Slide 1: 2015-16 Full Year Results
Slide 2: Cautionary statement
nationalgrid 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 o
Slide 3: 2015/16 financial performance
nationalgrid 2015/16 financial performance OPERATING RETURN ON PROFIT EQUITY £4.1bn 12.3% ASSET GROWTH* 4% DIVIDEND PER SHARE 43.34p 3 2015-16 FULL YEAR RESULTS MAY 2016
Slide 4: UK Electricity Transmission
nationalgrid UK Electricity Transmission 10.2% + 2.10bps + 80bps + 80bps = ACHIEVED 13.9% Base return Totex incentive Other incentives Additional allowances RETURN FY15 14.0% OPERATING PROFIT eT .2bn -5% eT 1 bn eT 1 Bbn FY15 £1.2bn FY15 £1.1bn FY15 £11.3bn Adjusted results, excluding exceptional it
Slide 5: UK Gas Transmission
nationalgrid UK Gas Transmission 10.0% + (20)bps + 120bps + 150bps = ACHIEVED 12 5y Base return Totex incentive Other incentives Additional allowances RETURN . FY15 14.2% OPERATING PROFIT e486m 411% eT 86m £5.6bn FY15 £437m FY15 £184m FY15 £5.6bn Adjusted results, excluding exceptional items and rem
Slide 6: UK Gas Distribution
nationalgrid UK Gas Distribution 9.9% + 200bps + 100ps + 10bps = eee 13.0% Base return Totex incentive Other incentives Additional allowances RETURN FY15 12.9% OPERATING PROFIT £878m +6% °549m £8. 7bn FY15 £826m FY15 £498m FY15 £8.5bn Adjusted results, excluding exceptional items and remeasurements
Slide 7: US Regulated
nationalgrid US Regulated 7.7% +5.8% +10.2% + 11.4% =e 6—6 88.0% New York Massachusetts Rhode Island FERC RETURN CY15 8.4% OPERATING PROFIT €1.2bn -5% $2./bn $18.3bn FY15 £1.2bn FY15 $2.4bn FY15 $17.2bn Operating profit calculated at constant currency Adjusted results, excluding exceptional items an
Slide 8: Other Activities & JVs
Other Activities & JVs Ores eT 62m e72m ACTIVITIES Metering Grain LNG £123m IFA 256m Property JVs 250m e1 1 m BritNed Millennium * Excludes £63m equity contribution to St. William property joint venture Operating profit and investment calculated at constant currency Adjusted results, excluding excep
Slide 9: Interest, tax and earnings
nationalgrid Interest, tax and earnings = Effective interest rate = Tax rate 20bps lower = 3,755m weighted of 3.8% than 2015 average shares = Innovative financing at = Tax charge £58m = 63.5p/share low interest rates higher than 2015 Adjusted results, excluding exceptional items and remeasurements F
Slide 10: Cash flow and net debt
Cash flow and net debt £m Period ended 31 March 2016 Operating profit Depreciation & amortisation Pensions Working capital & other Net operating cash flow Net debt 4,096 1,614 (327) 339 5,722 (25,325) Adjusted results, excluding exceptional items and remeasurements Credit metrics reported using Mood
Slide 11: RCF/net debt
2015-16 FULL YEAR RESULTS MAY 2016
Slide 12: Growth through balanced investments
Growth through balanced investments UK US Gas Electricity Transmission Distribution Transmission Gas Electricity Distribution Distribution Gas Transmission 7.5%* rate base growth 3% RAV growth * Excluding movements in working capital * Excludes £63m equity contribution to St. William property joint
Slide 13: Sustained investment
nationalgrid Sustained investment oa aon Expect to sustain this level of : investment over the coming years £3.6bn £3.6bn TOTAL = Targeting asset growth of 5-7%* INVESTMENT £3.9bn Other Activities FY14 FY15 FY16 & JVs * Assuming 8% UK inflation At constant currency 13 2015-16 FULL YEAR RESULTS MAY 2
Slide 14: Operating profit, return on equity summary
OPERATING PROFIT RETURN ON EQUITY £4.1bn 63.5p 12.3% VALUE ADDED ASSET GROWTH* CAPITAL INVESTMENT £1.8bn 4% £3.9bn ulater stant c 2015-16 FULL YEAR RESULTS MAY 2016
Slide 15: 2015-16 Full Year Results Q&A