National Grid : FY24 Results Factsheet

John Pettigrew, Chief Executive

National Grid's

Full year results

2023/24

Investor Relations | May 2024

"Today is a defining moment for National Grid as we announce £60 billion of investment, cementing our position as a leader in the energy transition in the UK and US northeast.

On both sides of the Atlantic, governments and regulators are moving with increased urgency to attract the levels of investment required to meet their decarbonisation targets. As economies become increasingly digital, electrified and decarbonised, the need for energy infrastructure has rarely been more pressing. Our investment will unlock significant economic growth and support over 60,000 more jobs, while also decarbonising our energy systems, bolster security of supply, and reduce consumer bills in the long term. Our strong track record of infrastructure delivery, positive engagement with our regulators and wider stakeholders, alongside clarity on the scale and profile of our capital investment positions us to take advantage of the significant growth opportunities we see ahead."

Group financial summary full year ended 31 March 2024

Underlying results

Operating profit	Underlying EPS	Dividend growth	Capital investment
£4,773m 6%	78.0p 6%	58.52p 5.55%	£8,235m 11%
FY23: £4,518m		FY23: 73.6p		FY23: 55.44p		FY23: £7,430m

Underlying results from continuing operations excluding exceptional items, remeasurements, deferrable major storm costs (when greater than $100m), timing, the contribution from UK Gas Transmission and Metering, which are classified as a discontinued operation for accounting purposes, and the impact of deferred tax in UK regulated businesses (NGET and NGED).

Operating profit, underlying EPS and capital investment calculated at constant currency. Capital investment includes investment in JVs and capital prepayments and no longer includes investments in NG Partners. Comparatives have been restated.

Underlying EPS restated to reflect change in definition to remove the impact of deferred tax in UK regulated businesses (NGET and NGED).

Operational highlights

US highlights

• $2bn MA Electric Sector Modernization Plan filed
• 337 miles of leak prone pipe replaced across Massachusetts and NY
• Agreed new rates in KEDNY/KEDLI
• Transmission project progress as part of NY $4bn 'Upstate upgrade'
• • CLCPA Phase 1 & 2
  • Smart Path Connect

UK highlights

• Major capital projects progress
• • Eastern Green Link 1 & 2 contracts awarded
  • All T-pylons installed on Hinkley project
  • Plans to release 10 GW of grid capacity to our ccccdistribution network
• Connected 3GW
• • Dogger Bank, the world's largest wind farm
  • Lark Green - 1st transmission scale solar project

NGV highlights

• Viking Link online, world's longest interconnector at 765km
• 7.8GW interconnector portfolio

Group highlights

Updated 5-year framework FY25-29

A record £8.2bn capital investment

£513m cumulative Group efficiency savings reached, exceeding our £400m FY24 target

Near-term emission reduction targets aligned to a 1.5OC pathway and verified by SBTi

1. Aligned to EU Taxonomy, directly invested into the decarbonisation of energy networks.

	Capital investment
c.£60bn	c.£23bn
UK Electricity Transmission
FY25-29	c.£8bn
UK Electricity Distribution
Capital	c.£17bn
investment
	New York Regulated
	c.£11bn
c. £51bn green1	New England Regulated
c.£1bn
aligned to EU taxonomy	NG Ventures

Group asset growth

c.10% CAGR2 from FY24 baseline

Underlying EPS

6-8%CAGR3 from FY25 baseline

Gearing

Committed to strong investment grade credit rating

Credit metrics above current rating thresholds4

Dividend

Aim to grow dividend per share in line with UK CPIH5

1. Group asset compound annual growth rate from a FY24 baseline. Forward years based on assumed USD FX rate of 1.25; and long run UK CPIH and US CPI. Assumes sale of ESO,Grain LNG, and National Grid Renewables before 2029. Assumes remaining 20% stake in UK Gas Transmission treated as a discontinued operation and therefore does not contribute to group asset growth.
2. EPS compound annual growth rate from a FY25 baseline. Forward years based on assumed USD FX rate of 1.25; long run UK CPIH, US CPI and interest rate assumptions and scrip uptake of 25%. Assumes sale of ESO, Grain LNG and National Grid Renewables before 2029. Assumes remaining 20% stake in UK Gas Transmission treated as a discontinued operation and therefore does not contribute to underlying EPS.
3. Until at least the end of the RIIO-T3 period
4. Once adjusted for the share issue, policy maintained with aim to grow the dividend in line with CPIH inflation each year

A comprehensive financing plan

Investing c.£60 billion

c.85% of this is green investment

Debt

• Continued issuance of senior debt across the Group
• Expect to use hybrid debt later in 5 year frame

Credit metrics	Portfolio		Dividend
• Above current	• Refocused	• Aim to grow dividend
	rating thresholds		NG Ventures	in line with CPIH1
£7bn Rights Issue	Fully-underwritten 7 for every 24
shares, total new shares of 1,085m
Timeline
					10 June	12 June
	24 May			Last day for	Results of
	Start of rights trading acceptance of rights	Rights Issue
	23 May:		6 June	7 June
	Prospectus	Ex-date for	Record date for
	published	FY dividend	FY dividend

1. Aim to increase the FY25 DPS by UK CPIH following the rebase of the FY24 DPS of 58.52 pence, after taking account of the new shares issued following the Rights Issue.

High growth pureplay networks

Streamlined portfolio focused on regulated and competitive, onshore and offshore networks

Refocused NG Ventures

• Interconnectors; 7.8GW UK portfolio
• Offshore Hybrid Assets (OHA's)
• US competitive electricity transmission

Crystalising value

• National Grid Renewables
• Grain LNG

Financial performance segmental summary

		New York
	Operating profit		Higher rates and continued
		£1,016m 21%
				delivery of cost efficiencies
				Early recoveries on Smart Path
	FY23: £842m		Connect
		UK Electricity Transmission
		Operating profit
		£1,314m 19%		Higher allowed returns and
							revenue indexation
							Non-recurrence of £147m
	FY23: £1,107m
		Western Link return
	JVs post tax share				UK ESO1
	£101m 47%				Operating profit
			£80m 158%
FY23: £189m				FY23: £31m

	New England	Higher rates
Operating profit	Partly offset by higher
	£802m 9%				depreciation and other costs
				FY23 figure excludes
			contribution from the now
	FY23: £736m	sold Rhode Island business
UK Electricity Distribution
Operating profit
£1,152m 6%	Shift from RIIO-ED1 to ED2
					Lower incentive revenues at
	FY23: £1,230m
	start of RIIO-ED2
	NGV and Other
	Operating profit	Higher revenues from NSL
	cap increase
	£409m 21%	Offset by non-recurrence of
					St William property sales
					and IFA1 insurance
	FY23: £520m
	proceeds in prior year

Note: Underlying results from continuing operations excluding exceptional items, remeasurements, timing and deferred tax on UK ET and UK ED. Operating profit and JVs post tax share presented at constant currency. 1. Electricity System Operator classified as Held for Sale.

Important notice

Further information

Nicholas Ashworth

Director of Investor Relations

1. [phone] [e-mail]

Daniel Evans

Investor Relations Analyst

1. [phone] [e-mail]

Angela Broad

Senior Investor Relations Manager

1. [phone] [e-mail]

George Adkins

Investor Relations Associate

1. [phone] [e-mail]

James Flanagan

Investor Relations Manager (US)

1. [phone] [e-mail]

National Grid plc 1-3Strand London WC2N 5EH United Kingdom

investors.nationalgrid.com