Annual Financial Report

Date: 18 June 2026

UTILICO EMERGING MARKETS TRUST PLC

ANNUAL FINANCIAL REPORT

FOR THE YEAR TO 31 MARCH 2026

Utilico Emerging Markets Trust plc ("UEM" or the "Company") today announces its audited financial results for the year to 31 March 2026.

UEM is a UK listed fund unique in focusing on infrastructure and utilities in emerging markets ("EM"), where structural growth drivers are accelerated by global infrastructure megatrends.

Highlights of results

· Net asset value ("NAV") total return per share of 25.9%* (2025: -2.9%*)

· NAV per share of 313.54p, up 21.9% (2025: 257.28p)

· Gross assets of £572.7m*, an increase of 15.1% (2025: £497.4m*)

· Dividends per share totalled 9.585p for the year (excluding the special interim dividend), an increase of 5.0%. Dividends were fully covered by earnings

· Special interim dividend of 2.50p per share as revenue return was particularly strong in the year

· The 11th year in a row that UEM has increased its dividend

· Dividend yield of 3.5%* (2025: 4.2%*), excluding the special interim dividend

· Revenue earnings per share ("EPS") increased 36.4% to 13.57p (2025: 9.95p)

· Total revenue income of £30.7m, an 29.0% increase (2025: £23.8m)

*See Alternate Performance Measures on pages 92 to 94 of the Report and Accounts

The Report & Accounts for the year ended 31 March 2026 will be posted to shareholders in early July 2026. A copy will shortly be available to view and download from the Company's website at www.uemtrust.co.uk and the National Storage Mechanism at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. 

Please click on the following link to view the document: http://www.rns-pdf.londonstockexchange.com/rns/9177I_1-2026-6-18.pdf

Mark Bridgeman, Chairman of UEM said:

"Given all the uncertainty that has been witnessed this year, the results demonstrate the strength of UEM's EM infrastructure and utilities focused portfolio and its investment strategy of delivering long term sustainable returns. UEM reported a NAV total return of 25.9% for the year to 31 March 2026 which serves as a compelling endorsement of UEM's highly differentiated benchmark agnostic emerging markets portfolio.

"As well as celebrating UEM's 20th anniversary during the year, UEM's entry to the FTSE 250 Index in December 2025 was an important milestone and strong testament to the Company's unique long term strategic focus.

"The Company has also continued to significantly outperform the Index. Over the five years to 31 March 2026 and since inception, UEM's NAV total return increased by 61.8% and 564.2% respectively, significantly outperforming the MSCI EM Index which rose by 25.4% and 411.7% over the same periods.

"The investment backdrop became increasingly volatile towards the end of the financial year due to heightened geopolitical tensions in the Middle East, resulting in rising energy prices and a more cautious investor environment. Nevertheless, UEM's portfolio is well placed, with most of the companies continuing to perform well operationally. Given the nature of being essential utility or infrastructure assets which are crucial for the growth and development of many emerging markets, these assets are expected to continue to deliver positively over the long term.

"Building on UEM's 20 year record of outperformance against the benchmark, the Board put in place a series of shareholder initiatives during the year, including a new conditional tender offer structure, a share buyback commitment and a progressive dividend policy, with the intention of enhancing shareholder returns."

Charles Jillings & Jacqueline Broers, Investment Managers of UEM added:

"During the year, the investment landscape has been marked by a steady stream of economic and political events that have heightened uncertainty and increased volatility, making the backdrop for EM (and developed markets) more complex.

"Over the year to 31 March 2026, Latin America has delivered strong equity performance. A weaker US Dollar has further amplified returns for foreign investors and supported broader inflows. Brazil and Colombia have been notable beneficiaries. In Chile, the narrative over the period transitioned from political uncertainty to decisive normalisation following the presidential election in November 2025.

"Geopolitical tensions over the period continued to intensify, culminating in the outbreak of a wider conflict in the Middle East. This has driven a sharp increase in energy prices and heightened market volatility, reversing earlier disinflationary trends. As a result, there are potential headwinds for many emerging economies. UEM's exposure to the Middle East for the year to 31 March 2026 was very low at 1.4% of total investments compared to 1.7% as at 31 March 2025.

"UEM's unique focus continues to be bottom-up investing in listed utilities and infrastructure companies within EM. Despite the heightened uncertainty and volatility witnessed this year in the markets, the four infrastructure megatrends remained fundamental to the long term growth of many EM countries as infrastructure and utility assets are the backbone to driving economic growth."

Contacts: Joint Portfolio Manager and Company Secretary

ICM Investment Management Limited +44(0)1372 271486

Charles Jillings / Jacqueline Broers / Alastair Moreton

Public Relations

Montfort Communications +44(0)7798 626282

Gay Collins / Alex Everett

utilico@montfort.london

Joint Brokers

Shore Capital +44(0)20 7408 4090

Gillian Martin - Corporate Advisory

Fiona Conroy - Corporate Broking

Barclays Bank +44(0)20 7623 2323

Dion Di Miceli / James Atkinson

BarclaysInvestmentCompanies@barclays.com

Performance Summary

(1) See Alternative Performance Measures on pages 92 to 94 of the Report and Accounts

(2) All performance data relating to periods prior to 3 April 2018 are in respect of Utilico Emerging Markets Limited ("UEM Limited"), UEM's predecessor

(3) The fourth quarterly dividend and special interim dividend have not been included as a liability in the accounts

Chairman's Statement

I am pleased to report on the performance and activities of UEM for the financial year ended 31 March 2026. Given all the uncertainty that has been witnessed this year, the results demonstrate the strength of UEM's EM infrastructure and utilities focused portfolio and its investment strategy of delivering long term sustainable returns.

