National Grid : Half Year results summary factsheet 22/23

Half Year

Results

2022/23

Investor Relations | November 2022

"Our results reflect the strength and resilience of our business during challenging economic conditions. Investment has continued at pace, with a record £3.9 billion in the half year. Given changes to the macroeconomic outlook, we have updated our five year financial framework. Between FY22-26, we now expect to invest up to £40 billion, of which £29 billion will be in the decarbonisation of energy networks. We have announced funding to help our most vulnerable customers and communities through this winter and next. We remain focused on delivering a clean, fair and affordable future for all." John Pettigrew, Chief Executive

Group financial summary half year ended 30 September 2022

Unaudited underlying results

Operating profit 1	Earnings per share1	Dividend growth	Capital investment
£2,117m 44%	32.4p 42%	17.84p 3.7%	£3,883m 26%
HY22: £1,470m		HY22: 22.8p		HY22: 17.21p		HY22: £3,092m

1. Underlying results from continuing operations excluding exceptional items, remeasurements, timing and the contribution from UK Gas Transmission and Metering, which is classified as a discontinued operation for accounting purposes. Capital investment includes investment in JVs and NG Partners Investments (excluding equity contributions to St William property JV).

Operating profit and capital investment calculated at constant currency.

Operational highlights

US

highlights

• Completed sale of Rhode Island business
• CLCPA Phase 1 approval for $600m transmission projects in NY.
• $301m Grid Modernization Plan in MA
• Clean Energy Vision launched - a fossil-free future for our networks by 2050

UK

highlights

• Performing well in the last year of RIIO- ED1, and a successful 2nd year in RIIO-T2
• Draft determination received for ED2 price control, with final determinations due in December
• UK Gas Transmission majority stake sale expected to complete by end of calendar year

NGV

highlights

• Progress on Sellindge convertor station rebuild, with IFA1 full return to service expected in December
• First full contribution of operation for our North Sea Link Interconnector
• Investment in additional capacity at our Isle of Grain LNG facility, and US onshore renewables.
• Announced the sale of our stake in the Millennium gas pipeline for $552 million

Upgraded 5-year outlook FY22-26

	Capital investment
	c.£9bn
up to £40bn	UK Electricity Transmission
c.£6bn
FY22-26
Capex	UK Electricity Distribution
investment	c.£12bn
	New York Regulated
c. £29bn green1	c.£9bn
New England Regulated
aligned to EU taxonomy	c.£3-4bn
	NG Ventures

Group asset growth	Credit metrics
8-10% CAGR2	Credit metrics within current
		rating thresholds
Underlying EPS
Net debt to RAV c.70% once transactions complete
6-8% CAGR2
a strong second year	Dividend
		Aim to grow dividend per share in line with CPIH

1. Aligned to EU Taxonomy, directly invested into the decarbonisation of energy networks
2. Compound annual growth rate FY2022-26. Forward years based on assumed USD FX rate of 1.2; long run CPIH and RPI inflation assumptions based on October forward curves, and scrip uptake of 25%. Reflects sale of Rhode Island and assumes the completion of sale of 60% stake in UK Gas Transmission & Metering (UK GT&M) at end of 2022. Assumes 40% equity interest of UK GT&M included in continuing operations from start of 2023.

Financial performance segmental summary

New York

Operating profit

£202m 25%

HY22: £162m

UK Electricity Transmission

Operating profit

£564m 2%

HY22: £552m

NGV and Other

JVs post tax share

Operating profit
£404m	£70m
HY21: £166m		HY21: £61m

New England

Operating profit

£316m 11%

HY22: £284m

UK Electricity Distribution

	Operating profit	Increase is due to
	£579m 125%	acquisition timing.
	Includes a full
		HY22: £257m		six months contribution.
UK Gas Transmission
Operating profit
£381m 15%	Now reported as
					discontinued operation
HY22: £332m

Note: Underlying results from continuing operations excluding exceptional items, remeasurements and timing. Operating profit presented at constant currency

Responsible business charter

Environment		Communities		People		Economy		Governance

01

02

03

04

05

• Net Zero for scope 1 and 2 by 2050
• 37.5% reduction in scope 3 by 2030 vs 2019 baseline

• Skills development		• Safety and wellbeing		• Commit $250m in		• Achieve 50%
for 45,000 people		is our top priority		smarter energy		diversity in our
by 2030		• Meeting diversity		technology		Group Exec
• 500,000			• Cascade our values		• Ensure voices of
	challenge head-on,
volunteering hours		from new talent to		through our supply		our people and all
by 2030		leadership		chain		stakeholders are
						heard

Important notice

This document contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include information with respect to National Grid's financial condition, its results of operations and businesses, strategy, plans and objectives. Words such as 'aims', 'anticipates', 'expects', 'should', 'intends', 'plans', 'believes', 'outlook', 'seeks', 'estimates', 'targets', 'may', 'will', 'continue', 'project' and similar expressions, as well as statements in the future tense, identify forward-looking statements. This document also references climate-related targets and climate-related risks which differ from conventional financial risks in that they are complex, novel and tend to involve projection over long term scenarios which are subject to significant uncertainty and change. Furthermore, this document, which is provided for information only, does not constitute summary financial statements and does not contain sufficient information to allow for as full an understanding of the results and state of affairs of National Grid, including the principal risks and uncertainties facing National Grid, as would be provided by the full Annual Report and Accounts, including in particular the Strategic Report section and the 'Internal control and risk factors' section on pages 253 to 256 of National Grid's most recent Annual Report and Accounts for the year ended 31 March 2022, as updated by National Grid's unaudited half-year financial information for the six months ended 30 September 2022, published on 10 November 2022. Copies of the most recent Annual Report and Accounts are available online at www.nationalgrid.comor from Equiniti Limited. Except as may be required by law or regulation, National Grid undertakes no obligation to update any of its forward-looking statements, which speak only as of the date of this document. The content of any website references herein do not form part of this document.

Further information
Nicholas Ashworth	Angela Broad	Jon Clay
Director of Investor Relations	Senior Investor Relations Manager	Head of UK Investor Relations
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[e-mail]	[e-mail]	[e-mail]

James Flanagan	Caroline Dawson	Daniel Evans
Investor Relations Manager (US)	Investor Relations Manager	Investor Relations Analyst
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[e-mail]	[e-mail]	[e-mail]

National Grid plc	Alexandra Bateman
1-3 Strand	Investor Relations Manager
London WC2N 5EH	M [phone]
United Kingdom	[e-mail]

@Grid_Media

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