National Grid : FY24 Investor Summary

National Grid's

Investment

Proposition

"Announcing £60 billion of investment,

a leader in the energy transition in the UK

Our strong track record of infrastructure advantage of the significant growth

FY24 Investor Relations

NEW 5-year framework FY25-29	Geographic and regulatory diversity
Capital investment		FY24 asset base6
	c.£23bn	Geographical split	Energy split
	UK Electricity Transmission

c.£60bn	c.£8bn
FY25-29	UK Electricity Distribution
c.£17bn	c.£11bn
Capital
investment	New York	New England
	Regulated	Regulated
c.£51bn	c.£1bn
NG Ventures
Green1,
aligned to EU taxonomy
Group asset growth	c.10% CAGR 2

US	UK	Gas
c.25%
c.46%	c.54%

Electricity

c.75%

1. Aligned to EU Taxonomy, directly invested into the decarbonisation of energy networks.
2. 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.

Underlying EPS	6-8% CAGR 3
Credit metrics	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

FY24 Highlights

1. 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.
2. Until at least the end of the RIIO-T3 period.
3. 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.
4. Calculated as proportion of closing FY24 asset base and no longer includes UK Gas Transmission and Metering.

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).

A refocused strategy on energy networks: Investing around £60 billion over the next 5 years, almost entirely into energy networks, backed by a comprehensive financing plan, including the intended sale of our UK Grain LNG terminal and US renewables businesses.

Record Group capital investment: £8.2bn In the UK, we completed tunnel boring at LPT2, and erection of all 116 T-pylons at our Hinkley- Seabank Connection project. In the US, we continued to progress our Grid Modernization programme in Massachusetts, and in New York continued work on our $550m Smart Path Connect transmission project.

Good FY24 financial results a little higher than expectations, reflecting higher regulated revenues.

ASTI progress Joint construction projects signed for Eastern Link 1 and 2 with preferred suppliers selected for HVDC cable and converter stations. Launched the 'Great Grid Partnership' with seven industry partners to help deliver network design and construction works on nine major projects.

Updated Responsible Business commitments New SBTi aligned near-term emissions targets, including a new aim to reduce Scope 1 and 2 emissions by 60% by 2030 from a 2018/19 baseline, whilst remaining committed to reduce Scope 3 emissions by 37.5% by 2034.

Increased clarity on investment plans

		UK Electricity Transmission	US Regulated
	Scale	17 Accelerated Strategic Transmission	Downstate NY KEDNY/KEDLI rate plan
	Investment (ASTI) projects in licence	• c.$5bn capex over 3 years
		• Mid-high teens £billions	Upstate NY Niagara Mohawk (NiMo)
		"Beyond 2030" Electricity System Operator	upcoming rate filing
		report	$4bn "Upstate Upgrade"
		RIIO-T3 business plan development
		Massachusetts Electric (MECO) rate filing
			Electric Sector Modernization Plan (ESMP):
			$2bn over 5 years

Profile	ASTI supply chain progress
•	Eastern Green Links 1 & 2 contracts
								awarded
							•	c.£9bn enterprise partnership model

Planning & consenting progress

UK policy progress

• Updated energy National Policy Statements
• Transmission Acceleration Action Plan

Supply chain progress

• Engineering contracts for $2.9bn CLCPA1 transmission projects

Good visibility of investment in electric distribution and leak prone pipe replacement programme

Regulation	New Ofgem duties: growth and net zero
	Ofgem RIIO-T3 SSMC2: introduction of
	investability
	Ofgem strategy update: "enabling
	infrastructure for net zero at pace"

KEDNY/KEDLI

• 9.35% allowed return on equity (up 55bps)
  NiMo rate filing

MECO & ESMP rate filing

• Productive discussions with Regulator (DPU)

1. Climate Leadership and Community Protection Act

2. Sector specific methodology consultation (SSMC) to be published by Ofgem

Driving a significant step-up in investment & growth

c.£60bn capital investment (FY25-FY29)

(£bn)	Near doubling of investment	c.85%
Green investment
	New 5-year framework
	aligned to EU taxonomy
	c.£60bn
Last 5 years		c.10%
	group asset growth
£33bn		CAGR FY25-29

									c.£100bn
									Group assets
									by FY291
									1. Assuming average CPIH inflation of 2.5%
FY20	FY21	FY22	FY23	FY24	FY25	FY26	FY27	FY28	FY29
UK Regulated	US Regulated	NG Ventures

An attractive proposition of growth and yield

Strong track record of delivery

Expertise	Organisation
in large infrastructure	set up to deliver

c.£1bn

World-leading capability

in subsea cabling

Strategic Infrastructure new business unit

Hinkley Connection Project

c.£1bn London Power Tunnels 2

	7.8GW
c.$4bn New York	Interconnector
Upstate Upgrade	Portfolio

Track record of outperformance and delivery against regulatory frameworks

Supply chain innovation

Exceeded cost	Target by end
efficiency target	of FY24:
£400m
£513m

High growth pureplay networks

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

Refocused NG Ventures

• UK Interconnectors and Offshore Hybrid Assets
• US competitive electricity transmission