UEM reported a NAV total return of 25.9% for the year to 31 March 2026, compared with the 26.8% gain in the MSCI EM Index. Given the portfolio's underexposure to direct Artificial Intelligence ("AI") and technology investments particularly within Asia, a sector that has seen significant euphoria this year, this serves as a compelling endorsement of UEM's highly differentiated benchmark agnostic emerging markets portfolio.

As well as celebrating UEM's 20th anniversary during the year, UEM's entry to the FTSE 250 Index in December 2025 was an important milestone and a strong testament to the Company's unique long term strategic focus.

The Company has also continued to significantly outperform the Index over both five years and since inception, again reflecting the long term nature of UEM's investment portfolio, investing in companies that are providing essential services and helping drive long term growth of EM countries. Over the five years to 31 March 2026 and since inception, UEM's NAV total return increased by 61.8% and 564.2% respectively, significantly outperforming the MSCI EM Index which rose by 25.4% and 411.7% over the same periods.

The investment backdrop this year has not been an easy one to navigate, characterised by a steady stream of economic and geopolitical developments that have heightened uncertainty and increased market volatility. EM did, however, start the financial year in a positive position reflecting a revival after a long period of underperformance. This improvement was supported by growing uncertainty around 'US exceptionalism', which contributed to a weaker US Dollar, alongside easing monetary conditions, and modest capital inflows into EM, driven by comparatively attractive valuations relative to the US.

The investment landscape became increasingly volatile towards the end of the financial year due to heightened geopolitical tensions in the Middle East, resulting in rising energy prices and a more cautious investor environment. Nevertheless, UEM's portfolio is well placed, with most of the companies continuing to perform well operationally. Given the nature of being essential utility or infrastructure assets which are crucial for the growth and development of many emerging markets, these assets are expected to continue to deliver positively over the long term.

Shareholder Initiatives

Building on UEM's 20 year record of outperformance against the benchmark, the Board put in place a series of shareholder initiatives during the year, including a new conditional tender offer structure, a share buyback commitment and a progressive dividend policy, with the intention of enhancing shareholder returns. As part of these initiatives, the planned 2026 continuation vote was brought forward to September 2025 and held at a General Meeting on the same day as the Company's Annual General Meeting ("AGM"). I was pleased to report that the resolutions at the General Meeting were passed by over 97% of shareholders voting.

The Board would like to thank shareholders sincerely for their continuing support. The next continuation vote will take place at the AGM to be held in 2030.

Revenue and Dividends

UEM's revenue earnings per share ("EPS") increased by 36.4% to 13.57p in the year to 31 March 2026. The strong increase in EPS is primarily due to several Brazilian listed companies bringing forward their ex-dividend dates and distributing excess cash, before an increase in Brazilian dividend withholding tax rates became effective on 1 January 2026. This tax change affected non-residential shareholders and certain Brazilian-resident individuals, resulting in UEM receiving an increase in income from some of its Brazilian investments over the period. In addition, Umeme Limited, the Ugandan listed electricity distribution company also paid a significantly higher dividend during the year.

In line with the shareholder initiatives to deliver a progressively rising dividend, the Board has increased the dividend to 9.585p for the year. This represents a 5.0% increase, with the dividend once again fully covered by earnings. The total dividend for the year comprised 2.325p in the first quarter, followed by an increased quarterly dividend of 2.42p for the remaining three quarters. As a result, UEM continues to be recognised as one of the Association of Investment Companies' ("AIC") next generation of "Dividend Heroes" and remains the only Global Emerging Markets fund to have this status. 

As noted above, the year to 31 March 2026 was a particularly strong one for the Company's revenue return. We have therefore announced an additional special interim dividend of 2.50p per share which will be paid on 14 August 2026 to shareholders on the register on 17 July 2026. By choosing to pay both a higher level of quarterly dividends and a special interim dividend, the Board seeks to pass on the benefit of the exceptionally high level of dividends received from a number of the Company's investments, while also safeguarding the Company's ability to continue to progressively grow the quarterly dividend at a sustainable rate in the future, in line with the Board's objectives.

Retained earnings revenue reserve increased by £7.4m in the year to £19.4m, which represents 11.07p per share as at 31 March 2026, prior to payment of the fourth quarterly and special interim dividends which amount to 4.92p per share.

Ongoing Charges

Ongoing charges were lower at 1.4% for the year to 31 March 2026, compared with 1.5% in the prior year, which represents a positive outcome given ongoing inflationary pressure. The Board regularly reviews the Company's service providers and their fees, with ongoing charges remaining a key area of focus.

