National Grid Plc · LSE:NG.
National Grid — Debt Investor Presentation (May 2025)
22 slides from National Grid's debt investor presentation, May 16, 2025
Slide 1: Full Year Results Debt Investor Update 2024/25
Full Year Results Debt Investor Update 2024/25 Alexandra Lewis Group Treasurer 16 May 2025
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: A year of significant progress
A year of significant progress FY2025 - 2029 Capital Record investment of £9.8bn c.£60bn – c.£51bn green 1 investment • Significant progress on ASTI portfolio Group asset c.10% CAGR 2 • Step up in asset health and network growth reinforcement in UK Electricity Distribution Committed to strong invest
Slide 4: £60bn capital plan
A year of significant progress Enhanced visibility of our investment plan US • 4 of 5 rate cases refreshed • >70% of our US investment agreed • Progressing our Electric Sector Modernization Plan filing in Massachusetts UK • Clean Power Action Plan • Connections reform • Planning reform Well position
Slide 5: Financial Highlights
Financial Highlights Strong financial performance in 2025 Underlying operating profit Underlying EPS Capital investment £5,357m 12% 73.3p 2% £9,847m 20% FY24: £4,768m FY24: 72.1p FY24: £8,220m Dividend growth Return on Equity in line with policy Regulated asset growth 9.0% 150bps 46.72p 3.2% 10.5% 1
Slide 6: Safety and Reliability
Safety and Reliability Reliability Safety • Strong network reliability despite • Lost Time Injury Frequency severe weather events rate of 0.10 – Storm Darragh in the UK – Restored power to 95% of customers within 48 hours • NESO published interim report on North Hyde 6 National Grid plc Full Year Re
Slide 7: Operational progress: UK Electricity Transmission
UK Electricity Transmission Operational progress Underlying operating profit £1,428m (FY24: £1,314m) £3.0bn capital investment, up Regulatory progress 57% • Submitted £35 billion RIIO-T3 • Ramp up of six Wave 1 ASTI business plan projects – Connect 35GW of generation • Major substation upgrades and
Slide 8: Operational progress: UK Strategic Infrastructure
UK Strategic Infrastructure Operational progress Key Highlights • Great Grid Partnership established • HVDC framework agreement in place • Supply chain secured for all 12 onshore projects EGL2 Wave 1 projects EGL1 • Six Wave 1 projects under construction EGL3 Wave 2 projects EGL4 • Workforce now sta
Slide 9: Operational progress: UK Electricity Distribution
UK Electricity Distribution Operational progress Underlying operating profit £1,203m (FY24: £1,152m) £1.4bn capital investment, up 14% Regulatory progress • Asset health • Ofgem decision on • Network reinforcement Connections Reform • c.600MW of renewable generation • ED3 framework decision connecti
Slide 10: Operational progress: US New York
US New York Operational progress Underlying operating profit £1,450m (FY24: £1,013m) $4bn Upstate Upgrade £3.3bn capital investment up 24% Electricity Transmission Projects • 218 miles of gas mains replacement • Ramp up of $4 billion Upstate Upgrade • Reinforcement and upgrade works as part of CLCPA
Slide 11: Operational progress: US New England
US New England Operational progress Underlying operating profit £924m (FY24: £800m) £1.8bn capital investment up 5% Policy progress • 134 miles Gas mains replacement • Permitting reform for utility • Increased asset condition and grid infrastructure modernisation work RoE of 9.1% • 92% of allowed re
Slide 12: Operational progress: NG Ventures and Joint Ventures
NGV NG Ventures and Joint Ventures Operational progress Underlying contribution £455m (FY24: £571m) £378m Capital investment down 43% Regulatory progress • Reflects completion of Viking Link • Offshore Hybrid Assets interconnector last year regulatory framework • Continued development Performance of
Slide 13: Interest, tax and earnings
Interest, tax and earnings Finance Underlying Underlying costs effective tax rate 1 earnings 2 £1.36bn 15.4% £3,452m £116m lower than FY24 Underlying tax charge: £616m FY24: £2,877m • Lower net debt following • 20bps lower than FY24 • 73.3p/share – up 2% the rights issue • Higher levels of capital •
Slide 14: Cash flow and net debt
Cash flow and net debt Cash generated Net debt (£bn) from operations1 £7.0bn 1.5 (1.3) 0.5 1.7 FY24: £7.3bn 43.1 (6.8) Dividend NG ESO Other 41.4 Net cash and UK GT Rights interest & disposal Net cash inflow 2 Issue net (7.0) 9.7 accretions £1.0bn proceeds Operating Capital FY24: (£3.7bn) Cash Flows
Slide 15: Financing National Grid's operations
Financing National Grid’s operations Funding & committed facilities Debt issuance programmes • External debt is issued by our UK (five) and US (six) operating National Grid National Grid National Grid National Grid companies, our US holding company National Grid North America plc (NG) North Electric
Slide 16: Debt issuance and hybrid bonds
Debt issuance and hybrid bonds £3.2bn of long-term debt issuance in FY25 • Lower than average issuance following the rights issue, primarily from our US entities, including: • Two EUR bond issues for NGNA, including our largest ever green bond issuance (€1.5bn) in November 2024 • Two 144A/RegS bond
Slide 17: Guidance and outlook
Guidance and outlook FY26 Guidance1 FY25-29 financial framework reconfirmed Capital investment >£11bn c.£60bn – c.£51bn green1 Group asset growth c.11% c.10% CAGR 2 Net Debt & credit Committed to strong investment grade credit rating Net debt increase of just over £6bn metrics Credit metrics above c
Slide 18: US Priorities
US Priorities US New York US New England Regulation Regulation • PSC commission approval of • Agree Electric Sector Modernization Plan Niagara Mohawk rate case recovery mechanisms with DPU • Submit Massachusetts Gas rate filing Policy • Work with New York state on Policy State Energy Plan • Progress
Slide 19: UK Priorities
UK Priorities UK Electricity Transmission UK Strategic Infrastructure UK Electricity Distribution Operational ASTI Programme Operational • Commission 2 circuits on • Ramp up construction on Wave 1 • On track to deliver £100m London Power Tunnels project projects synergy savings by FY2026 • Agree inv
Slide 20: NGV Priorities
NGV Priorities Portfolio • Complete sale of National Grid Renewables • Agree the sale of Grain LNG Projects • Progress the development – NY Propel JV – LionLink in UK 20 National Grid plc Full Year Results 2024/25 – Debt Investor Update
Slide 21: Building our energy future
Building our energy future Largest ever overhaul of our networks High quality, low risk asset growth Strong earnings growth Inflation-protected dividend Delivering long-term value and shareholder returns 21 National Grid plc Full Year Results 2024/25 – Debt Investor Update
Slide 22: Q&A
Q&A
National Grid — Debt Investor Presentation (May 2025) on 6ix