW of them. This compares

with 47.9GW of renewables1.

BATTERY STORAGE MARKET OVERVIEWBatteries have demonstrated their competitiveness and maturity vs existing technology

22

Current market overview

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1

2011

Q3

2011

Q1

2012

Q3

2012

Q1

2013

Q3

2013

Q1

2014

Q3

2014

Q1

2015

Q3

2015

Q1

2016

Q3

2016

Q1

2017

Q3

2017

Q1

2018

Q3

2018

Q1

2019

Q3

2019

Q1

2020

Q3

2020

Chart 1: GB electricity generation by technology

Net imports

Bioenergy

Wind and Solar

Hydro (natural flow)

Nuclear

Gas

Coal

1. Source: ET6.1 Q3 2020 - published December 2020

Chart 1 source: BEIS

Chart 2 and 3 sources: Elexon

Chart 2: 14 to 15 May 2012 Chart 3: 14 to 15 May 2012


Energy Storage

DEPICTION OF GB ELECTRICITY SYSTEM

23

The Transmission System

operates as a backbone

network carrying electricity

over long distances at

extremely high voltages

14 regional Distribution

Networks are connected to

the Transmission System

carrying electricity to the

final consumers

Energy Storage Systems

can import and export to

address system instabilities

and supply-demand

imbalances

Electricity Generation has

migrated from being

“baseload plus peaking” to

“intermittent and volatile”

Energy Storage Systems

can operate locally through

collocation and / or

“private wire” arrangements

Energy Storage is a “relief valve” for system instabilities and, increasingly, for the growing supply-demand imbalances

caused by the growth in renewable generation


The chart on the right shows low carbon generation (Solar, Wind, Biomass and Nuclear) as a percentage of demand. The growth in highly intermittent generation is

mostly a function of offshore wind commissioning and this is set to continue with c.15GW in new offshore wind projects set to commission by the mid 2020s1.

The widening extremes in generation highlight the need for batteries. These extremes manifest in increasing volatility as shown in the chart below. By 2023, the

need is for in excess of 10GW according to Gresham House.

In addition to volatility-driven trading opportunities, the market has so far been driven by frequency response contracted by National Grid to balance small, ever-

present deviations in supply and demand which manifest as frequency deviations around 50Hz to which batteries respond dynamically (i.e. in real time and

proportionately to the level of deviation).

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan 2013 May 2014 Sep 2015 Jan 2017 May 2018 Sep 2019 Jan 2021

Low carbon generation as a percentage of demand

BATTERY STORAGE MARKET OVERVIEWBattery storage will grow substantially in the UK

24

Future of UK battery storage

1. Source: Wikipedia and associated reference documents

Charts source: Elexon

Intermittent generation means very low generation persists even as

penetration rises, increasing the potential for high power prices

Curtailment starting to cap generation leading to

unprecedented number of zero or negative power prices Half hourly power prices since October 2017


1. Source: BEIS, Committee on Climate Change

2. Source: BEIS. Provisional figure

3. Source: Gresham House Research

STRONG ESG CREDENTIALSGRID’s projects fundamentally enable a cost-effective energy transition which deliver social and environmental benefits

25

Project components sourced

from top-tier suppliers

EPC contractors expected to sign

up to battery disposal regulations (Recycling technologies expected

to be developed over time)

Sites comply with standards set

either by local councils

or by DEFRA

Gresham House Energy Storage Fund plc

was awarded the London Stock

Exchange’s Green Economy Mark.

▪ Investment Manager awarded highest score (A+PRI) for

infrastructure strategies reinforcing GRID's strong

ESG credentials

▪ In 2019, the Committee on Climate Change recommended

a net zero emissions target for 2050 for the UK. Current

target is for an 80% reduction1

▪ Renewable electricity penetration rose from 9.6% in 2011 to

46.4% in H1 2020 and is expected to rise to c.53% in 20232

▪ UK wind energy generation was curtailed on 275 days in

2020, losing energy which could have powered over a

million homes for a whole year

▪ Energy storage enables cost effective transition to higher

penetration of renewables by avoiding curtailment whilst

helping stabilise the energy network that now relies more

than every on intermittent renewable power

▪ Est. 63,000 tonnes of CO2 emissions avoided versus gas-

fired power through our portfolio in 2020, over 82,000

tonnes since IPO3


Share Price Total Return performance

▪ +10.8% in 2020

▪ +27.3% since IPO (through 31 March 2021)


Past performance is not necessarily a guide to future performance. Portfolio investments in smaller companies typically involve a

higher degree of risk. Capital at risk.