Bank Debt

As at 31 March 2026, UEM's total debt exposure in Sterling terms increased from £17.6m to £21.8m. UEM has a secured revolving £50.0m multi-currency loan facility provided by Barclays Bank.

As a result of the increased market uncertainty at the start of March 2026 due to the US-Israeli strikes on Iran, UEM realised some portfolio positions. As a consequence, UEM's cash balance at the end of the financial year was £14.1m, resulting in a £7.7m net debt position as at year end (31 March 2025: £13.6m). Net gearing as at 31 March 2026 was 1.4% (31 March 2025: 2.8%).

Unlisted Investments (Level 3 Investments)

UEM's primary focus has been, and continues to be, on listed investments. As noted in last year's annual report, no new unlisted investments will be made, except in exceptional circumstances. As at 31 March 2026, the value of level 3 investments was £8.2m, representing 1.5% of the total portfolio, down from £13.4m (2.7%) as at 31 March 2025. The decrease is primarily due to the reduction in the valuation of Petalite and Conversant Solutions which were both written down to zero during the financial year.

Share Buybacks

Over the year to 31 March 2026, UEM's share price discount to NAV narrowed from 16.0% as at 31 March 2025 to 13.6%, with the discount narrowing to single digits at times during the year and averaging 12.1% over the period.

The Board remains committed to utilising the buyback programme to seek to address the discount to NAV to benefit shareholders, with the ambition of maintaining a single digit discount in normal market conditions on a sustainable basis.

During the year, the Company bought back 10.8m shares, equivalent to 5.8% of the share capital as at 31 March 2025 at an average price of 256.17p per share and a total cost of £27.6m. The share buyback has contributed to 0.7% of UEM's total return as at 31 March 2026. Since inception, the Company has bought back 101.3m shares, at a cost of £201.4m.

Board

As at 31 March 2026, the Board comprised four independent non-executive Directors with no changes over the year. As usual, all the Directors will stand for reappointment at the forthcoming AGM on 15 September 2026.

As referred to in the Directors' Remuneration Report, a review of the remuneration policy has resulted in two changes being proposed. The first is to increase by 10% the annual Directors' remuneration limit set out in the Company's Articles of Association, to allow for succession planning and future Director recruitment. The second is to remove the requirement for each Director to invest the full amount of their fees (net of tax) in the shares of the Company so as to align with market practice and not restrict the pool of potential candidates for future Director recruitment. Resolutions to approve the proposed increase in the maximum aggregate annual remuneration limit and the updated remuneration policy will therefore be put to shareholders at the forthcoming AGM.

Outlook

The key outstanding questions remain, how and when will the conflict in the Middle East be resolved. Clearly the longer the situation continues, the greater the impact on the global economy with inflation and growth becoming harder to forecast. However, most of the companies in UEM's portfolio continue to perform well operationally, remain attractively valued and provide sustainable cash flows and growing dividends, reflecting the resilience of many of the assets in the current market environment.

Mark BridgemanChairman

18 June 2026

Investment Managers' Report

For the year ended 31 March 2026, UEM's NAV total return was up by 25.9% compared to the MSCI EM Index which increased by 26.8%. However, as reported in the Chairman's Statement, over five years and since inception, UEM's NAV total return increased by 61.8% and 564.2%, significantly outperforming the MSCI EM Index which was up by 25.4% and by 411.7% respectively.

Investment Environment

During the year, the investment landscape has been marked by a steady stream of economic and political events that have heightened uncertainty and increased volatility, making the backdrop for EM (and developed markets) more complex.

Early in the year, EM sentiment was affected by President Trump's aggressive 'Liberation Day' tariffs, which triggered a sharp global sell off. Although the impact was short lived, as countries were given a 90-day reprieve with tariffs ultimately scaled back, the episode resulted in heightened volatility, raising concerns around long term inflationary pressures.

However, looking through the short term volatility created by shifting tariff policies, long term it is likely to be constructive for EM. Trump's protectionist policies have accelerated trends such as supply chain diversification, increased regional trade integration (witnessed within Europe as well as intra-Asia), and made countries more focused on domestic and intra demand within EM economies.

This year has also witnessed a turning point for China and Asian technology focused countries such as Korea and Taiwan. Since the DeepSeek AI platform was first released in January 2025, there has been a reframing of China into an active participant in AI and AI infrastructure, rather than being purely a peripheral manufacturing base. China has also seen an improvement in market sentiment after a prolonged period of underperformance following Covid-19 with modest signs of stabilisation, supported by targeted stimulus, low nominal interest rates and elevated household savings. The government's "anti-involution" policy has also illustrated its desire to curb overcapacity and destructive price competition, signalling a broader shift towards higher-quality and more sustainable growth.

Over the year to 31 March 2026, Latin America has also delivered strong equity performance, underpinned by an unusual alignment of global and country specific catalysts. Growing questions surrounding US exceptionalism have accelerated capital rotation into non-US assets, with Latin America offering attractive diversification through low correlation, commodity exposure and appealing valuations. A weaker US Dollar has further amplified returns for foreign investors and supported broader inflows.

