Summary of International Public Partnerships Limited (INPP) Update / Briefing July 24, 2025 Company Overview - **Company**: International Public Partnerships Limited (INPP) - **Focus**: Investment in regulated infrastructure, particularly in the UK energy sector, with a recent emphasis on Sizwell C nuclear project Key Points and Arguments 1. **Investment in Sizwell C**: INPP has been appointed as the preferred bidder for the Sizwell C project, which is a significant step in the company's capital allocation strategy [9][11][12] 2. **Financial Commitment**: INPP plans to invest approximately GBP 250 million in Sizwell C over five years, structured as GBP 50 million per annum, in return for a 3% equity stake [11][12] 3. **Regulatory Framework**: The investment is supported by a robust regulatory framework, including a 60-year operational license and government support to mitigate risks associated with nuclear generation [11][13][20] 4. **Projected Returns**: The investment is expected to yield an internal rate of return (IRR) in the low teens, significantly higher than returns from share buybacks [15][27] 5. **Cash Flow and Dividend Policy**: Sizwell C is anticipated to enhance INPP's cash flow, supporting a progressive dividend policy that is expected to extend from 20 to 25 years [35][52] 6. **Risk Mitigation**: The government support package provides protections against construction cost overruns and delays, insulating INPP from severe downside risks [16][22][64] 7. **Market Position**: INPP is recognized as a first mover in regulated infrastructure investments, allowing access to low-risk, inflation-linked returns [12][33] 8. **Job Creation**: The Sizwell C project is projected to create approximately 10,000 jobs during peak construction, contributing to the UK economy [24] Additional Important Content 1. **Comparison with Other Projects**: Sizwell C's financing model differs from Hinkley Point C, utilizing a regulated asset base (RAB) model that offers better risk-sharing and returns [19][23] 2. **Governance Structure**: INPP has secured governance rights that exceed its equity stake, ensuring strong representation and alignment of interests among stakeholders [30][31] 3. **Long-term Strategy**: The investment aligns with INPP's long-term strategy to enhance portfolio metrics, including cash flow visibility and inflation linkage [35][36] 4. **Market Dynamics**: The current investment environment reflects a growing interest in infrastructure projects, with government initiatives aimed at attracting private sector capital [67] 5. **Future Outlook**: The company anticipates closing the Sizwell C deal in Q4 2025, with ongoing efforts to execute its divestment pipeline to support funding commitments [37][28] This summary encapsulates the critical insights from the investor update, highlighting the strategic importance of the Sizwell C investment for INPP's future growth and stability in the regulated infrastructure sector.