Drax Half-Year Report 2022

Financial highlights – strong financial performance and returns to shareholders

• Adjusted EBITDA (excl. EGL) of £453 million up 101% (H1 2022: £225 million)
  • Driven by system support services and dispatchable, renewable generation
• Strong liquidity and balance sheet – £586 million of cash and committed facilities at 30 June 2023
  • Expect Net debt to Adjusted EBITDA (incl. EGL) to be significantly below 2 times target at the end of 2023
• Sustainable and growing dividend – expected full year dividend up 10% to 23.1 p/share (2022: 21.0 p/share)
  • Interim dividend of 9.2 p/share (H1 2022: 8.4 p/share) – 40% of full year expectation
• £150 million share buy-back programme ongoing
• Higher achieved power price and value from system support
• As at 21 July 2023, Drax had 28.1TWh of power hedged between 2023 and 2025 on its ROC, pumped storage and hydro generation assets at an average price of £150.0/MWh
• H2 charge expected to increase significantly reflecting higher achieved power price in H2