Brazil and Colombia have been notable beneficiaries. Both entered the period with domestic equity allocations and valuations at multi-year lows. This deep undervaluation meant that even a modest improvement in sentiment was sufficient to trigger strong market rallies. Momentum has been further reinforced by the start - or growing expectations - of monetary easing (interest rate cuts) and declining popularity of both left-wing administrations, raising expectations of a potential shift towards more business-friendly governance in upcoming elections. The Brazilian Ibovespa Index was up by 43.9% and the Colombian Colcap Index was up by 42.6% over the year.

In Chile, the narrative over the period transitioned from political uncertainty to decisive normalisation following the presidential election in November 2025. This reignited domestic confidence, leading local institutional investors to aggressively reclaim their home market, driving a fundamental re-rating. The Chilean IPSA Index was up by 39.1%.

However, geopolitical tensions over the period continued to intensify, culminating in the outbreak of a wider conflict in the Middle East towards the end of the reporting year. This has driven a sharp increase in energy prices and heightened market volatility, reversing earlier disinflationary trends. As a result, there are potential headwinds for many emerging economies, particularly those that are net energy importers, which are likely to face rising inflationary pressures and tighter financial conditions in the near term.

UEM's exposure to the Middle East for the year to 31 March 2026 was very low at 1.4% of total investments compared to 1.7% as at 31 March 2025.

Overall, the year has demonstrated the increasing resilience of EM and the growing importance of selectivity in navigating a more uncertain and fragmented global environment.

Portfolio Focus

UEM's unique focus continues to be bottom-up investing in listed utilities and infrastructure companies within EM. Despite all the heightened uncertainty and volatility witnessed this year in the markets, the four infrastructure megatrends remained fundamental to the long term growth of many EM countries as infrastructure and utility assets are the backbone to driving economic growth.

It is also evident that, despite all the noise within the markets this year, many of the infrastructure and utility investment companies' earnings have been resilient and growing, illustrating the defensive, long term sustainable cash generative nature of many of the assets in the portfolio.

Social Infrastructure - has increased in UEM's portfolio this year, representing 34.7% of total investments (31 March 2025: 32.2%). Many EM countries still lack adequate basic social infrastructure for everyday life, particularly within the water sanitation and waste treatment sector which has been one area of focus for the fund. This segment increased from 15.6% as at 31 March 2025 to 21.5% at year end, driven by both strong share price performances as well as new investments.

Within the water sector, both Manila Water (Philippines) and Sabesp (Brazil) have delivered strong share price performances over the year, rising 32.6% and 60.0% respectively. Both companies, which benefit from strong management teams, continue to be well placed to capitalise on their respective country's need for universal access to water and recognition of the importance of water security.

New investments in the water sector have been made into Guangdong Investment (China) and Maynilad Water Services (Philippines), whilst additional investment has been made into Aguas Andinas (Chile).

Within the waste sector, the portfolio's top holding, Orizon Valorizacao de Residuos ("Orizon") (Brazil), has continued to deliver. As the country's leading integrated waste management platform, processing approximately 8.9m tonnes per year as at31 December 2025, Orizon has had a transformational year. Orizon acquired Vital Engenharia Ambiental, a transaction that will increase managed waste volumes by more than 50%, creating a market leader and consolidator in Brazil's fragmented waste management sector. Further, Orizon is advancing its biomethane production, converting landfill gas into a higher-margin, contracted revenue stream, positioning itself to become a dominant biomethane platform across Latin America. The share price reflected this momentum, appreciating 68.5% over the year.

All these water and waste companies are benefitting from supportive regulatory environments, and their operations are primarily domestically focused. As a result, they remain relatively insulated from the macroeconomic and geopolitical 'noise'.

Social Infrastructure is also a clear beneficiary of the long term growth potential across EM, reflected in rising GDP per capita, an expanding middle class and increasing urbanisation. As living standards improve, demand for higher-quality social infrastructure and services tends to follow, supporting sustained investment. Grupo Aeroportuario del Pacífico ("GAP") is well positioned to capitalise on this theme. UEM held GAP in the past but, on identifying a compelling entry opportunity, we re-invested in November 2025. GAP is a Mexican-listed airport operator holding concessions across 14 airports: 12 in Mexico, including the major urban hubs of Guadalajara and Tijuana, as well as two in Jamaica, in total handling approximately 64m passengers in 2025.

Energy Growth and Transition - now represents 30.2% of the portfolio (31 March 2025: 25.6%) as investment into energy infrastructure remains fundamental for EM countries in supporting and sustaining stronger long term GDP growth. Increasing energy demand for secure baseload capacity, driven in part by energy intensive AI, is also adding to the demand landscape.

The long term drive among many EM countries is to decarbonise and achieve net zero also remains a focus. However, the Russia-Ukraine war, which triggered the 2022 energy crisis, along with the more recent developments in the Middle East leading to more volatile energy prices, clearly highlights that energy security is now an accelerated priority. This is particularly important for those EM countries that are net energy importers, as there is a need to safeguard supply and reduce exposure to energy price volatility, which would otherwise exacerbate inflationary pressures and influence monetary policy.