SHARE PRICE PERFORMANCE

26

70

80

90

100

110

120

130

140

Nov 2018 Feb 2019 May 2019 Aug 2019 Nov 2019 Feb 2020 May 2020 Aug 2020 Nov 2020 Feb 2021

GRID vs FTSE All Share Total Return

GRID - Share Price Total Return GRID - NAV Total Return FTSE All Share Total Return


1. As at 31 December 2020

Gresham House is a fast growing specialist alternative asset management group, quoted on

the London Stock Exchange (GHE.LN), providing funds, direct investments and tailored

investment solutions, including co-investment.

→ Specialists in five areas of alternative investment

→ Growing organically and through acquisition, expanding our shareholder base and developing our investment pipeline

→ Committed to operating responsibly and sustainably, building long-term value across our portfolio

SPECIALISTS IN ALTERNATIVES

27

Strategic Equity Real Assets

ForestryHousing

New Energy &

Sustainable

Infrastructure

Public

EquityPrivate

Equity

£0.9bn £3.1bn

£4.0bn1

£1.8bn £1.0bn £0.3bn£0.5bn £0.4bn


DISCLAIMER

Capital at risk:The value of investments may fall as well as rise and investors may not get back the original amount invested.

This presentation (the Presentation) is issued by Gresham House Asset Management Ltd (GHAM), Investment

Manager for Gresham House Energy Storage Fund plc (the Fund or GRID) for information purposes only and

before investing you should read the Fund's Prospectus and Key Information Document available from

www.greshamhouse.com/gresham-house-energy-storage-fund-plc as they contain important information regarding

the Fund, including charges, tax and specific risk warnings. This Presentation, its contents and any information

provided or discussed in connection with it are strictly private and confidential and may not be reproduced,

redistributed, referenced, or passed on, directly or indirectly, to any other person or published, in whole or in part,

for any purpose, without the consent of GHAM (provided that you may disclose this Presentation on a confidential

basis to your legal, tax or investment advisers (if any) for the purposes of obtaining advice). Acceptance of delivery

of any part of the Presentation by you constitutes unconditional acceptance of the terms and conditions of this

notice.

This Presentation does not itself constitute an offer or invitation or any solicitation of any offer to subscribe for or

purchase any shares or other securities or recommendation to invest in any shares or other securities. This

Presentation is not intended to be relied upon as the basis for an investment decision, and is not, and should not

be assumed to be, complete. It is provided for information purposes only. The shares the Fund are admitted to

trading on the Specialist Fund Segment (the SFS) of the London Stock Exchange plc. The SFS is a segment of

the London Stock Exchange’s Main Market and is designed for highly specialised investment entities that wish to

target institutional, highly knowledgeable investors or professionally advised investors only. Any investment is

subject to various risks, none of which are outlined herein. All such risks should be carefully considered by

prospective investors before they make any investment decision.

You are not entitled to rely on this Presentation and no responsibility is accepted by GHAM or any of their

directors, officers, partners, members, employees, agents or advisers or any other person for any action taken on

the basis of the content of this Presentation. Neither GHAM, any of their affiliates nor any other person undertakes

to provide the recipient with access to any additional information or to update this Presentation or to correct any

inaccuracies therein which may become apparent.

No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf

of GHAM or any of their respective directors, officers, partners, members, employees, agents or advisers or any

other person as to the accuracy or completeness of the information or opinions contained in this Presentation and

no responsibility or liability is accepted by any of them for any such information or opinions.

Past performance is not indicative of future results. The value of investments may fall as well as rise and investors

may not get back the amount invested. Changes in rates of foreign exchange may cause the value of investments

to go up or down. No representation is being made that any investment will or is likely to achieve profits or losses

similar to those achieved in the past, or that significant losses will be avoided. Prospective investors should seek

their own independent financial, tax, legal and other advice before making a decision to invest.

The internal rates of return or IRRs presented on a “gross” basis do not reflect any management fees, carried

interest, taxes and allocable expenses of the kind that will be borne by investors in a fund, which in the aggregate

may be substantial. Prospective investors are reminded that the actual performance realised will depend on

numerous factors and circumstances some of which will be personal to the investor.

