National Grid: Introducing Debt

Update on debt investors

Half-year results 2021/22

Alexandra Lewis, group treasurer

Caution

This presentation contains certain statements which are neither published 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 concerning the financial condition of National Grid (the Company), its results of operations and businesses, its strategy, plans and objectives. Words such as “aims”, “anticipates”, “expects”, “should”, “intends”, “plans”, “believes”, “prospect”, “research”, “estimates”, ” targets ”,“ may ”,“ will ”,“ continue ”,“ project ”and similar expressions, as well as statements in the future, identify forward-looking statements. These forward-looking statements are not guarantees of the future performance of National Grid and are subject to assumptions, risks and uncertainties that could cause actual future results to differ materially from those expressed or implied by these forward-looking statements. Many of these assumptions, risks and uncertainties relate to factors that are beyond National Grid’s ability to accurately control, predict or estimate, such as changes in laws or regulations, including those resulting from the UK exit from the European Union, announcements of decisions by government agencies or regulators, including the implementation of RIIO-2 price controls; the schedule for construction and delivery by third parties of new generation projects requiring connection; violations or modifications of laws or regulations relating to the environment, climate change and health and safety, including violations or other incidents resulting from the potentially harmful nature of its activities; network failure or disruption (including those leading to safety and / or environmental events), inability to perform critical off-grid operations and damage to infrastructure, due to adverse weather conditions, including the impact of major storms as well as the results of climate change, due to the inability of counterparties to deliver physical goods, or due to failure or unauthorized access or willful breaches of systems National Grid computing and supporting technology; the inability to anticipate and adequately respond to energy supply disruptions, including those caused by the COVID-19 pandemic; performance against regulatory targets and standards and against National Grid peers in order to meet stakeholder expectations for costs and efficiency savings, as well as against targets and standards designed to achieve zero net; and customers and counterparties (including financial institutions) who fail to meet their obligations to the Company. Other factors that could cause actual results to differ materially from those described in this presentation include fluctuations in foreign exchange rates, interest rates and commodity price indexes; restrictions and conditions (including deposit requirements) in National Grid’s borrowing and debt agreements, financing costs and access to financing; regulatory requirements for the Company to maintain financial resources in certain parts of its activities and restrictions on the transactions of certain subsidiaries such as the payment of dividends, loans or the collection of fees; delays in collections and payments in National Grid’s regulated activities, including due to the COVID-19 pandemic, and whether certain aspects of its activities are questionable; the funding requirements and performance of National Grid pension plans and other post-retirement benefit plans; failure to attract, develop and retain employees with the necessary skills, including leadership skills, and any material disputes arising with National Grid employees or violation of laws or regulations by its employees; failure to respond to market changes, including competition for land transport; threats and opportunities presented by emerging technologies; the Company’s inability to meet or meet its own commitments as a leader with regard to development activities linked to climate change linked to the energy transition, including the integration of distributed energy resources; and the need to develop the business of the Company to execute its strategy, as well as any incorrect or unforeseen assumptions or conclusions (including unforeseen costs and liabilities) regarding the business development activity, including the integration of WPD , the sale of the Company’s gas in Rhode Island and electricity and the proposed sale of a majority stake in its gas transmission business in the United Kingdom. For more details regarding these and other assumptions, risks and uncertainties that may have an impact on National Grid, please read the Strategic Report and “Risk Factors” section on pages 236 to 239 of the last annual report and financial statements. of National Grid, as updated by the Risks and Uncertainties Director on page 65 of this presentation. In addition, new factors emerge from time to time and National Grid cannot assess the potential impact of such a factor on its business or the extent to which one factor, or a combination of factors, may cause a substantial difference between actual future results and those contained in any forward-looking statement. Unless required by law or regulation, the Company does not undertake to update its forward-looking statements, which are only valid as of the date of this presentation.

2 National grid plc Half-year results 2021/22November 2022

Key points to remember

Transactions

  • WPD acquisition completed
  • Rhode Island sale on track
  • UK Gas Transmission sales process launched

Our companies

  • Now moved to a new operating model
  • > £ 400 million per year profitability program by end of 3 years
  • Targeting
    • At least 95% of authorized returns to the United States
    • 100bp outperformance thanks to RIIO-T2

3 National grid plc Half-year results 2021/22November 2022

Financial performance highlights??

Underlying operating result

Underlying EPS

£ 1,407m 52%

22.8p

66%

HY21: £ 924 million

HY21: 13.7p

Capital investment

Dividend growth in line with policy

£ 2,840m

22%

17.21p

HY21: £ 2,320 million

HY21: 17.0p

  • Excluding UK Gas Transmission which is classified as a discontinued operation, the comparative data has been restated accordingly Underlying results of continuing operations, excluding exceptional items, revaluations and schedule
    Capital investment includes investment in JVs (excluding equity contributions to the St William real estate JV) Operating profit and capital investment for continuing operations presented at constant exchange rates

4 National grid plc Half-year results 2021/22November 2022

Security and reliability

  • Good security performance with an injury frequency rate with stoppage maintained at 0.11
  • Reliability was excellent
    • 95% of customers restored within 19 hours of Hurricane Elsa and Henri in the United States
    • The UK coped well with summer periods of low wind power
  • Winter outlook 6.6% electrical capacity margin
  • British gas network peak demand in cold weather well below capacity
  • IFA1 return to full service scheduled for December 2022

5 National grid plc Half-year results 2021/22November 2022

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Disclaimer

National grid plc published this content on November 19, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on November 19, 2021 14:53:06 PM UTC.

Public now 2021

All news from NATIONAL GRID PLC

Analyst Recommendations on NATIONAL GRID PLC
Sales 2022 15,381 million
20 669 million
20 669 million
Net income 2022 2,024 million
2,720 million
2,720 million
Net debt 2022 38,602 million
51,873 million
51,873 million
PER 2022 ratio 15.3x
Yield 2022 5.09%
Capitalization 35 683 million
48,073 million
47 950 million
VE / Sales 2022 4.83x
VE / Sales 2023 4.58x
Number of employees 23 683
Free float 93.1%

Duration :

Period:

National Grid plc Technical Analysis Chart |  MarketScreener

Trends in technical analysis NATIONAL GRID PLC

Short term Mid Road Long term
Tendencies Bullish Bullish Bullish

Evolution of the income statement

To sell

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Average consensus TO BUY
Number of analysts 16
Last closing price

986.50 GBX

Average price target

1,037.43 GBX

Spread / Average target 5.16%


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