UEM continues to favour assets that support the energy transition, as well as energy security and independence. Key investments that reinforce this approach within the electricity transmission segment include Alupar Investimento ("Alupar"), a transmission and generation company operating primarily in Brazil, and IndiGrid Infrastructure Trust, a transmission infrastructure investment trust in India. Both these investments are underpinned by stable transmission concession contracts and have the potential to acquire new transmission projects, which remain critical to supporting energy growth in those countries. Further, both companies have delivered strong share price performances during the year to 31 March 2026, rising by 21.3% and 16.2%, respectively.

UEM has also increased its exposure to electricity generation assets, driven by strong share price performance as well as new investments being made. Axia Energia ("Axia"), the largest listed Brazilian generation company, delivered a strong share price performance, up by 79.0%. This has been supported not only by improved Brazilian market sentiment, but also by the generation company having significant uncontracted energy exposure, which has become more attractive in a rising electricity spot price environment.

Cia Paranaense de Energia ("Copel") (Brazil) and Colbún (Chile) are both new additions within the generation segment and are benefitting from an improved energy pricing environment. Equatorial, the third-largest electricity distribution company in Brazil, another new investment, is also well positioned to benefit from increasing energy demand within the country. Substantial additional distribution capex, which is supported by a robust asset-based regulatory framework, is required to support energy growth, thereby providing attractive long term sustainable returns.

Digital Infrastructure - AI-driven enthusiasm has dominated headlines this year, while UEM has remained focused on the infrastructure underpinning digital transformation, including data centres, fibre broadband, mobile networks and cellular towers.

This year has been characterised by rapid innovation from both US and Chinese players, alongside significant investment commitments from leading technology companies. Strong demand, perceived to be outpacing supply for servers and semiconductors, has driven higher component prices, benefitting manufacturers such as TSMC, Samsung Electronics and SK Hynix which has been a key driver of the MSCI EM Index performance.

In contrast, concerns have emerged over the potential impact of AI on software, IT services, data providers and internet portal businesses, with a seemingly indiscriminate sell-off of companies in these sectors.

Against this backdrop, UEM invests in the infrastructure that supports this growth and has continued to build positions in data centre companies, as a way to lock in long-term recurring revenues from AI and cloud computing expansion.

A new investment was made into GDS Holdings ("GDS"), a leading Chinese data centre company, listed in Hong Kong and the US, which provides modular data centres for large Chinese technology companies such as Alibaba Group Holding. GDS has a substantial power quota and land bank for supporting future expansion. Its build-to-suit data centres are also typically contracted to a single client on long term contracts using modularised components and enable construction of a new data centre in months rather than years. Its share price rose by 29.9%.

KINX, a long-standing Korean data centre investment, witnessed its share price increase by 36.0% over the year, having fully contracted its capacity at its new Gwacheon data centre, ahead of expectations. In contrast, progress on securing substantial new contracts at SUNeVision Holdings ("SUNeVision") in Hong Kong has been slower than anticipated, resulting in a 21.2% share price decline, following strong share price gains in the prior year.

FPT Corporation's ("FPT") share price also underperformed, down by 38.3%, as foreign investors reduced their positions amid concerns over the impact of AI on its outsourcing business. However, FPT continued to grow, with net profits, up by 19.3% and new IT contract revenues in 2025 being 23.2% higher than in 2024.

Over the year to 31 March 2026, UEM exited InPost, the Polish parcel locker company, after an offer to take it private materialised. UEM's exposure to Digital Infrastructure reduced by 5.0% to 20.0% as at the year end.

Global Trade - over the year, global trade has been characterised by heightened uncertainty and volatility. Ongoing geopolitical tensions have disrupted trade flows, accelerated fragmentation and driven further supply chain diversification. In addition, frequent shifts in tariff policies following President Trump's inauguration have created challenges not only for corporates but also for national macroeconomic policymaking. Despite this, investment opportunities remain as the global economy becomes increasingly multipolar and less globalised, reshaping the competitive trading landscape and presenting both opportunities and challenges.

One company that continues to navigate the challenging global trade landscape effectively is International Container Terminal Services, Inc ("ICT"), the Philippines listed container port operator which has been a holding in the portfolio since 2005. ICT operates 33 container terminals across 19 countries, predominately located in EM countries and continues to deliver a strong operational and financial performance. This reflects the strength of its diversified portfolio of origin and destination port assets, which are strategically well located. Its share price over the year to 31 March 2026 increased by 93.8%, significantly outperforming the local index which declined by 3.8% over the same period.

As at 31 March 2026, Global Trade comprised 15.1% of the portfolio, a reduction of 2.1% on the prior year. This is primarily the result of UEM exiting two key investments. First, UEM realised £11.4m from the sale of Ocean Wilsons, a UK listed investment company, that operated as a maritime service provider through its Brazilian subsidiary, Wilson Sons. In July 2025, Ocean Wilsons launched a tender offer, into which UEM tendered the majority of its holding, subsequently selling the remainder of its position ahead of Ocean Wilsons' proposed merger with Hansa Investment Company. Second, UEM exited Rumo, a Brazilian rail-based logistics operator, due to a weaker outlook for the business, realising £9.1m.