Statements contained in this Presentation that are not historical facts are based on current expectations,

estimates, projections, opinions and beliefs of GHAM. Such statements involve known and unknown risks,

uncertainties and other factors, and reliance should not be placed thereon. In addition, this Presentation contains

“forward-looking statements.” Actual events or results or the actual performance of the Fund may differ materially

from those reflected or contemplated in such forward-looking statements.

Certain economic and market information contained herein has been obtained from published sources prepared

by third parties and in certain cases has not been updated to the date hereof. While such sources are believed to

be reliable, neither GHAM nor any of their directors, partners, members, officers, employees, advisers or agents

assumes any responsibility for the accuracy or completeness of such information.

No person, especially those who do not have professional experience in matters relating to investments, may rely

on the contents of this Presentation. If you are in any doubt as to the matters contained in this Presentation you

should seek independent advice where necessary. This Presentation has not been submitted to or approved by

the securities regulatory authority of any state or jurisdiction.

For the attention of United Kingdom Investors

This Presentation is intended for distribution in the United Kingdom only to persons who: (i) have professional

experience in matters relating to investments, (ii) who are investment professionals, high net worth companies,

high net worth unincorporated associations or partnerships or trustees of high value trusts, and (iii) investment

personnel of any of the foregoing (each within the meaning of the Financial Services and Markets Act 2000

(Financial Promotion) Order 2005).

For the Attention of Investors outside the United Kingdom

This Presentation relates to an Alternative Investment Fund within the meaning of the Alternative Investment Fund

Managers Directive and the availability of this Presentation will be subject to the requirements of that Directive, as

implemented in relevant EEA member states. Any dissemination or unauthorised use of this Presentation outside

the United Kingdom by any person or entity is strictly prohibited.

For the attention of investors in Israel

This presentation is directed at and intended for investors that fall within at least one category in each of: (1) the

First Schedule of the Israeli Securities Law, 1968 (Sophisticated Investors); and (2) the First Schedule of the

Regulation of Investment Advice, Investment Marketing, and Investment Portfolio Management Law, 1995

(accordingly, the Israeli Investment Advice Law and Qualified Clients).

By receiving this document you hereby declare that you are a Sophisticated Investor and a Qualified Client, that

you are aware of the implications of being considered and treated as a Sophisticated Investor and a Qualified

Client (including the implications mentioned below), and consent thereto. Any Israeli Investor, which is either: (1)

not a Sophisticated Investor; or (2) not a Qualified Client - must immediately return this presentation to GHAM.

Accordingly, each Investor will be required to make certain representations and undertake that it is purchasing the

Interests for investment purposes only.

No action has been or will be taken in Israel that would permit a public offering of the shares or securities in Israel

and this presentation has not been approved by the Israel Securities Authority.

This presentation is not intended to serve, and should not be treated as Investment Advice as defined under the

Israeli Investment Advice Law. Accordingly, the content of this presentation does not replace and should not serve

as substitution for Investment Advice services that take into account the special characteristics and needs of each

Investor.

GHAM does not hold a license and does not have insurance in accordance with the Israeli Investment Advice Law.

It is hereby noted that with respect to Qualified Clients, GHAM is not obliged to comply with the following

requirements of the Israeli Investment Advice Law: (1) Section 12 - ensuring the compatibility of service to the

needs of client; (2) engaging in a written agreement with the client, the content of which is as described in section

13 of the Israeli Investment Advice Law; (3) providing the client with the disclosures under section 14 regarding all

matters that are material to a proposed transaction or to the advice given; (4) providing disclosure about

"extraordinary risks" as defined under section 18 to the Israeli Investment Advice Law; (5) maintaining records of

advisory/discretionary actions in accordance with the rules set forth in the regulations.

It is the responsibility of any prospective Investor wishing to purchase Interests to satisfy himself as to the full

observance of the laws of Israel in connection with any such purchase, including obtaining any governmental or

other consent, if required.

Please contact a member of the Gresham House team if you wish to discuss your investment or provide feedback

on this document. Gresham House is committed to meeting the needs and expectations of all stakeholders and

welcomes any suggestions to improve its service delivery. www.greshamhouse.com

28


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