National Grid Plc · LSE:NG.
National Grid — H1 2015/16 Earnings Presentation
19 slides from National Grid's earnings presentation, Nov 10, 2015
Slide 1: Half Year Results 2015/16
2015/16 Half Year London | Tuesday 10 November 2015 Results
Slide 2: Cautionary statement
Cautionary statement This presentation 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 Securit
Slide 3: Business Review
2015/16 Half Year Results Business Review
Slide 4: Financial headlines
Financial headlines £ 1.8bn £ 1.4bn £ 1.1bn profit operating profit before tax earnings Note: Adjusted results, excluding exceptional items and remeasurements for continuing operations 4 All numbers include impacts of timing
Slide 5: Electricity Transmission
Electricity Transmission Incentives Totex Other Add’l Overall Totex UK Electricity Transmission £610m = = = = Expected year on year movement in returns Totex performance driven by capital efficiencies New balancing services incentive scheme On track for similar overall returns Note: Adjusted r
Slide 6: Gas Transmission
Gas Transmission Incentives Totex Other Add’l Overall UK Gas Transmission £159m = − − − Expected year on year movement in returns UK Transmission Totex spend in line with allowances Expiry of permit income; overall good other incentive performance expected Additional (legacy) allowances rampin
Slide 7: Gas Distribution
Gas Distribution Incentives Totex Other Add’l Overall Totex UK Gas Distribution £428m = = = = Expected year on year movement in returns Similar level of totex efficiencies Similar level of other incentive performance Overall performance in line with 2014/15 Note: Adjusted results, excluding ex
Slide 8: US Regulated
US Regulated US Regulated £351m around 8% projected 2015 returns Operations performing well Controllable operating costs reduced Step up in growth of regulated assets Regulatory filings underway Note: Adjusted results, excluding exceptional items and remeasurements for continuing operations
Slide 9: Other activities
Other activities Metering Grain LNG IFA Property Op Profit Other £84m £39m £81m £61m £288m activities Metering and Grain to sustain steady performance IFA strong performance; H2 to be slightly less than last year Property sale of two properties; likely to remain flat through H2 Elimination o
Slide 10: Interest, tax and earnings
Interest, tax and earnings Finance costs Effective tax rate Earnings per share £493m 22.0% 28.4p consistent with 2014 at £(302)m Effective interest rate Tax rate 70bp lower £1.1bn earnings 3.7% than 2014 3,761m weighted Refinancing debt at Reflects lower UK avg. shares prevailing rates c
Slide 11: 2015/16 asset growth
2015/16 asset growth ~£3.7bn total Group investment for FY15/16 ~7% ~5% US Regulated ~1-2% UKET UKGT UKGD 4-5% Group growth rate expected 11
Slide 12: Cash flows and net debt
Cash flows and net debt Period ended 30 September 2015 £m Net operating cash flow Operating profit 1,836 Depreciation & amortisation 796 £2.7bn Provisions, incl. pensions (284) Operating cash flow after capex Working capital & other 333 £85m Net debt Net operating cash flow 2,681 Net debt 24,592 £24
Slide 13: Debt financing
Debt financing Cash-settled convertible bond - Non-dilutive - 5 years, low cost funding Commenced drawing the £1.5bn EIB loan at attractive rates and extended drawdown period 13
Slide 14: Portfolio Update
2015/16 Half Year Results Portfolio Update
Slide 15: Portfolio update
Portfolio update Potential sale of a majority stake in UK Gas Distribution Rebalance the portfolio to deliver higher growth Beginning of the process Return substantially all net proceeds to shareholders Maintain the dividend policy 15
Slide 16: Timeline of milestones
Timeline of milestones 2015 2016 2017 16
Slide 17: Summary
Summary Solid first half; on track for another year of asset growth and good returns 17
Slide 18: Q&A
2015/16 Half Year Results Q&A
Slide 19: Half Year Results 2015/16
2015/16 Half Year London | Tuesday 10 November 2015 Results