Portfolio Stock Positioning and Contribution

As at 31 March 2026, UEM's gross assets increased to £572.7m (31 March 2025: £497.4m). This reflects the net portfolio gains of £98.5m during the year, an increase in loans of £4.2m and share buy backs of £27.6m.

As at 31 March 2026, the top ten investments accounted for 41.9% (31 March 2025: 37.6%) with the top thirty holdings accounting for 76.4% of the total portfolio (31 March 2025: 73.7%).

UEM invested £17.5m into a new investment, Colbún, the second largest energy generator in Chile with over 5.0GW of installed capacity, primarily operating in Chile (89%) and Peru (11%). Colbún is a pure-play power generation company with a highly regarded management team.

Additionally, within the energy growth and transition sector, new investments were made into Equatorial and Copel of £11.5m and £9.6m respectively. Equatorial is one of Brazil's leading integrated utilities and third largest distribution company with 14m customers, operating across electricity distribution, generation, and sanitation. Similarly, Copel is a vertically integrated Brazilian utility with a robust presence across energy generation, transmission, distribution, and trading segments. NHPC Limited ("NHPC"), the Indian hydro generation company also saw its position increase over the year by £10.4m.

Capitalising on the digital infrastructure megatrend, a new investment was made into GDS of £9.0m. GDS is a leading Chinese data centre company, listed in Hong Kong and the US. Within the social infrastructure sector, £15.0m was invested into GAP, as there was a compelling entry price for a quality airport operator, with a solid risk return profile. £7.0m was also invested into Guangdong Investment.

During the year, UEM exited Serena Energia, a Brazilian leader in renewable energy, realising £17.1m by selling into the market ahead of completion of a tender offer to take the company private. UEM also exited Inpost ahead of the proposed tender offer, realising £17.0m. In addition, UEM realised £14.6m from Sabesp, taking profits as its share price appreciated by 60.0% over the year. UEM further realised £13.7m and £9.1m from Kunlun Energy, the Chinese gas distribution company, and Rumo, the Brazilian rail logistics company, respectively, reflecting a weaker outlook for both. 

On a total return contribution to NAV basis, Orizon was the top contributor adding 4.6% (£21.7m) whilst ICT added 3.7% (£16.9m) and Sabesp added 3.3% (£14.3m). Axia added 2.3% (£9.6m) to UEM's total return contribution to NAV and Alupar added 1.4% (£6.3m). The top five contributors over the year increased UEM's NAV performance by 15.3%.

Orizon has benefitted from its emergence as one of Brazil's leading integrated waste management platforms, with its share price rising by 68.5%. ICT's share price increased by 93.8%, driven by consistently strong operational and financial results. Sabesp's share price rose by 60.0%, reflecting a significant turnaround following its privatisation in 2024 and benefitting from a supportive regulatory outlook that underpins its substantial capital investment program. Axia's and Alupar's share prices increased by 79.0% and 21.3% respectively. Both stocks benefitted from improved market sentiment, with Axia additionally being supported by operational improvements and a portfolio with significant uncontracted energy exposure, which stands to benefit in a rising electricity spot price environment.

The bottom five contributors, reducing UEM's NAV performance by 3.6% for the year, were FPT reducing UEM's total return contribution to NAV by 1.3% (£7.0m), Petalite by 0.8% (£3.6m), SUNeVision by 0.5% (£2.7m), Converge Information and Communications Technology ("Converge") by 0.5% (£2.3m) and NHPC by 0.5% (£2.2m).

FPT's share price declined by 38.3% reflecting weak global market sentiment towards IT outsourcing and software services companies, despite FPT continuing to grow its business, albeit at a slower rate. Petalite was written down by £3.6m to zero, following ongoing difficulties and its failure to secure a new financial investor, which ultimately led to it entering liquidation. SUNeVision's share price fell by 21.2% after a strong re-rating in the year to 31 March 2025 (when it was one of UEM's top contributors), as it made limited progress in signing new tenancy contracts for its new data centre, disappointing the market. Converge, the Philippines fibre broadband company, saw its share price decline by 34.0% after warning that a series of typhoons had disrupted economic activity and its operations in certain regions, slowing growth expectations and increasing repair costs. NHPC's share price also declined by 10.8% due to short term operational issues and broader weakness in the Indian market.

Unlisted Investments (Level 3 Investments)

As at 31 March 2026, UEM ended the year with level 3 investments totalling £8.2m (31 March 2025: £13.4m), representing 1.5% of total investments (31 March 2025: 2.7%). UEM's level 3 investments reduced mainly as a result of the reduction in valuation of Petalite by £3.6m and Conversant Solutions by £1.3m, with both stocks being written down to zero. 

As noted in the Chairman's Statement, UEM's focus is primarily on listed investments and no new unlisted investments will be made, other than in exceptional circumstances.

Revenue Return

Revenue income increased significantly to £30.7m in the year to 31 March 2026, from £23.8m in the prior year. This reflects a significantly higher dividend distribution from Umeme Limited and a number of Brazilian companies bringing forward their dividend distributions before the increase in Brazilian withholding tax on 1 January 2026. The revenue yield on the closing portfolio increased to 5.6% from 4.8% as at 31 March 2025.