Crystalising value

• National Grid Renewables
• Grain LNG

A new and exciting phase of growth

A significant step up

in investment and growth

Acceleration of the energy transition

c.£60bn investment through to 2029 Pureplay networks business

Driving long-term value growth and shareholder returns

Backed by a comprehensive financing plan

A strong investment grade balance sheet

positioned to deliver an unprecedented step up in capital investment

Equity

Debt

Credit

metrics

Portfolio

Dividend

• Raise of £7bn supports increased investment levels
• 7 new shares for every 24 existing shares. Issue price of 645 pence
• Continued issuance of senior debt across the Group
• Expect to use hybrid debt later in 5 year framework to maintain balance sheet strength and investment flexibility
• Committed to strong investment grade credit rating
• Credit metrics above current rating thresholds1: FFO/net debt >10% and RCF/net debt >7%
• Announcing sale process for Grain LNG and NG Renewables
• Continued progressive dividend policy, maintaining total level of dividend. Grow DPS in line with CPIH

• Implies a DPS rebase from FY252

• Scrip dividend maintained given high asset growth

1. Until at least the end of the RIIO-T3 period.
2. 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.

New 5-year financial framework

FY2025 - 2029

Capital investment	c.£60bn - c.£51bn green1
	c.£23bn	c.£17bn
	UK Electricity Transmission	New York Regulated
	c.£8bn	c.£11bn
	UK Electricity Distribution	New England Regulated
	c.£1bn
	NG Ventures
Group asset growth	c.10% CAGR (from a FY24 baseline) 2
	Committed to strong investment grade credit rating
Credit metrics
Credit metrics above current rating thresholds3
Underlying EPS	6-8%CAGR (from a FY25 baseline)4
Dividend	Aim to grow dividend per share in line with CPIH5

1. Aligned to EU Taxonomy, directly invested into the decarbonisation of energy networks.
2. 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.
3. Until at least the end of the RIIO-T3 period.
4. 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.
5. 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.

ESG and Responsible Business Charter

Our refreshed Responsible Business Charter, continues to articulate what 'responsibility' means for us. Following extensive stakeholder engagement, in September 2023 we updated our Charter to focus on 3 core pillars: Our Environment, Our Customers and Communities, and Our People. These pillars are underpinned by our Responsible Business fundamentals and previous pillars of Economy and Governance are now embedded within these new focused areas.

Performance Highlights

Our Environment		Our Communities & Communities		Our People

• Building on our role as a Principal Partner of COP26, we participated in COP27 last year
• Continue to advocate for Clean Energy Vision
• Viking Link interconnector completed - taking total capacity across our portfolio to 7.8GW
• Maintained our CDP Climate
  Change 'A list' rating for the 8th consecutive year

• Reliability of over 99.99% across our networks
• Connected 3,030 MW of renewable energy across our UK and US transmission and distribution networks
• £513m cost efficiency savings, exceeding the £400m FY24 target

• 'Stand Up For Safety' campaign launched as a core element of our new safety strategy
• We are a Living Wage Foundation employer in the UK; and in the US all colleagues are paid above the statutory minimum
• Diversity, equity and inclusion remains top of our priorities, as demonstrated by our executive remuneration policy which includes a focus on ESG

Our 'Grid Guide to' ESG Investor Series

A National Grid investor series containing a selection of podcasts and virtual sessions on relevant Environmental, Social and Governance topics and themes. You can browse our latest content by visiting our dedicated Environmental, Social and Governance webpage.

Our Clean Energy Vision

National Grid's vision is to fully eliminate fossil fuels from our US energy networks, enabling our customers and communities to meet their heating needs without using fossil fuels by 2050, if not sooner. Please visit: www.nationalgrid.com/us/fossilfree

Awards and recognition

To be held account against our environmental, societal and governance business commitments, National Grid is proud to share reporting data and have our sustainable efforts analysed.

Recognised as a Top 50 employer for gender equality in 2023 by The Times

Became a constituent of the 2024 Bloomberg Gender-Equality Index for the third year running

^

'AAA' (highest score) for the seventh consecutive year

Remained a constituent of the FTSE4Good Index

Achieved an 'A grading' rating (the highest) for our response to climate change for the eighth consecutive year and achieved a 'B-' grading for our CDP Water disclosure

Prime rating (C+), industry- leading score

*

Awarded score of 18.3/100 (Low Risk) in relation to experiencing material impacts from ESG and a strong score for management of impacts

Equileap

Ranked 2nd in the UK and 4th globally for gender equality by Equileap

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Important notice

Further information

Nick Ashworth	Angela Broad	James Flanagan
Director of Investor Relations	Senior Investor Relations Officer	Investor Relations Manager (US)
M [phone]	M [phone]	M [phone]
[e-mail]	[e-mail]	[e-mail]

Daniel Evans	George Adkins
Investor Relations Analyst	Investor Relations Associate
M [phone]	M [phone]
[e-mail]	[e-mail]
National Grid plc
1-3 Strand
London WC2N 5EH
United Kingdom

nationalgrid.com/investors