National Grid : 12 Nov 2020 - Half Year Results 2020/21 Summary

Half Year

Results

2020/21

Investor Relations | November 2020

   strong operational performance whilst managing the impact of COVID  

"In the first half of this year we delivered strong operational performance whilst managing the impact of COVID-19 costs on our financial results. We have continued to ensure safe, reliable networks and have delivered on our investment programme through the pandemic. With the launch of our Responsible Business Charter, we have underlined our commitment to our environmental goals, whilst supporting employees and communities across our jurisdictions."

Group financial summary half year ended 30 September 2020

Unaudited underlying results1

Operating profit	Earnings per share	Dividend per share	Capital investment
£1.1bn 12%	17.2p 14%	17.0p	£2.6bn 6%
HY20: £1.3bn		HY20: 20.0p		HY20: 16.57p	HY20: £2.7bn

(£m at actual exchange rates)

1. 'Underlying results' are given on an adjusted basis for our continuing operations, at actual exchange rates. This and a number of other terms and performance measures used in this document are not defined within accounting standards and may be applied differently by other organisations.

Operational Highlights

US

highlights

• Continued positive discussions with NY PSC on new rates for
  KEDNY-KEDLI
• Progressing a way forward on addressing downstate New York gas supply constraints
• Filed for new rates for Niagara Mohawk
• Filing for Massachusetts Gas on 13 November

UK

highlights

• Submitted comprehensive response to Ofgem's RIIO-2 draft determination consultation
• Good progress on major projects e.g. London Power Tunnels 2 and Hinkley Point
• On target to meet full year £100m cost efficiency target
• Near commissioning Feeder 9, our largest gas project in a decade

NGV

highlights

• Construction of three interconnectors on target
• Co-operationagreement with TenneT exploring the use of multi-purpose interconnectors
• 25-yearagreement signed with Qatar Petroleum at Isle of Grain LNG facility
• Rebrand of our US renewable energy business

Outlook

• For 2020/21, we continue to assume an impact on Group underlying operating profit of around £400 million from COVID-19. However, given regulatory mechanisms and precedents, we expect to recover a large part of this.
• We will continue to focus on customer affordability, safety and reliability across our networks as we work with regulators on agreeing new frameworks in the US and UK.

• We will continue to place a sharp emphasis on efficiency across the business, and through our Responsible Business Charter we have underlined our commitment to our environmental goals, whilst supporting employees and communities across our jurisdictions.
• We expect asset growth towards the top end of its target range of 5-7% in the near term, assuming RPI at 3%, with capital investment for FY21 around £5 billion.

Financial performance segmental summary

US Regulated

Operating profit

£403m 23%

HY20: £525m

RoE outlook vs FY20

UK Electricity Transmission

Operating profit

	£524m 10%	RoE outlook vs FY20
HY20: £583m
	NG Ventures	JVs post tax share
	Operating profit
	£142m	£33m
HY20: £128m	HY20: £25m

UK Gas Transmission

Operating profit

	£108m 64%		RoE outlook vs FY20
HY20: £66m
	Other activities		JVs post tax share
	Operating loss
	£(30)m		£5m
HY20: £(1)m	HY20: £12m

Note: Underlying performance from continuing operations, excluding exceptional items and remeasurements. All numbers exclude impact of timing and are presented at actual exchange rates.

Responsible business charter

Environment		Communities		People		Economy		Governance

01

• Net Zero for scope 1 and 2 by 2050
• 20% reduction in scope 3 by 2030

Important notice

02		03	04	05
• 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		challenge head-on,		• Cascade our values		• Ensure voices of
volunteering hours		with new		through our supply		our people and all
by 2030		commitments		chain		stakeholders are
						heard

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. 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 'Risk factors' section on pages 227 to 230 of National Grid's most recent Annual Report and Accounts for the year ended 31 March 2020 as updated by National Grid's unaudited half-year financial information for the six months ended 30 September 2020, published on 12 November 2020. Copies of the most recent Annual Report and Accounts are available online at www.nationalgrid.com or 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

Director of Investor Relations

1. [phone] M [phone] [e-mail]

James Flanagan

Investor Relations Manager (US)

1. [phone] M [phone] [e-mail]

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

Caroline Dawson	Jon Clay
Investor Relations Manager	Investor Relations Officer	@Grid_Media
T	+44	(0)	20 7004 3172	T +44	(0)	20 7004 3460
M	+44	(0)	7789 273241	M +44	(0)	7899 928247
[e-mail]	[e-mail]	investors.nationalgrid.com

Peter Kennedy

Investor Relations Manager

1. [phone] M [phone]

[e-mail]