Management and administration fees, and other expenses remained the same at £3.1m in the year to 31 March 2026. Finance costs increased to £0.3m (31 March 2025: £0.2m) due to the utilisation of the bank facility. Taxation increased 48.1% to £2.7m during the year ended 31 March 2026 (31 March 2025: £1.8m), mainly due to withholding tax on the Umeme Limited dividend.

As a result of the above, profit for the year increased by 31.6% to £24.6m (31 March 2025: £18.7m). Revenue EPS increased by 36.4% to 13.57p compared to the prior year of 9.95p, reflecting the improvement in profit and the reduced average number of shares in issue following share buybacks. Dividends per share ("DPS") of 9.585p and the special interim dividend of 2.50p were fully covered by earnings.

Retained revenue reserves rose to £19.4m as at 31 March 2026, equal to 11.07p per share, prior to payment of the fourth quarterly and special interim dividends which together amount to 4.92p per share.

Capital Return

The net portfolio gains were £98.5m during the year to 31 March 2026 (31 March 2025: losses of £29.0m). Losses on foreign exchange were £1.1m and the resultant total income gain was £97.4m against the prior year loss of £29.6m.

Management and administration fees were flat at £4.3m.

Finance costs increased to £1.1m from £0.8m as a result of utilising the bank facility. There was a taxation charge of £0.7m (31 March 2025: £0.8m) which arose from Indian capital gains tax. The net effect of the above was a gain on capital return of £91.3m compared to a loss of £35.4m for the prior year.

Charles Jillings & Jacqueline BroersICM Investment Management Limited and ICM Limited

18 June 2026

Principal and Emerging Risks

During the year ended 31 March 2026, ICMIM was the Company's AIFM and had sole responsibility for risk management, subject to the overall policies, supervision, review and control of the Board.

As required by the AIC Code of Corporate Governance, the Board has undertaken a robust assessment of the principal and emerging risks facing the Company. It seeks to mitigate these risks through regular review by the Audit & Risk Committee of the Company's risk register which identifies the risks facing the Company and the likelihood and potential impact of each risk, together with the controls established for mitigation.

During the year the Audit & Risk Committee discussed and monitored a number of emerging risks that could potentially impact the Company, the main ones being geopolitical risk and climate change risk and these are considered within investment risk and market risk below.

The principal risks and uncertainties currently faced by the Company and the controls and actions to mitigate those risks are described below. There have been no significant changes to the principal risks during the year, although geopolitical risk remains elevated.

Investment Risk: The risk that the investment strategy does not achieve long-term positive total returns for the Company's shareholders. Insufficient consideration of ESG factors could lead to poor performance and/or a reduction in demand for the Company's shares.

The Board monitors the performance of the Company and has established guidelines to ensure that the approved investment policy is pursued by the Investment Managers. These guidelines include sector and market exposure limits.

The investment process employed by the Investment Managers combines assessment of economic and market conditions in the relevant countries with stock selection. Fundamental analysis forms the basis of the Company's stock selection process, with an emphasis on sound balance sheets, good cash flows, the ability to pay and sustain dividends, good asset bases and market conditions. In addition, ESG factors are also considered when selecting and retaining investments, and political risks associated with investing in EM are also assessed. The Investment Managers try to reduce risk by ensuring that the Company's portfolio is always appropriately diversified. Overall, the investment process aims to achieve absolute returns through an active fund management approach and the Board monitors the implementation and results of the investment process with the Investment Managers.

Market Risk: The Company's assets consist mainly of listed securities and its principal risks are therefore market related and adverse market conditions could lead to a fall in NAV.

The Company's portfolio is exposed to equity market risk and foreign currency risk. Adverse market conditions may result from factors such as economic conditions, political change, geopolitical confrontations, climate change, natural disasters and health epidemics. At each Board meeting the Board reviews the diversification of the portfolio, asset allocation, stock selection and levels of gearing and has set investment restrictions and guidelines which are monitored and reported on by the Investment Managers.

The Company's results are reported in Sterling, although the majority of its assets are priced in foreign currencies and therefore any rise or fall in Sterling will lead, respectively, to a fall or rise in the Company's reported NAV. Such factors are out of the control of the Board and the Investment Managers and may give rise to distortions in the reported returns to shareholders. It is difficult and expensive to hedge EM currencies.

Key Staff Risk: Loss by the Investment Managers of key staff could affect investment returns.

The quality of the investment management team is a crucial factor in delivering good performance. There are training and development programmes in place for employees and the remuneration packages have been developed in order to retain key staff. ICM also has a large team with strength and depth. Any material changes to the management team are considered by the Board at its next meeting; the Board discusses succession planning with the Investment Managers at regular intervals.

Discount Risk: The Company's shares may trade at a discount to their NAV and a widening discount may undermine investor confidence in the Company.

The Board monitors the price of the Company's shares in relation to their NAV and is focused on reducing the discount at which they trade. The Board generally buys back shares for cancellation in normal market conditions if they are trading at a discount in excess of 10%.

Operational Risk: Failure by any service provider to carry out its obligations to the Company in accordance with the terms of its appointment could have a materially detrimental impact on the operation of the Company and could affect the ability of the Company to successfully pursue its investment policy.

The Company's main service providers are listed on page 91. The Audit & Risk Committee monitors the performance and controls (including business continuity procedures) of the service providers at regular intervals.

All listed and a number of unlisted investments are held in custody for the Company by JPMorgan Chase Bank N.A. - London Branch. JPMEL, the Company's depositary services provider, also monitors the movement of cash and assets across the Company's accounts. The Audit & Risk Committee reviews the JP Morgan system and organisation controls reports, which are reported on by Independent Service Auditors, in relation to its administration, custodial and information technology services.

The Board reviews the overall performance of the Investment Managers and all the other service providers on a regular basis. Failure or breach of the security of information technology systems of the Company's key service providers remains elevated, but the Board receives regular independent reports on their technology control environments.

Gearing Risk: Whilst the use of borrowings should enhance total return where the return on the Company's underlying securities is rising and exceeds the cost of borrowing, it will have the opposite effect where the underlying return is falling.

Gearing levels may change from time to time in accordance with the Board and Investment Managers' assessment of risk and reward. As at 31 March 2026, UEM had net gearing on net assets of 1.4% (31 March 2025: 2.8%). ICMIM monitors compliance with the banking covenants on a daily basis. The Board reviews compliance with the banking covenants at each Board meeting.

Regulatory Risk: Failure to comply with applicable legal and regulatory requirements such as the tax rules for investment companies, the FCA's Listing Rules and the Companies Act 2006 could lead to suspension of the Company's Stock Exchange listing, financial penalties, a qualified audit report or the Company being subject to tax on capital gains.

The Investment Managers and the Company's professional advisers monitor developments in relevant laws and regulations and provide regular reports to the Board in respect of the Company's compliance.

Directors' Statement of Responsibilities

in respect of the Annual Report and the Financial Statements

The Directors are responsible for preparing the annual report and the financial statements in accordance with UK adopted International Accounting Standards and applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law, they are required to prepare the financial statements in accordance with UK adopted International Accounting Standards.

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its profit or loss for that period. In preparing these financial statements, the Directors are required to:

· select suitable accounting policies and then apply them consistently;

· make judgements and estimates that are reasonable and reliable;

· state whether they have been prepared in accordance with UK adopted International Accounting Standards subject to any material departures disclosed and explained in the financial statements;

· prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business; and

· prepare a Directors' Report, a Strategic Report and Directors' Remuneration Report which comply with the requirements of the Companies Act 2006.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for ensuring that the annual report and accounts, taken as a whole, is fair, balanced, and understandable and. provides the information necessary for shareholders to assess the Company's performance, business model and strategy

The Directors are responsible for ensuring the annual report and the financial statements are made available on a website. Financial statements are published on the Company's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Company's website is the responsibility of the Directors. The Directors' responsibility also extends to the ongoing integrity of the financial statements contained therein.

RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE ANNUAL FINANCIAL REPORT

We confirm that to the best of our knowledge:

· the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

· the Chairman's Statement, Strategic Report and Directors' Report include a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

We consider the annual report and accounts, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

Approved by the Board on 18 June 2026 and signed on its behalf by:

Mark Bridgeman

Chairman

Statement of Comprehensive Income

All items in the above statement derive from continuing operations.

The 'Total' column of this statement is the profit and loss account of the Company and the 'Revenue' and 'Capital' columns represent supplementary information prepared under guidance issued by the Association of Investment Companies.

The Company does not have any income or expense that is not included in the profit for the year and therefore the profit for the year is also the total comprehensive income for the year, as defined in International Accounting Standard 1 (revised).

All income is attributable to the equity holders of the Company.

Statement of Changes in Equity

Statement of Financial Position

Statement of Cash Flows

Notes

The Directors have declared a fourth quarterly dividend in respect of the year ended 31 March 2026 of 2.42p per share payable on 26 June 2026 to shareholders on the register at close of business on 5 June 2026. The total cost of the dividend, which has not been accrued in the results for the year to 31 March 2026, is £4,198,000 based on 173,481,391 shares in issue at the record date. The Directors have declared a special dividend in respect of the year ended 31 March 2026 of 2.50p per share payable on 14 August 2026 to shareholders on the register at close of business on 17 July 2026. The total cost of the dividend, which has not been accrued in the results for the year to 31 March 2026, is £4,328,000 based on 173,101,391 shares in issue at 17 June 2026 (the latest practicable date prior to finalising these Accounts).

This statement was approved by the Board on 18 June 2026. The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 March 2026 or 2025 but is derived from those accounts. Statutory accounts for 2025 have been delivered to the Registrar of Companies and those for 2026 will be delivered in due course. The auditor has reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

Annual General Meeting Arrangements

The Annual General Meeting of the Company will be held at The Royal Society of Chemistry, Burlington House, Piccadilly, London W1J 0BA on Tuesday, 15 September 2026 at 10.30 a.m. and notice is set out at the end of the Report & Accounts.

Legal Entity Identifier: 2138005TJMCWR2394O39